home Equities T.NXE intersects continuous and strong high-grade mineralization in all of the initial A2 sub-zone targets from feasibility stage drilling

T.NXE intersects continuous and strong high-grade mineralization in all of the initial A2 sub-zone targets from feasibility stage drilling

By SightlineU3O8   Posted in Equities
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NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE, NYSE MKT: NXE) is pleased to report radioactivity results for the first twenty holes comprising 8,216.5 m from the Company’s first phase of Feasibility-stage drilling program at our 100% owned, Rook I property in the Athabasca Basin Saskatchewan.

Highlights:

Objective I: Conversion of Indicated to Measured in the A2 Sub-Zone

Nineteen targets have been successfully intersected within the A2 Sub-Zone. This current phase of the program focuses on targets intersected at a spacing between 9.0 m and 16.7 m (based on geostatistical data spacing report compiled by Clayton V. Deutsch from Resource Modeling Solutions) for Indicated Mineral Resources to be elevated to a Measured Mineral Resource classification.  All drill holes intersected the target between -55° and -60° utilizing the latest in directional drilling technology.

The highlights below include composite and off-scale radioactivity results from the A2 Shear only, for radioactivity results for the entire hole see Table 1: Arrow Deposit Drill Hole Data.

  • AR-19-225c1 intersected 38.0 m of total composite mineralization including 10.15 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 91.0 m section (529.0 to 620.0 m) in the A2 Sub-Zone. Additionally, of the 10.15 m of off-scale mineralization intersected in the hole 7.0 m of massive-to-semi massive pitchblende with minimum-greater-than-61,000 cps.
  • AR-19-224c1 intersected 37.5 m of total composite mineralization including 10.8 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 97.0 m section (496.0 to 593.0 m) in the A2 Sub-Zone. Additionally, of the 10.8 m of off-scale mineralization intersected in the hole 4.0 m of massive-to-semi massive pitchblende with minimum-greater-than-61,000 cps.
  • AR-19-224c2 intersected 47.0 m of total composite mineralization including 12.55 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 98.0 m section (453.0 to 551.0 m) in the A2 Sub-Zone. Additionally, of the 12.55 m of off-scale mineralization intersected in the hole 3.0 m of massive-to-semi massive pitchblende with minimum-greater-than-61,000 cps.
  • AR-19-225c2 intersected 35.0 m of total composite mineralization including 11.05 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 92.0 m section (540.0 to 632.0 m) in the A2 Sub-Zone. Additionally, of the 11.05 m of off-scale mineralization intersected in the hole 1.5 m of massive-to-semi massive pitchblende with minimum-greater-than-61,000 cps.
  • AR-19-223c2 intersected 43.5 m of total composite mineralization including 5.5 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 97.0 m section (486.0 to 583.0 m) in the A2 Sub-Zone. Additionally, of the 5.5 m of off-scale mineralization intersected in the hole 1.5 m of massive-to-semi massive pitchblende with minimum-greater-than-61,000 cps.
  • AR-19-227c2 intersected 54.0 m of total composite mineralization including 9.75 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 98.0 m section (419.0 to 517.0 m) in the A2 Sub-Zone. Additionally, of the 9.75 m of off-scale mineralization intersected in the hole 0.5 m of massive-to-semi massive pitchblende with minimum-greater-than-61,000 cps.
  • AR-19-228c1 intersected 36.0 m of total composite mineralization including 4.25 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within an 87.0 m section (569.0 to 656.0 m) in the A2 Sub-Zone. Additionally, of the 4.25 m of off-scale mineralization intersected in the hole 0.5 m of massive-to-semi massive pitchblende with minimum-greater-than-61,000 cps.
  • AR-19-226c1 intersected 46.0 m of total composite mineralization including 6.4 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 100.0 m section (447.0 to 547.0 m) in the A2 Sub-Zone.
  • AR-19-233c2 intersected 49.0 m of total composite mineralization including 9.45 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 99.0 m section (414.0 to 513.0 m) in the A2 Sub-Zone.

Drill hole locations and schematics are shown in Figures 1 and 2. Drill hole descriptions can be found at www.nexgenenergy.ca

Development, Activities & Financial

  • Expediting Arrow to Feasibility by initiation of a 2-stage 125,000m (10 rig) high density drilling program that commenced in mid-December 2018 to focus on mine optimization plans based on Measured and Indicated mineral resources.
  • The Company has approximately $100 million in the treasury which fully funds NexGen for all drilling, feasibility and development programs planned this year.

