VANCOUVER, Nov. 22, 2018 /CNW/ - NexGen Energy Ltd.
("NexGen" or the "Company") (TSX: NXE, NYSE MKT: NXE) is
pleased to report geotechnical and radioactivity results for
twenty-nine holes comprising 20,482.31
m on the Company's 100% owned Rook I property, in the
Athabasca Basin, Saskatchewan. The primary objective of the
program was the geotechnical characterization of areas within
Arrow's footwall, lateral development and potential underground
infrastructure locations of which results were incorporated into
the Pre-Feasibility Study ("PFS") released on November 5th, 2018. The exploration
results of this release which encountered strong mineralized
intervals in key areas were not incorporated into the updated
Mineral Resource Estimate and PFS results, released on November 5, 2018.
Highlights:
Geotechnical Characterization of the A2
Sub-Zone
Two holes drilled to geotechnically characterize the rock mass
within the A2 sub-zone, underwent dedicated geotechnical logging
and packer tests throughout the ore zone to obtain data and
analysis of sub-surface conditions within the mine plan. Both holes
were collared at a steep inclination, then shallowed out to a dip
of approximately 57°.
- GAR-18-016 intersected 38.5
m of total composite mineralization including
10.7 m of total composite
off-scale radioactivity (>10,000 to >61,000 cps) within a
75 m section (552.0 to 627.0 m) and featured 1.5 m of continuous massive-to-semi massive
pitchblende with minimum-greater-than-61,000 cps.
Geotechnical Characterization of the Footwall
Holes targeting the footwall successfully characterized the
geotechnical and hydrogeological conditions of the rock-mass
proximal to the potential mine infrastructure and Underground
Tailings Management Facility ("UGTMF"). Additionally, drilling
focused on the sterilization of uranium mineralization within areas
that will host project development infrastructure and were all
geotechnically logged incorporating packer tests at regular
intervals.
- Holes drilled within the footwall of Arrow, in areas of
envisioned underground mine infrastructure intersected suitable
rock-mass and hydraulic conductivity to facilitate underground
development.
- Similarly, holes drilled within the proximity of the UGTMF
positively indicated the area contains suitable rock-mass and low
hydraulic conductivity to facilitate underground development.
- Importantly, negligible alteration and structure were
intersected in proximity of envisioned underground mine
infrastructure and UGTMF.
Shaft Pilot Hole Program
Three shaft pilot holes were successfully completed to a depth
of between 650 m and 702 m. The vertically drilled shaft holes were
kept within a 3.0 m radius from
surface through to their termination depths, intersected minimal
structure and showed low hydraulic conductivity throughout via
packer testing at regular intervals.
- GAR-18-010 targeted shaft location option 1. The hole
was successfully completed to a depth of 650
m, intersecting minimal structure within proximity of
targeted area in the footwall. A total of 6.0 m of composite uranium mineralization was
intersected (549.0 m to 550.0 m) with a maximum radioactivity of 3,900
cps.
- GAR-18-013 targeted shaft location option 2. The hole
was successfully completed to a depth of 650
m. Preliminary results indicate the area contains suitable
rock-mass and low hydraulic conductivity to facilitate future shaft
design.
-
- A Westbay Water Monitoring System was installed after the hole
was completed to allow for continued sampling of the proposed shaft
location.
- GAR-18-015 targeted shaft location option 3. The hole
was successfully completed to a depth of 702
m, intersecting minimal structure within designed
underground mine infrastructure. Preliminary results indicate the
area contains suitable rock-mass and low hydraulic conductivity to
facilitate a future shaft design.
Exploration, A2 High-Grade Domain
Drilling focused on an under-explored area to the northeast
boundary of the currently defined A2 high-grade domain at variable
elevations. Drilling resulted in the identification of
mineralization between the A2 and A3 shears as well as
demonstrating the continuity of high-grade mineralization beyond
the currently defined A2 high-grade domains.
- AR-18-220c1 (located 50 m
along strike to the northeast of AR-14-30 (10.32%
U3O8 over 46.0
m)) intersected 55.5 m of
total composite mineralization including 2.25 m of total composite off-scale
radioactivity (>10,000 to >61,000 cps) within a
109.5 m section (438.5 to
548.0 m) in the A2 shear. The hole
demonstrates the continuity of high-grade mineralization
beyond the currently defined A2 high-grade domains in the A2
shear.
Drill hole locations and schematics are shown in Figures 1 to 4.
