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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (84641)	8/24/2011 8:51:06 AM
From: LoneClone	Read Replies (1) \| Respond to of 194794

Fission Energy receives initial buy recommendation from Versant Partners 27th May 2011, 3:53 pm by Deborah Sterescu proactiveinvestors.co.uk Fission Energy (CVE:FIS) (OTCQX:FSSIF) received initial analyst coverage from Versant Partners on Thursday, dubbing the uranium explorer's flagship Waterbury Lake property as "an enviable combination of location, high-grade resource potential and opportunity". As a result, Versant gave Fission an initial buy rating. The 60%-owned, 40,256 hectare Waterbury Lake property, in Canada's prolific Athabasca Basin, is the "premier address" for high grade uranium in the world, said Versant. Fission's project, which is 40% owned by Korea Electric Power Corp, is located in the heart of this prospective ground, next to Hathor Exploration's (TSE:HAT) Roughrider deposit and Denison Mines' ( TSE:DML) Midwest project - a uranium camp that already hosts over 110 million pounds of uranium oxide. Infrastructure in the area is as a result well developed, with three mills and a network of roads and power lines. The junior uranium company is also currently exploring five potential "pearls" on the Discovery Bay corridor of the property, a potential system of high-grade uranium deposits. Exploration activity has yielded strong results of late, including uranium oxide assays routinely greater than 1% and up to 2 metres at 46.2%. While management expects the first resource estimate for the J-Zone of the property to be completed by year-end, based on reported drill data thus far, Versant expects a maiden resource of 319,680 tonnes, with 17.6 million pounds of contained uranium at a grade of 2.5%. Despite the near-term negativity in the market following the tragedy at Japan’s Fukushima plant, the equity research firm also noted in its report that strong fundamentals continue to drive the uranium market, and a project in the Athabasca Basin where uranium has been produced for over 35 years is less likely to meet with post-Fukushima resistance. Indeed, an increased awareness of the dangers and effects of fossil fuels on the environment, has in fact led many to see the actual benefits of nuclear power, the only readily available and large scale source of alternative green energy. This means Fission's value could grow significantly in the future. The company also has a portfolio of projects outside of Waterbury Lake, two with significant "blue sky" potential, according to Versant. These properties include Dieter Lake in northern Quebec, which has an NI 43-101 compliant inferred resource of 24.4 million pounds, and a land package of nine mining concessions in the Macusani Plateau in Peru. With $20.1 million of cash in the bank, and another $2.67 million likely coming from the exercise of warrants, Versant estimated a base case market capitalization for Fission of $92.4 million or $0.90 per share. The equity research firm declined to give a specific price target, due largely to a lack of an NI 43-101 compliant resource for Waterbury Lake.