For the past several years, uranium was not a hot sector for miners. The Fukushima nuclear incident gave nuclear power a bad name and had many countries questioning their commitment to nuclear energy. Lower demand coupled with high supply lead to prices being suppressed for many years.

Now things are turning for uranium. Supply is tightening as demand picks up. Japan is restarting its nuclear power plants. Kazakhstan has cut production. With global warming, there’s a strong push in the developed world for cleaner energy. Since uranium prices have dropped over 80% since the 2007 highs, nuclear power is much cheaper than power from LNG or coal. Combine these factors with a lack of new projects in development and you have a perfect storm in the uranium market. One company looking to take advantage of the situation is Fission Uranium Corp (TSE:FCU)(OTCMKTS:FCUUF).

Fission Uranium Corp. is a Canadian based resource company specializing in the strategic exploration and development of the Patterson Lake South uranium property — host to the class-leading Triple R uranium deposit — and is headquartered in Kelowna, British Columbia. Fission’s common shares are listed on the TSX Exchange under the symbol FCU and trade on the OTCQX marketplace in the U.S. under the symbol FCUUF.

The 31,039 hectare Patterson Lake South project is 100% owned and operated by Fission Uranium Corp. PLS is accessible by road with primary access from all-weather Highway 955, which runs north to the former Cluff Lake mine and passes through the nearby UEX-Areva Shea Creek discoveries located 50km to the north, currently under active exploration and development.

The latest news from the company is that its exploration drilling has resulted in the discovery of a new high-grade zone – R1515W – at its’ PLS property, host to the Triple R deposit, in Canada’s Athabasca Basin region. The zone is located along the western strike extension of the Patterson Lake Corridor, west of both the Triple R deposit and the R840W zone. The discovery of the new high-grade zone is marked by hole PLS17-539, which has intersected 32.0m of total composite mineralization, including a 31.0m wide continuously mineralized interval including a total composite of 0.77m of radioactivity >10,000 cps (with a peak of 22,300 cps). The hole is located on line 1515W, approximately 510m west of the western-most mineralized hole on the high-grade, near-surface R840W zone. President Ross McElroy said:

“We are thrilled with the discovery of a new zone at PLS along the very prospective Patterson Lake Corridor and with the increase of half a kilometer to the high-grade mineralized trend, which now stands at 3.14km in strike length. This success is the validation of a key objective during the winter drill program: to discover new, shallow and high-grade occurrences on the prolific PLS project. Having successfully encountered anomalous radioactivity with our drilling in a 625m step out from R840W (see news release Feb 27, 2017), and subsequently seeing anomalous radioactivity in several core and RC holes over 180m of strike length, we were confident we were in the right area. With substantial mineralization in hole PLS17-539, we now have confirmation. The next step for this area is to begin growing the zone, just as we have done so successfully with every zone at PLS and we will also continue to pursue our other exploration hot spots on the property.”

To fund its development of the PLS project, Fission Uranium is well funded with C$82 million from China’s state-owned CGN Mining Company Ltd, which owns 19.9% of Fission Uranium. CGN is controlled by China General Nuclear Power Corp., one of China’s two giant nuclear power firms. The Financial Post said that “China is keen to source future uranium supplies, because the country is in the midst of a massive nuclear power build-out to support its economy. China currently has 21 nuclear reactors under construction and 43 more that are planned, according to the World Nuclear Association. No other country has more than nine reactors under construction.”

Currently trading with a market cap of C$421 million, Fission Uranium is one of the most exciting mining plays for investors. It’s one of the few companies with an active program on a new uranium project that is getting ready to move beyond the exploration phase. With the latest confirmation of substantial mineralization at the PLS project, Fission Uranium is looking like a promising high reward play for investors.

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Disclosure: We have no position in FCU/FCUUF and have not been compensated for this article.