NexGen Energy announced on Thursday that it had discovered a potential new zone of high-grade uranium mineralization at its Rook 1 property in Saskatchewan’s Athabasca Basin.
NexGen Energy (TSXV:NXE) announced on Thursday that it had discovered a potential new zone of high-grade uranium mineralization at its Rook 1 property in Saskatchewan’s Athabasca Basin.
The news is based on preliminary results from a single hole in an untested area of the property, but NexGen stated that the hole “represents the strongest uranium intercept in the A1 shear zone to date,” and analysts are already pegging the news as another game changer for the company.
Results from hole AR-16-84c1 included an intercept of 8.35 meters of off-scale mineralization within the A1 shear. NexGen also reported substantial intersections of off-scale radioactivity within the A2 high-grade domain, including 39.5 meters of total composite mineralization.
“The importance of this discovery of high grade mineralization within the A1 shear is clearly evident. Drill hole AR-16-84c1 has encountered the strongest and widest mineralization in the A1 shear to date,” said Garrett Ainsworth, vice president of exploration and development at NexGen, in a statement.
“The high grade intercept in hole -84c1 is within a large untested area of the A1 shear that now has potential to host another high grade sub-zone,” he explained. “Hole -84c1 has also infilled and confirmed the high grade, continuous and sub-vertical nature of the A2 high grade domain.”
Rob Chang of Cantor Fitzgerald agreed that the results were significant. “Today’s new release from NexGen announces the discovery of a high grade intercept that could lead to the identification of a second high grade zone similar to the one at A2,” he said in an emailed statement. “If this turns out to be the case, Arrow will move that much closer to being at the same level as McArthur River and Cigar Lake.”
David Sadowski of Raymond James also sees further potential for the A1 shear zone to host A2-like high-grade mineralization, stating that the hole was “yet another game-changer for the company.”
“We believe this raises the target for total contained metal possibilities,” he added.
Analysts see further upside for NexGen
Certainly, uranium investors might be wondering whether now is the time to get into NexGen. Shares of the company have already gained an impressive 276 percent since the start of 2016 and are up 401 percent over the past year. However, both Chang and Sadowski believe the stock has further upside potential.
“We believe momentum is likely to continue on the stock as Arrow increasingly appears to be a one-in-a-cycle discovery,” Sadowski said, giving NexGen a ‘strong buy’ rating and a C$3.50 target price (NexGen is currently trading at C$2.71).
While admitted that it’s easy to be cautious on NexGen’s share price from a technical perspective given the price jump this year, he noted that NexGen is still sitting at roughly 25 percent of Hathor Exploration’s 2012 takeout value. Hathor, which discovered the Roughrider uranium deposit in Saskatchewan, was acquired by Rio Tinto (NYSE:RIO,LSE:RIO) in 2012 for US$642 million.
Furthermore, Raymond James’s analysis suggests that someone could acquire NexGen at a 265 percent premium to the company’s current share price, build the Arrow project, and still make for an accretive deal at a US$70 uranium price. At $44 per pound for uranium, the firm still believes a 44 percent premium is justified.
In another note released earlier this month, Sadowski made the case for NexGen as a possible acquisition target for Cameco (TSX:CCO,NYSE:CCJ) in order for the producer to reduce the technical risk of its production pipeline.
Rob Chang stated that NexGen remains Cantor’s top pick with a ‘buy’ rating and a C$4.30 target price.
What’s next?
Of course, NexGen still has plenty of work to do in terms of further exploring this new potential zone. The company will continue drilling northwest azimuth scissor holes into the A2 and A1 zone as part of its 7,500 meter spring break-up drilling program, and investors will no doubt be watching closely for further results.
Beyond that, NexGen also stated that it remains on track to release an updated resource estimate for the Arrow deposit in the second half of this year.
As mentioned, NexGen is currently trading at C$2.71. Shares of the company gained just under 12 percent on Thursday’s news.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.

The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.

The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
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