Cameco Corp.has started drilling at CanAlaskaUranium Ltd.'s WestMcArthur project in Saskatchewan, CanAlaska said in a March 29 statement.

Cameco signedan agreement in February to option the property, and can earn up to a 60% interestvia total expenditures of approximately C$12.5 million.

Drilling will test uranium targets on the Grid 5 target.

The McArthur project covers 35,830 hectares, beginning 6 kilometersnorthwest of Cameco's McArthurRiver uranium mine.

CanAlaska also said the Fond du Lac uranium project has been returned to the Fonddu Lac Denesuline First Nation as the project was near the end of its federal leaseterm.

The company said it is focusing on its key projects at West McArthurand at Cree East.