Wednesday Morning News – NexGen Energy and Seabridge Gold

POSTED ON August 26, 2015 BY James Fraser
CATEGORY NexGen Energy, Seabridge Gold, Stories,

A look at the mining headlines that caught my eye for today with some additional thoughts on each news release.

NexGen Energy -(NXE:TSXV) - NexGen is one of the few bright spots on the TSX Venture this year for mining investors. This morning additional radioactivity results were released from th Rook 1 project in Saskatchewan. Off-scale radioactivity was intersected in all 6 holes reported.

As a result of positive results NexGen will be extending the summer drill program by 5000m to incorporate the newly discovered 210 m southwest extension of Arrow in the maiden resource estimate expected in the first half of 2016.

Highlights:

Arrow – A2 and A3 Extensions

 AR-15-54c1 (87 m step-out up-dip and southwest from AR-15-44b) intersected 68.5 m of total composite mineralization including 10.35 m of off-scale radioactivity (>10,000 to >61,000 cps) within a 302.5 m section (437.5 to 740.0 m) marked by significant concentrations of massive pitchblende in the A2 shear.

 AR-15-56c1 (81 m step-out up-dip and southwest from AR-15-44b) intersected 125.0 m of total composite mineralization including 10.95 m of off-scale radioactivity (>10,000 to >61,000 cps) within a 385.5 m section (550.0 to 935.5 m) highlighted by extensive and locally strong pitchblende mineralization in the A3 shear.

 AR-15-54c2 (105 m step-out up-plunge southwest from AR-15-44b) intersected 114.0 m of total composite mineralization including 5.85 m off-scale radioactivity (>10,000 to 53,000) within a 307.0 m section (521.0 to 828.0 m) highlighted by extensive and locally strong pitchblende mineralization in the A3 shear.

 AR-15-53c3 (155 m step-out down-dip from AR-15-44b) intersected 59.0 m of total composite mineralization including 5.5 m of off-scale radioactivity (>10,000 to >61,000 cps) within a 342.5 m section (549.5 to 892.0 m) marked by local concentrations of massive pitchblende in the A2 shear.

Arrow – A2 and A3 Core Delineation

 AR-15-53c2 (91 m below AR-15-44b) intersected 61.5 m of total composite mineralization including 6.55 m of off-scale radioactivity (>10,000 to >61,000 cps) within a 215.5 m section (439.5 to 655.0 m) marked by local concentrations of massive pitchblende in the A2 shear.

 The Arrow zone now covers an area of 645 x 215 m with a vertical extent of mineralization commencing from 100 to 920 m, and it remains open in all directions and at depth. Mineralization is hosted entirely in the basement (a 90 second 3D video of Arrow generated from Leapfrog is available for viewing on the Company website).

 Due to the step out success, the drill program has been expanded to 30,000 m with all five rigs now focused on Arrow in order to incorporate the 210 m extension to the southwest from AR- 15-44b into an initial resource estimate scheduled for the first half of 2016.

Garrett Ainsworth, NexGen's Vice-President, Exploration and Development, commented: "These latest results from our Arrow zone continue to impress us with four of the six reported drill holes encountering >61,000 cps radioactivity associated with dense accumulations of massive pitchblende. Of note, hole AR-15-54c1 drilled at a dip of -62degree through the sub-vertical A2 high grade core zone, and returned 42 m of mineralization including 9.4 m of off-scale in the A2 shear demonstrating the high grade cores within Arrow continue to prove up well."

NexGen stock is off a few pennies this morning at time of writing but still has a healthy gain in 2015.

The Rook 1 continues to grow in size with each set of drill results and I am looking forward to the maiden resource estimate.

The uranium market remains fairly quiet even with the restart of one Japanese reactor.

Cameco the bellwether stock in the uranium space hit a a 52 week low this week.

Long term fundamentals still look extremely strong but we may be 12-18 months out still before any real action in my opinion.

Read: NexGen Drills Off-Scale in all Six New Holes within the 210 m step out from AR-15-44b and Expands Summer Program to 30,000 m

Seabridge Gold - (SEA:TSX ) - Seabridge is out with additional summer drilling results from the massive KSM deposit in north-western British Columbia. Drilling this summer has confirmed a substantial expansion to the already proven and probable reserves of 38.2 million ounces of gold and 10 billion pounds of copper .

Hole K-15-49 intercepted 483 meters averaging 0.43 g/T gold and 0.56% copper including a 250 meter interval grading 0.49 g/T gold and 0.70% copper.

This new hole is a step-out located 400 meters down dip from hole K-14-45, drilled in 2014, which returned 286 meters of 0.45 g/T gold and 0.77% copper

The interval of mineralization was pretty deep though at between 1272m and 1755m.

As a result of this years drilling success one area of the project is being evaluated for underground bulk mining at a lower cost.

A PFS showed a $5.3 billion capex which in this market environment is tough to swallow for anyone.

I talked with Mr. Fronk about the potential for a JV partner at the recent Sprott-Stansberry conference in July. He mentioned only about 10 companies worldwide are big enough to take on a project this size.

Seabridge Chairman and CEO Rudi Fronk commented that "we continue to expand the limits of Deep Kerr while enhancing grade. More importantly, we are growing the deposit by finding continuous, thick intervals of better grade material in favorable orientations, all of which support the potential for efficient extraction. Deep Kerr has very few equals for size, grade and mineability and it keeps getting better."

The drop in Seabridge shares in July and August was a fantastic opportunity to pick up a position in the stock.

Seabridge in my opinion is probably the most leveraged play to gold and copper in the mining space.

With each year of drilling Seabridge is finding more reserves and has a low enterprise value of only $4 per ounce.

Read: Drilling Confirms Major Extension of KSM's Deep Kerr Deposit

Thanks for reading.

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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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