R00E discovery zone (Company)

ROOE discovery zone (Company)

Alpha Minerals (AMW:TSXV) and Fission Uranium (FCU:TSXV), the joint venture partners who continue to advance the Patterson Lake South discovery in Saskatchewan, announced this morning that they discovered a sixth mineralized zone in a step-out hole drilled 525 metre’s from the original discovery zone.  The new zone, R600W, is on a 1755m trend with all five high-grade zones to the east.  Drill hole PLS13-118 intersected 21.5m of total composite mineralization over an 80.5m section (174.5m to 255m in depth).

Ross McElroy, President, COO, and Chief Geologist for Fission, commented, “The discovery of this new zone is a tremendous mark of progress for PLS. 530m is a particularly large step-out and a successful hit of this size not only highlights the continued success of Fission exploration methodology but confirms the ongoing growth of project’s potential. It’s important to note that R600W is wide open for further exploration and our team is planning a strong follow up.”

This latest mineralized zone was discovered as part of the company’s ongoing $9.2M, 14,700m, 49 hole drill campaign to follow up the successful summer drill program the joint venture partners had.  R600W was drilled into a radon in sediment anomaly which was discovered to be between 540W and 630W and was thought to potentially be associated with a north-south cross cutting structure.  The R600W zone lies along an east-northeast trend, parallel and to the north of the PL-3B EM conductor.

Fission has fallen from a high of $1.48 to $1.03 per share and Alpha from a high of $7.60 to $5.45 per share as of the close Friday as people continue to take profits.  On September 3rd, Fission announced a bid for Alpha to consolidate the PLS discovery, using Fission stock as the currency.  Fission agreed to pay 5.725 shares for each share of AMW stock as well as all of the stock in a Spinco which will hold all of Alpha’s other assets outside of the PLS as well as $6 million in cash.  As a result, AMW stock now closely tracks Fission’s.  As a result of recent profit-taking, the total deal value has fallen from roughly $185 million to closer to $160 million.  Alpha recently mailed its Management Information Circular which can be viewed here.

Here’s the FCU chart:

FCU Chart

Read: Alpha Minerals JV Reports New Uranium Strike on Land Located 525m West of Discovery Zone R00E