RE:David Talbot recommends FCU a BUY C$2.40/sh targetThanks for the update Rover. How many brokerages now have a strong BUY on Fission.
Is that 6? So undervalued here.
Rover90 wrote: We recommend Fission Uranium with a BUY and C$2.40/sh target based on a 0.8x multiple applied to our 10% DCF model.
Final assays provide a strong finish to the summer drill program at the Triple R uranium deposit at PLS, western Athabasca Basin. Sixteen of a final 17 holes host uranium mineralization, both expanding high grade the R600W Zone, and extending the R780E Zone eastward. Today's results are important; they delineate high quality pounds. Mineralization is shallow, occurs on land, is relatively higher grade, and is gaining critical mass. It demonstrates higher than existing resource grades, at a 1.96% U3O8 weighted average over 17.2 m average core thickness (versus 1.5% resource grade diluted to 1% in the PEA). It strikes for 150m and is ~40 to 50m wide on average (up to 90m wide). Mineralization is wide open in all directions. We surmise that R600W might already exceed 10 to 15 MM lbs U3O8. If our assumptions hold, this suggests that R600W comprises ~12% of the entire 105.5 MM lb Triple R deposit, the largest undeveloped deposit in the Basin. The R600W discovery is not yet included in the 105.5 MM lb Triple R resource, nor incorporated into its PEA.
• R600W Zone expanded. Best assays of the 13 holes were from PLS15-439 (line 615W) returning 11.02% over 25.5m, incl. 14.99% over 7m and 26.03% over 6m. Mineralization is at ~100m vertical depth and is central to the zone.
• R780E Zone expanded. Highlights from four holes include PLS15-427 (line 1110E) which returned 1.39% over 14.0m incl. 2.74% over 6m, starting 228m down-hole. This is in line with previous grades in this area. The R780E zone remains open along strike in this down-plunge direction, but at a depth of only 200m, this is still relatively close to surface.
11,000m winter drill program planned. A $7 MM budget is in line with 2016 flowthrough spending commitments, part of $12 MM in cash at 30-Sep-15. Initial plans, while typically expanded on success, appear smaller than previous years. This emphasizes project economics rather than systematic coverage, especially in this market where size doesn't translate to stock performance. Details are being finalized, but expectations are 35 to 37 holes (60% delineation, 40% regional).
R600W focus this winter. Resource drilling will concentrate on R600W (12 DH), plus R780E (4 DH) and R1620E (5 DH). Management is giving more attention to finding meaningful pounds to improve economics than systematic drilling this time. We see potential to expand R600W along strike, at depth, to both the N and S, and by filling a 500m+ gap between it and R00E. RPA is expected to update its Triple R resource and the economic impact to the PEA post-winter 2016 drilling.
High priority targets will also be tested. Efforts are to be concentrated on the parallel PLG-1B conductor where holes -419, -422 and -425 have encountered anomalous radioactivity and interesting clay alteration. This is located 470m due north of R600W (see Fig. 2). Six holes will test this area, and 8 holes elsewhere.