The Rook I package hosts the Patterson conductor corridor (home of Arrow and PLS) and also 6-7 more (Source: NexGen Energy Ltd.)

The Rook I package hosts the Patterson conductor corridor (home of Arrow and PLS) and also 6-7 more (Source: NexGen Energy Ltd.)

This morning, NexGen Energy (NXE.TSXV) released news that looks significant.

They released 4 new holes (AR-15-39, -39w, 40b and 41) which appear to prove that the A3 shear zone which was only just recently discovered is potentially larger than the A2 shear (which hosts the best-to-date hole AR-14-30).

AR-14-30, which was drilled as the company’s first vertical hole, was drilled at the end of the 2014 drill program and intersected 187m of composite mineralization including 53.8m of off-scale.

One of the holes released this morning (AR-15-41) was an angled hole and hit 202m of composite mineralization including 24.5m of off-scale, which is pretty incredible. Typically, uranium explorers get their best holes in steeply dipping or vertical mineralization with vertical drill holes.  The fact AR-15-41 was angled and is comparable suggests that these sub-vertically stacked mineralized shear zones are thick and are made up of high-grade uranium.

Additionally the company released AR-15-40b which is the first +1m off-scale intersection at the current edge of the northeast boundary extent at Arrow.

Garrett Ainsworth, NexGen’s vice-president, exploration and development, commented: “The high-grade sections of the A2 and A3 shears are taking shape beautifully into what is heading toward a world-class uranium asset in the southwest Athabasca basin. Initial testing of the A3 shear with drill holes AR-15-39, -39w1, and -41 shows A3 is significantly larger in size than A2 and just as mineralized. This coupled with the successful strike of off-scale radioactivity with AR-15-40b at the current northeast edge of Arrow, strongly suggests that Arrow will continue to grow to the northeast.”

NexGen now believes the A3 shear is even larger than the A2 shear (Source: NexGen Energy Ltd.)

NexGen now believes the A3 shear is even larger than the A2 shear (Source: NexGen Energy Ltd.)

According to the company, the dimensions of the A2 shear are 88m strike, 340m vertical extension, with true widths ranging from 11m to 27.5m. NexGen now believes that the A3 shear has an even larger footprint: 73m strike, 420m vertical extension and true widths from 30m to 78.6m.  Although it is still early (especially for the A3 shear) and these mineralized systems tend to pinch and swell, even using conservative inputs for grade, the potential for Arrow to be a world-class uranium deposit clearly exists.

The company also announced it has just mobilized a fourth rig as plenty of other drill targets exist both at Arrow and regionally.

NexGen has yet to announce any radioactivity in regional drill targets which have focused on the 5km strike to the northeast of Arrow heading towards Purepoint/Cameco/AREVA’s Spitfire zone.  Although that is disappointing it shouldn’t be viewed as fatal.  It took Cameco over 200 holes to find McArthur River and Hathor over 60 to hit the J Zone which was sitting right next to Roughrider.  Arrow was discovered with the first hole, but that comes down to luck.

Shares in NexGen are up 6% on the news while Fission who also put out step-out drill hole results from their Tripe R deposit is only up 0.8%.  Leverage is clearly on NexGen’s side as they have the larger land package with plenty of exploration targets and what appears to be a large asset with Arrow.

Read: NexGen Significantly Expands High Grade Mineralization with A2 and A3 at the Arrow Zone with Best Angled Hole to Date.

Disclosure: NexGen has recently sponsored our Subscriber Investment Summit, and I’m a longstanding shareholder in the company, which makes me biased. Independently verify all information contained in this article as it may contain errors. Always speak to a licensed investment advisor prior to making an investment decision. This is not investment advice. Additionally, consult SEDAR filings for NexGen Energy to fully understand the risks associated with the company. This is a very high-risk stock and readers are responsible for their own trades.

Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Generally, but not always, forward looking information is identifiable by the use of words such as “will” and planned” and similar expressions. Forward-looking information is based on the then current expectations, beliefs, assumptions, estimates and forecasts about the Company’s business and the industry and markets in which it operates. Such information is not a guarantee of future performance and undue reliance should not be placed on forward-looking information. Assumptions and factors underlying the Company’s expectations regarding forward-looking information contained herein include, among others: that general business and economic conditions will not change in a material adverse manner; that financing will be available if and when needed on reasonable terms; that the Company’s current exploration activities can be achieved and that its other corporate activities will proceed as expected; that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned exploration activities will be available on reasonable terms and in a timely manner.

Although the assumptions made by the Company in providing forward looking information are considered reasonable by management at the time the forward-looking information is given, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information also involves known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information, including, among others: risks related to the availability of financing on commercially reasonable terms and the expected use of the proceeds; changes in the market; potential downturns in economic conditions; industry conditions; actual results of exploration activities being different than anticipated; changes in exploration programs based upon results of exploration; future prices of metal; availability of third party contractors; availability of equipment and supplies; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks; changes in laws and regulations; community relations; and delays in obtaining governmental or other approvals or financing. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. NexGen undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.