Pitchstone is a Uranium explorer focused in three districts in Canada and Namibia. The company's property portfolio features 13 projects in the eastern Athabasca Basin of Saskatchewan, five of which are 100 percent owned.

The anomalous radioactivity occurs within drill hole PLS12-013, which is the thirteenth hole of a planned 16 hole, 2,100 metre drill program.

The program was a continuation of last year's efforts to locate the bedrock source area of the high-grade Uranium boulder field discovery made last June, which is believed to occur below the unconformity in a basement hosted system, the parties said.

The thirteenth hole, targeted along an EM conductor identified from the property scale 2012 airborne survey, to the west of Patterson Lake, intersected a broad 19.5 metre wide interval of anomalous radioactivity of 154 to 368 counts per second (cps) in the basement rock below the overburden interface.

The results were measured by a hand-held Exploranium GR-110 Super Gamma-Ray Scintillometer, the companies said.

Fission said in a statement Wednesday that further drilling in this area is planned.

In February, the companies started a 2,100 metre drilling program on the property, testing favorable basement bedrock beneath the glacial sedimentary cover to the "up-ice" area, which is east-northeast of the high grade Uranium boulder field found last June.

The high-grade Uranium boulder field has yielded boulder assays as high as 39.6% and 31.4% Uranium since its discovery.

Overall, Fission said the initial results are "highly encouraging", successfully identifying "favourable basement lithology" structure and alteration - important geological criteria for hosting high grade Uranium mineralization.

Drilling has further refined the boundaries of the Uranium boulder field target area to the west of Patterson Lake, with the results from hole PLS12-013 providing a "meaningful indicator" for identifying potential high grade mineralization, Fission said.

Planning is underway to carry out Sonic-reverse circulation drilling during the summer, as well as continued follow-up of the anomalous area found in this past winter program.

Assay results will be announced when available, the company added.

Fission is the operator of the Patterson Lake South exploration project, which is accessible by road with primary access from all weather Highway 955, which runs north to the former Cluff Lake mine, where more than 60 million pounds of Uranium has been produced.

In February, the Uranium explorer said the joint venture staked six new claims along the south boundary of Patterson Lake South, boosting the size of the asset to around 31,000 hecatres in 17 mineral claims.

The six new claims, which were staked to cover possible south-trending extensions of the wide, high grade Uranium boulder field discovered by the joint venture in June of last year, total around 8,170 hectares.

Fission is focused on the acquisition and exploration of Uranium properties in Alberta, Saskatchewan and Quebec in Canada, as well as the Macusani District in Peru.

Its flagship Waterbury Lake project is located immediately west of Hathor Exploration’s (TSE:HAT) Roughrider Uranium deposit, which is in the heart of the Athabasca Basin district that hosts over 110 million pounds of Uranium.

Hathor was recently subject to a takeover battle in late 2011 between mining giants Cameco Corp. (TSE:CCO)(NYSE:CCJ) and Rio Tinto (NYSE:RIO)(LON:RIO), with the latter emerging as the winner with its $654 million friendly bid trumping Cameco's $625 million offer.

The uranium explorer said it will present and attend one-on-one meetings at the Roth Capital Partners 24th Annual symposium on March 14 at 12:30 p.m.

The event, which will be taking place in Dana, Point, California, is being held between March 11 through 14, 2012.

The Roth Capital event is designed to offer investors insight into small and mid-cap companies across a number of sectors like business services, cleantech, media and software.

Randhawa has wide-ranging international experience in developing resource, mining exploration and energy companies. He has headed Fission since 2007, during which time the company has made high grade discoveries at its Waterbury Lake and Patterson Lake South properties in the Athabasca Basin.

In late February, the miner announced a 2,100 metre, 14 hole drill program would begin at its Patterson Lake South property in the uranium-rich Athabasca Basin.

The program is a continuation of last year's efforts to locate the bedrock source area of the high-grade uranium boulder field discovery made last June, which is believed to occur below the unconformity in a basement hosted system.

Drilling will test many geophysical targets identified by an on-going Time Domain Electromagnetic and a DC-Resistivity survey being conducted on the Patterson Lake conductor corridor.

Fission is engaged in the acquisition and exploration of uranium properties in Alberta, Saskatchewan, and Quebec as well as in the Macusani District in Peru.

Its flagship Waterbury Lake project is located immediately west of Hathor Exploration’s (TSE:HAT) Roughrider uranium deposit, which rests in the Athabasca Basin district that hosts over 110 million pounds of uranium.

Hathor was recently subject to a takeover battle in late 2011 between mining giants Cameco Corp. (TSE:CCO) and Rio Tinto (NYSE:RIO), with Rio Tinto emerging as the victor with its $654 million bid trumping Cameco's $625 million offer.

