VANCOUVER, July 27, 2017 /CNW/ - NexGen Energy Ltd.
("NexGen" or the "Company") (TSX:NXE,
NYSE:NXE) is pleased to report a new uranium discovery during
our on-going summer drilling program on our 100% owned, Rook I
property, Athabasca Basin,
Saskatchewan.
The first two exploration holes of the summer drill
program have resulted in the discovery of a new zone of
off-scale radioactivity approximately 400 m south of the
Arrow Deposit. This new area of mineralization has been named
the South Arrow Discovery and is located on an
Arrow-parallel structure that remains almost completely
undrilled.
The Arrow South Discovery is currently defined by the local
occurrence of narrow massive pitchblende veining measuring
>61,000 cps. The South Arrow Discovery has been tested
with only two holes and both intersected narrow intervals of
off-scale radioactivity within a large and robust envelope of
highly prospective hydrothermal alteration. South Arrow
remains open in all directions.
Arrow South Discovery Characteristics:
- Highly Radioactive – Mineralization is locally very
strong observed as dense massive pitchblende veins. Intermittent
anomalous uranium-sourced radioactivity occurs over core lengths of
up to 400 m, which supports that a large and robust uraniferous
alteration system is present at South Arrow.
- Multiple lenses – Preliminary interpretations at South
Arrow suggest that steeply southeast dipping mineralization occurs
within at least three stacked high strain or sheared intervals,
which is a common characteristic of the Arrow Deposit.
- Extensive Alteration – Similarly to Arrow, the
hydrothermal alteration is widespread, which suggests a strong
mineralizing event has occurred. Dravite and illite breccias are
observed at the Arrow Deposit and the South Arrow zone.
Drill Intercept Highlights:
- Discovery hole AR-17-151c1 intersected 7.0 m of total
composite mineralization including 0.45 m of off-scale
radioactivity (>10,000 to >61,000 cps) marked by narrow
massive pitchblende veining.
- Follow-up hole AR-17-151c2 which targeted mineralization
25 m down-dip from the discovery hole, intersected 7.0 m of
total composite mineralization including 0.2 m of off-scale
radioactivity (>10,000 cps to 20,000 cps).
- South Arrow was targeted as a follow up to the mineralization
and extensive hydrothermal alteration intersected in holes
AR-17-150 and -150w1 (previously referred to as RK-17-118 and
-118w1, respectively – see news release dated June 7, 2017).
Arrow, Activities & Financial
- A seven-rig summer development and exploration program
comprising a minimum of 25,000 m of drilling and multiple
pre-feasibility staged technical studies is underway.
- A maiden Preliminary Economic Assessment is imminently
scheduled.
- The Company has cash on hand of approximately $200 million.
A map showing drill hole locations is shown in Figure 1. An
isometric view of the Arrow and South Arrow 3D resistivity
anomalies is shown in Figure 2.
Garrett Ainsworth,
Vice-President, Exploration and Development, commented: "The
discovery of South Arrow is the result of a disciplined process by
the team where multiple geophysical datasets were integrated to
prioritize exploration targets. The ground 3D resistivity
survey conducted by Dias Geophysical was key in elevating South
Arrow as a high priority target that has now returned off-scale
radioactivity associated with a large and robust alteration
system. The alteration package is similar to that which
accompanies the Arrow Deposit, and includes favourable
dravite/illite/sudoite clays as pervasive and replacement,
pervasive strong hematite, and intense silicification that includes
radiation damaged quartz."
Leigh Curyer, Chief Executive Officer, commented: "This is a
very exciting time for the Company with the release of the maiden
PEA imminent and today's drill results strongly indicating Arrow is
still very much in its infancy in terms of exploration work
conducted. As a consequence, additional drilling focus will
be immediately directed to Arrow South whilst continuing to focus
on high value targets in and around Arrow together with the
engineering and environmental studies.
I would like to take the opportunity to congratulate the entire
NexGen team on another outstanding development for the Company and
its shareholders."
The Arrow South Discovery occurs within an Arrow-parallel
deformation zone first identified by re-processing of airborne VTEM
survey data by Condor Consulting. Recently, a high-resolution
ground 3D resistivity/IP survey was completed by Dias Geophysical
over an area covering the Arrow Deposit and a portion of the newly
identified structure. The survey showed a resistivity anomaly
highly coincident with and immediately flanking the Arrow Deposit.
The survey also identified an additional anomaly coincident with
the Arrow-parallel deformation zone first highlighted by the VTEM
data. This new resistivity anomaly, named the South Arrow anomaly,
has strikingly similar characteristics to the Arrow anomaly. It has
now been tested in four holes, two of which have intersected
off-scale radioactivity and all of which intersected extensive
zones of hydrothermal alteration and anomalous radioactivity.
