Updated Alpha, Fission news: Patterson Lake South uranium assays; Waterbury Lake resource update; Dundee report; private placements
Joint venture partners Alpha Minerals TSXV:AMW and Fission Energy TSXV:FIS announced results on December 5 from their Patterson Lake South uranium property in Saskatchewan’s Athabasca Basin. Highlights include:
- 1.07% triuranium octoxide over 8.5 metres
- (including 2.63% U3O8 over 2.5 metres)
- 0.27% U3O8 over 9.5 metres
- 1.78% U3O8 over 18 metres
- (including 2.49% U3O8 over 12.5 metres)
- (which includes 4.33% U3O8 over 3.5 metres)
- (including 11.1% U3O8 over 0.5 metres)
- 0.4% U3O8 over 22.5 metres
- (including 0.85% U3O8 over 4.03 metres)
True widths weren’t provided. All holes were sunk at a -90 degree dip.
The intercept closest to surface began at 57.5 metres while the deepest stopped at 169 metres. Most intercepts were found at down-hole depths above 86 metres. The nine-hole, 1,632-metre program tested conductors approximately three kilometres from a previously announced high-grade uranium boulder field.
Fission president/COO/chief geologist Ross McElroy remarked, “We are extremely pleased with the recent assay results at the PLS discovery that confirm high-grade mineralization within wide intersections at shallow depth. These encouraging results will help direct an aggressive winter program designed to further delineate this zone.”
Fission currently acts as project operator on the 50/50 JV.
Also on December 5, Alpha announced completion of a $4-million private placement made up of 2.66 million units at $1.50. Each unit consists of one share and one half-warrant. Each whole warrant entitles the holder to buy one share at $1.80 during a 12-month period.
Proceeds will be used to fund Alpha’s share of Patterson Lake South exploration and for general working capital.
On December 5 Dundee Capital Markets issued a report rating Fission a “buy, speculative risk.”
On December 6 Fission released an updated resource for the J-Zone of its Waterbury Lake uranium project, also in Saskatchewan’s Athabasca Basin. Using a 0.1% cutoff, the resource now shows:
- an indicated category of 307,000 tonnes averaging 1.52% for 10.28 million pounds U3O8
- an inferred category of 138,000 tonnes averaging 0.9% for 2.74 million pounds U3O8.
The indicated category now contains approximately 79% of the resource. Fission stated that mineralization lies “within basement rocks proximal to sandstone-basement unconformity. Unconformity mineralization overlaps basement mineralization in the western part of the deposit delineated to date. Average vertical depth to the unconformity is approximately 200 metres.”
Fission holds a 60% interest in Waterbury Lake, with the remainder being held by a consortium lead by Kepco, the Korean power utility.
On December 6 Fission also announced a $3-million bought-deal private placement of 5 million flow-through shares at $0.60. The underwriters may buy additional flow-through shares up to $2 million until 48 hours before the closing date of December 21, 2012. Proceeds will be used for exploration.
On December 7 Fission announced the $3-million bought deal had been increased to $4 million, with 6.67 million flow-through shares at $0.60.
by Greg Klein