In mid-December, the company announced trenching results from Patterson Lake South, where the highest grade samples included 31.4 percent and 31.2 percent U308 (Uranium).

These assays were received from the 49 radioactive boulders discovered during the trenching program carried out in October 2011. These boulders occur in the high grade boulder field that has been traced for a north-south length of approximately five kilometres by up to 0.9 kilometres wide.

Fission is engaged in the acquisition and exploration of Uranium properties in Alberta, Saskatchewan and Quebec in Canada, as well as the Macusani District in Peru.

Its flagship Waterbury Lake project is located immediately west of Hathor Exploration’s (TSE:HAT) Roughrider Uranium deposit, which is in the heart of the Athabasca Basin district that hosts over 110 million pounds of Uranium.

Hathor was recently subject to a takeover battle in late 2011 between mining giants Cameco Corp. (TSE:CCO)(NYSE:CCJ) and Rio Tinto (NYSE:RIO)(LON:RIO), with the latter emerging as the winner with its $654 million friendly bid trumping Cameco's $625 million offer.

The company said three step out holes, WAT12-237B, 242, and 244, which were drilled laterally to the north of the central J Zone boundary, have intersected wide intervals of "well-developed mineralization", including 14 metres, 11 metres and 15 metres, respectively.

Radioactivity, ranging from "moderate to strong", including discrete intervals of "off-scale" (greater than 9999 counts per second), was observed, Fission said, occurring within the sandstone above the unconformity and continuing at depth into the basement below.

According to the Uranium explorer, the three holes have identified a new mineralized extension in the sandstone and basement, to the north of the J Zone boundary.

In addition, one infill hole, WAT12-247, expanded sandstone and unconformity mineralization 10 metres to the west of hole WAT11-200, by intersecting 9 metres of "moderate to strong" radioactivity, including several smaller narrow intervals of "off-scale" radioactivity.

Meanwhile, in the western part of the J Zone, four out of five drill holes intersected "weak to locally strong" radioactivity over narrow to wide widths, Fission said, including hole WAT12-238, which intersected an 18 metre mineralized interval beginning in the sandstone and continuing vertically through the unconformity (with a maximum peak 5400 cps). Hole WAT12-236 also intersected 2.5 metres of mineralization in the basement (with a maximum peak 8900 cps).

Overall, an additional 11 drill holes were completed at the J Zone, for a total of 21 to date, with 10 of the latest 11 intersecting mineralization with radioactivity ranging from weakly anomalous to strongly radioactive, Fission said.

Twenty-eight drill holes remain to be drilled at the J Zone as part of a $9.28 million, 32,630 metre Waterbury Lake 2012 winter drill program, which will continue through to spring break-up.

In late January, Fission Energy said four infill drill holes at its Waterbury Lake Uranium joint venture in Saskatchewan intersected several "well developed and widening" intervals of mineralization in the western part of the J Zone.

The intervals of mineralization intersected were up to 14 metres in the sandstone above the unconformity, and up to 17.5 metres in the basement, the company said.

Also in January of this year, Fission unveiled an NI 43-101 compliant resource estimate for the J Zone deposit, with an indicated resource totalling 7,367,000 pounds of Uranium, based on 168,000 tonnes at an average grade of 1.99 percent Uranium.

An additional 1,511,000 pounds based on 150,000 tonnes averaging 0.46 percent Uranium is classified as an inferred mineral resource.

Low values for toxic elements such as arsenic and selenium compares favourably with Hathor's (TSE:HAT) Roughrider Uranium deposit, located immediately to the east, Fission Energy said.

Beginning in late August 2011, Hathor was subject to a takeover battle between mining giants Cameco Corp. (TSE:CCO)(NYSE:CCJ) and Rio Tinto (NYSE:RIO)(LON:RIO), with the latter emerging as the winner with its $654 million friendly bid trumping Cameco's $625 million hostile offer.

Fission Energy was among Versant Partners' top picks for 2012, with the capital markets firm seeing "inevitable consolidation" for the company due to the proximity of Fission's Waterbury property to Hathor's Roughrider.

Indeed, Fission's shares have rocketed around 58 percent since the initial bid by Cameco last August.
The J Zone Uranium discovery was announced in February, 2010.

The J Zone Deposit remains open along strike, laterally as well as vertically over significant widths, thereby exhibiting significant potential for expanding the resource.

Fission is the operator of the winter 2012 exploration program, which is expected to be completed by mid-March.

The company holds the Waterbury property in partnership with the Korea Waterbury Uranium LP, which is a consortium primarily comprised of Korean-based companies, and led by state-owned Korea Electric Power (KEPCO).

