NexGen Releases New Drill Results, Dundee Urges Patience

NexGen Energy (TSXV:NXE) released its latest set of assay results from the Arrow Zone on its Rook I property, but received little adulation from analysts.

The results, taken from 16 drill holes from a summer drill program, range from 2.34 percent U3O8 over 26.5 meters and 1.05 percent U3O8 over 20.5 meters in two vertical holes, and 0.41 percent U3O8 over 83 meters and 0.45 percent U308 over 74.65 meters in two of 14 angled holes.

However, a report authored by David Talbot with Dundee Capital Markets states that “(it) is likely the assays from one of the vertical holes will disappoint investors.”

That said, the analyst does go on to say that the results will likely help NexGen plan its next drill holes to continue high-grade results and narrow what depths should be focused on. Furthermore, Dundee still gives the company a “buy” rating, though it cautions investors to remain patient.

“We do like Arrow and believe there will be plenty of further success once management and its technical team determine the controls on mineralization. But until then, investors may have to be patient, and endure periods of high grade intercepts and lower grade misses,” writes Talbot.

At time of reporting, NexGen’s share price had fallen 2.63 percent to settle at $0.37 per share.

Securities Disclosure: I, Nick Wells, hold no direct investment in any of the companies mentioned in this article.