Fission Energy Corp.
TSX VENTURE : FIS
OTCQX : FSSIF

Fission Energy Corp.

July 18, 2012 13:57 ET

Fission Energy Corp.: Three Holes with "Off-Scale" Radioactivity Enhance J Zone

KELOWNA, BRITISH COLUMBIA--(Marketwire - July 18, 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 that three drill holes, WAT12-312, 316, and 309, completed in the J Zone Area "B" (WAT12-312 and 316) and the J Zone Area "A" (WAT12-309), have intersected moderate to wide intervals of well developed mineralization at the unconformity, including 16.5m, 13.0m, and 3.0m respectively. Variable radioactivity, ranging from moderate to strong, including discrete intervals of "off-scale" (>9999 cps), was observed in the unconformity related mineralization. Hole WAT12-312 is a step-out hole that has expanded the J Zone Area "B" laterally to the north on Line 420W, while Hole WAT12-316 is a step-out that has expanded mineralization on Line 315W. Hole WAT12-309 an infill hole on Line 015W in the northeast part of J Zone Area "A" between Hole WAT10-068 and 070B. These three drill holes have successfully identified significant mineralization in the main deposit, with Hole WAT12-316 expanding the J Zone boundary to the north along Line 420W in the central part of J Zone Area "B".

J Zone Area "A" Summary (Line 120E - 210W)

Three infill drill holes were completed (WAT12-313B, 314 and 318) to close a 30m gap between the east J Zone boundary and the former separate J East Zone. Holes WAT12-318 and 314 (Line 060E - Line 045E) have narrowed that gap now to ~15m, essentially connecting the two areas and confirming the continuity of basement mineralization from Rio Tinto's Roughrider West to Fission's J Zone Area "A". Hole WAT12-314, drilled on Line 045E, intersected 10.0m of weak to moderately strong radioactivity (maximum peak 6800 cps), in addition to 5.0m of weak to moderate radioactivity (maximum peak 1700 cps) in the basement.

Hole WAT12-309, an infill hole on Line 015W, demonstrates the continuity of high grade unconformity mineralization between holes WAT10-070B and 068. Hole WAT12- 306 was drilled ~10m north of discovery hole WAT10-063A, but was lost due to technical reasons in strongly clay altered zone at the unconformity (206.0m). A 0.5 interval of mineralization from 205.5m-206.0m was encountered at termination of drilling (maximum peak 332 cps). Hole WAT12-306A was subsequently drilled 10m to the north, but did not intersect mineralization.

J Zone Area "A" Drill Hole Summary

  • Hole WAT12-309 (Line 015W) intersected unconformity mineralization between Holes WAT10-070B and 068. The 3.0m mineralized intersection (207.0m-210.0m downhole) straddles the unconformity (209.0m) and is characterized by variable radioactivity from moderate to locally strong, including 0.4m total of "off-scale" radioactivity (maximum peak >9999 cps) from 209.1 - 205.0m . In addition, a 0.5m intercept of weak radioactivity (maximum peak 405 cps) was intersected in the basement.
  • Hole WAT 12-314 (Line 045E) intersected 10.0m of weak to moderately strong radioactivity (maximum peak 6800 cps), in addition to 5.0m of weak to moderate radioactivity (maximum peak 1700 cps) in the basement.

J Zone Area "B" (Line 225W-435W)

Hole WAT12-316 (Line 315W), a northern step-out that has expanded mineralization 15m west of Hole WAT12-280 (Line 300W) intersected a 13m wide interval with off-scale mineralization. Further to the west, Holes WAT12-307 and 308A tested for northern lateral extension of the J Zone boundary on Line 405W. Hole WAT12-307 was drilled 10m north of hole WAT11-168 (6.5m of 0.05% U3O8) and intersected a wide 19.0m interval with weak to moderate radiaoactive readings throughout. Holes WAT12-310 and 312 were drilled 15m to the west of Hole WAT11-168 on Line 420W. Both holes intersected wide intervals of mineralization totalling 15.5m and 16.5m respectively,with Hole WAT12-312 intersecting off-scale radioactivity. These two holes have successfully expanded the J Zone laterally to the north on Line 420W. Hole WAT12-305 (Line 375W) drilled between holes WAT12-302 and WAT12-300, intersected 10.5m of variable to strong radioactivity (maximum peak 7800 cps), in addition to two narrow intercepts of basement mineralization.