Leigh Curyer, Chief Executive Officer, commented: “This development focused drilling continually highlights the incredible nature and strength of Arrow in terms of the continuity of high grade uranium.  Intersecting the type of mineralization reported in today’s release with such regularity is simply unique and continually increases the technical strength of Arrow.  We look forward to delivering the results of the 10 rig program throughout 2019.”

Troy Boisjoli, Vice-President, Operations and Project Development, commented: “These results demonstrate the confidence in the continuation of high-grade uranium mineralization within the A2 Sub-Zone. This initial release is just the beginning of what will surely be another highly successful 2019 program as the Company moves towards completing the Feasibility Study which will incorporate an updated mineral resource estimate based on the 2019 drill campaign which is the largest in the Company’s history.”

Table 1: Arrow Deposit Drill Hole Data

Drill Hole

Athabasca Group –
Basement Unconformity
Depth (m)

Handheld Scintillometer Results (RS-120)

Hole ID

Azimuth

Dip

Total
Depth
(m)

From
(m)

To
(m)

Width
(m)

CPS Range

AR-19-221c1

327

-65

576

129.5

432.5

433.5

1

<500 –  990

442.5

446

3.5

<500 –  1100

448.5

449

0.5

<500 –  620

478.5

479.5

1

<500 –  580

485

486

1

<500 –  780

495.5

497.5

2

<500 –  1340

506.5

507

0.5

<500 –  670

511

517.5

6.5

<500 –  2200

524.5

549

24.5

<500 –  61000

554.5

555

0.5

<500 –  1180

AR-19-221c2

327

-65

597.5

N/A

426.5

430.5

4

<500 –  2100

437.5

438

0.5

<500 –  680

484

484.5

0.5

<500 –  1100

495.5

501

5.5

<500 –  1000

506

522.5

16.5

<500 –  1500

540

559.5

19.5

<500 –  61000

562

562.5

0.5

<500 –  1200

591.5

592

0.5

<500 –  550

AR-19-222c1

327

-65

597.5

133.45

401.5

404

2.5

<500 –  1400

422

425.5

3.5

<500 –  2600

437.5

439

1.5

<500 –  10800

447

447.5

0.5

<500 –  1000

450.5

482

31.5

<500 –  7400

494.5

551

56.5

<500 –  61000

557.5

559

1.5

<500 –  3720

577

577.5

0.5

<500 –  560

AR-19-222c2

327

-65

594

N/A

412.5

413

0.5

<500 –  1100

417.5

418

0.5

<500 –  2800

433

437.5

4.5

<500 –  1350

443.5

453.5

10

<500 –  32000

456

457.5

1.5

<500 –  2100

461.5

463

1.5

<500 –  3000

466

471

5

<500 –  6900

474.5

478

3.5

<500 –  1600

480.5

490

9.5

<500 –  1150

492.5

493

0.5

<500 –  1250

497

523

26

<500 –  61000

528.5

538.5

10

<500 –  37000

543.5

546.5

3

<500 –  18600

AR-19-223c1

327

-65

588

133.6

435

438.5

3.5

<500 –  1300

446

449.5

3.5

<500 –  2700

453

460

7

<500 –  6900

464.5

468

3.5

<500 –  3800

474

476.5

2.5

<500 –  1400

485.5

486

0.5

900 –  1280

490

495.5

5.5

<500 –  5500

498.5

503.5

5

<500 –  1380

509.5

519.5

10

<500 –  3000

522.5

528.5

6

<500 –  1300

532

549

17

<500 –  61000

553

556.5

3.5

<500 –  3800

559

560.5

1.5

<500 –  4300

569

570.5

1.5

<500 –  1600

AR-19-223c2

327

-65

615.5

N/A

434.5

438

3.5

<500 –  640

444.5

446

1.5

<500 –  1000

451.5

453

1.5

<500 –  1700

455.5

462

6.5

<500 –  17000

466.5

467.5

1

<500 –  2800

473

475

2

<500 –  740

479

483.5

4.5

<500 –  560

488

491

3

<500 –  1500

499

502

3

<500 –  1000

508.5

515

6.5

<500 –  3300

539.5

552.5

13

<500 –  61000

555

558

3

<500 –  34200

565

572

7

<500 –  31000

574.5

576

1.5

<500 –  870

AR-19-223c3

327

-65

586.5

N/A

417.5

418

0.5

<500 –  700

425

426

1

<500 –  920

435

444.5

9.5

<500 –  6900

452

459.5

7.5

<500 –  3300

462.5

465

2.5

<500 –  1100

468.5

470.5

2

<500 –  660

473

476

3

<500 –  5300

485

490.5

5.5

<500 –  2400

493

495

2

<500 –  1450

498.5

517.5

19

<500 –  7000

520

523.5

3.5

<500 –  1000

527

551

24

