It the past few months, Fission Uranium (FCU:CA) ($FCUUF) has proven that four distinct mineralized zones are in fact one giant zone through delineation drilling. It significantly increased the strike length. It discovered a brand new mineralized zone. It bought out its JV partner. And it's dramatically increased the estimated amount of uranium pounds in the ground.
You couldn't write a manual that good on how to execute.
The winter drill campaign saw 92 holes put in the ground totaling just over 35,000 meters. 80 holes were to further explore the main mineralized trend, and 12 holes were to find additional mineralization, which they did.
- 1 hole testing the R00E zone
- 1 hole in between the R00E and R780E zone
- 1 hole testing the R1155E zone
- 2 holes into a new discovery, the R1620E zone
- 77 holes testing the R780E zone
Early results for 12 holes came on April 24, with all 12 hitting uranium mineralization, seven of those “off-scale.” Importantly, one of those holes was in the new R1620E zone, so additional follow-up will be needed there during the summer program, which is expected to commence soon.
Assays are still needed to confirm the grades of all the latest holes.
All the zones along the PL-3B Conductor in and along Patterson Lake now look like this:
PLS Winter 2014 Overview
And here's a map of all the drill holes executed during the winter program:
PLS Winter 2014 All Holes
On April 28, the results of an additional 10 holes outside of the main PL-3B conductor were announced. These included PL-1B, PL-2C, and PL-3C. Two of those holes (PLS14-196 and PLS14-208) hit mineralization.
Additional results from radon-in-lake surveys for four areas (A, B, C, D) in Patterson and Forrest Lake were also released that day.
Here's what the company said about these radon survey results:
Some of the radon anomalies are on the scale of intensity as the anomalies associated with the PL-3B conductor at PLS that led to the discovery of high-grade uranium mineralization in drill core in 2013. The 2013 radon survey assisted targeting along the PL-3B conductor was a contributing factor in the success of drill collar step outs as large as 465m at PLS.
Ross McElroy, President, COO, and Chief Geologist for Fission, commented:
“Mineralization to date at PLS has been discovered by drill testing along just two basement EM conductors (PL-3B and PL-3C). Over 120 such conductor axis have been identified by geophysics on this remarkable property and we are highly encouraged by the strong results of this survey.
What they're looking for here is radon anomalies similar to those they found in 2013, which led to this initial discovery. And they found a lot more of them.
Area A is the area that includes the zones that have already been drilled. The company already knew about six radon anomalies there, but these new surveys found 14 more.
Area B is about 2.5 kilometers to the northeast. Five new radon anomalies were found there.
Area C is 1.5 kilometers to the south. Nine new radon anomalies were found there.
Area D is located five kilometers further to the southeast. Nine new anomalies were found there as well.
By the maps, Areas C and D look the most promising. You can check out the intensity on them in the maps located here: http://fissionuranium.com/project/pls/maps/
All those areas will be followed-up on during the upcoming summer drill program.
The radon surveys on the PL-3B conductor were more impressive. That's why they drill them first. The uranium found as a result of that conductor alone make this a $2.50 to $3.50 stock.
All these new areas are icing on the cake and will only make the deposit more valuable than that. And it looks like the icing is there.
I expect better trajectory for the stock. Right now, it's a victim of uranium prices, which have been falling quickly. The value of this deposit is strongly tied to that macro factor, as uranium prices will greatly influence the ultimate sale price of this deposit.
At the end of the day, Patterson lake South is a deposit that's significantly bigger than it was just a few months ago –and it's still growing. Nothing has fundamentally changed with the company or the resource that's negative in any way. Only positive things have happened.
The only thing that's changed recently is the share price. I was bullish at $1.60, and I'm just as bullish now.
So trading at $1.20, it's an even better buy.
