VANCOUVER, British Columbia, March 2, 2015 (GLOBE NEWSWIRE) -- By Financial Press
Major accidents at Rio Tinto's Rössing uranium mine in Namibia and BHP Billiton's Olympic Dam in Australia have removed 8% of the global uranium supply. In the last 30 days, spot price of uranium has increase 10% to $38.75.
Brades Resource Corp (TSX-V:BRA) has partnered with Fission 3.0 to drill the Clearwater West property in Saskatchewan's Athabasca Basin – the world's largest source of high-grade uranium.
Fission 3.0 is the project operator, and it shares the same technical team as Fission Uranium. This team has discovered two major deposits in four years, using a proprietary model for finding uranium through airborne radiometrics, radon gas surveys and geophysics.
"Our main corporate focus is the joint venture with Fission 3.0," confirm Brades' CEO Peter Wilson, "Clearwater West is adjacent to Fission Uranium's PLS property, and only 15 kilometers away from the shallow high grade deposit. Fission 3.0 has the same management team as Fission Uranium, and they are applying similar exploration techniques on our J.V. property."
Brades recently announced the commencement of the winter exploration program on the Clearwater West property. The program involves ground geophysics and 10 proposed drill holes costing about $1.04 million.
Fission 3.0's team is headed by legendary uranium explorer Ross McElroy who led the technical team that made the discovery at Waterbury Lake, SK and at Patterson Lake South (PLS).
Wilson states that McElroy and his team have already identified the drill targets. The objective of the on-going geophysical work is to focus the drill program. Fission 3.0 can pull a drill rig from its inventory on short notice.
"One of Brades' advantages is that we are not required to make property payments," states Wilson, "This maximises the amount of money that we can put into the ground. In terms of protecting shareholder value, it's a big plus. Some of our neighbours are severely financially stressed by the obligation of these property payments."
The PLS deposit contains an estimated 80 million pounds of 'indicated' uranium and about 25 million pounds of 'inferred'. More than 50% of the resource sits in a high-grade zone that can be mined at low cost.
Fission Uranium buy-out rumours involving Rio Tinto and Teck Resources are growing. Dundee Capital Markets analyst David Talbot called the Fission most recent resource numbers 'truly phenomenal'.
"If Fission does get transacted, the market will then focus on the strongest joint ventures," stated Wilson, "We have also picked up 24,000 hectares of additional properties which are adjacent or nearby to Fission 3.0's other projects in the basin."
There is a clean division of labour between Brades and the Fission 3.0 technical team. Brades handles the financing and Fission 3.0 designs and executes the exploration program.
"It is a good partnership because both teams are doing exactly what they are trained to do," stated Wilson, "The upcoming drill program is a massive milestone for Brades. At some point in the near future I anticipate that there is going to be a wrap up of assets in the Athabasca Basin, especially with properties close to the PLS deposit."
Wilson believes that uranium prices will continue to trend upward. According to the World Nuclear Association there are currently 435 nuclear reactors connected into national grids, 67 under construction, 164 on order and 317 proposed.
"Exploration at Clearwater West has progressed rapidly," stated Fission 3.0 Chief Geologist Ross McElroy, "Surveys and ground prospecting, during Fall 2014 have helped us identify and prioritize a number of high priority targets close to the border with PLS and, just 330 meters away, Fission Uranium intersected near-surface anomalous radioactivity. We've now reached the stage at which drill testing these high profile targets is the logical next step."
Fission 3.0 owns 9.9% of Brades and it increased its position on Brades' last financing.
"You don't need to be a geologist to see the similarities between our property the PLS discovery," stated Wilson, "The collective understanding is that there are more big discoveries still to be achieved in this basin."
Brades is currently trading at .06 with a market cap of $2.8 million.
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