Raymond James Comments...Courtesy of Letsgetready on the FCU BB...
Fission/Alpha: R390E Continues to Grow... Now Doubled in Strike from Winter
This morning, Fission and Alpha announced preliminary scintillometer results from five holes
at their jointly-owned (50/50) Patterson Lake South (PLS) project in northern Saskatchewan.
The holes all targeted R390E Zone – to date, the most prolific area of mineralization at the
project – and were designed as step-outs to extend N-S width (four holes) and along-strike
to the west (one hole). Results are positive: the zone continues to demonstrate high-grade
over an ever-increasing footprint, bolstering our confidence in eventual size; our notion that
the four zones discovered thus far could be linked; and our 80 Mlbs target resource.
All ‘Width’ Step-outs Hit. Each of the four holes designed to extend R390E’s width cut
uranium, expanding the zone’s extent on some sections by 10 m to the north or south with
variably prolific results. The best hole, 86, cut 47 m of continuous mineralization, including
5.27 m of off-scale (of which 3.0 m is continuous), starting at 75 m depth. Off-scale typically
correlates with uranium grading above 2% U3O8, suggesting another very strong hole.
Double the Strike. A fifth hole, 83, was collared 15 m west of R390E’s previously westernmost
hole 75 (which yielded perhaps the best interval on the property; see our Jul-29-13 Brief, for
details). Hole 83 cut an aggregate of 61.5 m of radioactivity, as mod.-to-strong intervals, over
a 105.5 m span, starting at 53 m depth – a weaker result than 75 (suggesting the core of the
zone may have pinched out slightly or jogged to the N or S), but which extends R390E to 120
m E-W strike, a full double from the 60 m strike established by winter drilling. Recall, our
contained metal estimate for R390E was 10 Mlbs grading 2.9%, based on winter assays.
Potentially Linked Zones and RJL Resource Target. Further demonstration of the size
potential of R390E, particularly the 15 m west step-out, bolsters our confidence that, over the
next 6–12 months, the JV should be able to provide resource visibility of 80 Mlbs: our recently
increased resource target. Further, it supports our view that the four zones may be linked to
each other; as highlighted in our Aug-15-13 Comment, “Fourth Zone Discovered at PLS –
Strike Now Exceeds 1,000 m”, uranium could be continuous across the majority of the existing
1.0 km strike, locally pinching into thin, lower-grade areas and swelling into high-grade pods.
No Devonian. Today’s three westernmost holes cut no Devonian-age (young) La Loche
sandstones. This unit is normally found to overlie basement rocks in R00E and R390E and
often has been used to rule out these zones as sources for the surface boulder field to the
west. Holes 83, 85, and 86 suggest that the western edge of R390E – and perhaps the
continuation of the zone, as holes 34 and 36 (R00E’s easternmost holes) also cut no
Devonian – could be the source for the boulders 3.5 km away (an implied skip distance
which fits the geomorphological model).
Drill, Baby, Drill. Drilling continues with two barge-based rigs at R390E and R780E. Pending
JV approval, a third land-based rig may be brought in to test the area west of R00E (in our
view, a highly prospective target in geophysics; an on-going radon survey may also bolster
potential). Results from only 14 of 44 holes planned this summer have now been released.