UPDATE 1-Fission Uranium sees huge resource for mine; shares jump

Mon Jan 12, 2015 1:16pm EST
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(Adds CEO interview)

By Rod Nickel

Jan 12 (Reuters) - Fission Uranium Corp shares jumped as much as 23 percent on Monday after the company said late on Friday that an independent resource estimate showed its Triple R deposit at Patterson Lake South contained 105.5 million pounds of uranium.

The surprisingly large estimate by RPA Inc of the deposit in Canada's northern Saskatchewan could position the tiny company as the next takeout target, an analyst said, just as the sector slowly emerges from a nearly four-year slump.

Fission's deposit is the largest in Saskatchewan's Athabasca Basin after the world's largest high-grade uranium mine, McArthur River, and the Cigar Lake mine. Both are owned by Cameco Corp and Areva SA.

Fission Chief Executive Officer Dev Randhawa said he was in no hurry to sell before the resource is fully explored.

"Right now, I think we're the best technical team to develop it," Randhawa told Reuters from New York, "and the evidence is we knocked (the resource estimate) out of the park."

However, Dundee Capital Markets analyst David Talbot said the deposit was "ripe for the picking," adding that resource estimates usually grow as deposits are further explored.

Randhawa said British Columbia-based Fission had signed non-disclosure agreements with about six parties, including Cameco, Areva, Denison Mines Corp and state-owned power company China General Nuclear Power Group. It is also talking with streaming companies about buying future gold production.   Continued...