NexGen Energy (TSX:NXE,NYSEAMERICAN:NXE) has reported further results from summer drilling at its South Arrow discovery.
On Monday (January 15), the company provided assay results for the final 31 holes from the program, which was announced last July and completed in November.
South Arrow is part of Rook I, NexGen’s main property, and is located in Saskatchewan’s Athabasca Basin. South Arrow was discovered this past summer, and is situated 400 meters south of Rook I’s Arrow deposit. NexGen has said South Arrow has similar qualities to Arrow.
According to analysts at Eight Capital Research, Monday’s assays highlight that resemblance and should be received positively by the market. Among other things, they confirm that high-grade uranium occurs within several shallow and parallel stacked lenses at South Arrow.
Garrett Ainsworth, vice president, exploration and development at NexGen, explained, “[t]hese South Arrow assay results confirm multiple high grade uranium mineralized shears encompassed within a robust alteration halo. Mineralization at South Arrow has been encountered over a strike length of 290 m and a vertical extent of approximately 300 meters and remains open in most directions.”
Assay highlights include:
- AR-17-178c1 intersected 7.5 meters of total composite mineralization, including 1.85 meters of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 170.5-meter section (149 to 319.5 meters). The off-scale mineralized section begins just 142 meters below surface.
- AR-17-170c1 intersected 12 meters of total composite mineralization, including 0.5 meters of total composite off-scale radioactivity (>10,000 to >26,000 cps) within a 15-meter section (243 to 258 meters).
- AR-17-174c1 intersected 35 meters of total composite mineralization, including 0.15 meters of total composite off-scale radioactivity (>10,000 to >26,600 cps) within a 161.5-meter section (225.5 to 387 meters).
- AR-17-184c1 intersected 11 meters of total composite mineralization, including 0.5 meters of total composite off-scale radioactivity (>10,000 to >21,000 cps) within an 11-meter section (134 to 145 meters).
The program consisted of 82 infill, expansion, exploration and geotechnical holes totaling 44,781 meters of diamond drilling. An additional five shallow geotechnical holes were completed with a sonic drill rig to test surface and subsurface conditions for future site infrastructure. Assays are pending for 28 holes.
When the program ended in November, Ainsworth said, “[t]he summer 2017 drill program objectives have been successfully achieved in balancing indicated resource growth in the A3 High Grade Domain while expanding inferred resource growth at Arrow. The added bonus of discovery and expansion of South Arrow suggests significant potential for resource growth within close proximity to the Arrow Deposit.”
He added, “[a] recently completed ground 3D resistivity survey over South Arrow focusing to the south west has highlighted the significant prospectivity of the Patterson Corridor along strike from Arrow and South Arrow which is yet to be tested.”
It is too early to say how large this new discovery might become, but Eight Capital’s initial take is that South Arrow “may have already surpassed 8 to 10 MM lbs U3O8 of mineral inventory.”
Looking forward, NexGen CEO Leigh Curyer said, “[g]iven the uranium grades and geological setting, South Arrow continues to represent exciting exploration potential for NexGen. Additional drilling is planned for winter 2018 to extensively test South Arrow together with multiple other high priority targets generated through 2017 geophysical studies conducted to the south west of Arrow and South Arrow along the prolific Patterson Corridor.”
At close of day Tuesday (January 16), NexGen’s share price was sitting at C$2.87 on the TSX. Eight Capital has a “buy” rating on the company and a price target of C$6.30.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.