Post on 16-Apr-2017
transcript
1 FissionUranium.com
Patterson Lake South (PLS)
Exploration Project
of the Year
Community Engagement – November 2016
TSX: FCU OTCQX: FCUUF
Disclaimer
The following information may contain forward-looking statements. Forward-looking
statements address future events and conditions and therefore involve inherent risks
and uncertainties. Actual results may differ materially from those currently anticipated
in such statements.
All historical resource estimates were completed prior to the implementation of NI 43-
101 and the Company has not done the work necessary to verify the classification of
the resource or reserve, they should not be relied upon or considered a defined
resource according to NI 43-101; Except for those properties where NI 43-101 have
been completed.
The technical information in this corporate presentation 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 Ross McElroy, P.Geol. President and
COO for Fission Uranium Corp., a qualified person.
2
TSX: FCU OTCQX: FCUUF
Certain of the technical information contained herein is derived from the September 15,2015 report entitled “Technical Report on the Preliminary Economic Assessment of the
Patterson Lake South Property, Northern Saskatchewan, Canada” (the “PEA”) – a copy of which is filed on the Company’s profile on SEDAR at www.sedar.com. Readers should
be aware that the PEA is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. The PEA considers the PLS
project as a stand-alone mine and mill operation, which includes development and extraction of the R00E and R780E zones (Triple R deposit) and that the PEA study is based on a number
of qualifications and assumptions including the following (all values in C$ unless otherwise noted):
Physicals:
• Three years of pre-production and 14 year mine life, processing nominally 1,000 tonnes per day (350,000 tonnes per year)
• Total Tonnes Processed: 4.8 million tonnes at 1.00% U3O8 average grade; open pit mining of 1.56 million tonnes at 2.21% U3O8
• Underground mining of 3.25 million tonnes at 0.42% U3O8
• Process recovery of 95%, supported by metallurgical testwork
• Production of 100.8 million lbs U3O8; an average of 13 million lbs U3O8 per year for 6 years, followed by an average of 3 million lbs U3O8 per year for 8 years
Revenue:
• Long term uranium price of US$65 / lb U3O8
• Exchange rate of 0.85 US$ / C$1.00
• Gross revenue of $7.71 billion, less Saskatchewan gross revenue royalties of $556 million
• Less product transportation charges of $34 million
• Net revenue of $7.12 billion
Operating Costs
• Average OPEX of $16.50/lb (US$14.02/lb) U3O8 over the life of mine
• Unit Operating Costs of $346 per tonne processed. Combined Mining $154 per tonne processed
• Processing: $114 per tonne processed
• Surface and G&A: $78 per tonne processed
• Operating cash flow of $5.45 billion
Capital Costs
• Pre-Production capital costs of $1.1 billion
• Open pit mining $363 million (includes dyke, slurry wall, and overburden removal)
• Process plant $198 million
• Infrastructure $117 million
• Indirects $209 million
• Contingency $208 million
• Sustaining capital costs of $189 million (includes completion of overburden stripping, all underground mine capital costs, and tailings dam lifts)
• Reclamation and closure cost of $50 million
• Cash flow from operations of $4.12 billion
3
Technical Information
TSX: FCU OTCQX: FCUUF
• Fission Uranium Corp. team: – Ross McElroy – President, COO, and Chief Geologist
– Rich Matthews – Head of Marketing and IR
– Ryan Froess – CanNorth Environmental Services
– Kara Wolfe – CanNorth Environmental Services
Contact Ross at: rich@fissionuranium.com
(250)868-8140
Contact Ryan at: ryan.froess@cannorth.com or
(306)652-4432
4
Introductions
TSX: FCU OTCQX: FCUUF 5
Impact of PLS on
Western Athabasca Basin
TSX: FCU OTCQX: FCUUF 6
Athabasca Basin Land Holdings: Pre – Nov 2012
August 2012
TSX: FCU OTCQX: FCUUF 7
Athabasca Basin Land Holdings: Post – Nov 2012
TSX: FCU OTCQX: FCUUF 8
Exploration in the
Athabasca Basin Region
TSX-V: FCU OTCQX: FCUUF
Athabasca: The Premier High-Grade Uranium District
INFRASTRUCTURE PEOPLE
• Mills nearby Labour nearby • Power grid Workforce ready • Highways & air
URANIUM GRADES
More than 10X World average
9
+40 years of mining,
supplying 19% of the
world’s uranium
TSX: FCU OTCQX: FCUUF 10
Athabasca Basin Deposits
TSX: FCU OTCQX: FCUUF 11
Current Activity in the Western Athabasca Basin Fission’s success has created a new exploration boom
Company Budget/Program (aprox)
Fission Uranium Corp $18M
NexGen $29M
Purepoint: $.65M
UEX $2M
Forum/Uracan $1.5M
Makena $.25M
Brazil Resources/AREVA Geophysical Survey TDEM
ALX Uranium Geophysical Surveys – HeliSAM TEM, VTEM, MEGA TM, Gravity, 2-3 holes
TOTAL EXPLORATION 2016: Aprox $50 Million plus
TSX: FCU OTCQX: FCUUF 12
Fission Uranium Corp.
