Fission 3.0 Corp


Building A Powerful Uranium Exploration Base in Canada’s Prolific Athabasca Basin

The new uranium bull market is underway…

…and best of all, it’s still early-innings which means you haven’t missed out on the coming profit windfall.

The company featured in this report — Fission 3.0 Corp. — built an impressive base of 16 high-potential uranium exploration projects in Canada’s famed Athabasca Basin region during uranium’s last commodity downturn. Fission 3.0 is now set up for success as uranium continues its powerful surge toward US$50 per pound… and potentially much, much higher.

The profound impact of COVID-19 on the global uranium market, coupled with a renewed acceptance of nuclear as “clean, emission-free, reliable energy” has kicked off events that are already seeing the uranium spot-price — and related equities — ratcheting higher.

Currently, the price of uranium is around $45 per pound. It’s likely headed north of $75 per pound soon — and this report details precisely why.

Over the next ten years, the world will need ~200 million pounds of uranium annually. But there is only about 150 million pounds per year globally with all-in sustaining costs (AISC) below US$50 per pound — and 20% or more of that was knocked offline because of COVID-related disruptions.

At today’s spot price, only about 100 million pounds of supply per year is economic or only about HALF of what the world needs. A spot price well above $50 per pound will be needed — and is expected — over the next few years.

That reality has kicked off a new bull market in U3O8 prices and select small-cap uranium stocks — including newly-listed Fission 3.0 (TSX-V: FUU)(OTC: FISOF).

A New Uranium Bull Market Emerges

Uranium’s last bull market kicked off in 2006 when Cameco’s Cigar Lake Mine — which provides ~7% of global annual uranium supply — flooded while it was being built, prompting a run on uranium that sent the spot price to a jaw-dropping US$140 per pound.

It simultaneously sent uranium stocks significantly higher in percentage terms with some like UEX Energy, Energy Fuels, Laramide Resources, and International Enexco delivering a few thousand to +100,000% returns.

The commodities sector is known for the stocks within it offering leverage to the underlying price of the commodity.

The uranium subsector epitomizes this.

And Fission 3.0 Corp. has been set up from the outset to capitalize on the uranium upswing the “clean-energy” world is bearing witness to now.

A Miniscule Market with Immense Leverage to Rising Prices

The uranium market is incredibly small compared to other commodities.

Kazakhstan alone produces ~40% of global supply. It does this through Kazatomprom, its national uranium company, which listed 25% of its shares on the London Stock Exchange in 2018. Those shares have a market capitalization of about US$12 billion.

The next largest public pure-play is Cameco Corporation (NYSE: CCJ), which produces ~10% of annual global supply and has a market capitalization of around US$11 billion.

In other words, half of the world’s uranium production is represented by less than US$30 billion in market cap. In contrast, Amazon has a market capitalization of nearly US$2 trillion.

From there, the pure-plays get small very quickly. The “largest” uranium producer in the United States, for example, is Energy Fuels (NASDAQ: UUUU).

Largest is in quotes given it will only produce around 30,000 to 60,000 pounds of U3O8 this calendar year. Its market cap is around US$1.7 billion but has mostly been below that for years.

If you were to look up the top holdings of the Global X Uranium ETF (NYSE: URA), you would see that these three companies make up three of the top five holdings.

The other two are NexGen Energy with its world-class, but undeveloped, Arrow project in Saskatchewan and Denison with its large, but also undeveloped, Wheeler River project on the other side of the Athabasca Basin.

Those five companies make up over 50% of the sector ETF.

Hence, the uranium world is incredibly small, which is why even slight inflows into the sector create such stark leverage reflected in the equities — especially the small-caps.

Utilities Will Drive the Next Upward Leg of the Uranium Boom

The biggest and most important buyers in the uranium space are the utilities. And here’s where it gets really interesting.

For years, the utilities have been able to lock up uranium supplies at depressed prices.

That’s about to change. The combination of supply cuts from the highest-margin producers and utilities coming back into the market will create the greatest uranium bull market anyone has ever seen.

You see, for the utilities, price is secondary to securing supply. That’s because the price they pay for uranium makes up a very small portion of the total cost of operating a nuclear reactor.

And for mine start-ups and restarts to be economic, uranium prices need to be well north of $50 per pound. That’s the low-water-mark incentive price to build a new uranium mine in today’s economy.

