Fission Uranium Corp (TSX: FCU) announced on Thursday that preparations have started for its drill program at its Patterson Lake South high-grade uranium project in the Athabasca Basin with regional exploration and deposit upgrading.
The company intends on following up on the highest priority areas identified during the winter season at its 15-hole regional drill program. Most of its property, some 80 per cent of the 31,039 hectare property, is unexplored. For context, this is five times the size of Manhattan Island.
Fission Uranium also said they would start its 19-hole drilling program focusing on in-fill drilling the R1515W high-grade zone. The primary goal of this program is to upgrade the resource classification of the majority of the zone’s inferred resources to indicated, to include the R1515W in the current mine plan. The company expects to get drills in the ground in early May.
“We have two concurrent drill programs at PLS commencing next month,” Ross McElroy, president and CEO for Fission Uranium, said.
“The first will be further regional exploration following up on our very encouraging winter drill results which identified four particularly high priority areas. The second program will focus on upgrading sections of the R1515W high-grade zone with the goal bringing it into the Triple R mine plan and schedule.”
The company has completed a total of 15 holes on six separate target areas.
These target areas are located along strike to the east and to the west of the company’s existing Triple R deposit, as well as on parallel shear structures located to the north and to the south of Triple R.
Read more: ATHA Energy applies for listing on TSX Venture Exchange, gives update on 92 and Latitude merger
Read more: ATHA Energy discovers strong uranium mineralization at North Valour-East
Triple R could become one of the lowest cost uranium mines
Fission has released a feasibility study that highlights the potential for the Triple R to become one of the lowest cost uranium mines in the world and has submitted its draft Environmental Impact Statement (EIS) to regulators. Additionally, the company is maintaining its schedule to develop PLS through the permitting and licensing phase, aiming for construction and production by 2029.
Drilling revealed highly prospective features critical for high-grade uranium mineralization, such as favourable lithology, large-scale hydrothermal alteration, graphitic shear zones, and in some cases, elevated radioactivity in the various target areas.
The January 2023 feasibility study reported reserves of 93.7 million pounds of U3O8 at an average grade of 1.41 per cent U3O8 and production costs of $9.65 per pound of uranium. Furthermore, Fission Uranium’s Environmental Impact Statement (EIS) requires approval from provincial authorities and does not require a separate federal approval process.
Read more: ATHA Energy expands into new Canadian territory with 2024 exploration program
Read more: ATHA Energy closes acquisition of Latitude Uranium, obtains Nunavut and Labrador properties
Canaccord Genuity analysts express optimism for uranium
Analysts for market research firm, Canaccord Genuity express optimism about the future of uranium prices, according to David Leeder in the Eye On Equities column in The Globe and Mail.
Canaccord believes that strong demand and weak supply are good signs for investors, and they predict the market will stay in a structural deficit until 2027. They note that advancing greenfield projects is the only way to balance the market, but these projects carry risks, making it uncertain when the market will stabilize.
Furthermore, overall, the analysts maintain a positive outlook on uranium prices for the rest of the year, citing nuclear power’s role as a durable, low-carbon, and reliable source of baseload energy crucial for global decarbonization and energy security.
This demand and supply imbalance has made significant opportunities for companies like Cameco Corporation (NYSE: CCO) (TSX: CCJ), Skyharbour Resources (TSXV: SYH) (OTCQX: SYHBF) (Frankfurt: SC1P) and ATHA Energy Corp. (TSXV: SASK) (OTCQB: SASKF) (FRA: X5U).
For example, ATHA is preparing to launch a promising new drill program at one of its newly acquired assets in Saskatchewan. The uranium prospector recently closed its acquisition of 92 Energy Limited (ASX: 92E) (OTCQX: NTELF) and is now focusing on the Gemini project, obtained through the deal, as a key part of its exploration program this year.
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