Fission Uranium (TSX: FCU) President Ross McElroy on Strong Results from the 2019 Winter Program & Forthcoming Underground-Only Prefeasibility Study at PLS Property in Athabasca Basin
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President, COO, and Chief Geologist for Fission Uranium (TSX: FCU)(OTC: FCUUF), Mr. Ross McElroy. Ross, good chatting with you again. How are you?
Ross McElroy: I'm doing fine and good morning to you, Gerardo.
Gerardo Del Real: Listen, you just had a press release announcing assay results from three dual-purpose holes that you drilled during the winter 2019 program at PLS. All three, of course, returned substantial high-grade intervals that weren't accounted for before, and a couple of them were outside of the actual resource. So I wanted to talk about those.
You have some pretty good numbers. 41 meters of total composite uranium mineralization including 5 meters at 22.88% U3O8 and 38 meters at 3.52% U3O8. Impressive as always. The summer has been tough to the uranium sector. Fission has been no exception, but of course you continue to advance the project by adding not just uranium, but a little bit of gold it seems like, as well. Can we talk about the release?
Ross McElroy: Yeah, we sure can. And you're right. I think we've had really, really strong numbers from our winter drill program. Remember, when we drilled those holes, they were primarily for geotechnical reasons, but we also took advantage of the fact that we were drilling in an area that we knew was probably mineralized but didn't have a great handle on, and certainly outside of the high-grade domain on the 780 zone. So all three of those holes hit the high-grade zones. And so we know that we should be able to grow the resource in those areas.
I think what was also quite surprising was we know that we've had gold in the system all the way along. It's not a huge gold deposit, but we have outlined around 65,000 ounces of gold. But what we saw in two of these holes were particularly anomalous gold assays. We saw individual peaks up to over 23 grams per tonne. So really, really healthy gold numbers to go along with high-grade uranium. So, all in all, I think we accomplished quite a bit with these holes.
Gerardo Del Real: What can shareholders expect in the coming months? Of course, we're hoping to get to September, past the summer doldrums, and hopefully we get into an environment where, in October, we hope– let me backtrack – we hope that we could get some clarity from the Section 232 recommendations. That can was kicked down the road to October. Now, obviously we're hoping we get some clarity there, that utilities step back in, and of course with Cameco's recent earnings, we shouldn't underestimate the ability for them to come into the spot market and drive prices up. What can we expect from Fission specifically?
Ross McElroy: Well, from Fission specifically, we are advancing our underground-only pre-feasibility study. So I'd say, towards the end of this month, early September, we should be in a position to finalize that and get news out to the market. At least, that's what we're expecting.
We saw that when we did the report back in April of this year that the underground was looking like maybe more positive numbers, even compared to the open pit. Both extremely low operating costs and I think that's key no matter what. But we can shave some significant capital off with this underground-only, so that study should be out within the next few weeks. So that for us is a big milestone. Hopefully that'll work in with the bigger picture and increased clarity in the overall uranium sector, as you were referring to with hopefully the finalization of whatever's going on with Section 232 in October of this year.
Gerardo Del Real: Excellent. Ross, hopefully I'm able to have you back on in a couple of weeks to go over those numbers and see exactly what that looks like. Thank you so much, again, for your time. I appreciate it.
Ross McElroy: Great, Gerardo. Great talking to you, and I would certainly look forward to updating the listeners once our pre-feasibility study is out for the underground-only option.
Gerardo Del Real: Fantastic. Chat then.
Ross McElroy: Very good. Thank you.
Gerardo Del Real: Thank you