J Zone Area "B" Drill Hole Summary

  • Hole WAT12-312 (Line 420W) intersected mineralization 15m to the west of Hole WAT11-168. A wide 16.50m wide interval (203.5m - 220.0m downhole) of variable radioactivity ranging from moderate to strong, including two separate intercepts of 0.4m of "off-scale" radioactivity (maximum peak > 9999 cps) near the unconformity (209.00m) between 216.1m-216.5m and 216.9m-217.3m, respectively.
  • Hole WAT12-316 (Line 315W) intersected mineralization 15m to the west of Hole WAT 12-280. A wide interval totalling 13.0m of well developed mineralization was intersected (201.0m - 214.0m downhole). The mineralized interval characterized by variable radioactivity from moderate to strong, including 0.7m of "off-scale" radioactivity (maximum peak > 9999 cps) from 203.8m-204.5m, at the unconformity (202.8m).
  • Hole WAT12-307 (Line 405W) expanded mineralization 10m to the north of Hole WAT11-168. A wide 19.0m (200.5m-219.5m downhole width) of weak to moderate radioactivity (maximum peak 3700 cps) was intersected at the unconformity (207.4m). A narrow 0.5m interval of moderate radioactivity, from 222.0m-222.5m (maximum peak 3900 cps) was intersected in the basement.
  • Hole WAT12-310 (Line 420W), drilled 15m west of Hole WAT11-168, intersected a wide 15.5m (204.5m to 220.0m) of weak to moderate radioactivity (maximum peak 3400 cps) extending through the unconformity (213.3).
  • Hole WAT12-305 (Line 375W) intersected a wide 10.5m interval (206.5m-217.0m) of variable to strong radioactivity (maximum peak 7800 cps) that straddles the unconformity (211.6m). In addition two narrow intercepts of 1.5m (220.0-221.5m) and 0.5m (224.5m-225.0) encountered weak to moderate radioactivity in the basement (maximum peak 3800 cps and 1300 cps respectively)

J Zone Area "C" (Line 450W->540W)

Hole WAT12-315 (Line 660W), drilled 120m west and along strike of hole WAT12-281 (Line 540W), attempted to expand the strike length to the west of the current J Zone boundary. Although this hole did not encounter any mineralization, basement rocks consist primarily of pelitic gneiss with well developed clay alteration over a 14m interval (196m - 213m) in the vicinity of the unconformity (211.9m) suggesting that the area has potential to host uranium mineralization.

Program Summary

Fourteen drill holes have been completed in the J Zone 2012 summer drill program, with eight holes intersecting mineralization with radioactivity ranging from weak to strongly radioactive readings at the unconformity and/or in the basement, including "off-scale" scintillometer readings at unconformity. Seven drill holes remain to be drilled at the J Zone as part of $3.11 million, 7,350m Waterbury Lake 2012 summer drill program, which will continue through to the end of August.

Table 1: J Zone Summer Drill Program Summary (Holes WAT12-305-318)
J-Zone * Mineralization
(>300 cps / 0.5M minimum)
Clay
Alteration
Unconformity Total
Hole ID Grid
Line
Az Dip From-To
(m)
Width
(m)
CPS
Max
Peak
From-To
(m)
Depth
(m)
Depth
(m)
WAT12-305 375W 177 -74 206.5-217.0 10.5 368-7800 197-225 211.6 311
220.0-221.5 1.5 305-3800
224.5-225.0 0.5 1300
WAT12-306A 000W 200 -74 no significant mineralization 253.0-261.0 206 305
WAT12-307 405W 181 -73 200.5-219.5 19 190-3700 207.4 317
222.0-222.5 0.5 3900
WAT12-308A 405W 180 -76 no significant mineralization 187-226 201.5 311
WAT12-309 015W 197 -73 207.0-210.0 3 307->9999 229-247 209 299
221.0-221.5 0.5 405
WAT12-310 420W 177 -71 204.5-220.0 15.5 <300-3400 203-221 213.3 311
WAT12-311 030W 214 -71 no significant mineralization 214-242 213 341
WAT12-312 420W 178 -73 203.5-220.0 16.5 <300->9999 221-227 209 311
WAT12-313B 030E 180 -77 213.5-215.5 2 <300-1900 188-225 204.6 284
228.5-229.5 1 466-707
WAT12-314 045E 153 -70 214.0-224.0 10 <300-6800 211.5 286.6
228.5-233.5 5 <300-1700
WAT12-315 660W 180 -71 no significant mineralization 196-213 211.9 320
WAT12-316 315W 176 -76 201.0-214.0 13 <300->9999 206-226 202.8 320
WAT12-317 330W 180 -76 204.5-207 2.5 <300-339 205.6 308
WAT12-318 060E 148 -74 209.0-212.0 3 <300-4900 206 299
Drill holes measured with an Exploranium GR-110G total count Super Gamma-Ray Scintillometer

An Updated drill hole map and 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 or 2PGA-1000 natural 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 a hand held Exploranium GR-110G total count 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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