Fission Energy Corp.
TSX VENTURE : FIS
OTCQX : FSSIF

Fission Energy Corp.

August 20, 2012 07:30 ET

Fission Hits More "Off-Scale" Radioactivity as J Zone Continues to Grow

KELOWNA, BRITISH COLUMBIA--(Marketwire - Aug. 20, 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 nine of the remaining twelve drill holes completed at the Waterbury Lake summer drill program have intersected mineralization in the J Zone, with two holes: step-out hole WAT12-325 and hole WAT12-319, intersecting significant 7.0m and 9.0m mineralized intervals respectively, with moderate to strong radioactivity, including discrete intervals of "off-scale" (>9999 cps) scintillometer readings.

Ross McElroy, Fission's President, COO, and Chief Geologist commented, "This summer's drilling at the J Zone has successfully identified significant mineralization in the central part of Area "B", by expanding the northern boundary with targeted step-out holes and filling in the gaps identified by previous drill campaigns."

J Zone Drilling Highlights

  • In Area "B", step-out hole WAT12-325 (Line 285W) and hole WAT12-319 (Line 360W) intersected wide intervals of well-developed mineralization, including 7.0m and 9.0m in the basement and at the unconformity respectively. Variable radioactivity, ranging from moderate to strong, including discrete intervals of "off-scale" (>9999 cps) scintillometer readings, was observed in the unconformity related mineralization in Hole WAT12-319, and similarly in the basement mineralization in Hole WAT12-325; the latter successfully expanding the J Zone boundary to the north by identifying new mineralization along Line 285W.
  • Holes WAT12-327 (Line 315W) and WAT12-328 (Line 405W), also located in Area "B", intersected wide mineralized intervals at the unconformity, totalling 9.0m and 11.0m respectively, while a second 9.0m intersection in Hole WAT 12-328, separated by only one meter, extends into the basement below. Both holes are characterized by moderate to strong radioactivity.
  • In Area "A" to the east, Hole WAT12-320 (Line 075E) intersected multiple mineralized intersections in the basement with variable radioactivity ranging from weak to locally moderate levels providing further evidence of the continuity of basement mineralization from Rio Tinto's Roughrider West to Fission's J Zone Area "A".
  • The J Zone remains open along strike and laterally to the north and south, as well as in the sandstone above the unconformity, and in the basement below.

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

  • Hole WAT12-319 (Line 360W), targeted 15m south of Hole WAT12-269B (Line 360W; 2.0m grading 0.12% U3O8; see press release dated July 30th, 2012), intersected a 9.0m of well-developed mineralization (202.5m-211.5m downhole) characterized by moderate to strong radioactivity, including one intercept of 0.1m of "off-scale" radioactivity (maximum peak >9999 cps) between 208.7m-208.8m near the unconformity (207.6m).
  • Hole WAT12-325 (Line 285W), a northern step-out, has expanded well developed mineralization 10m north of Hole WAT11-237B (Line 285W; 14m grading 0.27% U3O8 and 2.5m of 0.63% U3O8) and 15m east of Hole WAT12-283 (Line 300W; 0.5m of 0.15% U3O8; see press release dated July 30th, 2012), by intersecting a 7.0m wide interval (217.0m-224.0m downhole) in the basement with "off-scale" radioactivity. This mineralized interval is characterized by variable radioactivity from moderate to strong, including two separate 0.1m intercepts of "off-scale" radioactivity (maximum peak >9999 cps) from 221.6m-221.7m and 222.8m-222.9m in the basement below the unconformity (212.7m). In addition a 2.0m interval (209.0m-211.0m) of weak to moderate radioactivity (maximum peak 1200 cps) was intersected in the sandstone above the unconformity and two narrow intervals of 0.5m and 1.0m of weak to moderate radioactivity (214.0-214.5m and 229.0-230.0m; maximum peak 538 cps and 1100 cps respectively) were also intersected in the basement.

