T.NXE releases second batch of assay results from 2019 Feasibility stage drilling program

NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE, NYSE MKT: NXE) is pleased to report assay results for an additional twenty holes from the Company’s recently completed Feasibility-stage drilling program at the 100% owned, Rook I property in the Athabasca Basin, Saskatchewan.

The 2019 drilling program targeted the A2 and A3 High-Grade Domains for the highest confidence resource within the Pre-Feasibility Study (“PFS”) mine design (see News Release dated November 5, 2018) at a drill hole spacing of between 9.0 m and 17.0 m (based on a geostatistical data spacing report compiled by Clayton V. Deutsch from Resource Modeling Solutions).

The density of drilling intersecting the A2 and A3 Indicated Domains results in a high degree of confidence in the mineralized contacts, domain geometry, domain orientation, grade and volume of mineralization. The A2 and A3 Indicated Domains from the PFS have been intersected by 309 drill holes from 133 collars (inclusive of 124 drill holes from 48 collars in 2019): 86 piercing the Indicated Domains from the northwest, 221 from the southeast, and 2 vertical intersections in 2014 (see Figures 1, 2, and 3). All 2019 drill holes were collared at a steep inclination, then shallowed out between -55° and -60° before intersecting the target by utilizing the latest in directional drilling technology.

The results below highlight intersections through the A2 and A3 High-Grade Domains only designed to infill the A2 and A3 domains from indicated to measured resource definition. For complete hole results please see Table 1.

A2 High-Grade Domains

• AR-19-229c2 intersected 48.0 m at 3.81% U₃O₈ (624.0 to 672.0 m) including 6.0 m at 13.50% U₃O₈ (627.0 to 633.0 m). The target was intersected at a dip of -54.1°, approximately 10.0 m along strike to the southwest of AR-16-096c3 (21.5 m at 2.33% U₃O₈);
• AR-19-229c4 intersected 41.0 m at 3.42% U₃O₈ (612.5 to 653.5 m) including 7.0 m at 15.48% U₃O₈ (639.5 to 646.5 m). The target was intersected at a dip of -55.2°, approximately 9.0 m along strike to the southwest of AR-16-096c1 (24.0 m at 5.88% U₃O₈ including 8.0 m at 15.44% U₃O₈);
• AR-19-230c3 intersected 21.0 m at 5.06% U₃O₈ (593.5 to 614.5 m) including 4.0 m at 18.38% U₃O₈ (594.5 to 598.5 m). The target was intersected at a dip of -57.4°, approximately 10.0 m up-dip from AR-16-092c1 (58.0 m at 0.99% U₃O₈ and an additional 19.5 m at 1.43% U₃O₈);
• AR-19-234c2 intersected 32.0 m at 3.08% U₃O₈ (471.5 to 503.5 m) including 13.0 m at 7.33% U₃O₈ (486.5 to 499.5 m). The target was intersected at a dip of -54.1°, approximately 10.0 m along strike to the southwest of AR-16-096c3 (21.5 m at 2.33% U₃O₈);
• AR-19-235c1 intersected 29.0 m at 5.45% U₃O₈ (561.5 to 590.5 m) including 11.0 m at 14.09% U₃O₈ (568.5 to 579.5 m). The target was intersected at a dip of -57.2°, approximately 12.0 m down-dip from AR-16-091c4 (43.5 m at 4.95% U₃O₈ including 12 m at 16.7% U₃O₈);

A3 High-Grade Domains

• AR-19-231c2 intersected 41.0 m at 1.61% U₃O₈ (505.5 to 546.5 m) including 3.0 m at 15.64% U₃O₈ (528.5 to 531.5 m). The target was intersected at a dip of -60.0°, approximately 7.0 m up-dip from AR-17-126c2 (28.0 m at 0.49% U₃O₈);
• AR-19-232c3 intersected 24.0 m at 1.22% U₃O₈ (552.0 to 576.0 m) including 2.0 m at 11.99% U₃O₈ (556.0 to 558.0 m). The target was intersected at a dip of -56.1°, approximately 7.0 m up-dip from AR-16-105c2 (14.0 m at 1.17% U₃O₈).

Leigh Curyer, Chief Executive Officer, commented: “These exceptional results once again highlight the unique resource characteristics of Arrow. Figures 1-5 of this news release provide an excellent perspective of the drilling density at Arrow. The team continues to advance all aspects of the Feasibility Study scheduled for mid H1 2020 and in parallel the studies for inclusion into the Environmental Assessment scheduled for submission in Q3/2020. Another 80 assays from feasibility drilling are pending release in the coming months.”

Troy Boisjoli, Vice-President, Operations and Project Development, commented: “The second batch of assay results from our recently completed Phase I Feasibility-stage drill program demonstrates the exceptional high-grade nature of mineralization across the A2 and A3 domains representing the PFS mine plan design. The Arrow Deposit now has 309 drill holes intersecting the A2 and A3 Indicated Domains at a 9.0 to 17.0 m spacing. From discovery on February 14^th, 2014 through the 2019 Phase I program, focused resource development drilling has confirmed our confidence in the grade, volume, and continuity of Arrow. In my experience the density and quality of drilling results is unparalleled with respect to Feasibility level mine design, and mine production.”

Development, Permitting, Appointments, Activities & Financial

• The completed winter 2019 drilling program comprised 131 holes totaling 57,282.4 m.  117 drill holes, totaling 50,968 m (inclusive of 32 m in overcuts) focused on infill feasibility study drilling and 14 drill holes totaling 6,314.4 m primarily designed to test the geotechnical and hydrogeological characteristics of the rock mass in areas of proposed mine workings and UGTMF.
• A total of 80 assays remain pending from the Feasibility-stage drilling program including 14 dual purpose holes that were drilled to rest geotechnical and hydrogeological characteristics.
• NexGen commenced an Environmental Assessment on the Rook I Project on April 29, 2019 in accordance with the requirements of both the Environmental Assessment Act and the Canadian Environmental Assessment Act, 2012 (“CEAA 2012”) after receiving acceptance of the Rook I Project Description (Technical Proposal) by the Canadian Nuclear Safety Commission (“CNSC”) and the Saskatchewan Ministry of Environment (“SMOE”). In addition, NexGen filed an Initial Licence Application with the CNSC under the Nuclear Safety and Control Act in order to obtain a Licence to Prepare Site and Construct for the Project.
• As of November 19, 2019, the Company had cash-on-hand of approximately $65 million which fully funds NexGen for all drilling, feasibility and development programs planned this year.

Figure 1 below displays the A2 intersection in AR-19-229c4 7.0 m at 15.48% U₃O₈ within competent host rock (yellow numbers indicate grade % U₃O₈). Drill hole locations are shown in Figure 5. Full drilling results can be found in Table 1. Drill hole descriptions can be found at www.nexgenenergy.ca

Table 1: Arrow Deposit Drill Hole Data

 

Parameters:

• Maximum internal dilution 2.0 m downhole
• Minimum thickness of 0.5 m downhole
• Cutoff grade 0.01% U3O8
• All depths and intervals are metres downhole, true thicknesses are yet to be determined. Resource modelling in conjunction with an updated mineral resource estimate is required before true thicknesses can be determined
• Directional drilling has often resulted in mineralization intersected at a more favourable and shallower dip

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 portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada; including a 100% interest in Rook I, location of the Arrow Deposit discovered in February 2014, the Bow discovery in March 2015, the Harpoon discovery in August 2016 and the Arrow South discovery in July 2017. NexGen is the recipient of the PDAC’s 2018 Bill Dennis Award and the 2019 Environmental and Social Responsibility Award.

Source: NexGen Energy Ltd.