<500 –  61000

559.5

566

6.5

<500 –  61000

570.5

573

2.5

<500 –  670

AR-19-224c1

327

-65

597.5

129.45

404

404.5

0.5

<500 –  640

443.5

446.5

3

<500 –  1100

449

449.5

0.5

<500 –  1080

452

452.5

0.5

<500 –  640

455

456

1

<500 –  2050

465

465.5

0.5

<500 –  1370

469.5

473.5

4

<500 –  1650

497.5

500.5

3

<500 –  820

503

506.5

3.5

<500 –  1040

510

511

1

<500 –  540

524.5

525

0.5

<500 –  560

530

533

3

<500 –  710

536.5

538

1.5

<500 –  2340

543.5

544.5

1

<500 –  1270

548

551

3

<500 –  3610

554.5

575.5

21

<500 –  61000

AR-19-224c2

327

-65

612.5

N/A

441

442.5

1.5

<500 –  1850

445

447.5

2.5

<500 –  1220

450

453.5

3.5

<500 –  2350

470

470.5

0.5

<500 –  520

476

478.5

2.5

<500 –  4100

494

503

9

<500 –  2800

518

518.5

0.5

<500 –  600

524

524.5

0.5

<500 –  530

538

571.5

33.5

<500 –  61000

582

585.5

3.5

<500 –  13000

AR-19-225c1

327

-65

627.5

128.7

474

474.5

0.5

<500 –  630

494.5

495

0.5

<500 –  520

501

505

4

<500 –  4500

520.5

525

4.5

<500 –  1280

531

531.5

0.5

<500 –  980

545

546

1

<500 –  1180

566.5

598.5

32

<500 –  61000

AR-19-225c2

327

-65

636.5

N/A

473.5

474.5

1

<500 –  900

479.5

480.5

1

<500 –  2000

563.5

593.5

30

<500 –  61000

596

598

2

<500 –  21000

602

605

3

<500 –  650

AR-19-226c1

327

-65

564.5

131.5

446.5

447

0.5

<500 –  740

457

468.5

11.5

<500 –  1350

472.5

473.5

1

<500 –  2040

482.5

483

0.5

<500 –  560

491.5

503.5

12

<500 –  2240

506

508.5

2.5

<500 –  3540

512.5

527.5

15

<500 –  61000

536.5

539.5

3

<500 –  9300

AR-19-226c1a

327

-65

177

144.15

No Anomalous Radioactivity

AR-19-226c2

327

-65

567

N/A

453.5

454

0.5

<500 –  740

457.5

458

0.5

<500 –  600

463

466.5

3.5

<500 –  730

474.5

475

0.5

<500 –  510

489.5

492

2.5

<500 –  860

497.5

522.5

25

<500 –  61000

527.5

528.5

1

<500 –  1050

547

548

1

<500 –  2200

AR-19-227c1

327

-65

525.5

138.3

442

442.5

0.5

<500 –  680

445

446.5

1.5

<500 –  1200

463

502.5

39.5

<500 –  61000

AR-19-227c2

327

-65

540.5

N/A

439

439.5

0.5

<500 –  720

454.5

455

0.5

<500 –  860

460

508.5

48.5

<500 –  61000

513

517.5

4.5

<500 –  22000

AR-19-228c1

327

-65

663.5

134

249

249.5

0.5

<500 –  750

458

477.5

19.5

<500 –  23000

480

483.5

3.5

<500 –  3510

487

487.5

0.5

<500 –  3300

492

492.5

0.5

<500 –  1750

505

505.5

0.5

<500 –  800

512

523.5

11.5

<500 –  55300

551

551.5

0.5

<500 –  650

575.5

581

5.5

<500 –  1130

600.5

603

2.5

<500 –  590

605.5

624.5

19

<500 –  61000

629.5

632.5

3

<500 –  61000

635

638

3

<500 –  680

646.5

649

2.5

<500 –  890

660

660.5

0.5

<500 –  700

AR-19-228c2

327

-65

672.5

N/A

459.5

469.5

10

<500 –  40000

472

476

4

<500 –  4400

478.5

481.5

3

<500 –  1500

509.5

510.5

1

<500 –  9600

515

534

19

<500 –  50000

598

599

1

<500 –  750

602

603

1

<500 –  970

605.5

610

4.5

<500 –  1300

616.5

627

10.5

<500 –  61000

630

634

4

<500 –  8500

638

639

1

<500 –  1600

641.5

654.5

13

<500 –  53000

658.5

659.5

1

<500 –  700

AR-19-233c1

327

-65

534.5

133.7

447.5

450.5

3

<500 –  3300

453.5

491.5

38

<500 –  61000

495.5

501.5

6

<500 –  920

AR-19-233c2

327

-65

537.5

N/A

457

465

8

<500 –  2000

467.5

481.5

14

<500 –  61000

484

510.5

26.5

<500 –  61000

522.5

523

0.5

<500 –  920

* Scroll to the right to see the table data.

 

Parameters:

  • Maximum internal dilution 2.00 m downhole
  • All depths and intervals are metres downhole, true thicknesses are yet to be determined
  • “Anomalous” means >500 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
  • “Off-scale” means >10,000 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
