TSX: FCUOTCQX: FCUUFFSE: 2FU

Overview

Patterson Lake South (PLS) is located in Canada’s Athabasca Basin, home to the world’s richest uranium mines. The project is host to the Triple R deposit - the most significant high-grade, near-surface project in the region. Fission has also discovered two other major, high-grade zones and has outlined the largest mineralized trend in the region.

Growth at the Triple R deposit, and exploration elsewhere on the PLS property, is driven by a highly skilled, award-winning technical team and successful entrepreneurial management. Fission Uranium has 100% ownership of the PLS Property, which comprises 17 mineral claims totaling 31,039 ha located on the southwest margin of the Athabasca Basin. The property is accessible by all-weather Highway 955 which continues north through the area of the UEX-AREVA Shea Creek deposits to the past producing Cluff Lake uranium mine.

 

102,360,000 lbs. U3O8
Indicated Mineral Resource
Based on 2,216,000 tonnes at an average grade of 2.10% U3O8

32,810,000 lbs. U3O8
Inferred Mineral Resource
Based on 1,221,000 tonnes at an average grade of 1.22% U3O8

Mineral Resources are reported within an open pit design at a cut-off grade of 0.15% U3O8 and 0.25% for resources outside the pit that are potentially mined by underground methods.

Untapped Potential
A large ~80% of the property has yet to be explored

As showcased by the Triple R deposit, mineralization at the project is characterized by being high-grade and shallow. In fact, the Triple R deposit is the only high-grade deposit in the entre Athabasca Basin region with substantial high-grade mineralization starting just 50m from surface. The deposit, which is part of a 3.18km mineralized trend at PLS, remains open in several directions.
Zones within the deposit will be targeted for additional growth drilling and any successful results have the potential to be added to an updated resource estimate.

In 2019, the Company released results of two prefeasibility studies – one outlining a hybrid approach (combining open pit and underground techniques) and one outlining an underground-only mine plan.  Both studies presented strong results, including low OPEX, fast payback and strong IRR, which highlight the potential for highly economic production at PLS.  While both options remain viable, the upcoming feasibility study will focus on the best option, most likely the underground only scenario.

  Units 2019 Hybrid PFS 2019 U/G PFS
PROJECT TIMELINE      
Construction Period yrs 4.0 3.0
Operations Period yrs 8.2 7.0
       
MINING and PROCESSING      
Ore Tonnes mined kt 2,888 2,299
U3O8 Grade % 1.42% 1.61%
Contained Pounds '000 lbs U3O8 90,498 81,355
Overburden and 505 Cut kt 28,598 1,853
Waste Rock kt 20,260 1,219
Total Moved kt 51,155 5,372
Recovery % 96.7% 96.8%
Recovered U3O8 '000 lbs U3O8 87,548 78,747
       
CAPITAL AND OPERATING COSTS    
LOM Operating Costs C$ millions 790 753
Unit Operating Cost C$ / t proc 274 328
Unit Operating Cost C$ / lb U3O8 9.03 9.57
Initial Capital Cost C$ millions 1,499 1,177
Total Capital Cost C$ millions 1,713 1,459
       
PROJECT ECONOMICS      
Pre-Tax Payback Period yrs 2 2.2
Pre-Tax IRR % 29% 34%
Pre-Tax NPV @ 8% C$ millions 1,319 1,334
Post-Tax Payback Period yrs 2.3 2.5
Post-Tax IRR % 21% 25%
Post-Tax NPV @ 8% C$ millions 693 702

Fission Uranium has 100% ownership of the PLS Property, which comprises 17 mineral claims totaling 31,039 ha located on the southwest margin of the Athabasca Basin. The property is accessible by all-weather Highway 955 which continues north through the area of the UEX-AREVA Shea Creek deposits to the past producing Cluff Lake uranium mine.

The province of Saskatchewan in Canada has a 60 year history of uranium mining and strong support exists at a local, regional and provincial level. Permitting is straight-forward and well-understood.

Mineral Resources are reported within an open pit design at a cut-off grade of 0.15% U3O8 and 0.25% for resources outside the pit that are potentially mined by underground methods.
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