Drill hole descriptions can be found at www.nexgenenergy.ca
Leigh Curyer, Chief Executive Officer, commented: "The
successful completion of the geotechnical and hydrogeological
drilling was highly positive and reflected in the Arrow Project PFS
released on November 5, 2018. In
addition, the exploration results at Arrow this last summer
continue to provide strong upside with respect to areas of
potential future resource growth. These results have positively set
the foundation for our largest campaign to date at Arrow - a two
staged 125,000 m drill program
commencing mid-December 2018 through
to Q3 2019. The results of this program will then be incorporated
into a Feasibility Study scheduled to be released in H1 2020."
Troy Boisjoli, Vice-President,
Operations and Project Development, commented: "The Summer 2018
drill program demonstrated the highly competent geotechnical
chartateristics of the Arrow deposit. The team is looking forward
to the approaching 125,000 m drill
program to further advance and optimize Arrow's potential mine
development profile. Further, the high grade mineralization
encountered northeast of the A2 High Grade Domain is a great result
providing additional areas to test in the future for potential
resource growth."
Development, Activities & Financial
- Expediting Arrow to Feasibility by initiating a 2-stage
125,000m (10 rig) high density
drilling program commencing in mid-December
2018 to focus on mine optimization plans based on
Measured and Indicated mineral resources.
- As of October 31, 2018, the Company
had cash-on-hand of
approximately $125 million which fully funds
NexGen for all programs throughout 2019.
Table 1: Arrow 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-18-210c1
|
327
|
-70
|
876.50
|
115.00
|
606.50
|
607.00
|
0.50
|
<500 -
1710
|
AR-18-210c2
|
327
|
-70
|
957.50
|
N/A
|
584.50
|
585.00
|
0.50
|
<500 -
510
|
AR-18-210c3
|
327
|
-70
|
946.00
|
N/A
|
No Anomalous
Radioactivity
|
AR-18-211c1
|
327
|
-70
|
1128.50
|
N/A
|
865.50
|
866.00
|
0.50
|
<500 -
1300
|
|
|
|
|
|
869.50
|
870.00
|
0.50
|
<500 -
610
|
|
|
|
|
|
876.00
|
876.50
|
0.50
|
<500 -
570
|
|
|
|
|
|
961.50
|
962.00
|
0.50
|
<500 -
650
|
|
|
|
|
|
1089.00
|
1089.50
|
0.50
|
<500 -
650
|
AR-18-211c2
|
327
|
-70
|
1014.50
|
N/A
|
660.50
|
661.00
|
0.50
|
<500 -
680
|
AR-18-211c3
|
327
|
-70
|
1063.50
|
N/A
|
No Anomalous
Radioactivity
|
AR-18-212c1
|
325
|
-67
|
807.50
|
97.70
|
No Anomalous
Radioactivity
|
AR-18-213c1
|
327
|
-65
|
765.50
|
98.85
|
No Anomalous
Radioactivity
|
AR-18-214c1
|
327
|
-65
|
891.50
|
111.00
|
157.00
|
161.50
|
4.50
|
<500 -
4250
|
|
|
|
|
|
337.00
|
337.50
|
0.50
|
<500 -
970
|
AR-18-215c1
|
327
|
-70
|
990.50
|
N/A
|
No Anomalous
Radioactivity
|
AR-18-216c1
|
327
|
-65
|
483.50
|
107.40
|
No Anomalous
Radioactivity
|
AR-18-217c1
|
327
|
-73.5
|
1233.50
|
122.50
|
910.00
|
910.50
|
0.50
|
<500 -
560
|
|
|
|
|
|
965.00
|
966.00
|
1.00
|
610 -
20000
|
|
|
|
|
|
969.50
|
971.00
|
1.50
|
<500 -
5200
|
|
|
|
|
|
