Fission Energy Corp.
TSX VENTURE : FIS
OTCQX : FSSIF

Fission Energy Corp.

June 04, 2012 07:30 ET

Fission Energy Corp.: 40 of 49 Holes Hit Mineralization, J Zone Grows West, North & South

KELOWNA, BRITISH COLUMBIA--(Marketwire - June 4, 2012) - FISSION ENERGY CORP. ("Fission" or the "Company") (TSX VENTURE:FIS)(OTCQX:FSSIF) and its Limited Partner, the Korea Waterbury Uranium Limited Partnership ("the Waterbury Consortium"), announce the completion of the 2012 winter drill program at the Waterbury Lake Property in the Athabasca Basin. A total of 32,770m were completed in 86 drill holes, while two additional holes were abandoned for technical reasons. Drilling focused primarily on central and western parts the J Zone where 40 of the 49 step-out and infill holes successfully widened the lateral north-south mineralized dimensions by up to 55m and confirmed continuity of wide widths of mineralization in areas tested by earlier programs. Hand held scintillometer results for 21 drill holes were previously reported, including several wider, well developed intervals of mineralization in four infill drill holes in the western part of the J Zone (see press release dated January 31, 2012), and three step-out holes drilled laterally to the north of the central J Zone boundary, which intersected discrete intervals of "off-scale" (>9999 cps) radioactivity within wide intervals of well developed mineralization in the sandstone and the basement immediately below the unconformity (see press release dated February 21, 2012). The remaining 37 drill holes were completed in the Summit Zone (12 holes) located 525m west of the J Zone, in addition to several other high priority regional exploration targets including Murphy Lake (14 holes), Oban (3 holes), Oban North (3 holes) and Chivas (5 holes). Fission's technical team is encouraged by the initial results from Murphy Lake, located in the northwest part of the Waterbury Lake Property, where Holes WAT12-273, 279, and 287A demonstrated potential to host new high grade mineralization, and Oban where holes WAT12-285A, 292 and 296A all intersected anomalous radioactivity near the unconformity. Assays are pending for all 86 holes.

J Zone Highlights

Highlights of the Winter 2012 J Zone drilling include:

  • Of the 49 drill holes completed in the J Zone, 40 or 81.6% intersected mineralization with radioactivity ranging from anomalous to "off-scale" in the sandstone, at the unconformity, and in the basement. Two holes, WAT12-224B and WAT12-235A were abandoned for technical reasons.
  • In the central and western part of the J Zone, step-out drilling widened the lateral north-south dimensions in many areas by up to 55m. Infill drilling confirmed the continuity of J Zone mineralization with wide intervals of well developed mineralization observed in many drill holes.
  • Mineralization in the central part of the J Zone (Line 225W to Line 435W) was intersected in the sandstone above the unconformity, extending through the unconformity into the basement.
  • Mineralization in the western part of the J Zone (Line 450W to Line 495W) was intersected in the sandstone, at the unconformity, and the basement.
  • The western part of the J Zone from Line 510W to Line 540W is predominantly basement hosted mineralization, and has been intersected up to 31m below the unconformity (down-hole depth). In addition, holes WAT12-294 and 297 (Line 765W) collared a further 225m west of Hole WAT12-281 (Line 525W), intersected basement hosted mineralization at 25.4m and 26.5m below the unconformity, respectively. These two drill holes further demonstrate the potential for continued expansion of the J Zone's strike length to the west.
  • Discrete levels of "off-scale" (>9999 cps) radioactivity were observed in a total of 6 drill holes: Holes WAT12-237B (Line 285W), Hole WAT12-242,244 and 247 (Line 300W), WAT12-280 (Line 325W), and WAT12-284C (Line 525W).
  • The J Zone's east-west strike length now extends 667m from the eastern Rio Tinto property boundary, where modelling has determined that the J East Zone mineralization is connected with the main J Zone, west to Hole WAT12-281 (Line 525). Mineralization continues to trend to the west and remains open along strike and laterally to the north and south.

Significant scintillometer results in the western part of the J Zone trending west from Line 300W to Line 525W, in addition to Line 765W, 225m west of the current J Zone boundary, include the following drill holes:

Hole WAT12-280 (Line 300W) intersected 10.5m of anomalous to "off-scale" radioactivity (>9999 cps) at the unconformity (209.0m-219.5m), in the vicinity where three previously announced drill holes, WAT12-242,244 and 247 (see press release dated February 21, 2012), expanded mineralization in the sandstone and at the unconformity.

Hole WAT12-300 (Line 375W) intersected 13.5m (213m-226.5m) of anomalous to strong mineralization in the basement (maximum peak 8500 cps) and a narrower 2.0m interval (209.0m-211m) of weak radioactivity (maximum peak 345 cps).