PLS Project
TSX: FCU OTCQX: FCUUF 13
PLS: Abundant Geophysical Targets
TSX: FCU OTCQX: FCUUF 14
Triple R Deposit – Economic U3O8 Resources(1)
Indicated 81.1M lbs at 1.83% U3O8
Inferred 27.2M lbs at 1.57% U3O8
Early Days at PLS: Triple R Deposit & New Zones
“The length is now 2.63 km, well beyond that of even Cigar Lake (1.95 km) or McArthur
River (1.70 km) – such a lateral extent to us underlines the magnitude of the strength of
the mineralizing system at PLS.”
David Sadowski, Raymond James
TSX: FCU OTCQX: FCUUF
PLS: Looking Ahead
15
Exploration Goals for 2016/2017
Expand New High-Grade Discoveries Follow up on exploration hotspots Expand Triple R Deposit Test gaps between zones Exploration drilling Geological Surveys Resource Estimate Update (2017)
TSX: FCU OTCQX: FCUUF 16
PLS Core Storage Area
TSX: FCU OTCQX: FCUUF 17
Fission’s Commitment:
Communities and Economy
TSX: FCU OTCQX: FCUUF
Fission is committed to working with communities and local northern businesses in the region to maximize the training, employment, and economic opportunities for the local people.
• Goal: Build mutually respectful, beneficial, and long lasting economic relationships with stakeholders.
• We will continue to utilize (when possible) and encourage sub-contractors to maximize local northern businesses to supply goods and services for the PLS project.
18
Communities and Economy
TSX: FCU OTCQX: FCUUF 19
• Hiring local workforce
• including Geotechnical,
tradesman and support
services
• Hiring local contractors
• individuals part of the local
hire program
• Locally provided accommodation
/ security / local knowledge /
logistics support
Economic Benefits – since 2012
TSX: FCU OTCQX: FCUUF 20
Fission Teams Up With Communities
Local Community/Local Companies Hired by Fission for PLS Project - 2016
Fission
1 Full-time camp maintenance position
1 Part-time kitchen assistant
2 Part-time geotechnical positions
Big Bear
12 Camp services positions
4-8 Camp maintenance positions
6 Security
Bryson 4 Site Operator positions
MHS 2 Local Haulage and Expediting Service
Methy Construction
2 Truck Drivers
Contractors 4 Seasonal Line Cutting positions
CanNorth 2 Summer Aquatics Surveys
TSX: FCU OTCQX: FCUUF 21
PLS: Big Bear Camp
TSX: FCU OTCQX: FCUUF 22
PLS: Bigice Services PLS: Bryson Drilling
PLS: Northspan PLS: Winter Radon Crew
TSX: FCU OTCQX: FCUUF 23
Good Corporate Citizen - Sponsorships
TSX: FCU OTCQX: FCUUF 24
• Sponsor of Mining Rocks Earth Science Program held in August 2013
& 2014 (2015 cancelled due to fire hazard). Open to Aboriginal
youth ages 14-17. At Camp Quest located on Christopher Lake.