The bottom line is that no developer can bring a new uranium mine from development to production at $40 per pound uranium.

And that means we’re guaranteed to see higher contract prices.

That’s why uranium bull markets are so powerful. It’s also why the profits can be so life-changing.

Whether the utilities pay $50 per pound or $150 per pound… THEY HAVE TO BUY!

With nuclear power providing some 15% of global baseload clean electricity… either the utilities buy uranium at higher prices… or the lights go out!

The utilities' last major contracting cycle was in 2010. And when you look at the levels of uncovered reactor requirements starting next year and the year after that... every year, it gets larger and larger and larger.

Not only is the biggest buyer about to rush back into the market… but governments that just years ago vowed to move away from nuclear energy are now realizing that there isn’t a cleaner, safer, more economic option in the world.

China, Japan, India, South Korea, and even the US are now fully onboard with a cleaner energy future that will require vast amounts of uranium.

In fact, China just confirmed its intent to build 150 new nuclear reactors over the next 15 years as part of their newly-enhanced decarbonization mandate. That's more reactors than have been built in the last 35 years!

France also just announced that they’re going to be building a new generation of nuclear reactors for the first time in decades.

And there’s also the advent of Small Modular Reactors — or SMRs — right here in America.

SMRs offer key advantages over traditional reactors such as relatively small physical footprints, reduced capital investment, ability to be sited in locations not possible for larger nuclear plants, and provisions for incremental power additions.

In other words, strong tailwinds are forming for the uranium sector at large.

And then there’s the retail speculator who, until now, hasn’t had a viable vehicle to buy physical uranium with the press of a button or by placing a phone call.

That’s all changing now…

Sprott Inc. just launched what amounts to a new uranium ETF by taking over Uranium Participation Corp (TSX: U)(OTC: URPTF).

The formation of the Sprott Physical Uranium Trust is a big deal. In fact, we believe Sprott's 200,000-plus investors will look at this as a way to directly purchase physical pounds without having to take delivery, which Sprott will do for them.

They’ve done it with gold. They’ve done it with silver. And now they’re doing it with uranium.

Sprott has already announced an initial investment of over US$1.3 billion. That will likely grow over the coming quarters.

The Kazakhs quickly followed suit with their own US$500 million physical uranium fund.

These two funds are combining to tighten an already strained uranium supply market… resulting in the first upward leg of the new uranium bull market with U3O8 prices surging from US$30 per pound to currently around US$45 per pound.

We talked about the utilities. They’ll be next to come in.

Historically, it is the utilities that have been the main driver for higher uranium prices.

And there are signs the utilities are about to enter the market to secure their next long-term U3O8 contracts.

Once that happens, we could see uranium prices surge first to US$75 per pound… and eventually to record highs above US$140 per pound.

Could we see US$200 uranium in the not too distant future? We believe so!

And while that high a price would likely be unsustainable over the longer-term — it won’t matter!

That’s because any surge above US$75 per pound would send the share prices of select small-cap uranium firms many multiples higher… resulting in life-changing gains for well-positioned investors.

So yes, the gains in the uranium spot price will be incredible... but the top junior uranium exploration firms will make those gains look paltry in comparison.

Enter Fission 3.0 Corp. (TSX-V: FUU)(OTC: FISOF).

Fission 3.0: Expertise. Vision. Location.

Fission 3.0 Corp. is a uranium project generator and property bank company.

The company is deploying a brilliant business model of identifying highly-prospective projects and then using its vast technical expertise, as sole operator, to develop and derisk uranium exploration projects for potential sale or joint venture.

Fission 3.0 has already amassed an impressive uranium portfolio of 16 properties in Canada's prolific Athabasca Basin region the #1 highest-grade depository of uranium on the planet.

And, as mentioned, this was all accomplished during uranium’s post-Fukushima downturn which sent the price of uranium reeling for a full decade.

As far as uranium mining addresses go Saskatchewan’s Athabasca Basin is the place to be.

The Athabasca lays host to 13.2% of the world’s uranium, including some of the largest and richest uranium deposits ever found. That includes Cameco’s Cigar Lake and McArthur River mines and NexGen’s Arrow deposit.

Uranium mining has been ongoing in the basin for 60-plus years with an extraordinarily bright future ahead with uranium grades of 10X to 20X the global average.

Led by CEO, Dev Randhawa, Fission 3.0 has planted its flag firmly in the Athabasca Basin to the benefit of FUU/FISOF shareholders.