Hole WAT12-302 (Line 375W) intersected 11.0m (215.0m-226m) of anomalous to moderately strong radioactivity (maximum peak 5500 cps) in the basement and a narrow 0.5m interval(228.5m-229.0m) of weak radioactivity (maximum peak 308 cps) below this wider intersection.

Hole WAT12-293 (Line 390W) intersected 15.5m (211.0m-226.5m) of anomalous to moderate radioactivity (maximum peak 2650 cps) at the unconformity, and 5.5m (228.0m-233.5m) of anomalous to moderate radioactivity (maximum peak 2000 cps) in the basement.

Hole WAT12-295 (Line 390W) intersected 15m (201.0-216.5m) of anomalous to moderately strong radioactivity (maximum peak 2700 cps) at the unconformity, and 2.5m (219.0m-221.5m) of variable radioactivity, with a maximum peak of 2500 cps, in the basement.

Hole WAT12-298 (Line 390W) intersected 10m (219.5m-229.5) of anomalous to locally strong radioactivity (maximum peak 7200 cps) at the unconformity, in addition to two narrow intervals, 1.5m (215.5m-217.0) of weaker radioactivity (maximum peak 456 cps) in the sandstone above the unconformity and 2.0m (234.5m-236.5m) in the basement (maximum peak 628 cps).

Hole WAT12-284C (line 525W) intersected 2.0m (273.0m-275.0m) with intervals of moderate to "off-scale" radioactivity (1200cps->9999 cps) in the basement, in addition to 5.0m (281.0-286.0) of anomalous to moderate radioactivity readings (maximum peak 3700 cps) and 5.5m (263.0m-268.5m) of weaker radioactivity (maximum peak 620 cps), also in the basement.

Holes WAT12-294 and 297 (Line 765W) drilled approximately 225m west of Hole WAT12-281 (Line 525W), both intersected 1.5m (234.0m-235.5m and 240.0m-241.5m respectively) of moderate radioactivity (maximum peaks 2820 and 3400 cps respectively) in the basement.

Table 1: J Zone Drill Hole Summary

* Mineralization
(>
300 cps / 0.5M
minimum)
Clay
Alteration
Uncon-
formity
Total
Hole ID Grid
Line
Az Dip From -
To (m)
Width
(m)
CPS Max
Peak
From -
To (m)
Depth
(m)
Depth
(m)
WAT12
-249A
315W 179 -73 208.0-215.5 7.5 <
300-2700
203.0-217.0 207.0 320.0
WAT12
-253B
315W 178 -71 211.0-218.5 7.5 400-5000 206.0-255.0 207.5 332.0
WAT12
-257A
315W 177 -76 201.0-201.5 0.5 320 182.0-205.0 201.7 347.0
WAT12
-261
345W 177 -72 206.0-207.5 1.5 1600-4400 204.0-209.0 201.2 335.0
WAT12
-265B
345W 177 -70 213.5-215.5
225.5-226.5
2.0
1.0
<
300-3200
2600-4500
212.0-217.0 216.0 329.0
WAT12
-269B
260W 178 -71 204.0-205.0
208.0-210.0
1.0
2.0
<
300-951
200.0-209.0 209.4 323.0
WAT12
-274
285W 179 -60 230.5-231.5 1.0 899 - 1500 190.0-221.0 233.9 320.0
WAT12
-275
495W 179 -60 222.0-236.5
240.0-240.5

260.5-262.5
14.5
0.5

2.0
<
300-2007
1300
<
300-804
208.0-236.0 233.9 320.0
WAT12
-277
255W 161 -70 213.5-215.5
237.0-238.0
2.0
1.0
<
300-1530
339-402
212.0-217.0 216.7 302.0
WAT12
-278
450W 185 -68 205.5-208.5
211.5-212.0
224.5-225.0
3.0
0.5
0.5
<
300-1400
650
558
198.0-224.0 211.8 305.0
WAT12
-280
300W 177 -70 209.0-219.5 10.5 <
300 -
>
9999
191.0-211.0 213.1 332.0
WAT12
-281
525W 179 -56 263.0-267.0
269.0-272.5

276.0-281.5
4.0
3.5

5.5
<
300-2100
447-4500
<
300-1500
244.0-256.0 255.7 342.5
WAT12
-283
300W 179 -71 204.0-204.5
207.5-208.5

212.5-219.0
0.5
1.0

6.5
400
450-720
<
300-1000
201.0-219.0 208.2 320.0
WAT12
-284C
525W 177 -55 263.0-268.5


273.0-275.0

281.0-286.0
5.5


2.0

5.0
<
300-620
1200-
>
9999
<
300-3700
241.0-255.0 255.0 332.0
WAT12
-286
405W 175 -62 No
Significant
Miner-
alization
218.0-226.0 233.0 315.0
WAT12
-288
540W 177 -70 200.5 - 204.5

