NexGen's Rook I project is located up strike from Fission's PLS discovery (Image: NexGen Energy)

NexGen's Rook I project is located up strike from Fission's PLS discovery (Image: NexGen Energy)

The uranium explorer NexGen (NXE:TSXV), who is actively searching for the next Patterson Lake South-style discovery in Saskatchewan, has received all analytical results from there +3,000m summer drill program on their Rook I project which is located 2.1km up strike of Fission's (FCU:TSXV) Patterson Lake South (PLS) discovery.

Uranium was confirmed at Rook I in hole RK-13-05 and encountered 4m at 330ppm U308 from 220.5m to 224.5m deep.  Holes RK-13-03 and 06 intersected uranium and thorium bearing minerals.  The three holes drilled were located on separate EM conductors which are immediately along strike and adjacent to the PLS discovery.

Leigh Curyer, CEO of NexGen, states: "Our very first, widely spaced work program at Rook 1 has confirmed uranium mineralization on trend and on the same interpreted conductors as the PLS discovery made by Fission Uranium in 2011. The company is well funded, and we are excited to leverage off these very early encouraging results for a successful 2014 winter drill program."

All eyes are on NexGen for their 2014 Rook I drill campaign and plans for Radio.  An announcement regarding the program outline and budget should be released in the near-term.  The company has defined targets on Rook I now and the next drill campaign is expected to make an initial discovery.  The key ingredients are in place for the story; with the right team, money ($7 million as of September 2013) and geological traits to make the next uranium discovery in Saskatchewan.

Obviously, the drill bit has the final say but expectations are high, and rightly so.

The market was probably ahead of itself mid-last year when it ran from $0.35 to over $0.50 per share, but now at a $30 million enterprise value or roughly $0.30 per share the story offers better value, especially when you compare it to Fission's $320 million enterprise value.

Here's the chart:

NXE Chart
NXE data by YCharts

Read: Assays Confirm Uranium Mineralisation in 3 holes at Rook I