The Athabasca Basin in Northern Saskatchewan, Canada is the most productive uranium producing region in the world, known for its extremely high grade deposits.
The latest discovery story to emerge from the Basin is NexGen Energy, which discovered uranium mineralization at their Rook 1 property earlier this year.
This morning, NexGen announced initial results from their summer 2014 drill program at Rook 1, and all six holes drilled into the Arrow target have intersected visible uranium.
The drilling has increased the mineralized strike length of the Arrow Discovery from 215 meters to 470 meters and remains open in all directions.
Quite possibly the standout hole was Rk-14-37, which intersected 78.05 meters total composite mineralization including 8.1 meters off-scale radioactivity (>10,000 cps) within a 227.8 meter section (378.0 to 605.8 meters).
According to the company, a strong dravite clay alteration halo exists more than 200 meters from the discovery, which suggests a strong uranium system at Arrow.
“The appearance of thicker intervals of mineralized graphitic pelite and mylonite from this latest batch of drill results is extremely encouraging,” commented Garrett Ainsworth, NexGen’s Vice-President, Exploration and Development (Ainsworth co-discovered Fission’s Patterson Lake South Deposit, and was interviewed by CEO.ca three weeks ago here).
“The Arrow Discovery is developing into a significant find based on all 14 drill holes hitting mineralization, and it is apparent that there is much left to be delineated in all directions,” said Leigh Curyer, co-founder, CEO and Director of the company.
A more comprehensive review of drilling can be found in the company’s news release: NexGen More Than Doubles Mineralized Strike Length From 215 to 470 Meters at the Arrow Discovery.
Shares in NexGen were off 1.5% in early trading Monday, last at $0.33 at 7:44am PST. With approximately 170 million shares outstanding, NexGen has a roughly $57 million market capitalization.
The uranium spot price is approaching a decade low as Japanese reactors remain offline, delaying any anticipation of a global shortfall for the radioactive commodity.
NexGen are a sponsor and we own shares which makes us biased. Always do your own due diligence.