Tuesday morning brought good news for NexGen Energy (TSXV:NXE), which has received initial results from a radon in-lake water survey at the Rook I property, located in the southwest region of the Athabasca Basin.
NexGen said it has hit radon values along a 480-meter-long zone that ranges from 20 to 150 meters wide. The radon was discovered about 400 meters northeast along strike from the Arrow zone.
The announcement is more good news for the western part of the Athabasca Basin. The release of Fission Uranium’s (TSX:FCU) maiden resource estimate last week led to rising interest in several surrounding companies, such as Azincourt Uranium (TSX:AAZ), as well as NexGen. Due to NexGen’s close proximity to the Patterson Lake South project, the company saw quick gains on the same day as the announcement.
Speaking on Tuesday’s news, Leigh Curyer, CEO of NexGen, said, ”Arrow is currently developing rapidly into a significant resource in its own right. To identify an additional target zone meeting all geophysical and geochemical parameters to justify drilling only 1km north east of Arrow is incredibly exciting for the company.”
NexGen has just started an $8-million winter drill program using three diamond drill rigs. Two are focused on the Arrow zone, while a third is solely focusing on targets to the northeast and southwest of Arrow, along what is called the Patterson Conductor Corridor. Unlike the nearby Fission property, which is predominantly shallow, the targets at Arrow are focused on deeper, higher-grade uranium mineralization within basement rocks.
“The results of this radon in lake water survey adds another layer of data that further enhances the prospectivity of this target area situated 400 m northeast along strike from the Arrow zone, which has now become a high priority to drill during this winter program,” said Garrett Ainsworth, NexGen’s vice president of exploration and development.
The company also has a radon in-lake water survey in progress with a focus on prospective cross-cutting structures.
Summer results revealed high-grade intercepts, including 0.49 percent over 92 meters and 15.47 percent over 4.5 meters, with uranium starting around the 100-meter depth range.
“In short — the stars are lining up for a potential uranium discovery just 400m NE of the Arrow zone,” said David Talbot, an analyst with Dundee Capital Markets, in a report. “However, this anomaly suggests mineralization below the lake. Its sheer size infers that either the rocks were ideal in spreading radon over a large area, or that mineralization might not be that deep.“
Talbot has given the company a “buy” rating, but no target price. By the close of markets, NexGen had risen 4.62 percent to close at $0.34 per share.
Securities Disclosure: I, Nick Wells, hold no direct investment in any of the companies mentioned in this article.
Editorial Disclosure: NexGen Energy is an advertising client with the Investing News Network. This article is not paid-for content.