Fission 3.0 (TSX-V: FUU) - Hunting for More Super High-Grade Uranium

Fission 3.0 Corp. is a uranium project generator and property bank company. The company’s business model is to identify highly prospective projects and use its technical expertise as the sole operator to develop and de-risk those projects for a potential sale. The company’s management team is headed by Dev Randhawa as CEO and Chairman and Raymond Ashley P.Geo. as Vice President of Exploration. Fission 3.0 was incorporated in October 2013 as a wholly-owned subsidiary of Fission Uranium Corp. On November 28, 2013, Fission 3.0 completed a plan of arrangement under the Canada Business Corporations Act involving Alpha Mineral and Fission Uranium Corp. pursuant to which Fission Uranium acquired Alpha Minerals’ 50% stage in the Patterson Lake South (PLS) project. As a result of the transaction, certain properties and assets of Fission Uranium, including the Patterson Lake North (PLN), Clearwater West, North Shore, and Beaver River properties in Saskatchewan, became properties and assets of Fission 3.0. Fission 3.0 is no longer a wholly-owned subsidiary of Fission Uranium.

Matt Gordon caught up with Dev Randhawa, Chairman, and CEO, Fission 3.0. Dev has a wealth of experience in growing resource, mining exploration, and energy companies. Northern Miner Magazine named Dev “Mining Person of the Year 2013” and Finance Monthly awarded him with the “Deal Maker of the Year 2013” award. As part of the Fission team, Dev has won the Mining Journal Excellence Award in 2015 for Exploration. He currently serves as the CEO of Fission 3.0 Corp and Fission Uranium Corp., which made the shallow-depth, high-grade uranium discovery at PLS. Most recently, Dev negotiated a subscription and off-take agreement with CGN Mining that, in January 2016, resulting in CGN Mining investing $82M in Fission at a premium to the stock price. His education credentials include a Bachelor’s Degree in Business Administration with Honors from Trinity Western College of Langley British Columbia in 1983 and a Master's in Business Administration from the University of British Columbia in 1985.

Company Overview

Fission 3.0 Corp. is a uranium project generator and exploration company, focusing on projects in the Athabasca Basin, home to some of the world’s largest high-grade uranium discoveries. The company currently has 16 projects in the Athabasca Basin. It is listed on the Toronto Stock Exchange (TSX-V: FUU), the OTC Markets (OTCQB: FISOF), and the Frankfurt Stock Exchange (FSE: 2F3A). The company was founded in 2013 and is headquartered in Kelowna, British Columbia, Canada.

Fission 3.0 is a Canadian uranium explorer. The company recently made an important discovery on the PLN property. Being radioactive in nature, uranium can be tested using a scintillometer. The company hit over 65,000 cps (counts per second) over 2 meters. The second hole hit 2.5m of uranium. Although the assay results are pending, the company anticipates that it has hit something substantial.

While machine calibration varies between devices, the company has utilized it in the past in order to test uranium presence. It found 15% uranium with ISO ranging between 20%-70%. The uranium core appears to be a heavy-pitch blend. The assay results from the discovery hole are expected by Christmas.

Within the discovery hole, the uranium is present in blobs. The conductors help identify the underlying mineralization. It can confirm the presence of a system, however, the direction of the mineralization still needs to be determined. The company’s team has past experience in identifying uranium mineralization. There are a limited number of people that have experience in finding a discovery and turning it into a deposit. Fission 3.0 has previously turned two discoveries into deposits, namely the J Zone and Triple R under Fission Energy and Fission Uranium. The company has tremendous faith in its team to chase the blobs around the discovery hole in order to determine the ideal drilling locations.

The company’s strategy is to have 15m step-outs in different directions. Once it has a better understanding of the underlying geology, it can carry out 20m-30m-50m step-outs. It is easy to miss uranium presence as the margin of error can be as small as 5m. The company is looking to turn the discovery into a deposit and is currently awaiting the assay results.

Yesterday, Fission 3.0 raised an additional $8M at a 45% premium to the market with no warrant. The company has raised $100M since its inception. In 2021, it raised money at 10.5-12 cents with Red Cloud. The stock trended upwards before eventually coming down to 21-22 cents. Due to this, the company decided to raise additional funds.

About 2 years ago, the company was in a position where the CEO had to invest $100,000 in order to continue operating. Working with Red Cloud has helped the company being covered by Dave Talbot, a well-known uranium analyst. The positive press has enabled the company to raise smart money which is a result of bringing value to the table.

Red Cloud supported Fission 3.0 in the current round of financing. Notably, Red Cloud is run by Peter Grosskopf, who is credited with raising almost $3Bn from the market. The company has been highly supportive in the uranium space and has opened doors to a number of investors over the years.

Fission 3.0 decided to hire Ross McElroy, who hired Ray on the team. The hiring decisions have helped put together an experienced team. This has also helped the company raise additional capital. The team members have a strong track record of turning discovery holes into a deposit.

Targets 2022 and Beyond

The exploration business is extremely risky in nature and the risks are further amplified by the fact that a very small group of people understand it. Fission 3.0 is looking to drill a couple more holes before Christmas. Once the assays are in, the company will have a better understanding of the deposit. The company intends to grow the asset into a deposit. Notably, Fission Uranium recently hit $800M in market cap, which demonstrates that major discoveries are rewarded by the market.

Over the course of the next 12 months, the company will focus on understanding the deposit through continued drilling. The company anticipates that during this time period, uranium pricing will trend higher. The last time uranium saw a significant price jump was when the SPUT (Sprott Physical Uranium Trust) bought uranium supply from the market.

The UK has a much better understanding of the uranium market compared to Germany which is still heavily reliant on coal plants for energy requirements. In wake of the current geopolitical situation, countries are now realizing the importance of having a domestic uranium supply.

Fission 3.0’s deposit is present on land as opposed to lakes. It features shallow and wide mineralization with high cps counts. Saskatchewan is full of lakes. Most of the deposits in the region are based on lakes, while the company’s asset is based on land.

The company is looking to publish a revised placement by December 22. It is aiming for a bought deal that works in its favor, especially from a funding perspective. Fission 3.0 has trust in the team’s abilities and is focused on following the deposit’s geology. The company bought a Sonic drill, which, when combined with the additional funding, will provide creative freedom to the technical team. The company has identified boulders using scintillometer-led surveys. It anticipates that $15M will provide the technical team with enough room to try out different things.

As the company followed up the holes, it hit a dip that was trending north. Currently, the company is following up on the holes in the south. By Christmas, the company intends to halt operations to give the team a break, which is currently working 24 hours. By the first week of January, the team will resume operations. Since the asset is based on land, the drill operations are a lot simpler. By Christmas 2022, the company intends to drill two holes down dip, up dip, and on the sides. In the meantime, the company is awaiting assay results from the previous drill operations.

According to the company, investors should focus on the management team and the funds that are being directed toward the deals. When the management team is aligned with investors, it often leads to great discoveries.

To find out more, go to the Fission 3.0 website