Fission owns 60 percent of the venture, with Korea Waterbury Uranium holding the remainder.

These assays were received from the 49 radioactive boulders discovered during the trenching program carried out in October 2011. These boulders occur in the high grade boulder field that has been traced for a north-south length of approximately five kilometres by up to 0.9 kilometres wide.

Fission is engaged in the acquisition and exploration of Uranium properties in Alberta, Saskatchewan and Quebec in Canada, as well as the Macusani District in Peru.

Its flagship Waterbury Lake project is located immediately west of Hathor Exploration’s (TSE:HAT) Roughrider Uranium deposit, which is in the heart of the Athabasca Basin district that hosts over 110 million pounds of Uranium.

Hathor was recently subject to a takeover battle in late 2011 between mining giants Cameco Corp. (TSE:CCO)(NYSE:CCJ) and Rio Tinto (NYSE:RIO)(LON:RIO), with the latter emerging as the winner with its $654 million friendly bid trumping Cameco's $625 million offer.

The additional funds will support an expanded four drill, 32,630 metre program at the Saskatchewan project, up from the initial planned three drill, 25,000 metre campaign.

The expanded drilling will be designed to supplement original plans for several high priority regional targets, including the Summit Zone, the Oban Corridor and Murphy Lake, Fission said.

This drilling will allow the company to further test the potential of these areas for hosting high grade Uranium mineralization.

Using four rigs, 88 drill holes will now be completed, as compared to the 69 holes originally planned.

The bulk of the drilling will be in the known mineralized areas of the project, including the high grade J Zone deposit, which will see a total of 49 holes during the program.

The Summit Zone will see a total of 11 drill holes, testing for mineralization around known occurrences, while the Oban Corridor and Murphy Lake will see 12 and 14 holes, respectively.

At Oban, one additional hole has been planned to follow up on anomalous mineralization discovered last year, Fission said.

The 40,256-hectare Waterbury Lake property is located in the eastern part of the Uranium-rich Athabasca Basin.

Earlier this month, Fission unveiled an NI 43-101 resource estimate for the J Zone deposit, with an indicated resource totalling 7,367,000 pounds of Uranium, based on 168,000 tonnes at an average grade of 1.99 percent Uranium.

An additional 1,511,000 pounds based on 150,000 tonnes averaging 0.46 percent Uranium is classified as an inferred mineral resource.

Low values for toxic elements such as arsenic and selenium compares favourably with Hathor's (TSE:HAT) Roughrider Uranium deposit, located immediately to the east, Fission Energy said last week.

Beginning in late August 2011, Hathor was subject to a takeover battle between mining giants Cameco Corp. (TSE:CCO)(NYSE:CCJ) and Rio Tinto (NYSE:RIO)(LON:RIO), with the latter emerging as the winner with its $654 million friendly bid trumping Cameco's $625 million hostile offer.

Fission Energy was among Versant Partners' top picks for 2012, with the capital markets firm seeing "inevitable consolidation" for the company due to the proximity of Fission's Waterbury property to Hathor's Roughrider. Indeed, Fission's shares have rocketed around 58 percent since the initial bid by Cameco last August.

The latest resource estimate from Fission Energy does not include mineralization from the highly prospective Summit Zone, located 1,532 metres to the west of the deposit.

The J Zone Uranium discovery was announced in February, 2010.

Each successive drill program has expanded the J Zone deposit's current east-west strike length, beginning from approximately 30 metres west of the J East Zone, which in itself is an extension of the Hathor Roughrider Deposit, and extending for 578 metres to the west.

The J Zone Deposit remains open along strike, laterally as well as vertically over significant widths, thereby exhibiting significant potential for expanding the resource.

Fission is the operator of the winter 2012 exploration program, which is expected to be completed by mid-March, the company said.

The company holds the Waterbury property in partnership with the Korea Waterbury Uranium LP, which is a consortium primarily comprised of Korean-based companies, and led by Korea Electric Power (KEPCO).

Patterson Lake South is a 50/50 joint venture with ESO Uranium (CVE:ESO). The project consists of 12 mineral claims, totalling 13,497 hectares.

The winter exploration program is designed to follow-up the inital 838 metre drill program that began in November, 2011, and will include sonic and/or reverse circulation drilling, core drilling and airborne and ground geophysics.

"We are pleased with the progress made at the PLS property since the discovery of the high grade Uranium boulder field last summer," said Fission's president and COO, Ross McElroy.

"After a detailed review of the work completed to date, the JV decided to significantly expand the budget for 2012 and has begun allocating additional time and resources to further advance this project."

The initial Patterson Lake South drill program, which began in November, tested 75 - 108 metres of overburden through to the basement rocks on the "up-ice" side of the high grade Uranium boulder field discovered in June of last year, targeting shallow basement mineralization.

