NexGen Energy (TSXV:NXE), a uranium exploration company focused on Saskatchewan’s Athabasca Basin, provided an update on their first 8 holes of drilling at Rook I, which is immediately adjacent to and along strike to Fission / Alpha’s Patterson Lake South discovery. Read: NexGen Energy Ltd: Rook 1 Drilling Update.
The news release suggested NexGen had encountered the geological signatures typically associated with uranium mineralization.
“Holes RK-13-02, -03, -04, -05, -06 and -07 intersected graphitic basement lithologies.”
“In addition, small zones of elevated radiometric readings using a hand scintillometer have been found in several holes, the most notable being to a maximum of 1000 counts per second (cps) over 0.5m in hole 6 from 152.6m downhole depth.”
Uranium investors will remember Fission / Alpha’s Patterson Lake South discovery occurred on the 22nd drill hole, while alteration and minor radioactivity similar to what NexGen announced today was uncovered almost a year earlier (Source).
NexGen CEO Leigh Curyer commented, “The signatures seen in the core from these holes confirm the prospectivity of Rook I and provide a high level of confidence around the geophysical surveys previously conducted. To be in this position, this early in the exploration program is very exciting for us and our shareholders.”
Not everyone shared Mr. Curyer’s enthusiasm Wednesday, with NexGen’s shares down 19.4% at press time, last at $.29.
I was able to reach Mr. Curyer briefly by phone this morning. Here’s what he had to say:
“The purpose of the first campaign on this particular part of Rook 1 was to confirm the geological setting, hence the wide 200 meter spacing of the holes. A good result would have been one hole of those six that were found, given that it’s the first pass. The fact that we’ve hit six of them suggests we’re in a very prospective system which is along strike from Patterson Lake South.”
“These holes are 200 meters apart and you could fit a Roughrider between each of them.”
“We know we’re in the right system. Typically we’re very close when we encounter this type of alteration.”
“This is a serious exploration program, and it will take some time. We’ve got the technical guys who were on the Roughrider discovery on the job.”
“We’re way ahead of the curve for subsequent drill programs.”
An additional 1000+ meters of drilling is still pending at Rook 1, and a follow up program will be conducted this winter.
Here’s the news release: NexGen Energy Ltd: Rook 1 Drilling Update
Disclaimer: All figures approx. and all facts to be verified by the reader. These are opinions and not professional or investment advice of any kind. Do your own due diligence.