A Robust Portfolio of High-Potential Uranium Exploration Projects

PLS Area Projects: Patterson Lake North, Clearwater West, Wales Lake

Patterson Lake North (PLN): The PLN property is currently the most advanced of the Fission 3.0 portfolio.

The 100%-owned project — consisting of 38 mineral claims spanning nearly 40,000 hectares is located just inside the southwest area of the Athabasca Basin in proximity to Fission Uranium’s Triple R and NexGen’s Arrow deposits.

Previous drilling at PLN by Fission 3.0 in 2014 identified a mineralized structure associated with the 3-km-long A1 conductor with strongly anomalous geochemistry, including uranium values and pathfinder elements such as boron, copper, nickel, and zinc.

Further drill-testing of the A1 conductor will continue where it remains untested to the northwest over a further 700-meter strike length as defined by ground geophysics.

The pathfinder geochemistry of the drill holes along the A1 conductor become more enriched and, therefore, increasingly prospective toward the northwest. The Fission 3.0 team intends to follow that vector in its current work program.

The company’s PLS Area Projects also include Clearwater West and Wales Lake.

High priority areas from recent airborne and ground geophysics at the Clearwater West project have been deemed prospective for uranium mineralization. And geophysical surveying at Wales Lake has identified numerous areas of enhanced conductivity.

In addition to the flagship PLS area projects, Fission 3.0 is advancing its other Athabasca-based properties by way of the prospect generator model.

To that end, in November 2021, FUU announced that Traction Exploration Inc. (CSE: TRAC) has entered into an LOI to acquire up to a 70% interest in the 10,600-hectare Hearty Bay Project [located within FUU’s Beaverlodge Area Projects] and the 1,800-hectare Lazy Edward Project [situated within FUU’s Key Lake Road Area Projects].

The Hearty Bay Project surrounds the historic Isle Brochet radioactive boulder trains.

Boulder prospecting by Fission 3.0 on Isle Brochet in 2019 led to the discovery of 45 radioactive boulders with assay values up to 8.23% U3O8 with over 24% of them returning assay values of greater than 1% U3O8.

The Lazy Edward Project is located in the southeastern margin of the Athabasca Basin between the historic Key Lake Mine and Cameco's Centennial deposit.

The Lazy Edward Project has been identified to have potential for unconformity-type, high-grade uranium deposits typical of the Athabasca Basin.

Additionally, on November 15, 2021, Fission 3.0 announced the staking of two new Athabasca-based properties: Grey Island and Flowerdew.

Both projects are situated in geologically prospective areas near the Athabasca Basin margins with the potential to host shallow high-grade uranium mineralization.

Grey Island: 10 claims totaling 12,023 hectares in the southeast area of the Athabasca Basin and located halfway between the Key Lake Mine and Cameco's Centennial uranium deposit.

Flowerdew Lake: 4 contiguous claims totaling 5,667 hectares covering an area approximately 13 km x 4 km and located along the regional geological trend to the northeast of the Rabbit Lake, Eagle Point, and Collins Bay uranium mines.

With a robust portfolio of 16 uranium exploration projects in the Athabasca Basin region, speculators can expect a steady stream of news flow over the coming quarters with which to potentially drive values forward.

An Impressive Group of Uranium Mining Professionals

Fission 3.0 Corp. boasts a highly-experienced management and technical team with a history of success in the North American uranium sector.

It’s a team that foresaw the uranium bull we’re just now entering and built a robust base of uranium exploration properties in the hot-bed of North American uranium production — Canada’s Athabasca Basin region.

With uranium now surging toward US$50 per pound and perhaps much, much higher — Fission 3.0’s projects are all of a sudden a lot more valuable. Let’s meet a few of the key principals now.

Dev Randhawa
Chairman & CEO

A highly-experienced mining CEO, Dev boasts a wealth of experience in building resource, exploration, and energy companies. In 2013, The Northern Miner named Dev ‘Mining Person of the Year’ with Finance Monthly awarding him ‘Deal Maker of the Year.’ As part of the Fission Uranium team, he also took home The Mining Journal’s ‘Excellence in Exploration’ award in 2015.