207.0 - 208.5
4.0

1.5
<
300-678
<
300-800
188.0-212.0 226.9 320.0
WAT12
-289
390W 177 -51 No
Significant
Miner-
alization
244.0-247.0 268.3 323.0
WAT12
-290
390W 179 -71 No
Significant
Miner-
alization
197.0-206.0 204.7 323.0
WAT12
-293
390W 178 -66 211.0-226.5

228.0-233.5
15.5

5.5
<
300-2650
<
300-2000
209.0-234.0 222.0 323.0
WAT12
-294
765W 175 -74 234.0-235.5 1.5 515-2820 203.0-215.0 210.1 314.0
WAT12
-295
390W 176 -70 201.5-216.5
219.0-221.5
15.0
2.5
300-2700
353-2500
203.0-215.0 207.9 314.0
WAT12
-297
765W 185 -72 241.0-241.5 1.5 2360-3400 216.0-220.0 215.0 302.0
WAT12
-298
390W 171 -65 215.5-217.0
219.5-229.5
234.5-236.5
1.5
10.0
2.0
<
300-456
360-7200
351-628
197.0-231.0 228.0 320.0
WAT12
-299
570W 169 -55 No
Significant
Miner-
alization
217.0-226.0 200.0 329.0
WAT12
-300
375W 175 -67 209.0-211.0

213.0-226.5
2.0

13.5
<
300-345
<
300-8500
196.0-206.0 200.0 329.0
WAT12
-301
570W 159 -60 No
Significant
Miner-
alization
215.0-234.0 212.3 314.0
WAT12
-302
375W 178 -69 215.0-226.0
228.5-229.0
11.0
0.5
<
300-5500
308
212.0-219.0 212.3 314.0
WAT12
-303
600W 180 -57 No
Significant
Miner-
alization
199.0-200.0 237.5 329.0
WAT12
-304A
285W 155 -72 207.5-209.5
213.5-216.0
289.5-290.5
2.0
2.5
1.0
<
300-1600
398-1185
493-565
196.0-217.0 208.6 299.0
Drill holes measured with either an Exploranium RS-125 total count Super Gamma-Ray Scintillometer or an Exploranium GR-110G Scintillometer

Summit Zone

The Summit Zone, located approximately 525m west of the J Zone, was targeted for further exploration, based on results from Hole WAT11-199, drilled 30m west of Hole WAT11-153A from Lines 1430W to 1480W (See press release dated November 14, 2011). Of the 12 follow-up holes completed to test for extensions of the basement mineralization in the vicinity of these two holes, 6 intersected narrow widths of weak radioactivity, mostly in the basement, and 6 holes were barren. Hole WAT12-251 (Line 1470W) showed the best result, intersecting 1.5m (254.0m-255.5) of weak to moderately strong radioactivity (maximum peak 3800 cps) in the basement. Further drilling is required to assess this area.

Hole WAT12-243: In addition to the weak uranium mineralization intersected from 238.5-241.5m and 243.5-245.0m, massive Nickel-Arsenic-Cobalt sulphide mineralization was intersected from 258.5-265.0m.

Table 2: Summit Zone Drill Hole Summary

* Mineralization
(>
300 cps / 0.5M
minimum)
Clay Alteration Uncon-
formity
Total
Hole
ID
Grid Line Az Dip From -
To (m)
Width (m) CPS Max Peak From -
To (m)
Depth
(m)
Depth
(m)
WAT12-243 1445W 181 -63 238.5-241.5
243.5-245.0
3.0
1.5
310-575
690-1100
227.0-245.0 241.0 350.0
WAT12-246 1455W 185 64 No Significant
Mineralization
231.0-251.0 245.2 350.0
WAT12-248 1470W 200 61 No Significant
Mineralization
224.0-246.0 248.1 347.0
WAT12-251 1470W 195 -64 254.0-255.5 1.5 850-3800 232.0-247.0 239.5 350.0
WAT12-254A 1440W 178 -70 No Significant
Mineralization
216.0-227.0 226.0 332.0
WAT12-256 1425W 175 -74 No Significant
Mineralization
216.0-218.0 212.4 395.0
WAT12-260B 1440W 179 -64 No Significant
Mineralization
226.0-239.0 236.7 314.0
WAT12-262 1440W 177 -57 270.5-271.0 0.5 580 209.0-259.0 255.4 315.0
WAT12-266 1410W 176 -61 255.0-255.5
294.0-295.0
0.5
1.0
388
359-439
215.0-241.0 241.5 329.0
WAT12-268 1485W 184 -56 269.5-270.0 0.5 437 265.0-272.0 269.8 350.0
WAT12-271 1410W 178 -56 276.5-277.0
299.5-300.5
0.5
1.0
390
351-368
220.0-243.0
262.0-266.0
260.6 308.0
WAT12-291 1410W 179 -56 No Significant
Mineralization
241.0-291.0 258.3 329.0

