By: Tomas Ronolski - AllPennyStocks.com News

Monday, January 26, 2015

Uranium prices tumbled in 2011 following the earthquake and subsequent tsunami in Japan that led to the Fukushima nuclear power plant meltdown. Nuclear has been a big part of Japan’s energy mix, however, the disaster in Fukushima led to the shutdown of all 48 nuclear reactors in that country. Following the disaster in Japan, countries such as Germany also reconsidered their commitment to nuclear energy. Germany has plans to shut down all of its nuclear reactors over the next decade even though this would mean burning more dirty coal and relying on unreliable partners like Russia for natural gas to meet its energy needs.

Given these developments, it was not surprising to see uranium prices take a hit between 2011 and 2014. However, the outlook for the uranium market began changing at the start of 2014 after a number of major miners announced supply cuts to bring the market back into equilibrium. Add to this the fact that the government of Shinzo Abe in Japan is keen to restart some of the reactors in Japan and growing demand for nuclear energy in emerging countries like China and India.

Although uranium prices are still languishing below $40 per pound, the outlook has certainly improved. And this is reflected in the performance of some of the uranium miners in recent months. Fission Uranium Corp. (TSX:FCU), a Kelowna, British Columbia-based company, has seen its shares rise more than 25% in the last three months alone. Fission is focused on the acquisition, exploration and development of uranium resource properties in Canada and Peru.

Earlier today, Fission announced results from the first five step-out angled drill holes of the winter drill program at its PLS property. The property is located in Canada’s Athabasca Basin region. Athabasca Basin is a leading source of high grade uranium, currently supplying around a fifth of the world’s uranium.

According to the results released by Fission, all five holes returned wide mineralization. The PLS project is 100% owned by Fission.

Commenting on the drill program at PLS, Ross McElroy, President, COO and Chief Geologist at Fission, said, “The winter drill program is off to a superb start. Strong, near-surface mineralization, 100% hit rate on the new Triple R deposit and the widening of the R780E Main zone in different directions on three lines.”

As the uranium market continues to stabilize, the positive results from the PLS property are a huge positive for Fission. Indeed, as investors once again look at uranium stocks favorably, Fission could be an attractive proposition. The upgrade to the Toronto Stock Exchange (TSX) in October last year is another positive for Fission as it increases the stock’s coverage among the investor community and enables the company to gain visibility. Given the long-term outlook for uranium prices, Fission is certainly a stock to watch this year.

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