NexGen Energy (NXE.v) continues to expand its Arrow project at the Rook I property in Saskatchewan's Athabasca Basin by enlarging existing zones of high-grade uranium mineralization and discovering new ones.
NexGen announced today it has discovered a higher-grade sub-zone with a strike length of 113 metres "characterized by substantial accumulations of dense massive and semi-massive pitchblende mineralization." Pitchblende is extremely rich mineralization.
In addition, hole AR-15-58c1 has discovered a new zone of visible high-grade uranium mineralization in what the company is calling the “A4 shear.”
With angled drill holes and large step-outs, NexGen is not afraid to miss - the company just hasn't been.
“Even with employing a drilling methodology designed to systematically test Arrow, it continues to return outstanding results," said CEO Leigh Curyer. "The drilling program is still in the stage of broadly testing the area of mineralization and yet is regularly producing world-class intercepts."
It'll be interesting to see if this morning's news moves the stock, which has shown some consolidation through the summer but is still up an impressive 63% year-to-date. Shares closed Monday at 62 cents.
The Arrow zone is currently composed of four high-grade shear zones - A1, A2, A3 and A4 - that are sub-parallel to each other in sequential order from northwest to southeast, NexGen says. Those four zones will form the basis for the company's maiden inferred resource estimate, due out next year.
In addition, drill holes AR-15-56c2 and -57c2 both intersected significant visible high-grade uranium mineralization in the A3 shear.
The expanded five-rig 30,000-metre summer drill program continues with the focus on further defining the area captured within holes AR-15-49c2, -44b, -58c1 and -54c1 as well as infilling the A2 through A4 southwest extensions at Arrow.
NexGen has an incredibly high 90% plus hit rate for high-grade uranium mineralization at Arrow, a land-based project which dramatically lowers the company's cost of drilling.
"The implications of discovering substantial high grade mineralization in the A4 is very positive for Arrow, as it reinforces the prospectivity to find additional mineralized shears further to the southeast of A4, and northwest of A1 which will be an objective of the winter 2016 program,” said Garrett Ainsworth, NexGen's vice-president of exploration and development.
NexGen has cash on hand of about $23 million and is fully funded through 2016.
News release: NexGen Drills 27.85 m of Off-Scale in AR-15-58c1 and Discovers New High-Grade A4 Shear Zone
Related: NexGen Energy - A uranium legend in the making
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The author owns shares of NexGen Energy and is biased. All investors need to do their own due diligence.