A MARKET FORURANIUM

A MARKET FORURANIUM

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We all know uranium is used

to fuel nuclear power plants

and reactors, which are

crucial sources of energy.

With energy consumption

increasing and new nucle-

ar power plants being built

worldwide, the demand for

uranium will only increase

in years to come. Canada-

based uranium exploration

and development company

Fission Energy Corp has

discovered significant high-

grade deposits at its Wa-

terbury Lake property and

in 2011, made a high-grade

boulder field discovery at

its Patterson Lake South

property. Both are located

in Saskatchewan’s Atha-

basca Basin: home of the

richest uranium deposits in

the world. Fission Energy

has properties in Saskatch-

ewan, Quebec, and Peru.

Spun out of Strathmore

Minerals, which had near-

term production assets in

the United States, a number

of Fission Energy’s proper-

ties were already staked. In

particular, Fission Energy

acquired Strathmore’s as-

sets in the Athabasca Basin

in Saskatchewan, a world

premiere district for ura-

nium where exceptionally

high-grade deposits can be

found.

“It’s unlike anywhere else

on earth,” says Ross McEl-

roy, CEO and President of

Fission Energy. “The depos-

its in the Athabasca Basin

are better quality resources

and are higher grade.”

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Core Samples

from Discovery

Bay

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Twenty percent of the

world’s uranium and 100

percent of Canada’s supply

derives from this region.

With nine properties in the

Athabasca Basin and over

200 000 hectares staked

to date, Fission Energy is

positioned as a potential

leading force in the ura-

nium exploration industry.

STRATEGIC PARTNERSHIPS AND THE GROWTH OF NUCLEAR ENERGYThere are approximately

440 nuclear power plants

in the world. This number,

says McElroy, could in-

crease dramatically in the

coming decades. European

and North American coun-

tries have traditionally re-

lied a great deal on nuclear

power; France runs around

80 percent of its energy re-

quirements from nuclear

generators and the United

States has 25 percent of

the world’s nuclear power

plants. However, McEl-

roy says the real growth in

Ross, Dev and Bob

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the industry is coming out

of Asia. “China and Ko-

rea are emerging countries

and their demands on the

energy sector are huge be-

cause their populations are

booming and their growing

economies are vast. With

the growing economy, you

have higher energy require-

ments,” explains McElroy.

There are currently 13 nu-

clear power plants operat-

ing in China and 26 under

construction. McElroy says

China also has plans to con-

struct over 100 more plants

in the near future.

“That’s a huge addition to

the overall grid,” he says.

As an exploration company,

Fission Energy is constant-

ly searching for resources to

feed into this future market,

10 to 15 years down the line.

The average project from

discovery to mining takes at

least 10 years.

This booming growth sector

in Asia is one of the reasons

Fission Energy has decided

to partner up with the Ko-

rean Utility Company. The

partnership is crucial and

e�ectively benefits both

sides. Korea is currently

bidding to build new nuclear

plants in regions such as the

Middle East and is winning

many new contracts.

“They need uranium for the

long term and this allows

them to provide support

over a long period of time.

It’s important for a junior

company to have some se-

curity out in the future so

that their projects will be

supported,” says McElroy.

THE PROJECTSOf all their projects, McEl-

roy says Waterbury Lake in

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the Athabasca Basin is the

number one priority.

“It’s right in the heart of the

uranium mining district,”

he says.

The company made a high-

grade discovery in the re-

gion in 2010 and is continu-

ing to grow the deposit.

Fission Energy is quite con-

fident Waterbury will con-

tinue to churn out great

results: the 40,256-hectare

property is currently being

drilled in an expanded 88

hole 32,630m drill program

with a 26 percent increase

in budget from what was

originally planned. Fission

Energy owns a 60 percent

share of Waterbury Lake,

while the Korea Waterbury

Uranium Limited Partner-

ship owns 40 percent. The

property also lies 30 me-

ters away from properties

Rio Tinto has purchased for

$654 million where a sig-

nificant discovery was made

four years ago. This merely

emphasizes the strategic

nature of Fission’s project.

Another important project

for Fission Energy is also lo-

cated in the Athabasca Ba-

sin: Patterson Lake South.

This past summer, the com-

pany discovered high-grade

uranium boulders. “We’re

continuing to follow up on

that and hopefully make a

discovery at the source of

the boulders,” says McElroy.

Over in eastern Canada,

Fission Energy has secured

deposits at Dieter Lake in

Quebec. Originally owned

by a German utility compa-

ny in the late 1970s, Fission

Energy acquired the lands

in 2002. The property has a

sizable inferred resource of

24.4 million pounds.

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Fission Energy works in the heart of the uranium

mining district.

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McElroy explains how his company is di�er-

ent from other uranium exploration com-

panies out there: “We’re successful with a

discovery. Most juniors are not.”

With the help of Bryson Drilling on the

Waterbury project, Mineral Services Group

for geological consulting, and various geo-

physics groups such as Patterson Geophys-

ics, Discovery Geophysics, and Living Sky

Geophysics, Fission Energy has been able

to acquire a solid understanding of the land

and how to maximize their use of it.

“Most juniors have not had success explor-

ing in that area, but we’ve had two major

successes in the last two years,” says McEl-

roy. Looking forward, McElroy wants the

company to continue growing deposits in

the next five years and sell assets as they

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become attractive to major mining com-

panies. While McElroy attributes some of

the success to “a certain level of good luck,”

he also says the company has a very tech-

nologically capable group to support their

endeavors. With advanced geotechnical

and geochemical groups and a solid part-

nership with the Korea Utility Company,

Fission Energy is just as successful as any

major company. Moreover, the company is

well-funded (a third of the market is strict-

ly in cash) and their geographically-varied

properties allows for lot of room for expan-

sion. By focusing on the Athabasca Basin, a

region where McElroy himself has spent a

large part of his last 25 year working career,

Fission Energy has wisely positioned itself

in an area where their expertise gives them

a competitive advantage.

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For more information www.fission-energy.com

As seen in March issue of JARKS BUSINESS CANADA magazine at www.jarks.ca