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Fission Uranium (TSX:FCU) President Ross McElroy: Successful Winter Drilling Program at Patterson Lake South Continues with Another High-Grade Zone Discovery

March 21, 2017

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is president, COO, and chief geologist for Fission Uranium (TSX: FCU)(OTC: FCUUF), Mr. Ross McElroy. Ross, thanks for coming back on.

Ross McElroy: Good afternoon, Gerardo. It's a pleasure to be with you.

Gerardo Del Real: You had some exciting news this morning. I'm going to read the headline. I'm hoping you can fill in the details for us. The headline reads, "510 meters step out discovers new high-grade zone at Fissions PLS, Athabasca Basin's largest mineralized trend now 3.14 kilometers."

Exciting news. Can you share the details for us?

Ross McElroy: Well, it really is exciting news for us. We're happy. It's part of our exploration program at PLS this winter. When we talked a couple of weeks ago, I guess at the end of February, we put out a news release on two of the exploration holes out on Line 1665, which is sort of in the same vicinity as our new discovery.

We were pretty excited about that because they were anomalously radioactive. We were seeing hints that there's something in the system, and so we put some more holes down into the western side. We started off with reverse circulation “RC” holes. We just did some shallow tests into the basement. We followed up because there were encouraging results. We followed up with some core drilling to further extend the depth, which is actually the better tool for actually delineating mineralization, the core tool.

We followed up in that area and after testing on a few lines, we finally hit into what is now a significant mineralized zone on hole 539. You're right to point out the large step out at 510 meters, further west than anything that we've hit of significance so far. That's on the 840 west zone, so we're quite a ways out to the west.

We know that the potential still to continue westward for quite some distance is still very strong. So we're really happy right now with the way that the exploration program is developing.

True to the earmarks of the other zones, this is still shallow. So the zone that we hit in 539 is about 200 meters down the depth of the hole, so that's about 170 meters vertical depth. Still considered very shallow in the Athabasca Basin.

Gerardo Del Real: Absolutely. Now one of the biggest takeaways for me out of the news release, Ross, was, there's a comment there saying that the next step is to begin growing the zone and that you were pretty confident you were in the right area. How well do you understand what you're seeing in the mineralization? Because I know that there's other zones in the past, you were very successful in identifying areas that you wanted to target, targeting them, and then obviously growing those zones in a very substantial and significant way. Where are you as far as understanding the mineralization and what's the follow up plan from here on out?

Ross McElroy: Sure. Just to put in a little bit of context, what we've had before this discovery is we've been able to outline four zones so far. Two of those zones actually make up the Triple R Deposit. Two of them have yet to be included.

We've discussed those in previous interviews, but this is now the fifth zone. It's only one hole, of course, but when I see the thickness of it, which is 31 meters, that's a pretty sizeable thickness. There is high-grade mineralization within that 31 meters. To me, it seems pretty obvious that we should be able to step outwards from that in different directions. Updip, downdip, along strike, and we should be able to hit more mineralization. That's my expectation.

We'll put some holes in later this winter here in order to continue to expand that zone. If it holds true as in the other zones that make up the Triple R and the two out bounding zones of the Triple R Deposit, we should see that size of mineralization. Perhaps even better in follow up holes. So we're pretty excited to start looking at this thing in detail and, as you say, to grow the zone. We think that that's certainly a possibility here.

Gerardo Del Real: Excellent. Now this is just one part of a pretty aggressive exploration and development program. Can you just give some context and provide some context for everybody as to how the rest of the program is coming along? And what we can expect as far as catalysts and news flow here over the coming months?

Ross McElroy: Sure. The original plan was that we would put about half of our drill budget into exploration drilling, so we really wanted to step up on our exploration because we've always felt that the PLS property had great potential for finding new zones and new occurrences. So I think this is a validation of that with the discovery on 1515 with hole 539.

We'll still continue to test south for several kilometers on the prospective PLS corridor. That's the corridor that hosts the deposit, that hosts our new discovery. And further up trend hosts NexGen Arrow deposits, and even further, Cameco's Spitfire Zone that they've discovered last year.

So it's a hugely prospective corridor anyways. We think that they’re going to find more occurrences on it. We've got a drill program that's going to continue to test that potential for several kilometers to the south and we're also going to test parallel conductors to the north on our Carter trend. We have what we think looks to be pretty promising targets up there. So we're going to put a couple of holes up in the Carter zone and then, further to the south, between the Patterson Lake and the Forrest Lake corridor. We've got some excellent geophysics targets down there.

So any one of those has the potential to, like hole 539, deliver high grade mineralization. That's what our goal is. We've got the team and the experience to do that.

We're still probably a good month, month and a half, away before the end of the winter program. So all of the rest of March and probably at least until mid-April, maybe even third week of April, we'll continue on with our winter program before spring forces us to put a halt to the program and wait for the summer.

Gerardo Del Real: Well, it's a heck of a start to the program, Ross. I encourage everybody, I know there's some new maps on the website, I encourage everybody to go to fissionuranium.com and look at those maps and just get a bit more familiar with where the drilling is occurring because I think there's going to be a lot of exciting news here in the coming months.

Ross, I want to thank you so much for your time. Is there anything that you'd like to add?

Ross McElroy: No, I think just that the readers, as you say, pay attention to the news flow that we will keep coming out with. We've got a lot of drill holes yet to be done. We have some targets that we haven't even tested yet that we will do this winter. Things look very good for us, and to see results like we've seen already with this morning's release just really validates our exploration plan that we put forth at the beginning of January.

Gerardo Del Real: Absolutely. Well, hopefully we can have you back on here in a few weeks. Again, Ross, thank you so much for your time.

Ross McElroy: Very good. Thank you very much, Gerardo. 

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