Tuesday Morning News – NexGen Energy, Auryn Resources, and North Country Gold

POSTED ON June 30, 2015 BY James Fraser
CATEGORY Auryn Resources, NexGen Energy, North Country Gold, Stories,

A look at a few of the mining headlines out this morning that caught my eye this morning with some brief additional comments.

NexGen Energy - (NXE:TSXV) - NexGen Energy is out with final assays from the winter drill program at the Rook 1 project in Saskatchewan. The deposit continues to grow with additional mineralization confirmed at Arrow and Bow.

The Arrow Zone continues to intersect high grade mineralization in the A2 core with both holes AR-15-45b and Ar-15-43a having impressive intercepts.

The Bow discovery which is located 3.7km to the northeast of Arrow drill results released today confirmed uranium mineralization. The results do look like a miss to me though as 11 of the 14 holes had "no significant intersections" and the 3 that did were small intervals and low grade (uneconomic).

Highlights:

AR-15-45b confirms the presence of broad, high grade uranium mineralization in the A2 shear between AR-15-41 and AR-15-44b intersecting 37.5 m at 2.46% U3O8 (403.0 to 440.5 m which included 16.5 m at 5.34% U3O8 (417.5 to 434.0 m);
AR-15-43a intersected uranium mineralization in the A2 shear that consisted of 25.5 m at 1.43% U3O8 (437.0 to 462.5 m);
The Arrow zone is currently 515 m by 215 m with the vertical extent of mineralization commencing from 100 m and extending down to 920 m, and is open in all directions (a 90 second 3D video of Arrow generated from Leapfrog is available for viewing on the Company website);
Uranium mineralization confirmed at the Bow discovery, where drilling is currently focused to the northeast on land;
Five rigs are now turning at Rook I as part of the 25,000 m, $9 Million summer drill program which commenced on June 8, 2015
The Company is well financed with working capital of $30 Million

Garrett Ainsworth, NexGen's Vice-President, Exploration and Development, commented "Another strong set of assays has again shown us just how much untapped potential there is at the Arrow zone. These results compliment the results of AR-15-44b. The high grade A2 core is consistently returning high grade over wide intercepts as we rapidly develop this high impact portion of Arrow. In addition, the confirmation of uranium mineralization at the Bow discovery is encouraging and highlights the prospectivity of the Patterson Conductor corridor and the broader Rook I property".

Leigh Curyer, Chief Executive Officer commented, "The winter program has been a phenomenal success and exceeded our most optimistic objectives. The results from the winter season have set a new platform for the expanded five drill rig, 25,000 m summer program, which is now fully operational. We look forward to delivering the results from the program periodically throughout the summer leading to an initial resource estimate by Q1 2016."

The winter drill program exceeded expectations and as result NXE shareholders have seen the share price go from 35 cents to the 84 cent level in early trading this morning. In a tough market especially for exploration stocks NXE has delivered by making a growing uranium discovery.

NexGen is one of the most popular discussed stocks in CEO Live and all comments can be found in the $NXE room here. Several members hold NXE stock and common discussion between members includes the valuation gap between NexGen and Fission.

NexGen this morning has a market cap of $208 million and Fission is sitting at $378 million. The gap has narrowed considerably with the move in NXE stock and a sell off in Fission. At one point this year NXE was valued at 1/7th of FIS market cap.

Fission is further advanced with a resource estimate already released and is looking to put out a PEA this summer.

NexGen is targeting a initial resource estimate in early 2016.

No question these are the two leading uranium exploration companies at the moment. Which do you prefer and why?

Join us in CEO Live.

Read:Final Assays from the Winter 2015 Program - Additional High Grade Uranium Mineralization Confirmed at Arrow and Bow

Auryn Resources (AUG:TSXV) and North Country Gold (NCG:TSXV) - Auryn has entered into a letter agreement to acquire the remainder of North Country Gold it does not already own. Auryn has offered 13.8 million shares (~$20.4 million) in a share based deal.

Auryn currently has an 51% earn in right on the Committee Bay project located in Nunavut, Canada.

A nice 65.5% premium for North Country shareholders based on the 20 day volume average weighted price.

The deal is expected to close before the end of September and North Country has agreed to pay a $500,000 termination fee.

Shawn Wallace President and CEO of Auryn Stated: "The acquisition of North Country gives Auryn a 100% ownership of the district scale, high quality, high grade Committee Bay Gold Project. In the past few months we have undertaken extensive studies on the work already completed by North Country and believe in the opportunity for the discovery of multiple major high grade gold deposits across the district."

In my opinion this will be a stock to watch. The team at Auryn has a proven track record in the mining space and sold Cayden Resources to Agnico-Eagle for $205 million last fall.

Another positive for shareholders is that management and directors own ~30% of Auryn stock (before the deal).

Read: Auryn Resources to Acquire North Country Gold

Discuss in CEO Live

This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.

James Fraser

Mr. Fraser joined CEO.ca in October 2014. He is passionate about the mining industry. His passion led to co-authoring the e-book "Mining Stocks Investor Guide: A Guide to Investing in Mining Companies." He has a finance background and has completed his Canadian Securities Course (CSC) and Conduct and Practices Handbook (CPH). When Fraser is not "digging" up the latest mining stock, he can be found enjoying a wide variety of sports or travelling the world. More →

Twitter: @miningstocks

james@miningstocksguide.com

James Fraser

Twitter: @miningstocks

james@miningstocksguide.com

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