After releasing partially completed results from their first vertically drilled hole (AR-14-30) last week, NexGen Energy (NXE:TSXV) announced the results of that completed hole this morning as well as results from two other drill holes that also intersected high-grade uranium mineralization in 50 metre step-outs on the Rook I project.
Hole AR-14-30 which was drilled to test the vertical extension of the discovery hole (AR-14-15) is now complete and intersected 206.6 metres of total composite mineralization including 53.85 metres of off-scale radioactivity (>10,000cps) within a 429.9 metre section.
Remember ‘uranium mineralization’ is defined as the presence of >500 cps radioactivity using a RS-125 gamma spectrometer.
From the preliminary results of hole AR-14-30 reported in the last news release, total composite mineralization grew an extra 19.7 metres with the total width of off-scale radioactivity remaining the same. At the time of the first release, the hole had been drilled to a depth of 637.4 metres and was finished at 728.2 metres. New mineralization was encountered from 721.3 to 728.2 metres.
Garrett Ainsworth, NexGen’s Vice-President, Exploration and Development, commented “Vertical drill hole AR-14-30 was successful in confirming the pinch and swell of mineralization within one of the sub-vertical shear zones that hosts high grade uranium at the Arrow zone. Targeting these mineralized swells or ‘blow outs’ will require a combination of angled and vertical drill holes to optimize drilling at Arrow.”
The company also released a pair of angle holes, AR-14-28, -29a which both encountered off-scale radioactivity as well.
AR-14-28 is the most significant of the two holes having intersected 202.05 metres of total composite mineralization including 3.25 metres of off-scale radioactivity within a 675.2 metre section (108.1 to 783.3 metres).
Hole AR-14-29a intersected 123.35 metres of total composite mineralization including 1.25 metres of off-scale radioactivity within a 350.25 metre section (230.75 to 581.00 metres).
“Angled drill holes AR-14-28 and -29a were aggressive 45 to 50 metre step outs that intersected significant intervals of mineralization, which provides further evidence that Arrow is only getting bigger,” Mr. Ainsworth said in the release.
The company has hit uranium mineralization in 93% of the holes drilled to date which speaks to the pervasiveness of mineralization there. It is still very early days on this project.
Leigh Curyer, CEO commented, “Arrow continues to hit mineralization at close to a 100% strike rate over large step out distances across an area of 515m x 215m in the first 30 holes drilled. This fact, coupled with AR-14-30’s indication Arrow contains some of the most intensive high grade mineralization seen to date, is incredibly exciting for the team and shareholders as we further develop Arrow.”
NexGen is hosting another site visit tomorrow which will include some of NexGen’s largest shareholders and other analysts/investors.
Shares are up nearly 1/3rd since the last site visit on August 12th.
The company has $6.5 million in cash remaining after completing 17,520 metres of drilling.
The company’s last raise was completed in March 2014 and was an expanded $11.5 million bought deal financing (rare for a junior) at $0.45 with listed 2-year, $0.65 warrants.
As of publishing, the shares and warrants were both trading down with the shares down slightly to $0.47 and the warrants down $0.02 or 13% to $0.125.
Disclosure: I am long NexGen Energy and they are a client. I am biased. Always do your own due diligence. Thank you.