Athabasca Basin, Saskatchewan uranium explorer NexGen Energy (NXE.V) continues to intercept off scale uranium at the Rook 1 project. The winter drill program is well under way with 5,518.9 metres complete of the 18,000 metre program. News this morning was exciting as a new high grade zone (A3) has been discovered at their Arrow discovery.
Drill hole AR-15-39 was an angled drill hole located between AR-15-37 and AR-15-38 and has intersected 89.15 metres of mineralization. Included in the 89.15 metres is a high grade off-scale radioactivity section of 16.75 metres. The newly discovered A3 zone intersected 9.75 metres of off-scale radioactivity. The hole also confirmed the A2 shear zone. This opens up a new zone to develop and potentially grow into what the A2 shear has become.
Recent drilling has also started on a large Radon drill target 400m along strike of Arrow. For more on Radon surveys and how they are used in uranium exploration see the CEO.ca interview with Chad Ulansky and Northern Uranium.
Garrett Ainsworth, NexGen's vice-president, exploration and development, commented: "The importance of this new discovery of wide and concentrated high-grade uranium mineralization from AR-15-39 within the A3 mineralized shear can't be overstated. Visible uranium mineralization (9.75 metres of off-scale radioactivity) discovered in the A3 shear with AR-15-39 is analogous to the uranium mineralization that was discovered in the A2 shear with AR-14-15 (4.8 metres off-scale radioactivity) during the summer 2014 drill program (see Aug. 5, 2015, news release). Vertical extent of mineralization has now been traced from as shallow as 100 metres to depths of 820 metres, which continues to show the impressive strength of the uranium mineralizing system that precipitated out into the Arrow zone."
Leigh Curyer, chief executive officer, commented: "The similarities in the intensity of mineralization between AR-14-15 (A2 shear) and AR-15-39 (A3 shear) are clearly evident. AR-14-15 led to defining the vertical extent of the high-grade zone in the A2 shear with AR-14-30 (composite grade thickness of 909) which is currently extended 81 metres to the southwest. Opening up the A3 shear to a similar-sized envelope of high grade as A2, expands the total potential of Arrow exponentially in terms of size and grade from that previously understood. Arrow is quickly becoming a significant discovery on a world scale with relatively very few holes drilled."
NexGen will be presenting at the Subscriber Summit (day before PDAC) for more detail and to register go here.
Dundee is out this morning with coverage on NexGen with a BUY and no target price recommendation and on NexGen's neighbour Fission (FCU:TSX) with a target of $2.40.
Fission is ahead of NexGen by a few drill seasons and recently put out their maiden resource estimate. Fission trades at a market cap of $420 million. Lot's of work to do for NexGen to be at the level of Fission but given NexGen's use of angled drill holes, they should be able to develop a their discovery quickly. This shows the upside potential in NexGen if they can have some more success as shares are trading at 1/7th of the market cap of Fission.
Symbol: NXE.V
Share price: $0.355
Shares outstanding: 170.76 M
Market cap: $60 M
Read: NexGen Drills Best Angled Hole to Date; Discovers New High Grade Zone at Arrow
Related: NexGen Energy extends strike length at Arrow or NexGen Energy Site Visit: All Signs Point to Arrow
Discuss in CEO.ca live chat
This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.