Drill Tracker Weekly: Fission Drills 12.5 Meters Grading 10.91 Percent U3O8

Fission Uranium (TSX:FCU)

Price: $0.66

Market cap: $254 million

Cash estimate: $13 million

Project: Patterson Lake

Country: Canada

Ownership: 100 percent

Resources: 79.6 M pounds @ 1.58% U3O8 indicated, 25.8 M pounds @ 1.30% U3O8 inferred

Project status: PEA completed September 2015

• Fission Uranium announced the initial assay results from the 2015 summer drilling program on its 100% owned Patterson Lake South project in the southwestern Athabasca Basin in Saskatchewan. On July 6, 2015, The Company announced the intention to merge with Denison Mines (TSX:DML) to create an integrated mining, processing and exploration company.
• Highlights from the drilling on line 555E in the 780E zone included an interval 12.5 metres grading 10.91% U3O8 starting at a depth of 120 metres. The interval included a high-grade interval of 4.50 metres grading 21.53% U3O8. Drilling in the 600W Zone intersected 27.0 metres grading 2.92% U3O8 including 10.50 metres grading 6.44 % U3O8. The high-grade mineralization in the 600W Zone is not included in the existing resource or the PEA.
• In January 2015, the Company announced a preliminary 43-101 compliant indicated resource estimate of 79.6 million pounds at a grade of 1.58% U3O8 including high-grade core of 44.2 million pounds at 18.21% U3O8. The 43-101 resource also included an inferred resource estimate of 25.8 million pounds grading 1.30% U3O8_. The Drill Tracker Chart for Fission plots the previous drillholes based on the starting depth of the mineralization showing the abundant number of near surface holes above 150 metres depth.
• The PEA completed in September 2015 envisions an initial capex of $1.1 billion with a 1.7 year payback period. The economic estimate study shows a post tax NPV (10%) of $1.02 billion and an IRR of 34.2% using a $65/lb U3O8 price (current price $37.25). The economics of the deposit are most strongly affected by the uranium price used as indicated in the PEA forecasting a 50% decrease in the NPV with a $50 price for U3O8. An additional key risk would be the need to permit and build a processing facility. The combined open-pit and underground operation is forecast to have a operating cost of $14.02 per pound U3O8.
• The Company also announced promising results from regional drilling on the Forest Lake and Patterson Lake corridors.

Discovery hole Patterson Lake South (Nov 2012): 8.5 metres @ 1.07% U3O8

Current holes: 12.5 metres @ 10.92% U3O8 (555E), 10.5 metres @ 6.44% U3O8 (600W)

 
Risk Analysis
Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results.
Relevant Disclosures Applicable to: Drill Tracker Weekly

1. The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following companies in this report. Fission Uranium (TSXV.FCU)

Analyst Certification
I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.