Fission Energy’s (CVE:FIX) (OTCQX:FSSIF) prospecting results yesterday have got investors talking. The company’s 50/50 joint venture with ESO Uranium Corp (CVE:ESO), known as Patterson Lake South, a property on the southern boundary of the Athabasca Basin in Saskatchewan, found an additional 20 radioactive boulder and hot spots, for a total of 74.
Dundee Capital Markets re-iterated its buy rating for junior uranium explorer Fission today, as the news was viewed as “very positive”, increasing the likelihood of another basement-hosted uranium discovery in the Athabasca Basin.
Fission’s latest exploration success is not at the J-Zone on its Waterbury joint venture near Hathor Exploration’s (TSE:HAT) prolific Roughrider deposit in the eastern Athabasca, but rather, it is close to AREVA’s Cluff Lake Mine, which has previously produced 60 million pounds of uranium, and also relatively nearby the 88 million pound uranium Shea Creek Deposit owned by UEX Corp (TSE:UEX).
"While only surface mapping, radon surveying, soil sampling and boulder prospecting took place this summer, results are spectacular," Dundee noted in its latest research report.
"Radioactive boulders were found on the first day of follow up of airborne radiometric anomalies flown in 2009."
Following this year's now completed boulder sampling program, a total of 74 boulders outline a distinct 4 kilometre long, 900 metre wide, north-south trending boulder train. Moreover, 57% of these produce “off-scale" radioactive readings as measured by hand held gamma ray scintillometers.
According to the companies, the boulder train appears to be pointing back at a series of east-northeast trending geophysical conductors – a possible new uranium discovery.
Fission suggests that the northern end of the boulder train might lie close to the source of the high grade boulders, but more ground work is required to fully target the source area.
"The size of this mineralized boulder field is very encouraging, if not impressive. The boulder train that led to the discovery of Cluff Lake was estimated at about 2km long, or half the size of this Patterson Lake South boulder trend," Dundee added.
Indeed, the Cluff Lake boulder train turned into the discovery of a 60 million pound series of orebodies for AREVA.
In addition, Fission said that basement mineralization is apparent at the site, eliminating many of the technical challenges found at some Athabasca deposits.
What started out as a small, $60,000 exploration program at the property, may turn into something of a larger nature due to the recent successes. The joint venture is considering spending $200,000 on detailed ground geophysics in the fall, followed by a drilling campaign in the winter.
Both Fission and ESO have enlisted the help of structural experts to help pinpoint targets, and the encouraging results from the boulder prospecting program have led the partners to stake an additional four more claims around the potential discovery, bringing total claims in the area to 12, or 25,450 hectares.