Fission ($FCU:CA) ($FCUUF) continued its parade of exceeding good news over the past few weeks, starting with announcement on August 18th that eight new angled holes during the summer campaign have intersected off-scale uranium mineralization. The best hole, PLS14-259, hit over 98 meters of mineralization, including 11 meters of off-scale.
Drilling has now expanded the high grade area of R780E Zone by 15 meters to the south and 30 meters to the north. This expansion has led the company to drill 10 more holes as part of this summer program.
President, COO, and Chief Geologist Ross McElroy summed it up nicely:
"We continue to see remarkable results from PLS, with strongly mineralized angled drill holes widening zone R780E laterally both to the north and south. The program has been so successful that we will be drilling an additional ten holes to test for further north/south widening of the R780E zone. The summer program will therefore include a total of 25,000m in 73 drill holes."
Then on August 26th, there was another handful of great news.
Results from seven new angled holes showed the all intersected wide intervals of mineralization. Five returned off-scale levels. And the best hole of the set, PLS14-271, hit over 103 meters of mineralization including 10 meters of off-scale.
Even better, R780E Zone has been expanded once more. This time with high-grade mineralization pushing 15 meters further west. That will be followed up with more holes to see if mineralization continues in that direction.
And the best part of the news was the connection of yet two more zones.
Fission started the winter program with eight zones. It connected four of them and left the winter drill season with five zones.
Now, R780E and R1155E have been connected. And they are down to four zones:
- R600W
- R00E
- R780E
- R1620
I was saying a year ago that this could be one giant zone. And every piece of news since has justified that theory.
Here's a map of the four zones they now have:
Ross McElroy is now calling it tremendous:
"Today's results have merged yet another eastern mineralized zone (R1155E) with the rapidly expanding R780E zone. We are also seeing the westward expansion of the R780E's extensive high-grade area. The summer program is continuing to drive PLS forward at a tremendous pace."
And here's a map of the mammoth R780E Zone showing recent holes:
More broadly, there has been some positive news for entire uranium space, starting with a strike at key Cameco deposits.
As Cantor Fitzgerald notes:
Event: Cameco has announced that it has received a strike notice from United Steelworkers Local 8914. As a result the company has initiated shutdown of its McArthur River and Key Lake Mill operations and will cease production at those sites.
Bottom line: Negative – A sustained shutdown at the company’s flagship operation will impact its future earnings. Margins will likely compress as material for delivery is sourced from higher cost sources such as the spot market. However it is Positive for the uranium space as it reduces some of the excess supply.
Uranium prices are up off their 52-week lows of $28/lb touched in June and July of this year, to $32/lb. That's a 14% jump in a month or so.
Fission is a great speculation at current uranium prices… and an even better one in a rising uranium price environment.
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