Yesterday, I told you about a uranium company that I said could be a 10-20 bagger in the making - Fission 3.0 Corp (TSXV:FUU).
The first discovery hole the company drilled hit off-scale radioactivity over a 15.5m intercept. Literally off the charts readings of radioactivity from the drill core on a wide intercept, hinting that the company might be tracking a MAJOR uranium deposit.
I also said that a hole like this does not come along very often. Still, when discoveries like this do occur, there can sometimes be a lot of misplaced euphoria over a single drill hole, which is why it is important to watch for heavy volume in the stock price, as well as for follow-up drill holes to confirm the true scale of the potential deposit.
Since last Monday, when the hole was first announced, the company has traded over 115,000,000 shares ($23,600,000). This is a sign of the big boys (smart money) starting to strategically position themselves in anticipation of what could be a multi-billion dollar deposit in the making. I expect to see more of this over the coming days.
Even then, it can be strategic to wait until more holes are released to see if it is the real deal.
Yes, this first hole was very exciting, but at the end of the day, one drill hole is not enough to know what is really under the ground, which is why I also said that the "next few step out holes that Fission 3.0 drills would be very telling as to whether or not the company is on to a major uranium deposit and should act as a major catalyst for the stock price."
Today, we got the first follow-up drill hole and it was a BIG HIT.
PLN22-038 (line 00N)
12.5 m total composite mineralization >300 cps over a 13.0 m interval (between 239.0 m to 252.0 m), including
3.48 m of total composite mineralization >10,000 cps over a 7.15 m interval (between 243.85 m and 250.7 m including
2.5 m of total off scale radioactivity (>65,535 cps) over a 3.0 m interval (between 244.0 m and 247.0 m)
Once again, the company intersected OFF-SCALE radioactivity over a sizeable width (13.0m), less than 10m away from the inital discovery hole, confirming that the first drill hole was not just an anomaly and the company is most likely tracking a very high-grade, sizeable mineralized structure.
Unsurprisingly, the reaction to this news has been EXTREMELY POSITIVE.
In just the first few hours of the trading day, the stock has traded over 16M shares of volume and surged up over 20%. The fact that the price increase is also being accompanied by HUGE volume is a sign that this discovery is the REAL DEAL.
Raymond Ashley, Vice President Exploration for Fission 3.0, commented:
"It is a great start to the follow-up step-out drilling, that the strongly mineralized structure has been intersected. Two additional drill holes are planned near the high-grade discovery in the current program to establish the orientation and geometry of the mineralization. The two diamond drills and sonic drill on the property will continue to work in the immediate vicinity of the discovery hole for the remainder of the PLN fall drill program."
So, given the success of the second step-out hole, the company is going to focus its drilling efforts in the immediate vicinity of the discovery hole. They know that they are onto something big here.
The company has stated that there would be 7 more follow-up holes before Christmas, so I expect to see at least 6 more of these in the next few weeks, and I would not be surprised if these also hit big, given the size and radioactivity of the second follow-up hole.
ALREADY STRONG COMPARISONS TO NEXGEN AND ISOENERGY
The recent discovery at Fission 3.0's PLN property is already being compared to Nexgen Energy's Arrow discovery as well as ISOEnergy's Hurricane discovery, and for good reason. All three discoveries have occured in the Athabasca Basin area of Saskatchewan and exhibited off-scale levels of radioactivity over sizeable widths, just like Fission 3.0.
When Nexgen made their discovery, the stock ran from $0.30 to $3.00 over a 1-2 year time span. The same thing happened to ISOenergy's stock when they made their Hurricane discovery, from $0.40 to $4.00 in less than two years.
Now, we have Fission 3.0 sitting around $0.30, with multiple holes poked into the ground which are hinting at a MAJOR uranium deposit.
Will we see Fission 3.0's stock chart start to replicate that of Nexgen and ISO's? I wouldn't be surprised.
The radioactivity levels of the drill core as well as the width of the intercepts are saying that this is very plausible.
Although I was a shareholder in both NexGen and ISO, I ended up selling way too early. I sold NexGen too early. I sold ISOEnergy too early. I am not going to make that mistake with Fission 3.0.
One thing I know for sure is that there will be small dips. There will be attempts to shakeout retail shareholders. And when there is, I will continue adding to my position.
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.