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The company revealed assay results for the first four drill holes from its ongoing 2015 winter drilling program. One angled drill hole shows the most continuous, high-grade uranium mineralization found within the A2 shear to date.
The company revealed assay results for the first four drill holes from its ongoing 2015 winter drill program, with one of the angled drill holes showing the most continuous, high-grade uranium mineralization found within the A2 shear to date.
Angled drill hole AR-15-34b assayed 70 meters at 2.2 percent U3O8 (522 to 592 meters), including 11 meters at 8.95 percent U3O8 (560.5 to 571.5 meters). Dundee Capital Markets found the results from that particular hole of particular interest, stating in a research note that “while some of today’s results may not necessarily grab investors’ attention, hole -34b certainly should. This is a very strong hole by NexGen and Athabasca standards.”
AR-15-34b was drilled as an angled 30-meter southwest step out from the high-grade AR-14-30 hole, which saw exceptional results during the company’s 2014 summer drilling program and was dubbed “one of the best holes in Athabasca basin history” by Cantor Fitzgerald. The new hole is garnering praise as well, with Rob Chang of Cantor Fitzgerald stating in a note, “the results show economic high grade uranium at substantial widths. In fact, the highlight hole indicates 1.9M pounds. U3O8 by our calculations.”
Chang added, “[t]hese results show mineable widths of economic, high-grade uranium at Arrow. Based on results to date we believe Arrow may host yet another sizable deposit in this prolific uranium camp.”
This first set of assays has also exceeded NexGen’s expectations. Garrett Ainsworth, the company’s vice president of exploration and development, stated that, “the A2 mineralized shear continues to impress us with what is now our widest high grade interval returned to date from angled drill hole AR-15-34b. The high grade uranium core associated with the A2 structure within Arrow is centered on drill hole AR-14-30 and is developing at a staggering pace with this important 30 meter step-out to the southwest.”
More assays yet to come
NexGen’s 2015 winter drill program is only about two-thirds complete, with 13,000 meters drilled out of the 18,000-meter campaign. Even now more assays are pending release, including those from the new high-grade zone that was discovered last month.
Those results saw angled drill hole AR-15-39 intersect 89.15 meters total composite mineralization, including 16.75 meters of off-scale radioactivity (>10,000 to >61,000 cps) within a 436.5-meter section. According to Ainsworth, “the importance of this new discovery of wide and concentrated high grade uranium mineralization from AR-15-39 within the A3 mineralized shear can’t be overstated.” He compared the uranium mineralization from AR-15-39 to a previous discovery in hole AR-14-15 that was revealed last August.
On top of that, Chang has suggested that because NexGen has $15 million in cash on hand, it may extend drilling by a couple 1,000 meters. Whether that happens or not, it’s certainly reasonable to expect more news from the company moving forward.
At close of day Tuesday, NexGen’s share price was sitting at $0.44, up a modest 1.15 percent. Year-to-date the company’s share price is up 15.79 percent.
Securities Disclosure: I, Kristen Moran, 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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