Dev presently serves as CEO of Fission 3.0 Corp. and Fission Uranium Corp. which made the high-grade uranium discovery at PLS. Mr. Randhawa founded Strathmore Minerals Corp. in 1996 and remained CEO until September 2008. In 2007, Dev spun Fission Energy Corp. out of Strathmore to focus on uranium exploration in Saskatchewan. He remained CEO and chairman until the company sold its Waterbury Lake discovery and a large selection of its assets to Denison Mines in 2013.

Raymond Ashely, P.Geo.
VP Exploration

A 35-year mining industry veteran, Raymond serves as VP Exploration for Fission 3.0 and leads the company’s exploration programs throughout Canada. Ray was a key geoscientist on the Fission Uranium PLS discovery. Formerly with major BHP, Ray was a key member of the discovery team at Ekati Canada’s first diamond mine.

Ross McElroy, P.Geo.

Ross is a professional geologist with nearly 30 years of experience in the global mining industry. Ross headed up the technical group that made the discovery at Waterbury Lake, SK, and Patterson Lake South (PLS) and was a member of the early-stage discovery team at McArthur River. He earned his BSc with a specialization in geology from the University of Alberta in 1987 and is a registered professional geologist in Saskatchewan, Alberta, and Nunavut/Northwest Territories.

Ross is the 2014 recipient of PDAC’s ‘Bill Dennis Award for Exploration Success’ and was crowned The Northern Miner’s ‘Mining Person of the Year’ in 2013. He has held positions with both major and junior mining companies, including majors BHP, Cogema Canada (now Orano), and Cameco. Ross currently serves as president, CEO, and chief geologist of Fission Uranium Corp.

Exclusive Interview with Fission 3.0 Chairman & CEO Dev Randhawa

Uranium is finally starting to receive well-deserved attention as the supply/demand fundamentals are extremely bullish. There are few companies that have a track record of discovery in the uranium space and even fewer with the amount of projects that Fission 3.0 (TSX-V: FUU)(OTC: FISOF) possesses in its vast portfolio.

Our own Gerardo Del Real of Junior Resource Monthly caught up with Fission 3.0 chairman & CEO, Dev Randhawa, to discuss the company’s Athabasca-based uranium exploration projects as well as the uranium sector at-large.

The Fission 3.0 Opportunity

The new uranium bull market has arrived… and it’s only just getting started.

Uranium prices are already trending upward, and select small-cap uranium stocks are following suit including Fission 3.0.

Led by chairman & CEO, Dev Randhawa, Fission 3.0 has amassed an impressive portfolio of 16 uranium exploration projects in the famed Athabasca Basin region — oftentimes referred to as “The Saudi Arabia of Uranium.”

All of this was accomplished during uranium’s last commodity downturn in anticipation of a stark reversal of that trend. That brilliant foresight is now beginning to pay off with U3O8 prices marching toward US$50 per pound.

You heard directly from CEO, Dev Randhawa. He says,

If you're going to bet on somebody… bet on people who've done it before and are still valued properly. And I believe Fission 3.0 is valued very cheaply still given we have 16 fantastic projects; projects that we staked 100% of during a bear market.

As we discussed in detail, the next major leg up in the uranium price will be driven by utilities coming into the market to secure long-term U3O8 contracts.

That means we could be setting up for a much higher uranium price environment — potentially well above US$75 per pound — for years to come.

The Fission 3.0 team is currently focused on advancing its flagship PLN property located in the southwest portion of the Athabasca Basin in proximity to Fission Uranium’s Triple R and NexGen’s Arrow deposits.

Additionally, Traction Exploration Inc. has signed an LOI to earn into Fission 3.0’s Hearty Bay and Lazy Edward projects — also in the Athabasca Basin region.

It’s a brilliant model of developing certain projects on their own — such as the flagship PLN project — while optioning out other properties with the vast majority of exploration expenditures on those projects to be on other companies’ dimes with Fission 3.0 maintaining an interest.

With a robust portfolio of 16 Athabasca-based uranium exploration projects in a rising uranium market Fission 3.0’s sub-C$50 million market cap is considered minuscule compared to many of its peers.

The company is also well-funded having raised C$8 million in Q3 2021.

Now is an excellent time to begin conducting your own due diligence on Fission 3.0 Corporation — symbol FUU on the Toronto Venture Exchange and symbol FISOF on the US-OTC Bulletin Board Exchange.

A great place to start is the company’s corporate website.

And be sure to follow our exclusive interviews with upper management and much more.

— Resource Stock Digest Research