    Further to the west, step-out holes WAT12-327 and 328 tested for northern lateral extensions of the J Zone boundary on Lines 315W and 405W.
  • Hole WAT12-327 (Line 315W) expanded mineralization 10m to the north of hole WAT12-316 (13m wide interval with "off-scale" mineralization; see press release dated July 18, 2012), and 20m west of hole WAT12-325. A wide 9.0m (200.0m-209.0m downhole) mineralized interval exhibiting moderate to strong radioactivity (maximum peak 8100 cps) was intersected at the unconformity (202.1m). A narrow 1.0m mineralized interval of moderate radioactivity, from 210.0m-211.0m (maximum peak 1400 cps) was intersected in the basement.
  • Hole WAT12-328 (Line 405W), drilled 10m east of Hole WAT12-307 (Line 405W; 19.0m downhole width of weak to moderate radioactivity; maximum peak 3700 cps; see press release dated July 18, 2012), intersected two wide intervals of mineralization totalling 11.0m (200.0m-211.0m) at the unconformity (205.2m) and 9.0m (212.0m-221.0m), in the basement with only one meter of separation between the two intervals. Variable radioactivity from moderate to strong readings was observed. (maximum peak 6900 cps and 3210 cps respectively).
  • Holes WAT12-321 (Line 255W), WAT12-323 (Line 240W), and Hole WAT12-326 (Line 420W) all intersected narrow 0.5m intervals of weak radioactivity (maximum peaks ranging from 306-547 cps) either near the unconformity or in the basement (see Table 1 for complete details).
  • Hole WAT12-324 (Line 360W), drilled 10m south of WAT12-319, intersected a narrow 0.5m interval of weak mineralization in a moderately altered zone immediately below the unconformity (209.0m).
  • Two drill holes, WAT12-329 (Line 375W) and WAT12-330 (Line 315W), both intersected weakly altered intervals in the vicinity of the unconformity, but did not intersect mineralization.

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

  • Hole WAT12-320 (Line 075E) tested the continuity of mineralization in the eastern part of J Zone, intersecting deeper basement mineralization below the unconformity (207.9m) in three separate intervals of 3.0m (240.0m-244.0m), 3.0m (247.5m-250.5m) and 5.0m (255.0m-260.0m). Radioactivity ranged from weak to locally moderate levels, with increasing maximum peaks at depth (maximum peaks 460, 898, and 1200 cps respectively).
  • Hole WAT12-322 (Line 075W) drilled further to the west, tested for expansion of the northern lateral boundary of the J Zone. Although 15m of well-developed alteration above and below the unconformity was identified, the hole did not intersect mineralization.

Program Summary

Twenty-six drill holes totalling 8,306.1m were completed in the J Zone 2012 summer drill program, with nineteen 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. Please refer to the press release dated July 18, 2012 for details of the first fourteen holes of this program. Complete details of the final twelve drill holes highlighted in this press release are shown in Table 1 below. Assay results will be announced when available.

Table 1:

J Zone Summer Drill Program Summary (Holes WAT12-319 to WAT12-330)

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)
WAT12-319 360W 174 -78 202.5 - 211.5 9 <300 - >9999 199 - 213 207.6 302
221.5 - 222.0 0.5 512
WAT12-320 075E 135 -73 240.0 - 244.0 3 <300 - 460 206 - 217 207.9 272
247.5 - 250.5 3 340 - 898 247 - 263 207.9 272
255.0 - 260.0 5 <300 - 1200
WAT12-321 255W 155 -63 222.0 - 222.5 0.5 547 188 - 215 223.8 310
252.0 - 252.5 0.5 494
WAT12-322 075W 147 -53 no anomalous radioactivity mineralization 237 - 252 248.3 347
WAT12-323 240W 150 -63 232.0 - 232.5 0.5 306 226 - 235 222.7 332
WAT12-324 360W 173 -73 208.0 - 208.5 0.5 326 206 - 213 209.0 302
WAT12-325 285W 163 -69 209.0 - 211.0 2 <300 - 1200 168 - 175 212.7 307
214.0 - 214.5 0.5 538 207 - 227
217.0 - 224.0 7 <300 - >9999
229.0 - 230.0 1 950 - 1100
WAT12-326 420W 179 -78 202.5 - 203.0 0.5 360 196 - 209 206.1 302
WAT12-327 315W 171 -77 200.0 - 209.0 9 <300 - 8100 197 - 212 202.1 317
210.0 - 211.0 1 420 - 1400
WAT12-328 405W 179 -74 200.0 - 211.0 11 <300 - 6900 197 - 220 205.2 309.5
212.0 - 221.0 9 <300 - 3210
WAT12-329 375W 178 -75 no anomalous radioactivity mineralization 198 - 201 205.9 308
WAT12-330 315W 177 -76 no anomalous radioactivity mineralization 211 - 221 201.3 302

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.

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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