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CEO Dev Randhawa believes the PLS resource estimate is good for all companies in the western region of the Athabasca Basin.
Despite all the furor raised in the past week about Fission Uranium’s (TSX:FCU) maiden resource announcement, CEO Dev Randhawa isn’t surprised about the grades uncovered at the Patterson Lake South (PLS) project.
“To us this isn’t a surprise. Maybe we’re dreamy eyed people. Look at the assays we were putting out. This shouldn’t shock anybody,” he said in an interview with Uranium Investing News. “What shocks me is how well it’s held together.”
With an indicated resource of 79.6 million pounds, the deposit is reportedly near surface, which will allow for an open-pit style of project
While Randhawa said the amount of indicated resource caught him off guard, he thinks the toll of the commodity market was tiring out both investors and analysts. ”My own feeling is, I’m not a psychologist, I think people were so beat up on commodities,” he said. “No one really paid attention to what was going on in the fall.”
Located about 8 kilometers south of the Athabasca Basin, which is home to Denison Mines (TSX:DML,NYSEMKT:DNN), Cameco (TSX:CCO,NYSE:CCJ), Kivalliq Energy (TSXV:KIV) and other uranium players in the Canadian market, Randhawa bills PLS South as the third-largest asset in the area and the largest underdeveloped asset there as of now.
The western half of the basin has been traditionally empty of projects as larger companies continue to focus on the eastern side where they have made key discoveries.
However, Randhawa thinks Fission’s resource announcement will help spur a change in that view by opening the market’s eyes to the potential of the area as a whole. ”Now you’ve got the third-largest asset and the largest underdeveloped asset,” he said. “Hopefully it means positive things for our sister joint venture companies like Brades Resources (TSX:BRA), Azincourt Uranium (TSXV:AAZ) and even companies like NexGen Energy (TSXV:NXE). It’s good news for all those guys because hopefully we can get more of a larger uranium shield camp in the area.”
Fission has worked with Azincourt at drill sites at Hodge Lake, Harrison Lake and Broach Lake, while Brades works with Fission in exploring the Clearwater West property. NexGen saw an increased share price on Monday morning despite putting out no news of its own.
While the majority of analyst reports have praised the resource estimate and what it could bring to the market, several have raised questions about the need for a mill to help retain the high-grade uranium the project has uncovered.
Randhawa admitted the lack of a mill has raised concerns, but he thinks the resource speaks for itself and should help fuel interest in creating a mill.
Finally, with the estimate have come takeover and acquisition rumors.
“I do think the Fission project is ripe for somebody maybe interested in increasing their footprint on the west side of the basin,” said David Talbot, an analyst with Dundee Capital Markets.
While Randhawa couldn’t comment on the rumors he admitted Fission’s aggressive expansion platform has helped raise its profile.
“Some analysts say we’re a better target because we own 100 percent of our asset and it’s open pittable. Open pit is a lot less complicated than going underground.” he said. “We don’t control any of that. What we’re doing is build it, be aggressive … all we’re doing is keeping all the doors open.”
Securities Disclosure: I, Nick Wells, hold no direct investment in any of the companies mentioned in this article.
Related reading:
Fission’s Resource Estimate for PLS Sends Stock Rising
Fission Releases PLS Resource: 79.6 Million Pounds Indicated, 25.9 Million Inferred