Murphy Lake

Murphy Lake is a high priority prospective area for discovering new high grade mineralization. Fourteen holes were completed to follow-up limited drilling completed during the 2011 summer drill program. Significantly, the final three holes completed at Murphy Lake, Holes WAT12-273, 279, and 287A (Line 6150W) intersected basement mineralization associated with the M8 Conductor located at the south end of the Murphy Lake Corridor, with Hole WAT12-273 intersecting 6 intervals with widths from 0.5m to 8.5m of anomalous radioactivity ranging from <300 cps to a maximum peak of 1000 cps. The southern region of the Murphy Lake Corridor is characterized by faulting associated with the flexure of the conductor system around the southern edge of an interpreted granitic dome. Further drilling is required to test this area.

Table 3: Murphy Lake Drill Hole Summary

* Mineralization
(>
300 cps / 0.5M
minimum)
Clay
Alter-
ation
Uncon-
formity
Total
Hole
ID
Grid
Line
Az Dip From -
To (m)
Width
(m)
CPS Max Peak From -
To (m)
Depth
(m)
Depth
(m)
WAT12
-217A
M2 108 -89 No Significant
Mineralization
271.6 557.0
WAT12
-223A
M1 250 -88 No Significant
Mineralization
271.1 330.0
WAT12
-227
M3 180 -56 No Significant
Mineralization
295.6 509.0
WAT12
-233
M5 71 -69 No Significant
Mineralization
319.7 511.0
WAT12
-239
M7 82 -72 No Significant
Mineralization
303.9 428.0
WAT12
-241
M8 91 -71 No Significant
Mineralization
297.6 440.0
WAT12
-245A
M13 185 -64 No Significant
Mineralization
N/A 130.0
WAT12
-250A
M9A 76 -70 No Significant
Mineralization
315.5 491.0
WAT12
-258
M10 0 -89 No Significant
Mineralization
302.0 443.0
WAT12
-263
M12 0 -89 No Significant
Mineralization
291.8 440.0
WAT12
-270
M11 0 -89 No Significant
Mineralization
302.0 359.0
WAT12
-273
6150W 90 -75 389.5-391.5

414.5-423.0

435.0-438.0
442.5-443.5
450.0-451.5
461.0-461.5
2.0

8.5

3.0
1.0
1.5
0.5
<
300-320
<
300-370
<
300-380
300-330
420-1000
330
250.0-
266.0
336.0 470.0
WAT12
-279
6150W 94 -66 463.5-464.0
478.5-479.0
0.5
0.5
360
558
355.0-
359.0
356.7 512.0
WAT12
-287A
6150W 87

90
-71

-75
440.0-440.5

462.0-464.0
0.5

2.0
701
<
300-602
342.9 499.0

Oban, Oban North, and Chivas

The Oban Corridor parallels the Discovery Bay Corridor, which hosts the high grade J Zone uranium discovery, approximately 4 km to the south. Three holes were drilled at Oban. The Oban North Corridor is located immediately north of Oban and is characterized by a conductor system oriented to the NW. Three holes were drilled at Oban North. The Chivas Corridor is an approximate east-west oriented conductor system located ~3km to the west and on strike of Oban. Five holes were drilled at Chivas. Drilling at Oban, Oban North and Chivas represent Fission's ongoing regional exploration designed to test prospective geophysical anomalies identified by earlier geophysical surveys.

All three holes at Oban (O2 Conductor) intersected mineralization in both the sandstone above the unconformity and in the basement. The best result was received from Hole WAT12-296A, which intersected 5.0m (243.0m-248.0m) of anomalous to moderate readings of radioactivity (maximum peak 2600 cps) in the basement.

No significant mineralization was identified at Oban North or Chivas.

