NexGen drills broadest continuous high-grade uranium intercept to date

POSTED ON March 17, 2015 BY Tommy Humphreys
CATEGORY NexGen Energy,

Figure 1: Plan view of Arrow Zone (CNW Group/NexGen Energy Ltd.)

The Athabasca-basin in Northern Saskatchewan is the world's most prolific uranium producing region.

For several decades, small "junior" companies have explored the Basin for economic uranium deposits, with the lucky few being taken out by larger companies at substantial premiums.

Shares in Fission Uranium are up over ten fold over the past three years when accounting for spinouts after the company's 2012 Patterson Lake South discovery (PLS).

Immediately next-door to PLS, NexGen Energy began exploring the Rook 1 property and incredibly made its own high-grade uranium discovery in 2014.

NexGen's VP of Exploration, Garrett Ainsworth, was a key figure in Fission's PLS discovery, and presented at our recent Subscriber Investment Summit in Toronto.

He told us to watch out for assay results from the company's AR-15-34b angled hole, which returned this morning NexGen's largest continuous interval of high-grade uranium drilled to date at Arrow.

AR-15-34b (angled hole) helps to confirm the continuity of grade at the A2 shear (70m @ 2.2% U3O8).

The hole was drilled as a 30 metre step-out to the southwest along the high-grade core of the A2 shear.

The dimensions of this zone are coming together and some uranium analysts believe pounds of uranium in the ground are adding up fast.

Rob Chang at Cantor Fitzgerald calculates this hole could equate to 1.9 million pounds of U3O8 alone.

David Talbot of Dundee Securities continues to recommend investors buy NexGen shares with no price target. In a report published Tuesday morning, Mr. Talbot commented on NexGen's drilling.

"Located in favorable basement rocks, drilling is starting to delineate a series of near vertical, parallel and en echelon stacked zones of high grade mineralization. Arrow consists of multiple stacked parallel lenses within a 515m x 215m x 720m package, and is open in all directions."

Three drill rigs are turning on NexGen's property with the third rig targeting a large radon gas anomaly 400 meters Northeast and along strike from Arrow. In recent years, radon anomalies have been effective for explorers looking for uranium with the drill.

The company is 2/3rds through a $8 million 18000 meter Winter drill program, and NexGen has $15 million cash on hand according to Dundee's estimates.

Here is a link to the news release: NexGen Reports First Assays From Winter Program: Drills Most Continuous High-Grade Uranium Intercept over 2% U3O8 in the A2 Shear at the Arrow Zone

I am a shareholder in NexGen Energy, have a few friends working there, and they are a past web site and conference sponsor, which makes me rather biased. Definitely consult an investment advisor prior to making an investment decision - this is not investment advice, and also check SEDAR to get a better handle on the risks facing NexGen. Always do your own due diligence.
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Tommy Humphreys

Tommy Humphreys, 30, is an entrepreneur, investor and writer from Vancouver, Canada. He founded CEO.CA, a popular junior mining and Canadian finance blog, in 2012. He has been the president of Pacific Website Company Inc., a private marketing and web development company, since 2007. Tommy has authored articles for Globe and Mail, Financial Post and others. He speaks at select conferences. Reach him by email: tommy@ceo.ca. Follow him on Twitter: @TommyHump More →

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Tommy Humphreys

Twitter: @tommyhump

tommyhump@gmail.com

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