• Support local La Loche club volleyball teams with their efforts to
attend Provincial and National Championships in May 2014
• Sponsor of Ducharme Elementary School Grade 4 class trip to
Edmonton, 2015 & 2016.
• Sponsor of La Loche Fall Festival, 2016.
• Voices of Visions Sponsorship 2015-16
• First Nations Resource Magazine
Good Corporate Citizen - Sponsorships
TSX: FCU OTCQX: FCUUF 25
Fission’s Commitment:
Environment Stewardship and
Best Management Practices
TSX: FCU OTCQX: FCUUF
Fission is committed to adhering to best management practices in environmental protection and stewardship throughout the life of the project.
• Goal: To work with First Nations, Métis, traditional land users, and others in the region to reduce and mitigate the environmental impacts of the PLS project.
• Fission follows “Mineral Exploration Guidelines For Saskatchewan” as developed by SMEGAC (Saskatchewan Mineral Exploration and Government Advisory Committee) including application and adherence to all Best Management Practices outlined in these Guidelines.
26
Environment Stewardship and Best Practices
TSX: FCU OTCQX: FCUUF
All environmental studies are managed by CanNorth Environmental Services
• 100% First Nation owned by Lac La Ronge Indian Band
2013
• Aquatic – hydrology (water flow/amount), water chemistry, and fish community
• Land – rare plant surveys, breeding bird and raptor (eagles etc.) surveys
• Archaeology – heritage resource impact assessment – 4 areas
2014
• Weather station installed and hydrology monitoring
2015
• Weather station and hydrology monitoring
2016
• Aquatic – hydrology, fish community and chemistry, water chemistry/water quality, bathymetry of the lakes, number and types of bugs in lakes, aquatic plants
27
Environmental Studies completed – since 2013
TSX: FCU OTCQX: FCUUF
Environmental Studies: Moving forward
28
Environmental Sampling Plan for 2017
• Surveys that will be completed in 2017 will include hydrology, water
sampling, sediment chemistry, and fish spawning surveys.
• These and additional environmental studies moving forward will be included
to complete an Environmental Assessment for the PLS project.
• The goal of these studies is to understand current conditions in the region
and minimize the current and future disturbance on the environment.
Environmental Studies – Proposed for 2017
TSX: FCU OTCQX: FCUUF 29
Fission’s Commitment:
Community Engagement
TSX: FCU OTCQX: FCUUF
Fission is committed to establishing a strong foundation for future engagement and working with all stakeholders (First Nations, Métis, Tribal Councils, communities, municipalities, governments, and regulatory agencies) throughout Fission’s PLS project.
• Goal: to meet regularly with stakeholders and to keep them informed about the PLS project and licensing plans and decisions in the project moving forward.
• We believe that a diverse group of stakeholder groups are beneficial to the project and will provide all groups the means to address concerns in an reliable and open manner.
30
Community Engagement
TSX: FCU OTCQX: FCUUF
• Engage openly, honestly, and respectfully with all
stakeholders and communities;
• Engage as early in the process as possible and continue
to keep informed;
• Give careful thought to cultural traditions and practices
and communicate information to stakeholders in their
preferred language where possible;
• Listen to all issues, concerns, and interests and
incorporate into project planning phase and design.
31
Fission’s Core Principles to Engagement
TSX: FCU OTCQX: FCUUF
• Questions/Moving forward
– What is best way to consult/engage with your
community (meetings, factsheets, how often, etc.)
– What are your major questions and concerns?
– Are there any special areas/locations or
plants/animals that are of importance to your
community that should be studied?
– Do you have community consultation coordinator?
– Are there any community initiatives that Fission may
be able to assist with moving forward?
32
Community Feedback is Important!
TSX: FCU OTCQX: FCUUF 33
Thank-you
Fission Uranium Corp.
Phone: 250.868.8140
Toll Free: 1.877.868.8140
Email: ir@fissionuranium.com
Web: www.fissionuranium.com
Rich Matthews, Investor Relations
Phone: 604.558.2020
Email: rich@fissionuranium.com
34