After being halted for more than 24 hours, NexGen Energy (NXE:TSXV) informed investors of what news was awaiting dissemination; record total composite off-scale radioactivity from the latest drill hole which is still in progress.
The shear size of this intercept, although still being drilled, required a halt until the company could release the results.
Drill hole AR-14-30 intersected 186.90 metres of total composite mineralization including 53.85 metres of off-scale radioactivity (minimum >10,000 cps to maximum 60,999 cps) within a 287.7 metre section (298.3 to 586.0 m). The hole also intersected continuous off-scale readings over 5.9 metres and 7.75 metres which the company says “resembles the high-grade uranium mineralization encountered in AR-14-15” (see table below for drill hole details).
Given the thickness of the overall composite mineralization intersected and the wide sections of off-scale radioactivity, this hole looks like it will beat AR-14-15 to hold the title of the best drill hole to date at Arrow.
Garrett Ainsworth, NexGen’s Vice-President, Exploration and Development, commented “AR-14-30 is a landmark drill hole for the Arrow zone and NexGen, as well as for the new and exciting emergence of the southwest Athabasca uranium district. A drill hole of this magnitude this early into exploration on the Arrow zone enhances our belief that we are onto a significant mineralized system.”
Drill hole AR-14-30 is the first vertical hole at Arrow and is still in progress, currently drilling at a depth of 637.4 metres. The hole is being completed to test the vertical extent of high-grade mineralization encountered in hole AR-14-15.
Recall that hole AR-14-15 was the first assay reported from the summer 2014 program and the best hole ever drilled on the property. It returned 3.42% U3O8 over 22.35 metres from 564.00 to 586.35 metres, and 1.52% U3O8 over 32.0 metres from 594.0 to 626.0 metres.
Given that mineralization at Arrow appears to be comprised of steeply dipping to vertically stacked lenses, this hole should provide useful information on both the upper and lower portions of mineralization.
Of particular importance is the vertical extent given that mineralization appears to be improving at depth.
Leigh Curyer, CEO commented, “This is an achievement by the NexGen team. AR-14-30 is a significant step forward in such a relatively short space of time in the development of Arrow. Our continued focus to optimize Arrow remains unabated. The geological basis for the Arrow discovery and the implications it has on the prospectivity of our land package.”
AR-14-30 intersected Athabasca Group sandstone from 94.7 metres to the unconformity depth of 101.1 metres where strong bleaching and desilicification was observed.
Lithology is unrecognizable within higher grade zones of mineralization due to extreme alteration of the host basement rock. Massive uranium was intersected from 548.7 to 549.8 m, and 551.5 to 555.6 m, and these intervals are entirely black massive uranium with local minor inclusions of hematite micro-stringers.
The company is conducting another timely site visit next week with more investors and analysts. After today, I’m sure tickets for that visit just skyrocketed in value.
NexGen has still only released one assay from this highly successful summer drill program. There are over 20 holes with assays pending including AR-14-37 which also looks to have wide intervals of off-scale radioactivity in an angled hole.
Given the record 53.85 metres of total composite off-scale radioactivity encountered in hole AR-14-30 (still in progress too) and the fact the company still has 23 drill holes with assays pending (including AR-14-30), there looks to be nothing but blue skies ahead for the company and shareholders.
Shares closed up $0.12 or 29% to close at $0.54 on over 8.1 million shares traded. The shares hit a high of $0.60.
The company also has tradable warrants from their March 2014 $11.5 million bought deal financing that trade under the symbol “NXE.WT”. These closed the day up $0.075 (or 71%) to $0.18. The warrants expire March 26, 2016 at $0.65 exercise price.
Disclosure: I am a shareholder of NexGen Energy and they are an advertiser. I am biased. Always do your own due diligence.