quakes99 wrote: I have to agree that the exclusion of Harpoon from Winter 2017 drilling, and the unprecendented delay in publishing assays for the August 2016 Harpoon discovery holes, is very odd indeed. If you look at the latest NexGen corporate presentation, on slide 18 it says:
On August 11, 2016 NexGen announced Harpoon Discovery 4.7km NE of Arrow and 1km NE of Bow. Most significant new discovery made in SW Athabasca Basin since Arrow in February 2014. HP-16-08 intersected 17m continuous mineralization including 4.5m of off-scalewith massive to semi-massive pitchblende mineralization present. Will return to further expand and test Harpoon in winter 2017 and beyond.
Yet, no assays (which you would expect to be Top Priority for a brand-new discovery) and no follow-up drill program. Is there some dispute regarding the results?
I'd love to know the answer, if anyone can provide some insights.
Oh, and for the trolls/bashers as well....
A 35,000m NexGen drill program is roughly equivalent to a 10,105m Fission Drill program given the depths of the drill holes involved, as the exploration depth for Fission holes is roughly between 300-400m, while NexGen drills up to 1000m per hole.
A single drill rig at PLS can drill a complete hole in 2-3 days, using an RC drill to penetrate the overburden down to bedrock, then diamond core drilling after that. One rig could potentially drill 10 holes in a month.
For Arrow, however, the complex directional drilling method that is trying to punch through a kilometre of bedrock takes in the order of 2 weeks to drill a single hole. That's just 2 holes in a month. That's why 7 expensive rigs are required, pushing up the budget for NexGen to $14M from Fission's $6.5M for a roughly equivalent program in terms of holes drilled. Even with 7 rigs running it will take 2-1/2 months minimum to complete 35,000m of drilling, while Fission with 3 rigs could complete the same in 6 weeks or less. When you factor in all the logistics expenses to cover all the drill crews and support staff... the shorter the drill season the better.
Also note that, as announced in December, Fission has said they will potentially increase the program and drill budget if drill results and a rally in the U sector warrant a more aggressive approach. David Talbot also talked about that in the new Dundee analyst report. Holding back cash until the U market turns could reap big dividends down the road, giving them the ability to accelerate both drilling and the PFS studies program to get a PFS out by the end of the year (as also noted in Dundee's report).
[url=Analyst Report - Dundee Capital - Buy - 19 January 2017]Analyst Report - Dundee Capital - Buy - 19 January 2017[/url]
Fission Uranium Corp. January 19, 2017
BUY
DCP target: C$2.20 David A. Talbot /
(416) 350-3082 dtalbot@dundeecapitalmarkets.com
Joe Fars, P.Geo /
(416) 350-5090 jfars@dundeecapitalmarkets.com
Projected Return from current $0.80 share price is
175%.
Final March Towards Resource Update and Pre-Feasibility Study We recommend Fission Uranium with a BUY and a target of C$2.20, based on a 0.8x multiple applied to our 10% DCF model. On the heels of the recent uptick in U3O8 prices, focus remains on PFS studies to determine to get its high grade deposit out of the ground.
PLS is unique as there are no other large, shallow and high grade deposits in the Athabasca Basin. While some are larger or higher grade, they tend to be deeper. Historically, shallow deposits have been mined.
The initial 106 MM lbs U3O8 resource from Jan-15 is due for an update. Our own mineral inventory estimates suggest ~150 to 160 MM lbs of potential. A Sep-15 PEA contemplates a stand-alone, high grade open pit/underground uranium mine producing between 3 and 13 MM lbs pa at total cash costs of US$19/lb. Capex was estimated at US$935 MM. That study incorporated minor resource changes given the few R780E zone holes added. A huge impact wasn't the intention but it did justify further drilling which may add perhaps 10% to existing resources. Real impact will likely come from the R1620E and R840W zones located along strike at either end of 2.63km long Triple R trend. Neither zone is included in current resources. Results gained momentum towards the end of 2016, and both areas demonstrate potential to change aspects of the PEA. R1620E displays some vertical extent with style of mineralization similar to R780E zone. R840W is land based but under deeper overburden.
Post-summer drilling, we'd expect both a resource estimate and comprehensive Pre-feasibility Study. While the market values PLS at an EV of US$2.20/lb, we believe that given its upside potential the market is giving it credit for just US$1.46/lb.
FCU performance improved markedly late last year yet it trails some of its peers, providing a window of opportunity for investors. This pales to an average post-Fukushima take-over price of US$5.50/lb in the Athabasca. A prolonged price downturn persuades management to rein in budgets and selectively test only those targets believed to provide the greatest impact to economics.
Should markets improve, Fission is well positioned to become more aggressive. $6.5 MM winter budget. PFS prep and exploration includes drilling, EM surveys, and accelerated community outreach and environmental study. Drilling totals 34 holes with 15 regional holes targeting new discoveries; and 19 holes along trend.
Site prep underway. Ice work is needed given warmer weather this year, delaying drilling until late January. 28.5 line-km of Small Moving Loop Time Domain Electromagnetic (SMLTEM) surveys will help target stronger mineralization.
Gaining social license. CanNorth was hired for stakeholder relations, community liaison, First Nations outreach and environmental baseline studies. Native groups, private land owners, neighbours and Government officials are engaged.
Permitting preparations. Details are being gathered for an Environmental Impact Statement: environmental baseline studies; monitoring wells; overburden tests; flora, fauna; fisheries; surface disturbance; and water sampling. Winter geotech drilling will focus on hydrogeological, aquatic baseline testing and meteorology.
Metallurgical work. Additional met holes will be added this summer. Core is required for fresh 50kg composite samples to use for tests such as bottle mill, roll tests, continuous and bulk leach; solvent extraction and tailings static settling.
Drilling designed to impact PEA. Rigs will test both R1620E and R840W zones that aren't in the current resource, with a potential goal of inclusion post-summer drilling. This might mean early 2018 before another resource estimate; followed by PFS. Drilling is being completed keeping in mind how it affects PEA.
• 1620E Zone target looks stronger and more contiguous, with similarities to R780E zone. It starts shallow at the water/overburden contact so critical mass may be required for inclusion into a PEA. Requirement of a crown pillar reduces UG mining effectively, and the shallow material is more interesting anyways. Extension of the designed main zone open pit might be possible, but added capital will likely depend on critical mass.
• 840W Zone target also looks good with mineralization near the rock-overburden interface. These shallow land targets are often easier and cheaper to develop. It is located 450m west of the R00E pit, and would likely make up its own pit. It will also need critical mass to support almost 100m of overburden removal, pre-stripping. We don't foresee a berm, but likely a slurry wall. The zone does pinch and swell and has mineralization at depth that may not enter resources any time soon.
• Regional drilling targets comprise ~55% of the budget. It will test near the high grade boulder field; a new highly prospective area ~600m west of R840W; a parallel EM conductor ~4km to the north, the far east and west of the PL corridor; and conductors between the PL and Forest Lake Corridors. RC rigs might be used if available.
Cheers!