  • Where “Min cps” is <500 cps, this refers to local low radiometric zones within the overall radioactive interval
  • Directional drilling has often resulted in mineralization intersected at a more favourable and shallower dip
  • Hole AR-19-226c1a was terminated due to deviation in the overburden

About NexGen

NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production. NexGen owns a 100% interest in Rook I, location of the Arrow Deposit in the Athabasca Basin, Saskatchewan, Canada and a portfolio of prospective uranium exploration projects throughout northwest Saskatchewan. NexGen is the recipient of the PDAC’s 2018 Bill Dennis Award and the 2019 Environmental and Social Responsibility Award.

Technical Disclosure

The technical information in this news release with respect to the PFS has been reviewed and approved by Paul O’Hara, P.Eng. of Wood., David Robson, P.Eng., M.B.A., and Jason Cox, P.Eng. of RPA, each of whom is a “qualified person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101“).

The Mineral Resource Estimate was completed by Mr. Mark Mathisen, C.P.G., Senior Geologist at RPA and Mr. David Ross, P.Geo., Director of Resource Estimation and Principal Geologist at RPA.  Both are independent Qualified Persons in accordance with the requirements of National Instrument (NI) 43-101 and they have approved the disclosure herein. All other technical information in this news release has been approved by Mr. Troy Boisjoli, Geoscientist Licensee, Vice President – Operations & Project Development for NexGen.  Mr. Boisjoli is a qualified person for the purposes of NI 43-101 and has verified the sampling, analytical, and test data underlying the information or opinions contained herein by reviewing original data certificates and monitoring all of the data collection protocols.  All other technical information in this news release has been approved by Mr. James Hatley, a Professional Engineer, Senior Vice-President – Project Development for NexGen.  Mr. Hatley is a qualified person for the purposes of NI 43-101 and has reviewed the underlying the information or opinions contained herein on mine design.

A technical report in respect to the PFS is filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) and is available for review on NexGen Energy’s website (www.nexgenenergy.ca).

SEC Standards

Estimates of mineralization and other technical information included or referenced in this news release have been prepared in accordance with NI 43-101. The definitions of proven and probable mineral reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. As a result, the reserves reported by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Additionally, disclosure of “contained pounds” in a resource is permitted disclosure under Canadian securities laws; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained or referenced in this news release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United States federal securities laws and the rules and regulations thereunder.

Technical Information

For details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource please refer to the technical report entitled “Arrow Deposit, Rook I Project Saskatchewan NI 43-101 Technical Report on Pre-feasbility Study” dated effective 5 November, 2018 (the “Rook 1 Technical Report”) prepared by Paul O’Hara, P.Eng., Jason J. Cox, P.Eng., David M. Robson, P.Eng., M.B.A., Mark B. Mathisen, C.P.G. each of whom is a “qualified person” under NI 43-101. The Rook I Technical Report is available for review under the Company’s profile on SEDAR at www.sedar.com and EDGAR (www.sec.gov/edgar.shtml) providing details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource and is available on NexGen Energy’s website (www.nexgenenergy.ca).

Source: NexGen Energy Ltd.