Table 4: Oban Drill Hole Summary

* Mineralization
(>
300 cps / 0.5M
minimum)
Clay Alteration Uncon-
formity
Total
Hole ID Grid
Line
Az Dip From -
To (m)
Width
(m)
CPS
Max Peak
From -
To (m)
Depth
(m)
Depth
(m)
WAT12-285A O2 171 -60 268.0-269.0 1.0 1515 257.0-260.0 261.8 500.0
WAT12-292 O2 172 -59 264.5-268.0 3.5 <
300-870
270.0-274.0 270.0 449.0
WAT12-296A O2 170 -60 243.0-248.0 5.0 <
300-2600
247.0-268.0 206.0 388.0

Oban North

Table 5: Oban North Drill Hole Summary

* Mineralization
(>
300 cps / 0.5M
minimum)
Clay
Alteration
Uncon-
formity
Total
Hole ID Grid
Line
Az Dip From -
To (m)
Width
(m)
CPS
Max Peak
From -
To (m)
Depth
(m)
Depth
(m)
WAT12-272A O3 178 -56 No Significant
Mineralization
248.0 401.0
WAT12-276 O3 57 -61 No Significant
Mineralization
248.0-255.0 249.1 403.0
WAT12-282 O3 52.8 -60 No Significant
Mineralization
259.0 383.0

Chivas

Table 6: Chivas Drill Hole Summary

* Mineralization
(>
300 cps / 0.5M
minimum)
Clay Alteration Uncon-
formity
Total
Hole ID Grid
Line
Az Dip From -
To (m)
Width
(m)
CPS
Max Peak
From -
To (m)
Depth
(m)
Depth
(m)
WAT12-252 C1 326 -70 No Significant
Mineralization
332.6 469.0
WAT12-255 C3 334 -61 No Significant
Mineralization
357.6 428.0
WAT12-259 C2 330 -67 No Significant
Mineralization
337.0 452.0
WAT12-264 C5 94 -67 No Significant
Mineralization
323.9 437.0
WAT12-267 C4 176 -66 No Significant
Mineralization
311.0-313.0 311.5 431.0

Four updated drill hole maps for the J Zone, including a larger scale map showing the J Zone within the East-West Corridor, in addition to maps for the Summit Zone, Murphy Lake, Oban/Oban North, and Chivas can be found on the Company's website at http://www.fission-energy.com/s/WaterburyLake.asp Assay results will be announced when available.

All holes were radiometrically surveyed with a Mount Sopris 2GHF Triple Gamma probe. The triple gamma probe uses both a Na-I scintillation crystal and a ZP1320 High-Flux Geiger-Mueller tube pair, which allows better resolution in strongly radiometric intervals.

Natural gamma radiation in drill core that is reported in this news release was measured in counts per second (cps) using either a hand held Exploranium GR-110G total count gamma-ray scintillometer, or a hand held Exploranium RS-125 total count Super Gamma-Ray Scintillometer. The reader is cautioned that scintillometer readings are not directly or uniformly related to uranium grades of the rock sample measured, and should be used only as a preliminary indication of the presence of radioactive materials. All intersections are down-hole, core interval measurements and true thickness is yet to be determined.

Split core samples from the mineralized section of core will be taken continuously through the mineralized intervals and submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis, which includes U3O8 (wt %) and fire assay for gold. All samples sent for analysis will include a 63 element ICP-OES, uranium by fluorimetry (partial digestion) and boron.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ross McElroy, P.Geol. President and COO for Fission Energy Corp., a Qualified Person.

FISSION ENERGY CORP. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia. FISSION ENERGY CORP. Common Shares are listed on the TSX Venture Exchange under the symbol "FIS" and on the OTCQX Exchange under the symbol "FSSIF".

Korea Waterbury Uranium Limited Partnership ("Waterbury Consortium") is a consortium primarily comprised of Korean-based companies. The Consortium is led by Korea Electric Power (KEPCO). Other participating companies include: Korea Hydro & Nuclear Power, Korea Nuclear Fuel Co., Hanwha Corp. and Gravis Capital Corp., a private Canadian uranium investment company.

Fission Energy owns 60% and the Korea Waterbury Uranium Limited Partnership owns 40% of the Waterbury Lake Uranium Limited Partnership.

Korea Electric Power Corporation (KEPCO) is a Korean government-invested diversified energy company with over $83-billion (U.S.) in assets. The company is involved in the generation, transmission and distribution of electrical power from nuclear, hydro, coal, oil and LNG sources worldwide. Korea Electric Power provides electricity to almost all households in Korea and operates 20 nuclear power plants in the country with six more under development. The company has over 30,000 employees and is listed on the Korean Stock Exchange and the New York Stock Exchange. (www.kepco.co.kr)

This press release contains "forward-looking information" that is based on Fission's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Fission's development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Fission's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Fission disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

ON BEHALF OF THE BOARD

Ross McElroy, President & COO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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