Alpha Minerals Inc ESOFD

Cantor Fitzgerald thinks: 45 milion lbs

[ppprecies]

CANTOR FITZGERALD CANADA – Equity Research
Rob Chang, MBA
Associate: Michael Wichterle, MBA
Radon in gas survey identifies additional targets at Patterson Lake South
• Fission Energy and its 50/50 joint venture partner Alpha Minerals have announced results from a radon survey performed on April 21, 2013.
o Radon surveys performed earlier this year led to the targeting of what later has become zones R390E and R780E. The former already contains several world-class drill results intercepting shallow, high-grade U3O8.
• Management notes that they have identified the strongest radon-in-water anomaly to date of 13.3 pCl/L located about 170m north east, and along strike of, the R780E zone.
• Six new radon anomalies have been identified in total with this survey in addition to five anomalies that were identified in the previous survey. All are associated with known conductors and offsetting structures.
• The eastern-most radon anomaly located approximately 1,500m east-northeast along strike of the R780E zone has been confirmed, refined and extended
• The radon survey appears to have successfully detected uranium sources at greater than 50m depth that justify further drill testing
• The Joint Venture has been granted an extension of the previous winter drilling permit. Drilling from barges on the lake is planned, and permitting of this work is in progress.
• Radon surveys will be continued next winter to refine current anomalies and extend the survey area in the exploration for further anomalies, particularly in areas, defined by geophysical methods, of apparent cross cutting structures within the Patterson Conductor Corridor.
• We note that using radon in water surveys has been successful in identifying targets to date at Patterson Lake South. In particular we note that the anomaly that resulted in the R390E zone appears to run about 130m east to west in length. Drilling thus far has accounted for 60m of this length to date and a back of the envelope estimate of 19.5M lbs in this zone alone.
o If we extend the strike length to 130m and hold other assumptions constant, the R390E zone would have a rough estimate resource of 42.3M lbs U3O8. Combined with our estimate for the R00E zone the potential resource could be about 45.5M lbs.