Fission Uranium Drilling Confirms High-Grade Zone at Patterson Lake South
Source: The Energy Report
April 18, 2017 (Investorideas.com Newswire) Drilling at Fission Uranium's Patterson Lake South has confirmed the R1515W zone, and several analysts are expecting the resource to continue to expand.
Fission Uranium Corp. (FCU:TSX; FCUUF:OTCQX; 2FU:FSE) announced that follow-up drilling on the R1515W zone of the Patterson Lake South (PLS) project in Canada's Athabasca Basin region has confirmed the high-grade discovery that the company first announced on March 20. Fission has completed drilling two of the four follow-up holes, and they provide the strongest mineralization yet encountered at the high-grade, near-surface and land-based zone.
Ross McElroy, president, COO and chief geologist for Fission commented, "PLS17-553 is the second strongly mineralized hole in the newly discovered zone and confirms the potential for significant widths and high-grade radioactivity. The R1515W is the western-most zone of high-grade mineralization on our Patterson Lake Corridor trend and expands the strike-length of our high-grade mineralized foot-print to 3.14km—the largest in the region. . .it is open in multiple directions and we look forward to the next two holes of our follow-up drilling."
David Talbot, an analyst with Eight Capital, noted on April 4 that the R1515W zone may see further expansion, writing that it is the "third land based zone, and occurs near surface (185m depth), potentially high grade, and open in several directions including along strike. R1515W zone is not included in current resources or PEA. Provides further upside for future economic studies." He has a Buy rating and a target price of CA$2.25.
Analyst Rob Chang with Cantor Fitzgerald wrote on April 4, "While still early stage, the R1515W zone may provide yet another additional source of uranium pounds for Patterson Lake South. We reiterate our BUY recommendation."
Heiko Ihle, an analyst with Rodman & Renshaw, noted that the discovery has increased the strike length of PLS from 2.63 kilometers to 3.14 kilometers and commented that "the quick positive results of follow up drilling at R1515W bodes well for further exploration success at the zone and [we] think results from the next two drill holes may be positive."
Ihle also stated that he believes Fission should remain "somewhat insulated from the current uranium environment. While uranium prices continue to languish below $24.00 per pound, we remain confident that Fission's world class development stage project should continue to provide investors shelter from current prices. To this end, given that PLS is a non-producing asset, Fission is not forced to sell the project's resources into a depressed market. . .we currently envision PLS entering production in 2023. In our opinion, the timing of PLS coming online should coincide with when we expect utilities to re-enter the market as by 2025 over 80% of utility requirements are expected to be unmet."
Ihle concluded by noting Rodman & Renshaw continues "to view Fission as a potential takeover target." The firm has a Buy rating and a $1.70 target price on Fission Uranium.
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