Dundee Securities says: Dundee Securities comments:
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35% U3O8 over 6m within 6.26% over 49.5m at R390E
Results from hole PLS13-53 at the R390E Zone on Fissions 50% owned PLS project were announced this morning. Two zones of mineralization were intersected - an upper and lower zone, both strongly mineralized, separated by about 4.5m of low grade material (Table 1). This third high grade hole now confirms that the R390E zone and its high grade core continue another 15m to the west of its discovery hole -38 (Figure 1).
• 6.26% U3O8 over 49.5m including 35.0% over 6.0m
• 2.63% U3O8 over 16.5m including 13.19% over 3.0m
We continue to watch this project carefully. While zone R390E is the most impressive to date, we still believe we are in the early stages of exploration and are impressed at how quickly Fission can turn geophysical and radon anomalies into positive drill results. All zones remain open in most directions, and the high grades, shallow mineralization, good infrastructure and aggressive exploration program will ensure that all eyes in the uranium investment community remain transfixed on this project. It is no wonder why the big guys such as Areva, Cameco (CCO-T, Not Rated), and UEX (UEX-T, Buy, High Risk, C$1.70 Target) and newcomer NexGen Energy (NXE-T, Not Rated) are starting to focus on the Western side of the Athabasca Basin, and their own projects in the PLS discovery area.
Now with three assayed holes announced at R390E, we observe the following:
• Footprint of R390E unchanged. We continue to assume a 60m long x 20m wide footprint for this zone as we previously interpreted strong scintillometer results and uranium mineralization to mean R390E showed continuity.
• GT increases significantly. GT rises 11% to 296 (%m) from 267 using 0.1% cut-off grade. GT rises 12% to 290 from 258 using a 1% cut-off.
• Thickness increases significantly. The average thickness of the entire R390E Zone increases 6% to 59.3m from 56.0m using a 1% cut-off. It increases by 17% to 51.0m from 43.5m using a 1% cut-off.
• Grades improve. The average grade of the zone rises 5% to 4.98% U3O8 from 4.76% at a 0.1% cut-off. Using a higher cut-off, grades decline by 4% to 5.68% from 5.93% as a result of both the higher grade and lower grade intercepts still making our 1% lower limit for inclusion in our estimate.
• Mineral inventory may increase. Based on our current footprint assumptions and current average grade and thickness for the zone, we may actually see a 2 MM lbs increase to our estimate of the size of the R390E Zone. This would suggest R390E increases to 20 MM lbs, while the R00E Zone adds almost 7 MM lbs elsewhere. However, we caution investors that high grade intercepts such as holes -38, -51 and -53 may not continue and the average grade/thickness of the zone may ultimately decline. On a positive note, we have established our 60m x 20m footprint assumption only on the three existing high grade holes plus holes -61 and -66 (assays pending). We still await assays from those holes along strike, one hole to the south and five holes to the north. While those holes to the north are mineralized, grades will likely come down, but they could also likely increase the width of the zone.