Fission Uranium Corp T.FCU

Dundee Capital Markets: Buy rating and $2.40 target for FCU

[shakerman640]

According to Dundee Capital Markets:

https://personal.crocodoc.com/LsvPuyh

Fission Uranium Corp.

(FCU-T: C$1.15) intraday

June 1, 2015

BUY, Speculative Risk, Top Pick

Dundee target: C$2.40

Drill Results In Line - Assays Wind Down As Prep For Summer Heats Up

We recommend Fission Uranium as a Top Pick with a BUY and C$2.40/sh target. Assay results from seven angled holes at Triple R Zones R600W and R780E at the Patterson Lake South (PLS) were provided overnight. We view these results in line with past results and modestly accretive, helping to fill gaps and extending R780E at depth locally. Follow up drill results at R600W largely fall in line with the strong R600W discovery hole (3.36% U3O8 over 44m, including 14.74% over 9m). Each additional hole helps cement our belief that this zone can gain enough critical mass to carry a good portion of the resource. Another hole from R600W and 17 from R780E remain pending, with a two month turnaround at the lab. Fission Uranium remains our Top Pick and we expect it to rebound as investors begin to focus on the summer drill program. FCU trades at US$3.11/lb EV vs US$4/lb global precedent average, and ~$10/lb for the high grade Athabasca.

• R600W expanded 15m to east. Results include 14.84% U308 over 3.5m within larger interval of 2.06% over 40.5m (PLS15-364). A second intercept was lower grade, returning 0.23% over 16m (-360). This starts to fill a nearby half-kilometre-long gap back towards the bulk of Triple R deposit. Assays continue to confirm that R600W is a high grade, shallow, land based zone. This entire zone has not yet been included within a resource estimate.

• R780E expanded at depth locally by 20m. Assays include 11.57% over 8m within 3.5% over 31m (-368). A couple other holes have thinner zones that host narrow but elevated uranium mineralization including (-363) which returned 0.4% over 14.5m including 1.32% over 1.5m and 1.09% over 1.5m.

R780E's lower limits thinning yet still robust. R780E once again tends to parallel structure at depth, rather than cut-across structure. With robust thicknesses and grades, we believe these areas should ultimately fall inside an updated resource estimate. Intensity of alteration and mineralization suggests that the rocks were well enough prepared to allow plenty of uranium bearing fluids pass through.

Triple R found along a 2.27km trend. Mineralization has been traced over 2.27km E-W strike length within four mineralized zones: R600W, R00E, R780E, and R1620E. Mineralization remains open along strike, both in the east and west extents, and within gaps between some of these zones (particularly the original R00E and the latest R600W discovery zone). We expect that the 106 MM lb U3O8 resource could be 10-15% higher already after winter drilling, and an aggressive summer program should help grow resource even further.

Summer prep. Plans likely include focus on R600W, R780E and regional targets. A PEA is expected in August to help value and de-risk PLS, and help parlay fears that a lake and overburden are too costly to overcome. Parameters such as mining method, capital and operating costs should help determine project mine-ability.