Drill holes PDD11-06 and 07 showed anomalous radioactivity in overburden intersections from 64.4 metres to 70.0 metres with a maximum peak of 400 counts per second (cps), and from 49.6 metres to 58.2 metres with a maximum peak of 90 cps, respectively.

Fission said the shallower depth of the anomalous radioactivity in hole 07 could be consistent with a semi-continuous till sheet dipping to the northeast, towards a possible up-ice bedrock source for the Uranium boulders.

Meanwhile, hole PDD11-003 intersected graphitic metapelitic basement rocks. Basement faulting and graphitic metapelites are often seen as key indicators associated with structurally-controlled Uranium mineralization within and on the margin of the Athabasca Basin.

Further drilling, which will be completed as part of the expanded winter 2012 exploration program, will be required to determine if these initial results represent an intersection of the radioactive till sheet being sought, Fission said.

Fission is the operator of the project, which is accessible by road from all weather Highway 955, which runs north to the former Cluff Lake mine.

In mid-December, the company announced trenching results from its Patterson Lake South joint venture in Saskatchewan, where the highest grade samples included 31.4 percent and 31.2 percent U308 (Uranium).

Assays were received from the 49 radioactive boulders discovered during the trenching program carried out during October 2011. These boulders occur in the high grade boulder field that has been traced for a north-south length of approximately five kilometres by up to 0.9 kilometres wide.

Fission is engaged in the acquisition and exploration of Uranium properties in Alberta, Saskatchewan and Quebec in Canada, as well as the Macusani District in Peru.

Its flagship Waterbury Lake project is located immediately west of Hathor Exploration’s (TSE:HAT) Roughrider Uranium deposit, which is in the heart of the Athabasca Basin district that hosts over 110 million pounds of Uranium.

Hathor was recently subject to a takeover battle in late 2011 between mining giants Cameco Corp. (TSE:CCO)(NYSE:CCJ) and Rio Tinto (NYSE:RIO)(LON:RIO), with the latter emerging as the winner with its $654 million friendly bid trumping Cameco's $625 million bid.

Fission is engaged in the acquisition and exploration of uranium properties in Alberta, Saskatchewan and Quebec in Canada, as well as the Macusani District in Peru.

Versant has a "speculative buy" rating on Fission Energy with a $1.25 price target. Tuesday, Fission shares closed up 1.3 percent at $0.78.

Fission Energy's flagship Waterbury Lake project is located immediately west of Hathor Exploration’s (TSE:HAT) Roughrider uranium deposit, which is in the heart of a district that hosts over 110 million pounds of uranium.

Hathor was recently subject to a takeover battle in late 2011 between mining giants Cameco Corp. (TSE:CCO)(NYSE:CCJ) and Rio Tinto (NYSE:RIO)(LON:RIO), with the latter emerging as the winner with its $654 million friendly bid trumping Cameco's $625 million bid.

Fission's J East Zone at Waterbury is the likely western extension of Hathor's Rougrider deposit as the property line is the only thing separating the two, Versant noted.

J East is one of several pods of mineralization along a “string of pearls” formation that runs deeper from west to east and includes Fission’s Summit, Talkiser, J Zone and J East Zones as well as Hathor’s Roughrider, Roughrider East and Far East Zones.

In a research note, Versant analyst Rob Chang said: "Fission will soon release its initial 43-101 compliant resource estimate for the [Waterbury Lake] J Zone. The resource is expected to be between 13–23 million pounds of uranium. We estimate that it will be about 18 million pounds of uranium."

In terms of consolidation, Versant Partners said that with the recently completed battle for Hathor won by Rio Tinto, it is generally believed that Hathor alone is too small to significantly impact the bottom line for the mining giant.

"As such, the consolidation of Hathor’s neighbour that has the shallower mineralization is a likely subsequent step," Versant Partners concluded.

Other companies in the below $250 million market cap range included in Versant's top picks for the year are Mawson West (TSE:MWE), MEGA Brands (TSE:MB) and QHR Technologies (CVE:QHR).

The company's shares were up three percent to $0.70 Wednesday morning.

Assays have been received from the 49 radioactive boulders discovered during the trenching program carried out during October 2011. These boulders occur in the high grade boulder field that has been traced for a north-south length of approximately five kilometres by up to 0.9 kilometres wide.

Fission Energy also said its 1,000 metre drill program targeting shallow basement mineralization is currently underway, and results will be announced when available.

Patterson Lake South is a 50/50 joint venture with ESO Uranium (CVE:ESO). The project consists of 12 mineral claims, totalling 13,497 hectares.

