VANCOUVER, Jan. 21, 2019 /PRNewswire/ - NexGen
Energy Ltd. ("NexGen" or the "Company") (TSX: NXE, NYSE MKT:
NXE) is pleased to announce that the largest drill program
in the Company's history focused on optimizing mine development has
begun at our 100% owned, Rook I property, in the Athabasca Basin, Saskatchewan. The drill program results will
be incorporated into a NI43-101 Bankable Feasibility Study ("FS" or
the "Study"), building on the successful outcomes highlighted in
the Company's Pre-Feasibility Study ("PFS") (see News Release dated
November 5, 2018) which demonstrated
the Arrow Project to be an exceptional development opportunity for
NexGen, Saskatchewan and
Canada.
The development optimization program consists of a minimum
125,000 m using 10 diamond drill rigs
focusing on three objectives:
- Convert High Grade Indicated Mineral Resources to Measured
Mineral Resources: Approximately 71,000
m will be drilled at a spacing sufficient to support the
conversion of the currently defined high-grade ("HG") Indicated
Resource (currently 256.6
M lbs of U3O8 contained in 2.89 M tonnes grading 4.03%
U3O8) to Measured Resource. Measured Mineral
Resources represent the highest level of mineral resource estimate,
providing a significant amount of technical detail on the FS
mine plan, design and economics.
- Covert Inferred Mineral Resources to Indicated Mineral
Resources: Approximately 54,000 m will be drilled to support the
conversion of part of the currently defined Inferred Resource
(currently 91.7
M lbs of U3O8 contained in 4.84 M tonnes grading 0.86%
U3O8) to an Indicated Resource. Further
conversion of Inferred to Indicated Mineral Resources will optimise
the usable mineral inventory for the FS mine plan which can only
incorporate Indicated or higher classification resources in
compliance with the NI 43-101 guidelines. Given the strong
continuity of mineralization seen at Arrow, the conversion of
Inferred to Indicated resources since delineation drilling
commenced has been very efficient and predictable.
- Geotechnical and Hydrogeological Characterization:
Approximately 12,500 m of the
125,000 m will also incorporate the
geotechnical and hydrogeological characterization of the rock mass
in the areas of potential mine development and Underground Tailings
Management Facility ("UGTMF"). This additional analysis will
build upon the significant geotechnical, hydrogeological and
metallurgical testing that has been incorporated into the PFS.
The 125,000 m of drilling outlined
above will be added to the existing 296,000
m of drill data collected to date by NexGen to form the
basis of an FS which will incorporate an updated Mineral Resource
Estimate and scheduled for release in H1/2020. The FS will
increase design detail to a resolution necessary to support at a
minimum a Class 3 cost estimate (AACE International standard). The
objectives of the FS are as follows:
- Further optimization of the proposed development of the Arrow
Deposit with respect to mine design (stope layouts, development,
and production schedule) based on only Measured and Indicated
mineral resources,
- Defining a level of design to support the comprehensive
Environmental Assessment applications,
- Engaging with construction experts to optimize construction
sequencing, utilization of pre-fabrication, offsite module
assembly, and identify alternative opportunities to advance project
development timelines,
- Continuing the advancement of the UGTMF design to optimize
tailings density and further reduce tailings volumes enabling the
opportunity to minimize the surface footprint of the mine,
- Leveraging opportunities for capital cost optimization while
increasing confidence in the capital and operating cost
estimates,
- Integrating innovative but proven mining, milling and
environmental technologies and sustainable practices including the
evaluation of alternative energy solutions to further increase
NexGen's sustainability commitment.
Drilling program target areas can be found in the figures 1 and
2.
Financial
- The Company has cash on hand of approximately ~$110
million.
Leigh Curyer, President and Chief Executive Officer, commented:
"This year's drill program will be the largest in the Company's
history to date, and reportedly, in Canada for a uranium project in 2019. The team
has focused considerable effort into the planning of the drill
program and technical studies, which leverages our experience in
optimizing mine development, processing and elite environmental
management practices. With the opening this week of the new
Saskatoon project office, which
has been designed at a capacity to take NexGen through to reaching
its objective of becoming a major producer of uranium on the world
stage, it is very exciting times for the NexGen team and
Saskatchewan."
Troy Boisjoli, Vice-President,
Operations and Project Development, commented: "The technical
characteristics of the Arrow deposit has allowed for rapid growth
and increased confidence through each successive drill program.
This is an exciting time at NexGen, focussing on continued
advancement of the Arrow deposit through the requisite development
stages."
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 prospective uranium
exploration assets in
the Athabasca Basin, Saskatchewan, Canada,
including a 100% interest in Rook I, location of the Arrow Deposit
in February 2014, the Bow discovery in March 2015, the
Harpoon discovery in August 2016 and the Arrow South
discovery in July 2017. NexGen is the recipient of the PDAC's
2018 Bill Dennis Award and the 2019 Environmental and Social
Responsibility Award.
Technical Disclosure
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. Troy Boisjoli, Geoscientist Licensee, Vice
President – Operations & Project Development for NexGen. Mr.
Boisjoli 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 please refer to the technical report entitled "Technical
Report on the Preliminary Economic Assessment of the Arrow Deposit,
Rook 1 Property, Province of Saskatchewan, Canada" dated effective
September 1, 2017 (the "Rook 1
Technical Report") prepared by Jason J.
Cox, P.Eng., David M. Robson,
P.Eng., M.B.A., Mark B. Mathisen,
C.P.G., David A. Ross M.Sc., P.Geo.,
Val Coetzee, M.Eng., Pr.Eng., and
Mark Wittrup, M.Sc., P.Eng.,P.Geo.
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. A technical report in respect of
the PFS will be filed on SEDAR (www.sedar.com) and EDGAR
(www.sec.gov/edgar.shtml) within 45 days from the date of the PFS
news release (November
5th, 2018) providing 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.
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.
SEC Standards
Estimates of mineralization and other technical information
included or referenced in this news release have been prepared in
accordance with NI 43-101. The definitions of proven and probable
mineral reserves used in NI 43-101 differ from the definitions in
SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a
"final" or "bankable" feasibility study is required to report
reserves, the three-year historical average price is used in any
reserve or cash flow analysis to designate reserves and the primary
environmental analysis or report must be filed with the appropriate
governmental authority. As a result, the reserves reported by the
Company in accordance with NI 43-101 may not qualify as "reserves"
under SEC standards. In addition, the terms "mineral resource",
"measured mineral resource", "indicated mineral resource" and
"inferred mineral resource" are defined in and required to be
disclosed by NI 43-101; however, these terms are not defined terms
under SEC Industry Guide 7 and normally are not permitted to be
used in reports and registration statements filed with the SEC.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Investors are cautioned not to
assume that any part or all of the mineral deposits in these
categories will ever be converted into reserves. "Inferred mineral
resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian securities laws, estimates of inferred
mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Additionally,
disclosure of "contained pounds" in a resource is permitted
disclosure under Canadian securities laws; however, the SEC
normally only permits issuers to report mineralization that does
not constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measurements. Accordingly,
information contained or referenced in this news release containing
descriptions of the Company's mineral deposits may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of
United States federal securities
laws and the rules and regulations thereunder.
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. 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,
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.
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SOURCE NexGen Energy Ltd.