Preliminary interpretations from structural measurements collected
from oriented drill core suggest that the South Arrow mineralized
bodies strike towards the southwest and dip steeply towards the
southeast.
Table 1: South Arrow Discovery Drill Hole Data
Drill
Hole
|
Athabasca
Group
-
Basement
Unconformity
Depth
(m)
|
Handheld
Scintillometer Results (RS-120)
|
Hole
ID
|
Azimuth
|
Dip
|
Total
Depth
(m)
|
From
(m)
|
To
(m)
|
Width
(m)
|
CPS
Range
|
AR-17-151c1
|
327
|
-70
|
588.50
|
103.30
|
262.5
|
263.5
|
1.0
|
<500 -
2100
|
302.0
|
308.0
|
6.0
|
<500 -
>61000
|
AR-17-151c2
|
327
|
-70
|
561.50
|
103.30
|
310.5
|
312.5
|
2.0
|
<500 -
20000
|
327.5
|
328.0
|
0.5
|
<500 -
1400
|
359.5
|
363.5
|
4.0
|
<500 -
3700
|
404.5
|
405.0
|
0.5
|
<500 -
510
|
Parameters:
- Maximum internal dilution 2.00 m downhole
- All depths and intervals are meters downhole, true thicknesses
are yet to be determined.
- "Anomalous" means >500 cps (counts per second) total count
gamma readings by gamma scintillometer type RS-120
- "Off-scale" means >10,000 cps (counts per second) total
count gamma readings by gamma scintillometer type RS-120
- Where "Min cps" is <500 cps, this refers to local low
radiometric zones within the overall radioactive interval
South Arrow Drilling
AR-17-151c1
Hole AR-17-151c1 was a directional hole collared from surface at
an angled orientation (-70°) to the northwest (327° azimuth). It
was designed to test the South Arrow resistivity anomaly 75 m along
strike to the southwest of holes AR-17-150 (formerly RK-17-118) and
AR-17-150w1 (formerly RK-17-118w1). The hole intersected Athabasca
Group sandstones between 99.4 m and the unconformity at 103.3
m. Basement lithologies consisted of semi-pelitic gneiss and
orthogneiss of variable composition. Several broad deformation
zones were encountered throughout. Extensive zones of hydrothermal
alteration were also intersected which generally consist of
replacement- and hydrothermal breccia-style clay, chlorite and
silicification. The hole intersected visible disseminated,
fracture-hosted and vein-style pitchblende mineralization in close
association with deformation and hydrothermal alteration. A total
composite mineralization of 7.0 m including 0.45 m of off-scale
radioactivity (>10,000 to >61,000 cps) was intersected within
a 45.5 m section (262.5 to 308.0 m) before the hole was terminated
at 588.5 m.
AR-17-151c2
Hole AR-17-151c2 was a directional hole that departed pilot hole
AR-17-151c1 at 202 m. It was designed to test the South Arrow
resistivity anomaly 25 m down-dip from the mineralization
intersected in AR-17-151c1. Basement lithologies were intersected
from the top of the hole that included semi-pelitic gneiss and
orthogneiss of variable composition. Several broad deformation
zones were encountered throughout. Extensive zones of hydrothermal
alteration were also intersected which generally consisted of
replacement- and hydrothermal breccia-style clay, chlorite and
silicification. The hole intersected visible disseminated,
fracture-hosted and worm-rock style pitchblende mineralization in
close association with deformation and hydrothermal alteration. A
total composite mineralization of 7.0 m including 0.20 m of
off-scale radioactivity (>10,000 to 20,000 cps) was intersected
within a 94.5 m section (310.5 to 405.0m) before the hole was
terminated at 561.5 m.
About NexGen
NexGen is a British Columbia
corporation with a focus on the acquisition, exploration and
development of Canadian uranium projects. NexGen has a highly
experienced team of uranium industry professionals with a
successful track record in the discovery of uranium deposits and in
developing projects through discovery to production.
NexGen owns a portfolio of highly prospective uranium
exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100%
interest in Rook I, location of the Arrow Discovery in February 2014 and Bow Discovery in March 2015 and the Harpoon discovery in
August 2016. The Arrow Deposit's
second resource estimate, released only three years after the first
discovery of mineralization, is 179.5 M lbs U3O8 contained in 1.18
M tonnes grading 6.88% U3O8 in the indicated category and an
additional 122.1 M lbs U3O8 contained in 4.25 M tonnes grading
1.30% U3O8 in the inferred category.