It is accessible by road from all-weather Highway 955, which runs north to the former Cluff Lake mine, (around 60 million pounds of U3O8 produced) and passes through the nearby UEX-Areva Shea Creek discoveries, located 50 kilometres to the north, which are currently under active exploration and development.

Fission Energy specializes in the strategic acquisition, exploration and development of Uranium properties, and is headquartered in Kelowna, British Columbia.

The Uranium sector is firmly in the spotlight as mining giant Rio Tinto (LON:RIO)(NYSE:RIO) is acquiring Hathor Exploration (TSE:HAT) for $654 million, beating a $4.50 per share hostile bid from Canada's largest Uranium producer, Cameco (TSE:CCO)(NYSE:CCJ). Rio Tinto has long had its eye on Hathor as an entry point into the Uranium-rich Athabasca Basin in Saskatchewan.

Fission Energy's Waterbury Lake joint venture property is located adjacent to Hathor's Roughrider deposit in the Athabasca Basin. Fission's shares have jumped around 42% since August 25 - when the bidding war for Hathor was started.

The company sold 11.8 million flow-through common shares at 85 cents per share. The placement was conducted on a bought-deal basis, by a syndicate of underwriters led by Dundee Securities.

The proceeds must be used to fund Canadian exploration expenses, as defined by the Income Tax Act of Canada, by December 31, 2012.

A cash commission, as well as broker warrants, were paid out in connection with the financing. Each broker warrant is exercisable into one common share of the company for a period of 24 months from the closing, at a price of 85 cents each.

Fission Energy's joint venture Waterbury Lake property is located adjacent to Hathor Exploration's (TSE:HAT) Roughrider deposit, which is now the subject of a takeover battle between Rio Tinto (NYSE:RIO)(LON:RIO) and Cameco (TSE:CCO)(NYSE:CCJ).

A research note issued in August from Dundee Capital Markets noted that Fission's J-Zone East, J-Zone and Highland zones at Waterbury are seen as a 370 metre extension to the Roughrider deposits, making currently undervalued Fission a potential takeover target for those looking to get in on the action in the uranium-rich Athabasca Basin.

Indeed, Fission shares have increased more than 75 percent following Cameco's initial bid for Hathor in late August.

Using three drill rigs, the uranium explorer, in partnership with the Korea Waterbury Uranium LP, will complete 69 drill holes totaling an estimated 25,000 metres, 75 percent of which will occur in the J Zone high grade uranium discovery. The secondary target will be the Summit Zone, located around 1 kilometre west of the J Zone.

At J Zone, the primary focus will be to continue delineating the area's high grade unconformity mineralization, in addition to the basement mineralization found in the western part of the zone, which has been connected to the former PKB Zone and traced roughly 60 metres further to the west by drilling completed last summer.

Hole WAT11-214A in the western part of the J Zone intersected 3.5 metres of basement mineralization grading 0.60% U3O8, including 1.0 metre of 1.1% U3O8. The company said this past summer's smaller drill program was successful in expanding the J Zone's east-west strike length to 578 metres. Mineralization remains open along strike, laterally as well as vertically, over significant widths.

At Summit, a second drill will target uranium discoveries made in the vicinity of the two mineralized holes discovered to date. Hole WAT11-199, completed as a part of limited regional drilling in the summer, extended mineralization 30 metres to the west of Hole WAT11-153A, by intersecting 13.5 metres of basement mineralization grading 0.16% U3O8, including 0.50 metres of 1.43% U3O8.

Drilling will also continue at other regional targets, including a total of nine holes at Oban, Oban North and the new Chivas area, located around 5 kilometres west of the Oban Corridor. Three holes at Oban will be designed to trace mineralization intersected in the winter 2011 program, and three holes each at Oban North and Chivas will test geophysical anomalies.

According to Fission, Oban is a "highly prospective" corridor that parallels the Discovery Bay Corridor, which hosts the high grade J Zone uranium discovery, approximately four kilometres to the south.
In addition, five drill holes are planned at Murphy Lake, where a recently completed ground geophysical program identified "encouraging signs" of basement and sandstone alteration, along a well-defined conductor axis, the company said. Of the three drill holes completed during last summer's program, the company observed that an approximate 50 metre offset in depth to the unconformity between Hole WAT11-211 and Holes WAT11-213 and 215 was observed, a feature coincident with the presence of uranium mineralization in several deposits in the Athabasca Basin.

Moreover, Fission said that geophysical work, including an electromagnetic survey, is planned at the Oban, Chivas and Murphy Lake targets, as well as a new area known as Aaron Lake, located roughly 6 kilometres to the west of the Areva-Denison Midwest deposit.

