Name of the Project
Patterson Lake South uranium project.

Location
Saskatchewan, Canada.

Project Owner/s
Fission Uranium.

Project Description
The project has total indicated resources of 2.22-million tonnes grading 2.1% uranium and 0.61 g/t gold. Inferred resources are estimated at 1.22-million tonnes grading 1.22% uranium and 0.5 g/t gold.

A prefeasibility study (PFS) has proposed the development of the Patterson Lake South project using only underground mining methods. This follows the results of an earlier PFS report outlining a hybrid mine approach using openpit and underground techniques.

With the underground PFS, access to the deposit is envisaged through a decline
from land. The underground PFS proposes accessing the deposit using a decline developed from a position west of the deposits. The area of the decline will be temporarily dewatered while the development progresses through the overburden. The excavation method is known as the New Austrian Tunnelling Method (NATM), with other localised ground support planned. NATM is a common development method for soft ground.

In addition to the decline, two vertical shafts will be excavated sequentially to provide a dedicated ventilation system for the mine, comprising a fresh air intake shaft and an exhaust air shaft. After the decline extends through the overburden and transition bedrock zone, more typical hardrock development can start. Longhole stoping will be used in transverse and longitudinal orientation, and isolated pockets of cut-and-fill development.

A partial recovery of the mineralised material approaching the contact between the overburden and bedrock will be achieved by using artificial ground freezing. The ground is frozen by drilling holes into the overburden and shallow bedrock using horizontal directional drilling collared from an area on the shore of Patterson Lake. Upon completion of the ground freezing holes, a refrigeration plant will pump a brine solution through the holes to create a frozen cap, with increased ground stability and reduced groundwater inflow. Even with this system in place, some mineral resources approaching the overburden contact will be sterilised. This sterilised material could be further evaluated for eventual extraction in future studies.

The process plant design is based on conventional processing technology, including several ancillary facilities, as well as an on-site acid generating facility. Process recovery is estimated to be 96.8%, based on detailed metallurgical testing. About 2.3-million tonnes of material is expected to be processed
over the seven year life-of-mine, grading 1.61% uranium containing 81.4-million
pounds of uranium.

Production of 78.7-million pounds of uranium is envisaged, averaging 13.1-million pounds a year for the first five years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of C$1.33-billion and an internal rate of return of 34%, with a payback of 2.2 years.

Capital Expenditure
The project has a total capital cost of C$1.46-billion.

Planned Start/End Date
The project has an estimated three-year construction period, comprising a boxcut and portal, a decline, ventilation shafts, underground capital development, and plant and infrastructure construction.

Latest Developments
None stated.

Key Contracts and Suppliers
Roscoe Postle Associates (underground PFS); BGC Engineering (geotechnical aspects); Newmans Geotechnique (artificial ground freezing); Wood Canada (process and infrastructure); Melis Engineering (metallurgical testing); Clifton Associates (environment and tailings), Artisan Consulting Services (directional drilling assistance); and Thyssen Mining Construction of Canada (mine design, scheduling, and cost estimation support).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Fission Uranium, tel +1250868 8140 or email ir@fissionuranium.com.