Fission Uranium Strikes 32.53 Percent U308 Over 6.5 Meters, Analysts Thrilled By Results
Fission Uranium hit high-grade uranium mineralization at the R780E zone at its Patterson Lake South property on Monday. The results drew praise from analysts and will likely help raise the company's profile before a potentially strong first quarter of 2015.
Fission Uranium (TSX:FCU) continues to figuratively strike gold at its Patterson Lake South property, releasing further high-grade U3O8 results gathered from drill holes on Monday morning. The company said it will use the results in compiling its NI 43-101 for the R00E and R780E zones. The results add on to results released in October that show 24.87 percent U3O8 over 7.5 meters for the R780E zone; they encouraged the company to expand drilling in the region. Changing season drives results The news caps a busy fall season for Fission. The company was listed on the Toronto Stock Exchange in October and has been finishing its work on the R780E zone throughout the time frame. "The final batch of R780E zone drilling assays includes a large number of very strong holes. We have now received all the U3O8 assay data required for a NI 43-101 compliant Maiden Resource for the R00E and R780E zones and we expect to be able to release preliminary results by early 2015," said Ross McElroy, president, chief operating officer and chief geologist for Fission, in a statement. Each results release has shown a capability to expand the R780E zone and has helped boost the company's profile. Dundee and Cantor Fitzgerald push Fission Dundee Capital Markets released a report on Monday highlighting Fission's confirmation of drill hole results and placing it as its "top buy," with a target price of $2.10. "(Fission) remains our Top Pick in the uranium space based on its near surface high grade, large resource potential, ever increasing size and takeout potential," wrote analyst David Talbot. However, the note does highlight a problem the company could face in attracting investors. The high volume of work being done in the Athabasca Basin can overwhelm the Saskatchewan Research Council — the popular choice for companies operating in the basin in terms of assay analysis — and thus delay the return of assay results. The only positive from that is that it can be a widespread problem, not just limited to Fission.