Fission is the operator of the exploration program, which is expected to be completed by the spring break-up period in 2012. The company and the Korean Waterbury Consortium have budgeted C$30 million for exploration at Waterbury Lake over a three year period from 2010 to 2012.

On Monday, uranium producer Cameco (TSE:CCO)(NYSE:CCJ) Monday increased its hostile offer for uranium junior Hathor Exploration (TSE:HAT) to $4.50 per share, taking on a friendly bid for Hathor from mining giant Rio Tinto (NYSE:RIO)(LON:RIO).

The new offer from Cameco, Canada's largest uranium producer, values Hathor at around $625 million. In October, Rio Tinto bid $578 million, or $4.15 per share for Hathor, beating Cameco's initial $3.75 per share offer tabled in late August. Hathor's board has backed Rio's offer.

At stake is Hathor's large exploration-stage Roughrider project in the uranium-rich Athabasca region of Saskatchewan in Western Canada, which is located adjacent to Fission's Waterbury Lake property.

A research note issued in August from Dundee Capital Markets noted that Fission's J-Zone East, J-Zone and Highland zones at Waterbury are seen as a 370 metre extension to the Roughrider deposits, making currently undervalued Fission a potential takeover target for those looking to get in on the action in the uranium-rich Athabasca Basin.

Indeed, Fission shares have increased 78 percent following Cameco's bid for Hathor in late August. Monday afternoon, Fission's shares were up 7.3 percent to 88 cents.

The readings were measured by a hand-held Exploranium GR-110G total count gamma ray scintillometers. Off scale readings equate to greater than 9,999 counts per second (cps).

The successful completion of this trenching program represents a significant step towards locating the bedrock source of the large uranium boulder field discovered by the companies in June.

These latest radioactive boulders occur in the high grade boulder field that has been traced for a north-south length of approximately 5 kilometres by up to 0.9 kilometres wide.

The largest off scale boulder consisted of massive pitchblende with yellow secondary uranium minerals, the companies said, while three other radioactive boulders were too large to remove by hand.

Boulder samples have been submitted for analysis, with assays to be reported when available.

The size of the boulders increases from west to east, suggesting the source rocks to be the Archean Basement located to the northeast, and well within the claims held by the joint venture.

Of the eighteen trenches completed, eight exhibited significant radioactivity, Fission and ESO said. Line cutting is now underway in preparation for electromagnetic and induced polarization ground geophysical surveys.

The joint venture is planning a 10 hole, 1,000 metre drill program shortly after the surveys.

PLS is accessible by road, with primary access from all weather Highway 955, which runs north to the former Cluff Lake mine, where more than 60 million pounds of uranium oxide was produced, and passes through the nearby UEX-Areva Shea Creek discoveries located 50 kilometres to the north.

The miner said a syndicate of underwriters led by Dundee Securities has agreed to buy 11.8 million flow-through shares at a price of $0.85 each.

In connection to the offering, Fission will pay a cash commission fee equal to six percent of the gross proceeds raised and that number of non-transferable broker warrants equal to 6.0% of the number of flow-through shares sold.

Each broker warrant will be exercisable into one common share of Fission for a period of 24 months from the closing date for 85 cents per share.

The offering is slated to close on November 17, and the securities issued are subject to a four month hold period.
The gross proceeds will be used to fund exploration of the company’s Canadian-based projects, it said.

Fission Energy’s exploration focus is Saskatchewan’s Athabasca Basin, with its Waterbury Lake joint venture property located next to takeover target Hathor Exploration's Roughrider deposit. The majority of the company’s properties were acquired by staking in 2003 and 2004.

The company and its 50:50 joint venture partner, ESO Uranium (CVE:ESO), have budgeted $800,000 for the current program, which focuses primarily on surface trenching and geophysics, to be later followed by drilling.

Fission said the work will identify the bedrock source of the large 5 kilometre by 0.9 kilometre high grade uranium boulder field, which recently returned assays as high as 39.6% uranium.

A 10 hole, 1,000 metre drill program is planned for late fall 2011. Initial drill targets, based on current and historic compilation of geophysics and drill hole data, have been identified and will be refined based on results of the current trenching and geophysics surveys underway.

Patterson Lake South is accessible by road, with primary access from all weather Highway 955, which runs north to the former Cluff Lake mine and passes through the nearby UEX-Areva Shea Creek discoveries located 50 kilometres to the north, currently under active exploration and development.

Fission's shares have rallied considerably since Cameco (TSE:CCO) and Rio Tinto (NYSE:RIO) both made a takover offer for neighbour Hathor Exploration (TSE:HAT), whose Roughrider deposit is located nearby to Fission's Waterbury Lake joint venture.

Hathor's Roughrider deposit is estimated to contain indicated resources of 17.2 million pounds of uranium in the west zone, plus another 40.7 million pounds of inferred resources in the east and the west zones.

