Lakeland Resources Ord LRESF

Dundee Capital Markets on Fission News

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Spectacular First Summer Hole - PLS Has Much More to Give

 
Fission announced a spectacular first drill hole from its 2013 Summer drill campaign at its 50% owned PLS property this morning. Hole PLS13-072 is the broadest intercept, with the most amount of off-scale mineralization drilled to date, located at its R390E Zone.
• PLS13-072 - 85.5m (62m-147.5m) wide intercept of variable radioactive mineralization including 18.93m off-scale (>9999cps) in numerous intervals
We are very encouraged to see such success and so early into the drill campaign. Many investors cast doubt that summer exploration would be as successful as the winter campaign, and that the best mineralization was already found. Hole -72 acts to dispel that concern, while extending the strike length of R390E by 15m west. We already believe R390E may host upwards of 13 MM lbs, adding -72 will likely be accretive to that number. Drilling is back in full swing with three rigs and two barges for a 40 hole program on R00E, R390E and R780E, plus 4 regional holes.
• Drawing comparisons to -53 and -51. Hole -72 is shallower, and hosts more mineralization and off-scale radioactivity than either -51 or -53. While this doesn't guarantee a blockbuster assay, scintillometer results have correlated well to actual results - case and point with -53 and -51. Both of those holes intersected >6.2% U3O8 over ~50m including high grade cores (Table 2).
• Shallower to the west. Further west the higher up mineralization appears, while it deepens east along strike. There simply aren't enough holes yet to determine the geometrics of mineralization. What we do know is R390E includes multiple steeply dipping structures, rather than one, with alternating sequences and north-south trending faults. It's not as flat lying as say R00E. Angled holes would help but are far too costly and technically challenging to complete on barges (same thing with Roughrider and J Zone).
• Strike extent bodes well for resource growth. Now the zone remains wide open and thickening to the west beyond perhaps the best hole of the deposit. Hole -72 was drilled 15m west of -61 which was relatively thinner and lower grade, but still exceptional (1.39% U3O8 over 23.5m including 4.34% over 6m). Strike length at R390E has improved to 75m strike x 30m width (Figure 1).
• Outside heart of the radon anomaly. Radon tells us FCU should be testing to the east (Figure 2). But lake bottom radon sediments are showing better radon signatures to the west. The radon-in-water survey suffers from radon mobility which helps to identify zones, but not necessarily mineralization. The zone still looks exciting to the east and remains open. Drilling is planned along strike.
• Consistent mineralization. Technical issues have been resolved, and FCU is back to drilling -72, with down-hole gamma expected shortly to verify scint. readings. The first 5m of -72 appear anomalous, with radioactivity picking up at 67m (including 4.6m continuous off-scale from 94.5m-99.1m). Radioactivity is fairly continuous, especially between 67-108m and 125-147.5m