Fission Uranium (V.FCU) still climbing after massive PLS hole news

Chris Parry Chris Parry,
0 Comments| February 20, 2014

A day after both Fission Uranium (TSX:V.FCU, Stock Forum) and NexGen (TSX:V.NXE, Stock Forum) announced big drill results at Athabasca, both companies are continuing to draw investor interest.

NexGen picked up a Dundee recommendation based on yesterday’s data, leading to a $0.04 (9.3%) increase in Thursday trading on 2.1m volume, building on the previous day’s 82% jump.

Fission, which blew up with a mega-hole  of its own Wednesday, jumping from $1.21 to $1.33 before profit-taking dragged it back to $1.27, also surged today, climbing back to $1.32.

David Talbot of Dundee was effusive about Fission today in an interview at The Energy Report:

"We believe Fission Uranium Corp.'s Patterson Lake South discovery is very significant, probably the largest since Hathor's Roughrider discovery. . .it's shallow, high grade, thick; it has all the hallmarks of a great project. Not only that, but it's also located in the Athabasca Basin, which hosts a supportive government, excellent infrastructure, capacity at existing mills and a solid permitting framework. At Patterson Lake South right now, all six zones lie at or near the surface, and they are only drill limited at this point; they're not cut off. We anticipate that several of these zones will probably tie together, creating a much larger, single deposit. It's still in the early stages of delineation. Aggressive drilling is underway in preparation for an initial resource. We speculate we might see that early next year. Right now, we estimate about 43 Mlb grading 2% uranium. The grade goes up significantly if we use a higher cutoff grade, but the pounds in the grou nd aren't impacted that much. So right now, it's looking like a great, high-grade uranium deposit."

The Fission results were outstanding, and have given investors looking for indications the promise of Athabasca will be fulfilled a real reason to start a position.

Hole PLS14-129 at its Patterson Lake South (PLS) property returned a number of wide and high-grade intervals over 100m, including 38.49% U3O8 over 10.5m in 13.66% U308 over 38.0m, and 27.57% U3O8 over 12.0m in 11.19% U3O8 over 31.5m.

The company is calling this “the strongest mineralized hole to date at PLS,” which, considering the high grades Fission has been finding, is a big deal.

Ross McElroy, President, COO, and Chief Geologist for Fission, said in a news release, “With a GT value that is nothing less than phenomenal, these results far surpass our previous top holes. PLS has already grabbed world attention with the quality and quantity of its high-grades and hole PLS14-129 is another big step forward."

The success of the big area players had a knock-on effect in the microcap space around them, with Aldrin (TSX:V.ALN, Stock Forum) and Makena (TSX:V.MKN, Stock Forum) notching rises based on proximity to the projects in question and potential for future M&A activity in the area.
FULL DISCLOSURE: Fission Uranium, Aldrin Resources and Makena Resources are Stockhouse Publishing clients.

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