Since August 25, Fission's share price has rallied 38% due to its assets' proximity to Hathor's, hiking up from 50 cents per share to its current trading level of 69 cents.

Dundee said it believes Fission shares are currently trading at a 19% to 29% discount, in light of the possibility of the Cameco takeover, valuing the junior uranium company between $0.84 and $0.95 per share.

Assuming Fission has the potential for between 11 and 18 million pounds of uranium, the equities research firm said it infers a project value of between $94 and $154 million for Fission's joint venture Waterbury Lake property, half of which would be attributable to Fission.

Dundee noted that Fission's J-Zone East, J-Zone and Highland zones at Waterbury are seen as a 370 metre extension to the Roughrider deposits, Hathor's (TSE:HAT) most significant assets, located in the Athabasca Basin of Saskatchewan.

"While our studies suggest that Fission's mineralization may have an average grade around 3% (much like Roughrider's initial resource estimate), Fission too has similar potential to delineate higher grade uranium resources. Its best assays measure up to 46% over 2m and 14.7% over 6m," Dundee's report said.

"We believe that ultimately the Fission property could be required in order to develop all of the Hathor mineralization -partially due to the proximity of the property boundaries to Roughrider mineralization.

"But also because it provides further mineralization to what has become the most exciting new uranium camp in the Athabasca Basin."

Including Fission's 24 million potential pounds of uranium at the Dieter Lake project iN Quebec, the firm values Fission at a range of $85 million and $121 million, which equates to $0.84 to $0.95 per share.

Dundee's report comes shortly after uranium giant, Cameco (TSE:CCO) made its hostile bid for Hathor official, making a public offer of CAD $3.75 per Hathor share. The deal is valued at $520 million.

The $3.75 per-share cash proposal was delivered in written form by Cameco to Hathor following the close of market last Friday, but Cameco, one of the world's largest uranium producers, said that it decided to make the offer announcement after discussions with Hathor failed to result in a board-supported agreement.

Hathor's Roughrider deposit is estimated to contain indicated resources of 17.2 million pounds of uranium in the west zone, plus another 40.7 million pounds of inferred resources in the east and the west zones.

The Roughrider deposit is strategically located roughly 25 kilometres northwest of Saskatoon, Saskatchewan-based Cameco's Rabbit Lake mill, making Fission, and its  concessions, a target.

In addition, Fission has further upside potential up its belt, as it is not "anywhere near" finished delineating its J-Zone deposit at Waterbury, as it remains open in several directions.

"While perhaps two years behind Hathor in exploration, what is apparent is that Fission already has more strike length potential than Hathor," added Dundee.

Aside from Waterbury and Dieter Lake, Fission also holds its Patterson Lake South property, where a 5 kilometre by 900 metre long boulder field was recently discovered, with grades of up to 40% uranium.

A total of 74 cobble and boulder samples were taken, with 25 returning assays of at least 10% uranium. While Dundee said this property can not yet be properly valued, it remains a source of "excitement".

Fission's stock on the TSX-Venture Exchange rose 5.88% as of 3:49 pm EDT, at $0.72. Meanwhile, both Cameco and Hathor's stocks rose, 1.8% to $22.60 and 3.8% to $4.10, respectively.

Dundee said it believes Fission shares are currently trading at a 19% to 29% discount, in light of the possibility of the Cameco takeover, valuing the junior uranium company between $0.84 and $0.95 per share.

Assuming Fission has the potential for between 11 and 18 million pounds of uranium, the equities research firm said it infers a project value of between $94 and $154 million for Fission's joint venture Waterbury Lake property, half of which would be attributable to Fission.

Dundee noted that Fission's J-Zone East, J-Zone and Highland zones at Waterbury are seen as a 370 metre extension to the Roughrider deposits, Hathor's (TSE:HAT) most significant assets, located in the Athabasca Basin of Saskatchewan.

"While our studies suggest that Fission's mineralization may have an average grade around 3% (much like Roughrider's initial resource estimate), Fission too has similar potential to delineate higher grade uranium resources. Its best assays measure up to 46% over 2m and 14.7% over 6m," Dundee's report said.

"We believe that ultimately the Fission property could be required in order to develop all of the Hathor mineralization -partially due to the proximity of the property boundaries to Roughrider mineralization.

"But also because it provides further mineralization to what has become the most exciting new uranium camp in the Athabasca Basin."

Including Fission's 24 million potential pounds of uranium at the Dieter Lake project iN Quebec, the firm values Fission at a range of $85 million and $121 million, which equates to $0.84 to $0.95 per share.