Technical Information
Natural gamma radiation in drill core reported in this news
release was measured in counts per second (cps) using a Radiation
Solutions Inc. RS-120 gamma-ray scintillometer. The reader is
cautioned that total count gamma readings may not be directly or
uniformly related to uranium grades of the rock sample measured;
they should be used only as a preliminary indication of the
presence of radioactive minerals.
Split core samples will be taken systematically, and intervals
will be submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC
17025: 2005 Accredited Facility) of Saskatoon for analysis. All samples sent to
SRC will be analyzed using ICP-MS for trace elements on partial and
total digestions, ICP-OES for major and minor elements on a total
digestion, and fusion solution of boron by ICP-OES. Mineralized
samples are analyzed for U3O8 by ICP-OES and
select samples for gold by fire assay. Assay results will be
released when received and after stringent internal QA/QC protocols
are passed.
All scientific and technical information in this news release
has been prepared by or reviewed and approved by Mr. Garrett Ainsworth, P.Geo., Vice President –
Exploration & Development for NexGen. Mr. Ainsworth is a
qualified person for the purposes of National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101"), and has
verified the sampling, analytical, and test data underlying the
information or opinions contained herein by reviewing original data
certificates and monitoring all of the data collection protocols.
For details of the Rook I Project including the quality assurance
program and quality control measures applied and key assumptions,
parameters and methods used to estimate the mineral resource set
forth below please refer to the technical report entitled
"Technical Report on the Rook 1 Property, Saskatchewan, Canada" dated effective
March 31, 2017 (the "Rook 1 Technical
Report") prepared by Mark B.
Mathisen and David Ross, each
of whom is a "qualified person" under NI 43-101. The Rook I
Technical Report is available for review under the Company's
profile on SEDAR at www.sedar.com. All intersections are downhole,
true thicknesses are yet to be determined.
U.S. investors are advised that while the terms "indicated
resources" and "inferred resources" are recognized and required by
Canadian regulations, the U.S. Securities and Exchange Commission
does not recognize these terms. U.S. investors are cautioned not to
assume that any part or all of the material in these categories
will ever be converted into mineral reserves.
Forward-Looking Information
The information contained herein contains "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable Canadian securities
legislation. "Forward-looking information" includes, but is
not limited to, statements with respect to the activities, events
or developments that the Company expects or anticipates will or may
occur in the future, including, without limitation, the completion
of the technical report in support of the PEA. Generally, but not
always, forward-looking information and statements can be
identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or the negative connotation
thereof or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved" or the
negative connotation thereof.
Forward-looking information and statements are based on the
then current expectations, beliefs, assumptions, estimates and
forecasts about NexGen's business and the industry and markets in
which it operates. Forward-looking information and statements are
made based upon numerous assumptions, including among others, that
the proposed transaction will be completed, the results of planned
exploration activities are as anticipated, the price of uranium,
the cost of planned exploration activities, that financing will be
available if and when needed and on reasonable terms, that third
party contractors, equipment, supplies and governmental and other
approvals required to conduct NexGen's planned exploration
activities will be available on reasonable terms and in a timely
manner and that general business and economic conditions will not
change in a material adverse manner. Although the assumptions made
by the Company in providing forward looking information or making
forward looking statements are considered reasonable by management
at the time, there can be no assurance that such assumptions will
prove to be accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual results, performances and achievements of NexGen to
differ materially from any projections of results, performances and
achievements of NexGen expressed or implied by such forward-looking
information or statements, including, among others, negative
operating cash flow and dependence on third party financing,
uncertainty of the availability of additional financing, the risk
that pending assay results will not confirm previously announced
preliminary results, imprecision of mineral resource estimates, the
appeal of alternate sources of energy and sustained low uranium
prices, aboriginal title and consultation issues, exploration
risks, reliance upon key management and other personnel,
deficiencies in the Company's title to its properties, uninsurable
risks, failure to manage conflicts of interest, failure to obtain
or maintain required permits and licenses, changes in laws,
regulations and policy, competition for resources and financing,
specific risks relating to the negotiation and execution of the
definitive agreements for the financing, the use of proceeds from
the financing, the satisfaction of each party's obligations in
accordance with the terms of the definitive agreements for the
financing; failure to receive any required regulatory approvals
(including stock exchange) or other approvals, and other factors
discussed or referred to in the Company's Annual Information Form
dated March 31, 2017 under
"Risk Factors".
Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in the forward-looking information or implied by
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking information
and statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated,
estimated or intended. Accordingly, readers should not place undue
reliance on forward-looking statements or information. The Company
undertakes no obligation to update or reissue forward-looking
information as a result of new information or events except as
required by applicable securities laws.
SOURCE NexGen Energy Ltd.