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More high-grade drill results came out of the Athabasca Basin on Tuesday as Canada’s NexGen Energy released additional results from winter drilling at its Rook 1 property.
Angled drill testing in two holes has extended high-grade mineralization 81 kilometers southwest along strike at Rook 1’s Arrow zone. Hole AR-15-38 intersected 82.35 meters of total composite mineralization, including 4.5 meters of off-scale radioactivity within a 247.5-meter section.
For Rob Chang of Cantor Fitzgerald, news of the extension is significant. “This bodes extremely well for significant U3O8 pounds as most deposits in the Athabasca Basin are characterized as small ultra-high grade pods,” he said in an email.
Previously, Cantor Fitzgerald has stated that hole AR-14-30 at the Arrow discovery is “one of the best holes in Athabasca basin history,” and Tuesday’s results were found along strike from that same hole.
Mick Carew of Haywood Securities is also positive on the results. In a research note, he points to the success of NexGen’s technical team, stating that “[d]rill-work at Arrow ahead of the winter 2015 campaign has been rewarded with a 94% hit-rate for uranium mineralization.”
He also notes that NexGen’s Arrow zone lies “within the same corridor” as Fission Uranium’s (TSX:FCU) Patterson Lake South (PLS) property, but that the discovery is on a different conductor. “Arrow is on a different conductor from PLS, reinforcing the notion that uranium mineralization exists on multiple conductors on the property,” he said.
In any case, the company is pleased with the results, and is continuing to move forward with its $8-million winter drill program. Since February 8, about 4,530 meters have been drilled at the project, and NexGen notes in Tuesday’s release that a third drill rig has commenced drilling at another high-priority radon target 400 meters along strike to the northeast of the Arrow zone.
“The strategy of aggressive step-out drilling has delivered yet again, significantly expanding this particular high-grade zone of Arrow,” said NexGen CEO Leigh Curyer in a statement. “The commencement of drilling the radon-in-water anomalies, 400 meters along strike to the north east of Arrow and in parallel to the development of Arrow is very exciting for the Company and its shareholders.”
At close of day on Tuesday, shares of NexGen were trading at $0.38. The company’s share price has gained about 17 percent over the past month.
Securities Disclosure: I, Teresa Matich, hold no direct investment in any of the companies mentioned in this article.
Editorial Disclosure: NexGen Energy is a client of the Investing News Network. This article is not paid-for content.
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