Fission Energy Corp (TSX-V: FIS) has received written notice to terminate its option agreement with Great Bear Resources (CNSX: GBR) for the Duddridge Lake uranium property, as Great Bear is not able to comply with the terms of the agreement. Consequently Fission retains 100% interest in the Duddridge Lake property.
Previously in February 2009, Fission Energy extended Great Bear’s exploration commitments by one year, with the financial terms unchanged. As such Great Bear was required to complete C$6m in exploration expenditures, make payments totalling C$400,000 and issue 400,000 shares to Fission - in order to earn 60% interest in the property.
As of the February 18 2009, Great Bear had made the cash and share commitments, and the first year's minimum exploration commitment of C$750,000 had been met.
Under the terms of the revised Duddridge Lake option agreement, a number of minimum annual exploration expenditure deadlines had been defined. Accordingly C$1m was due on March 31 2010, followed by C$1m in 2011 and a further C$1.25m in 2012, before a final C$2m on December 31 2014.
Duddridge Lake consists of 11 mineral claims totalling 36,253 hectares, located about 80 kilometres northwest of the town of La Ronge, in north-central Saskatchewan.
Last week, at the company’s flagship Waterbury Lake project, Fission Energy reported the completion of its winter drilling program. Furthermore the company stated that the ongoing analysis of the results extends the J-Zone further, as hand scintillometer reading continues to encounter ‘off-scale’ radioactivity (counts per second > 9,999).
The most recent results, from five holes, have extended the J-Zone’s Zone's east-west trending mineralized strike length to approximately 90m and 50m wide, north-south.
Assays are pending on 16 drill holes, and will be reported as the company receives them. Fission said that plans are now underway for a summer drill program, which will continue to delineate the "J-Zone", the newly discovered "Highland Zone" and other land based targets.
The Waterbury Lake property is located in the northeast part of the Athabasca Basin, where several open-pit uranium deposits, including Midwest Lake, McClean Lake, and Rabbit Lake, are found. Exploration completed to date by the joint venture demonstrates that the 40,256 hectare property has excellent potential for hosting an undiscovered uranium deposit.
The Waterbury Project is being explored by a joint venture between Fission Energy and the KEPCO consortium. The KEPCO consortium is a group of Korean based companies, including Korea Electric Power, Korea Hydro & Nuclear Power, Korea Nuclear Fuel, Hanwha Corp, and uranium investment company, Gravis Capital.
Disclosure: The author holds no positions in the company