Raymond James Comments on Fission News: 100-150 MlbsRaymond James Ltd.
Canadian Equity Research - Mar-7-14
Event
On Wednesday, Fission released preliminary scintillometer results from 20 holes at its 100%-owned Patterson Lake South (PLS) in northern Saskatchewan.
Analysis
Great Results Filling Gaps Between Zones. All 20 holes cut uranium, of which two-thirds cut off-scale radioactivity, which typically correlates with very high-grades. All 32 holes completed so far this winter (of 85 planned on-trend) have been mineralized. Drilling has now linked the R780E and R945E Zones into a single contiguous body of mineralization. Not only is the gap now filled, it is filled with high-grade, e.g. 100 m of total composite mineralization ('TCM') over a 269 m span including 7.4 m off-scale in hole 146. This corroborates our earlier suppositions (see our Aug-15-13 Comment) and bolsters potential of similar continuity throughout the 1.78 km trend. We believe it is likely that additional drilling this winter will similarly fill-in gaps between R390E, R585E and R780E.
Highly Prospective to East and South. It should also be noted that the best hole of this batch, 158, cut 10.9 m of off-scale at the easternmost edge of the newly-combined R780E/R945E Zone (on line 990E), suggesting the system is not letting up to the E, towards the under-tested R1150E Zone. At R780E Zone, holes 140 and 155 extended N-S width to 95 m - the widest point on the trend by ~50 m -foretelling significantly higher width potential across the system, beyond the average (and predominantly drill hole-limited) width defined thus far of 20 m.
Boosting Metal Target. In light of the demonstration of excellent growth potential as highlighted above, we are increasing our target for contained metal to 100 Mlbs (from 80 Mlbs), but we see potential for ~150 Mlbs in the longer-term.