Mr. Ross McElroy reports
WITH STRONG TREASURY, FISSION CONTINUES TO EXPLORE OPTIONS TO REDUCE G&A WHILE MOVING FORWARD IN A STRENGTHENING URANIUM MARKET
Fission Uranium Corp. has provided the following corporate update.
Successful financing and reduced general and administrative expenses
Fission has recently closed a $10-million (U.S.) (approximately $13.9-million) senior secured credit facility with Sprott Resource Lending (see news release dated April 7, 2020) and the company is appreciative of its continuing relationship with Sprott. The Sprott financing, together with cost cutting initiatives that began in 2018 and continued into 2020, has significantly strengthened the company's treasury. The company is also reviewing how to focus its market awareness efforts following recent improvements in the uranium spot price, which is up over 30 per cent in the past six weeks and uranium market sentiment, as a result of additional mine supply coming off line. Fission's PLS project, located in Saskatchewan's
Athabasca basin region, hosts the award-winning, large, high-grade shallow depth Triple R uranium deposit.
Ross McElroy, president and chief operating officer for Fission, commented: "We are very pleased to have the continued support of Sprott. Fission's team has worked hard to streamline operations and strengthen the company treasury, and we are highly encouraged by the recent upturn in the uranium sector. As more production has come off line, prices and sentiment have improved. As a result, although we have temporarily minimized on-site activity in line with COVID-19 precautions, we are also moving forward with environmental and feasibility study activity."
Governance and board update
The board of directors has been made aware of an on-line social media smear campaign against the company and its senior management. The board will pursue any and all testimonies or transcripts (of which there are none known) and any and all factual evidence.
Fission Uranium's board of directors has strong governance oversight and will investigate any and all matters regarding the company, its employees or its shareholders.
At this time, preventative action relating to the COVID-19 pandemic has required the company to continue implementing all measures to ensure employee safety and support public health efforts to limit transmission of COVID-19. The company has minimized on-site activity at PLS and management will continue to monitor the situation.
Project advancement, including feasibility study and environmental assessment
Fission has temporarily delayed the submission of the project description and draft terms of reference to the provincial regulators. The submission will be reviewed as soon as there is more clarity regarding the COVID-19 situation. During this time, Fission will be moving forward with key initiatives, including completion of the environmental baseline study and planning for fieldwork to support an anticipated feasibility study. The company will continue to develop its relations with first nation and Metis rights holders and local stakeholders via remote communications.
PLS mineralized trend and Triple R deposit summary
Uranium mineralization of the Triple R deposit at PLS occurs within the Patterson Lake conductive corridor and has been traced by core drilling over about 3.18 kilometres of east-west strike length in five separated mineralized zones, which collectively make up the Triple R deposit. From west to east, these zones are: R1515W, R840W, R00E, R780E and R1620E. Through successful exploration programs completed to date, Triple R has evolved into a large, near-surface, basement-hosted, structurally controlled high-grade uranium deposit.
The company completed and filed a prefeasibility study on Nov. 7, 2019, titled "Prefeasibility Study on the Patterson Lake South Property Using Underground Mining Methods, Northern Saskatchewan, Canada." The report summarizes the prefeasibility study (UG PFS), which outlines an underground-only mining scenario for PLS and follows an earlier PFS report outlining a combination of open-pit and underground techniques (the "Hybrid PFS"). The current UG PFS identifies significant cost and time savings, a minimized surficial footprint, strong economics, and a clear path for growth compared with the previous hybrid PFS scenario.
Mineralization along the Patterson Lake corridor trend remains prospective along strike in both the western and eastern directions. Basement rocks within the mineralized trend are identified primarily as mafic volcanic rocks with varying degrees of alteration. Mineralization is both located within and associated with mafic volcanic intrusives with varying degrees of silicification, metasomatic mineral assemblages and hydrothermal graphite. The graphitic sequences are associated with the PL-3B basement electromagnetic (EM) conductor.
Patterson Lake South property
The 31,039-hectare PLS project is 100 per cent owned and operated by Fission Uranium. 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 50 km to the north, currently under active exploration and development.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Mr. McElroy, a qualified person.
About Fission Uranium Corp.
Fission Uranium is a Canada-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, B.C.
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