A cross-section of the Arrow discovery (Image: NexGen Energy Ltd.)

A cross-section of the Arrow discovery (Image: NexGen Energy Ltd.)

After releasing initial results that extended the known strike length of mineralization at the Arrow target to 515 metres, NexGen (NXE:TSXV) released this morning the first assay result from their 2014 summer drill program which hit extremely high-grade uranium mineralization.

In drill hole AR-14-15 at the Rook I project, two wide intervals of high-grade uranium were encountered in the drill hole, including:

  • In the upper portion of the hole, 22.35 metres of 2.42% U308 including 6.85 metres of 10.72% U308, 4.5 metres of 15.74% U308 and 2.6 metres of 26.10% U308 (from 564 to 586.35 metres)
  • The highest grade interval in the upper portion was 0.45 metres of 55.8% U308
  • In the lower portion of the hole, 32 metres of 1.52% U308, including 3.15 metres of 10.40% U308 (from 594 to 626 metres)
  • The highest grade interval in this portion of the hole was 0.35 metres of 43.7% U308

Remember that 1.00% U308 is equivalent to over 20g/t gold or 16% copper (based on $1,335/oz gold and $2.95/lb copper), so this is very valuable rock.

Mr. Ainsworth holding his Colin Spence Award for his part in discovering the Patterson Lake South deposit (Photo: Ainsworth)

Mr. Ainsworth holding his Colin Spence Award for his part in discovering the Patterson Lake South deposit (Photo: Ainsworth)

Garrett Ainsworth, NexGen’s Vice-President, Exploration and Development, commented “We are very pleased with the assay results from AR-14-15, as they confirm and exceed our expectations based on visual assessment of the mineralized intervals.  These results include narrow intervals of ultra-high grade, which reinforces the immense size and strength of the mineralizing system that precipitated Arrow.  Expansion of the current drill program from 13,500 to 18,500 m will allow us to continue aggressively exploring at Arrow throughout the summer.”

Leigh Curyer, CEO commented, “The primary objective of the summer program was to establish a large area of mineralization, which we have achieved very quickly by aggressive large step outs. In only 22 holes, the team has established a mineralized zone of 515 x 180 m. Secondary, was to obtain an assessment on grade. These are the highest grade assay results over significant intervals to date at Arrow, which have exceeded expectation considering the stage of development. Arrow is developing faster than we ever anticipated at the beginning of the program.”

NexGen's technical team continue to hone in on the mineralization at Arrow.  They have drilled at nearly a 100% success rate and should continue to have success now that they have drilled enough holes to have a good understanding of the mineralized structure below the bogs in northern Saskatchewan.

After this early success, NexGen has increased the amount of total metres that are to be drilled this summer from 13,500 to 18,500 metres.

The budget for the initial 13,500 metre program was $7 million so this extra 5,000 metre could add $2.5 million to total summer spend, but the company has the money to do it with over $15 million in the bank (prior to the summer campaign).

Shares were up $0.02 to $0.36 per share on 261,000 shares traded in the first 35 minutes of trading.

Read: NexGen Hits 22.35 m at 3.42% U3O8 in AR-14-15 Including 4.5 m at 15.74% U3O8 at the Arrow Discovery

Also: NexGen Energy's Next Moves with Garrett Ainsworth

Disclosure: NexGen is an advertiser with CEO.ca and I own shares which makes me biased, always do your own due diligence.