Fission 3.0 released their highly anticipated assay results this morning and, to put things simply, they were extraordinary.
Here is a quick summary of the results:
PLN22-035 (line 00N): mineralized intervals
15.0 m @ 6.97% U3O8 (257.5 m to 272.5 m), including:
5.5 m @ 18.6% U3O8 (260.0 m to 265.5 m), further including:
1.0 m @ 59.2% U3O8 (263.0 m to 264.0 m)
To be honest, my expectations prior to the assays were VERY HIGH considering the off-scale CPS readings of the drill core as well as the photos. I was expecting the grades to come in around 40% for the 1.5m interval which had CPS readings of >65,000 CPS. In uranium exploration, 40% U3O8 is EXTREMELY HIGH.
Even then, these assays entirely exceeded my expectations.
The ultra-high grade interval came back at 59.2% U3O8 which is basically unheard of in uranium exploration. This has got to be the best uranium discovery hole over the last decade, even when compared to NexGen’s arrow discovery and ISO Energy’s Hurricane discovery.
As we can see from the table above, NexGen’s initial discovery hole graded 0.37% U308 over a 5.75m interval, while ISO’s initial discovery hole graded 1.26% over 8.6M.
Fission 3.0’s discovery hole graded 6.97% U308 over 15.0m.
This is significantly better than both NexGen and ISO’s discovery holes in every aspect. Not only are the grades much higher than the other two discoveries, but the width is as well. While grade is important, size is equally as important. To prove up a viable uranium deposit, you need to have both grade and size, and it appears that FUU has both.
Another important aspect is depth. If a deposit is too deep, it can be extremely expensive to mine. Fortunately with Fission 3.0's discovery, they are hitting these high-grade intervals at a depth of only 250-300 metres, so it appears to be a shallow deposit.
While it is still early on, these assay results are further evidence that FUU is tracking a major tier-1 deposit similar to the likes of Arrow and Hurricane, and potentially even larger.
To put things into perspective, the market cap of NexGen is currently $2.75B and the market cap of ISO is $310M. At a price $0.30, the market cap of Fission 3.0 is still under $100M, so there is still huge upside on FUU.
Given the assay confirmation, I would expect to see much larger pools of institutional capital start flowing in at some point in the near future. I also would not be surprised to see FUU get included into some uranium ETF’s further down the road, which would also bring some huge buying to the stock. Also important to keep in mind that Fission 3.0 is located right in the heart of the Athabasca Basin, in close proximity to NexGen and ISO. There is no doubt in my mind that NexGen is watching this very closely.
Just this week, the company also closed an $8M financing which was syndicated by Red Cloud, Haywood, and Sprott, which means they are cashed up for the foreseeable future.
In terms of catalysts, they are planning to drill 20+ more holes after Christmas to delineate the resource so I would expect to see some more very high-grade hits and additional news flow then.
The company is also awaiting assays from the additional step out holes they drilled after the initial discovery. The drill core from these holes had some very high CPS readings (peak of 63,400), so I would not be surprised to see some more ultra high-grade assays there too.
The bottom line here is that this story is still just getting started and the potential for a tier-1 deposit seems to be growing with each news release.
With so many catalysts to look forward to, I will be holding my FUU shares very close to my chest going into the new year. I am not concerning myself with day to day movements in the stock price, rather I am focusing on the 20+ holes that will get drilled after Christmas which should tell us how big this beast really is.
A Side Note on Strathmore Plus Uranium $SUU
On a side note, I have been averaging down on Strathmore Plus Uranium (TSXV:SUU). Unfortunately, I seem to have bought the high (around $0.34) a couple weeks ago, but my position size is still relatively small and I will continue averaging down if the stock does go lower.
The management team at Strathmore Plus is the exact same team behind the discovery at Fission 3.0 and in exploration, management is everything. I strongly believe this team is capable of making another discovery at their highly prospective Night Owl project.
Keep a close watch on this one as I expect to see some spillover from FUU as people start to realize the same management team behind FUU is also behind the wheel here.
-SmallCapInvestor
DISCLOSURE
The publisher of this report was paid a fee of CAD $10,000 by Fission 3.0 for the publication of this and other reports regarding the Issuer for a period beginning on or about December 1st, 2022 and set to end on or about March 1st, 2023. From time to time,the author of this report, the publisher, and the publisher’s directors, officers, and other insiders may purchase or sell securities of the Issuer.