Clean, green energy sources are not just a ‘down-the-road’ solution for the future of the global economy moving forward…they are now a dire necessity. The dirty, aging, CO2- emitting fossil fuel industry – even before the COVID-19 outbreak – began to show deep cracks in its long-term future as the planet’s primary facilitator for energy solutions and a bona fide investment long play.
However, one major energy commodity appears to be resisting the general metals & mining market volatility while offering real solutions in the battle against greenhouse gas emissions. Uranium.
Enter Kelowna, BC-based
Fission Uranium Corp. (FCU) (
TSX.FCU,
OTCMKTS: FCUUF,
Forum). The company owns a 100% interest in the high-grade and near-surface Triple R uranium deposit, located on the southwestern edge of Canada’s mining-renowned Athabasca Basin. As highlighted in its prefeasibility study, Fission’s headline-grabbing project has the potential to be one of the lowest operating cost uranium mines in the world, and it sits right next to NexGen Energy’s (
TSX.NXE) advanced Arrow deposit. Long known as an award-winning explorer, Fission has now made the transition to developer and is entering an exciting period of growth.
Under the leadership of recently-appointed CEO, Ross McElroy, Fission Uranium successfully closed two financings in Q4, 2020, adding a total of $24 million to treasury. McElroy made clear that the company would look to further grow the deposit while simultaneously advancing to feasibility and ultimately towards a construction decision.
On January 6, 2021, the company appointed renowned mining engineer and former general manager for Cameco’s McArthur River uranium mine, Gary Haywood, as its new VP Project Development. Haywood’s appointment rounds out a team that also includes Mark Wittrup – another former senior Cameco employee and one of the uranium sector’s leading experts on permitting and Environmental, Social, and Governance (ESG). Fission quickly followed with the announcement of a 43-hole drill program
on February 1, 2021, to expand the resource and further de-risk the project. With a class-leading project, that has huge scope for growth, management's goal is to increase shareholder value through development of its advanced PLS project.
In this, Part 1 of Stockhouse’s 3-part editorial series, we’ll examine this visionary clean energy company and take a deep dive into the current global uranium market and how sentiment has shifted, driven by changes in those markets and the governments that regulate them. It has been forecast that in four to five years from now, new and larger sources of uranium will be needed. On the other hand, big uranium explorers and producers have stated that they will not commence production until prices are higher.
According to The International Atomic Energy Agency (IAEA), the global nuclear industry is currently projected to double in size, especially as the New Green Revolution continues to build momentum. One of the major drivers of this clean power growth are nuclear power plants across the globe which provide enormous quantities of
CO2 emissions-free electricity...24-7. Powering the growth in the nuclear industry will require a huge increase in the supply of uranium. But just how huge?
Demand Is Growing
According to a September 2020 WNA Fuel Report, 26% growth in global uranium demand is expected this decade along with a 50% growth in global electricity demand. Thus, current nuclear capacity needs to double by 2050 to achieve the *Intergovernmental Panel on Climate Change’s (IPCC) plan to limit global temperature rise to 1.5°C. *Countries committed under the Paris Agreement.
Several uranium stocks have rebounded since the March 2020 collapse spot price ($23.67 / lb. U
3O
8 low) in global markets. And they aren’t just rallying with the markets, but because uranium itself is back again…and up sharply. This has significant investment implications. Especially for companies like Fission.
The company is currently advancing its Triple R deposit in the Athabasca Basin – a region in the Canadian Shield of northern Saskatchewan and Alberta best known as the world's leading source of high-grade uranium and the sole source of Canada’s impressive uranium production. Canada has been the world’s second largest supplier of uranium and in 2019 was
responsible for about 13% of global supply and the most important provider of uranium from
a safe, stable jurisdiction.
About the PLS Project
PLS is located in the Athabasca Basin – home to the world’s richest uranium mines. The project hosts the Triple R deposit –
the region’s largest high-grade deposit at shallow depth. It is accessible via all-weather Saskatchewan’s Highway 955 which continues north through the area of the UEX-AREVA Shea Creek deposits to the past producing Cluff Lake uranium mine. Fission has published a Pre-Feasibility Study outlining the potential for very robust economics, including some of the lowest operating costs in the world. This is crucial because it means future production from the project would be viable even in challenging price environments where the lowest cost producers are the healthiest. With an impressive PFS complete, a strong environmental baseline study in place, and long-standing relationships with the local communities, the company is now advancing the project to feasibility and on towards a construction decision.
(Click image to enlarge)
As showcased by the Triple R deposit map below, mineralization at the project is characterized as “high-grade and shallow.” In fact, the
Triple R deposit is the only high-grade deposit in the entire Athabasca Basin region with substantial high-grade mineralization starting just 50 metres from surface. The deposit, part of a 3.18 kilometre mineralized trend at PLS, remains open in several directions. All zones within and adjacent to the deposit have the potential to add to the resource estimate.
(Click image to enlarge)
From the CEO
Ross McElroy, P Geol. is President, CEO, and Director of Fission Uranium Corp. A professional geologist with more than 35 years exploration, development, and mining experience, Mr. McElroy is a former PDAC 2014 winner of the ‘Bill Dennis Award for Exploration Success’ along with Northern Miner’s ‘Person of the Year (for) 2013’.
He recently commented on Fission’s resource expansion and project de-risking with the 43-Hole Drill Program at its PLS property. The property is host to the large, high-grade and near surface Triple R deposit:
"As we plan to advance the PLS high-grade uranium project to a feasibility study, one of our key goals is to maximize the size and quality of the Triple R deposit. This drill program is therefore designed to potentially expand the resource that can be used in the Feasibility study, while also further de-risking the project as a whole. Of note, this program has the potential to allow for the inclusion of the R840W zone in the feasibility resource and mine plan.”
The CEO also detailed the Triple R deposit’s high-end potential via a “robust prefeasibility study”:
"The Triple R deposit has the potential to become one of the lowest cost uranium mining operations in the world. With a strengthened treasury now in place, and backed by committed, supportive shareholders, Fission is able to complete the transition from explorer to developer. Thanks to our environmental and social governance to date, as well as a robust prefeasibility study ("PFS") using underground mining methods, we are in an excellent position for the next stage of project development. We will now continue building out our operations team and will commence a feasibility study."
The Bottom Line
In 2020, safe haven asset seekers have largely kept gold on positive upturn by 12 percent but silver (-16%), palladium (-0.1%), platinum (-22%) traders haven't been particularly bullish, whereas uranium’s price is up over 20% since March 2020.
Uranium’s spot price at the end of January 2021 was at USD$29.63 / lb. It is important to note that uranium does not trade on an open market like other commodities, as buyers and sellers negotiate contracts privately.
Fission Uranium Corp. is strategically positioned to meet the growing needs of nuclear energy from all sectors. And given the world’s limited number of uranium developers with viable projects, this cycle could lead, once again, to upward share price moves for uranium companies when money flows into back into sector en masse – as noted by FCU’s
share price more than doubling since late November.
(3 month TSX.FCU stock chart Nov 2020 – Feb 2021. Click image to link to chart)
Fission Uranium Corporate Video Presentation
(Fission Uranium's latest corporate presentation, featuring information on the company's award-winning team and PLS project, as well as the uranium sector and nuclear industry. Click image to play video)
For more information, visit
fissionuranium.com.
FULL DISCLOSURE: This is a paid article of Stockhouse Publishing.