Dundee's report comes shortly after uranium giant, Cameco (TSE:CCO) made its hostile bid for Hathor official, making a public offer of CAD $3.75 per Hathor share. The deal is valued at $520 million.

The $3.75 per-share cash proposal was delivered in written form by Cameco to Hathor following the close of market last Friday, but Cameco, one of the world's largest uranium producers, said that it decided to make the offer announcement after discussions with Hathor failed to result in a board-supported agreement.

Hathor's Roughrider deposit is estimated to contain indicated resources of 17.2 million pounds of uranium in the west zone, plus another 40.7 million pounds of inferred resources in the east and the west zones.

The Roughrider deposit is strategically located roughly 25 kilometres northwest of Saskatoon, Saskatchewan-based Cameco's Rabbit Lake mill, making Fission, and its  concessions, a target.

In addition, Fission has further upside potential up its belt, as it is not "anywhere near" finished delineating its J-Zone deposit at Waterbury, as it remains open in several directions.

"While perhaps two years behind Hathor in exploration, what is apparent is that Fission already has more strike length potential than Hathor," added Dundee.

Aside from Waterbury and Dieter Lake, Fission also holds its Patterson Lake South property, where a 5 kilometre by 900 metre long boulder field was recently discovered, with grades of up to 40% uranium.

A total of 74 cobble and boulder samples were taken, with 25 returning assays of at least 10% uranium. While Dundee said this property can not yet be properly valued, it remains a source of "excitement".

Fission's stock on the TSX-Venture Exchange rose 5.88% as of 3:49 pm EDT, at $0.72. Meanwhile, both Cameco and Hathor's stocks rose, 1.8% to $22.60 and 3.8% to $4.10, respectively.

Canadian uranium giant Cameco announced this morning that it intends to make an offer for Hathor, in a deal that values the target company at $520 million.

"We believe this bid from Cameco is the positive catalyst many have been waiting for to reignite interest in the uranium space," Versant noted in its research report.

The $3.75 per-share cash proposal was delivered in written form by Cameco to Hathor following the close of market last Friday, but Cameco, one of the world's largest uranium producers, said that it decided to make the offer announcement after discussions with Hathor failed to result in a board-supported agreement.

The offer price for Hathor represents a premium of 40% over the company's closing price yesterday, and is 33% higher than the company's 20-day volume-weighted average price as at August 25. Hathor's shares have jumped over 46% today on the news already.

Hathor is focused on exploration projects in the Athabasca Basin of northern Saskatchewan, Canada. The company's most significant asset is the Roughrider uranium deposit, which is estimated to contain indicated resources of 17.2 million pounds of uranium in the west zone, plus another 40.7 million pounds of inferred resources in the east and the west zones.

The Roughrider deposit is strategically located roughly 25 kilometres northwest of Saskatoon, Saskatchewan-based Cameco's Rabbit Lake mill.

"This news is particularly interesting for Fission Energy, which is located directly adjacent to Hathor’s Roughrider Zone," Versant added.

Indeed, Fission's Waterbury Lake property curls around Hathor's property, and Versant noted it is likely that the  J-Zone East at Waterbury is the western extension of Roughrider.

This strategic position also makes Fission a target for a similar take-over bid, leading Versant to reiterate its buy rating for the company.

The J-Zone extends over a 90 metre by 50 metre area, and intersected 10.5 metres grading 1.91% uranium in hole WAT10-63A during a 2010 drill program.

As at 1:26 pm EDT, Fission shares had spiked on the TSX-Venture Exchange by 24%, trading at $0.62 per share.

The property consists of 30,864 hectares and is situated about 150 kilometres north of Hydro, Quebec Reservoir. It has an inferred resource of 24.4 million pounds of uranium at an average grade of 0.057%.

The drill program, which will cost about $1.2 million, plans to test an area east of Vivian Lake, where previous drilling has intersected about 400 to 3,700 parts per million of uranium over thicknesses of 0.5 to 2.6 metres.

Fission has identified 12 vertical hole locations, with spacing at 25 to 50 metres collars, to expand the resource along strike.

The company said it also plans to carry-out re-logging and re-sampling of significant historic drill holes, as well as detailed ground magnetic surveys over the deposit.

The impetus of the drill program is to establish continuity and expand mineralization, and gain a better understanding of the deposit, with the intent of building a geological model, the company said.

This year, an extra 15,610 hectares of new ground was staked at Dieter Lake, which permitted Fission to control 88% of the Gayot Lake Outlier Basin.

The Gayot Lake Outlier Basin is a lower proterozoic-age sandstone basin of the Sakami Formation. It measures 52 kilometres east-west, by 12 kilometres north-south, and hosts the Dieter Lake uranium deposit.

Vancouver-based Fission Energy explores uranium resource properties in Canada and Peru.