977.50
|
978.50
|
1.00
|
<500 -
4600
|
AR-18-218c1
|
327
|
-65
|
827.00
|
97.80
|
No Anomalous
Radioactivity
|
AR-18-219c1
|
327
|
-65
|
663.50
|
133.95
|
342.50
|
347.00
|
4.50
|
<500 -
1300
|
|
|
|
|
|
353.00
|
354.00
|
1.00
|
<500 -
3200
|
|
|
|
|
|
359.00
|
369.50
|
10.50
|
<500 -
4300
|
|
|
|
|
|
375.00
|
375.50
|
0.50
|
<500 -
650
|
|
|
|
|
|
387.00
|
416.00
|
29.00
|
<500 -
3300
|
|
|
|
|
|
430.00
|
433.00
|
3.00
|
<500 -
1275
|
|
|
|
|
|
442.00
|
445.00
|
3.00
|
<500 -
1550
|
|
|
|
|
|
447.50
|
470.50
|
23.00
|
<500 -
5350
|
|
|
|
|
|
572.00
|
573.50
|
1.50
|
<500 -
4200
|
|
|
|
|
|
578.50
|
579.50
|
1.00
|
<500 -
680
|
|
|
|
|
|
586.50
|
590.00
|
3.50
|
<500 -
61000
|
|
|
|
|
|
594.00
|
594.50
|
0.50
|
<500 -
570
|
|
|
|
|
|
602.00
|
605.00
|
3.00
|
<500 -
10500
|
|
|
|
|
|
611.50
|
612.00
|
0.50
|
1100 -
26700
|
|
|
|
|
|
621.00
|
625.50
|
4.50
|
<500 -
16500
|
|
|
|
|
|
631.00
|
631.50
|
0.50
|
<500 -
2310
|
AR-18-220c1
|
327
|
-68
|
744.50
|
130.35
|
597.00
|
598.00
|
1.00
|
<500 -
1200
|
|
|
|
|
|
624.50
|
625.00
|
0.50
|
<500 -
1500
|
|
|
|
|
|
644.50
|
646.50
|
2.00
|
<500 -
1100
|
|
|
|
|
|
681.50
|
682.00
|
0.50
|
<500 -
660
|
|
|
|
|
|
335.50
|
336.00
|
0.50
|
<500 -
1150
|
|
|
|
|
|
359.50
|
362.00
|
2.50
|
<500 -
630
|
|
|
|
|
|
368.50
|
373.00
|
4.50
|
<500 -
11000
|
|
|
|
|
|
375.50
|
380.50
|
5.00
|
<500 -
8600
|
|
|
|
|
|
383.00
|
392.00
|
9.00
|
<500 -
9400
|
|
|
|
|
|
396.00
|
410.00
|
14.00
|
<500 -
61000
|
|
|
|
|
|
419.00
|
419.50
|
0.50
|
<500 -
720
|
|
|
|
|
|
423.50
|
424.00
|
0.50
|
510 -
850
|
|
|
|
|
|
438.50
|
441.00
|
2.50
|
<500 -
1280
|
|
|
|
|
|
444.50
|
446.50
|
2.00
|
<500 -
1100
|
|
|
|
|
|
449.00
|
452.50
|
3.50
|
<500 -
2200
|
|
|
|
|
|
483.00
|
486.00
|
3.00
|
<500 -
570
|
|
|
|
|
|
488.50
|
491.00
|
2.50
|
<500 -
1240
|
|
|
|
|
|
502.00
|
508.50
|
6.50
|
<500 -
2200
|
|
|
|
|
|
512.50
|
548.00
|
35.50
|
<500 -
61000
|
|
|
|
|
|
579.50
|
594.50
|
15.00
|
<500 -
61000
|
AR-18-
220c1a
|
327
|
-68
|
441.00
|
448.00
|
445.50
|
446.00
|
0.50
|
<500 -
530
|
GAR-18-006
|
147
|
-80
|
737.40
|
100.80
|
518.00
|
520.50
|
2.50
|
<500 -
7000
|
|
|
|
|
|
576.00
|
578.00
|
2.00
|
<500 -
13000
|
|
|
|
|
|
600.00
|
600.50
|
0.50
|
<500 -
520
|
GAR-18-
006a
|
147
|
-80
|
155.40
|
101.00
|
No Anomalous
Radioactivity
|
GAR-18-007
|
147
|
-68
|
671.40
|
93.00
|
No Anomalous
Radioactivity
|
GAR-18-008
|
147
|
-65
|
629.60
|
96.05
|
597.00
|
598.50
|
1.50
|
<500 -
3500
|
|
|
|
|
|
617.50
|
618.00
|
0.50
|
<500 -
4250
|
GAR-18-009
|
147
|
-70
|
641.40
|
101.00
|
No Anomalous
Radioactivity
|
GAR-18-010
|
147
|
-90
|
650.44
|
98.00
|
549.00
|
555.00
|
6.00
|
<500 -
3900
|
GAR-18-011
|
147
|
-65
|
799.50
|
95.05
|
No Anomalous
Radioactivity
|
GAR-18-012
|
327
|
-75
|
1043.40
|
N/A
|
564.50
|
565.50
|
1.00
|
<500 -
840
|
|
|
|
|
|
589.00
|
589.50
|
0.50
|
<500 -
530
|
|
|
|
|
|
602.50
|
605.00
|
2.50
|
<500 -
7550
|
|
|
|
|
|
767.00
|
767.50
|
0.50
|
<500 -
510
|
GAR-18-013
|
147
|
-90
|
650.40
|
108.90
|
No Anomalous
