NexGen Energy Ltd. [NXE-TSX, NYSE] on Thursday released assay results from 2021 drilling which have confirmed the discovery of uranium mineralization below the Arrow deposit at its Rook 1 property in Saskatchewan’s Athabasca Basin
The company also said uranium mineralization has also been confirmed in the Camp East area, which is also located on the 100%-owned Rook 1 property.
Below Arrow, the company said multiple intersections of uranium mineralization were made, including 0.10% (triuranium octoxide) U308 over 7.0 metres in drill hole AR021-268 from 1,128 metres to 1,135 metres downhole.
At Camp East, drilling returned uranium concentration of 0.10% U308 in RK021-140 from 166 metres to 167 metres downhole in association with brittle structure and hydrothermal alteration.
“The intersection of mineralization below the known Arrow deposit and along trend at Camp East highlights the extent and potential for additional significant discoveries at Rook 1,’’ said NexGen CEO Leigh Curyer.
NexGen shares advanced on the news, rising 1.8% or 10 cents to $5.46 on volume of almost 2.0 million. The shares are currently trading in a 52-week range of $8.30 and $4.43.
NexGen is developing one of the world’s largest uranium deposits on its Rook 1 property, which hosts the Arrow Deposit. The company is backed by one of Asia’s wealthiest investors Li-Ka-shing. In June, 2016, CEF Capital Markets Ltd., an affiliate of the Hong Kong based conglomerate CK Hutchison Group, which is chaired by Li Ka-shing, subscribed for US$60 million worth of convertible debentures in NexGen.
Back in June, 2021, NexGen released positive results of an independent feasibility study on its Rook 1 project.
NexGen said the 2021 exploration program completed 18 drill holes or 10,849 metres, of which 6,400 metres targeted the electromagnetic conductors that neighbour the one hosting Arrow. Drilling in 2021 also included 4,448 metres that targeted significantly below the Arrow Deposit.
In addition to mineralization, these encouraging 2021 exploration results share alteration and structural similarities to those intersected in the discovery hole at Arrow,” said Grant Greenwood, Vice-President, Exploration at NexGen. He said NexGen is poised to advance high priority targets on the Rook 1 property in a systematic fashion from Arrow proximal outwards.
“The geological survey plans are strategic initiatives in developing highly prospective conductors in greenfield areas of the well-situated NexGen mineral tenure in the emerging southwest Athabasca basin uranium district,’’ Greenwood said.
The feasibility study mine plan released last year, using a 0.30% U308 cut-off grade, includes probable mineral reserves consisting of 239.6 million pounds of U308 that will be extracted by underground mining in an initial 10.7-year mine-life. The mine production schedule envisions an average life of mine rate of 1,207 tonnes per day during steady state production.