Radioactivity
|
GAR-18-014
|
327
|
-80
|
659.40
|
101.00
|
346.00
|
346.50
|
0.50
|
<500 -
520
|
|
|
|
|
|
350.00
|
351.00
|
1.00
|
<500 -
1050
|
GAR-18-015
|
147
|
-90
|
701.47
|
96.35
|
No Anomalous
Radioactivity
|
GAR-18-016
|
327
|
-65
|
660.00
|
128.85
|
492.00
|
493.00
|
1.00
|
<500 -
1380
|
|
|
|
|
|
534.50
|
536.50
|
2.00
|
<500 -
830
|
|
|
|
|
|
552.00
|
553.00
|
1.00
|
<500 -
660
|
|
|
|
|
|
579.50
|
607.00
|
27.50
|
<500 -
61000
|
|
|
|
|
|
617.50
|
627.50
|
10.00
|
<500 -
54000
|
GAR-18-017
|
327
|
-65
|
717
|
127.75
|
406.50
|
407.50
|
1.00
|
<500 -
3600
|
|
|
|
|
|
503.50
|
504.00
|
0.50
|
<500 -
1100
|
|
|
|
|
|
514.50
|
515.00
|
0.50
|
<500 -
31000
|
|
|
|
|
|
517.50
|
518.00
|
0.50
|
<500 -
4800
|
|
|
|
|
|
521.50
|
522.00
|
0.50
|
<500 -
700
|
|
|
|
|
|
530.50
|
531.00
|
0.50
|
2100 -
47700
|
|
|
|
|
|
535.50
|
536.50
|
1.00
|
<500 -
1300
|
|
|
|
|
|
564.00
|
564.50
|
0.50
|
<500 -
1800
|
|
|
|
|
|
577.50
|
578.50
|
1.00
|
<500 -
1900
|
|
|
|
|
|
581.50
|
584.00
|
2.50
|
<500 -
1700
|
|
|
|
|
|
586.50
|
589.50
|
3.00
|
<500 -
2500
|
|
|
|
|
|
594.50
|
597.00
|
2.50
|
<500 -
1500
|
|
|
|
|
|
618.50
|
624.00
|
5.50
|
<500 -
61000
|
|
|
|
|
|
627.00
|
629.50
|
2.50
|
<500 -
3400
|
|
|
|
|
|
650.50
|
651.50
|
1.00
|
<500 -
720
|
|
|
|
|
|
654.00
|
656.50
|
2.50
|
<500 -
1920
|
|
|
|
|
|
660.00
|
661.00
|
1.00
|
<500 -
1350
|
|
|
|
|
|
666.00
|
667.50
|
1.50
|
<500 -
1650
|
Parameters:
- Maximum internal dilution 2.00 m
downhole
- All depths and intervals are metres 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
- Directional drilling has often resulted in mineralization
intersected at a more favourable and shallower dip
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
The technical information in this news release with respect to
the PFS has been reviewed and approved by Paul O'Hara, P.Eng. of Wood., David Robson, P.Eng., M.B.A., and Jason Cox, P.Eng. of RPA, each of whom is a
"qualified person" under National Instrument 43-101 – Standards
of Disclosure for Mineral Projects
("NI-43-101").
The Mineral Resource Estimate was completed by Mr. Mark Mathisen, C.P.G., Senior Geologist at RPA
and Mr. David Ross, P.Geo., Director
of Resource Estimation and Principal Geologist at RPA. Both
are independent Qualified Persons in accordance with the
requirements of National Instrument (NI) 43-101 and they have
approved the disclosure herein. All other technical information in
this news release has been approved by Mr. Troy Boisjoli, Geoscientist Licensee, Vice
President – Operations & Project Development for NexGen.
Mr. Boisjoli is a qualified person for the purposes of 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.
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
of this news release.
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.
Technical Information
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 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.
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.