VANCOUVER, Feb. 14, 2019 /CNW/ - NexGen Energy Ltd.
("NexGen" or the "Company") (TSX:NXE, NYSE MKT:NXE) is
pleased to report geotechnical results for the initial shaft pilot
holes and assays for all twenty-nine holes comprising 20,482.31 m, drilled during the summer
development program on the Company's 100% owned Rook I property, in
the Athabasca Basin, Saskatchewan.
Highlights:
Shaft Pilot Hole Report
NexGen Energy Ltd. retained SRK Consulting Canada Inc. to
complete a geotechnical, hydrogeological, and thermal
characterization to confirm the selection of a suitable location
for the proposed shaft and facilitate a Feasibility Study ("FS")
level technical assessment related to the shaft pilot hole program.
Additionally, DGI Geoscience Inc. completed a down-hole geophysics
program to collect continuous data, in electronic format, of: sonic
velocity, density, normal resistivity, natural gamma, spontaneous
potential, mechanical caliper, and acoustic and optical scans of
the borehole walls.
Three shaft pilot holes were successfully completed to a depth
between 650 m and 702 m. The vertically drilled shaft pilot holes
were kept within a 6.0 m diameter
cylinder from surface through to their termination depths,
intersected minimal structure and showed low hydraulic conductivity
throughout via packer testing at regular intervals.
The shaft pilot hole geotechnical and hydrogeological conditions
compiled in the Rook I Arrow Deposit Pilot Characterization Report
will facilitate FS level engineering and design of two vertical
shafts at the Arrow Deposit; one for exhaust air and one for
production and fresh air.
- Overburden / Sedimentary Geotechnical: The sedimentary
profile was confirmed to extend from surface down to the basement
unconformity at approximately 100 m.
Typical of holes drilled at the Arrow Deposit, an average
sedimentary profile was developed from the shaft pilot holes:
-
- Overburden soils and sediments extended to 14 m
- Cretaceous Manville Group silts and clays to 63 m
- Devonian sandstone to 86 m
- Athabasca Group sandstones to maximum depth of 100 m (equating to a thickness of 14 m of Athabasca Group sandstone)
- Crystalline basement rock below 100
m
- Rock Geotechnical:
-
- Below 200 m depth and continuing
to the end of hole (701.47 m),
GAR-18-015 shows good-to-very good competent rock mass and
very low fracture frequency (FF/m).
- Hydrogeological:
-
- General decrease in hydraulic conductivity (K) with depth below
the basement unconformity resulting in favorable underground
development conditions;
- Groundwater chemistry is not considered to present any risk to
shaft development and construction.
Geotechnical Characterization of the A2
Sub-Zone
Assays have confirmed significant uranium mineralization was
intersected in the two holes drilled to geotechnically characterize
the rock mass within the A2 sub-zone. The holes were designed to
obtain data in order to quantify the 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 32.5
m at 6.65% U3O8 (574.5 to
607.0 m) including 10.0 m at 20.04% U3O8
(583.0 to 593.0 m) additionally,
10.0 m at 1.43%
U3O8 (617.5 to 627.5 m). The hole intersected significant
mineralization outside of the current high-grade resource shells
and are not incorporated into the current mineral resource
inventory. In terms of packers testing within the A2 sub-zone,
GAR-18-016 showed low flow rates averaging 1.656 L/min
(576.5 m to 639.0 m).
- GAR-18-017 intersected 7.5
m at 3.03% U3O8 (616.5 to
624.0 m) including 3.5 m at 6.34% U3O8
(620.0 to 623.5 m). The hole was
drilled in an open area within the A2 sub-zone between two
previously unconnected shells which has not yet been incorporated
into the current mineral resource inventory. In terms of
packers testing within the A2 sub-zone, GAR-18-017 showed low flow
rates averaging 0.950 L/min (567.0 m
to 618.0 m) and 0.218 L/min
(618.0 m to 669.0 m)
Expansion, A2 High-Grade Domain
Assays from drilling focused on an under-explored area to the
northeast boundary of the currently defined A2 high-grade domain
have confirmed the presence of significant uranium mineralization
within the A2 shear zone as well as between the A2 and A3 shears.
The hole demonstrates the continuity of high-grade mineralization
beyond the currently defined A2 high-grade domains.
- AR-18-220c1 located, approximately 50
m along strike to the northeast of AR-14-30 (10.32%
U3O8 over 46.0
m) intersected 36.0 m at
1.12% U3O8 (512.0 to 548.0 m) including 2.0
m at 10.0% U3O8 (528.5 to
530.5 m) additionally,
16.5 m at 1.43%
U3O8 (578.0 to 594.5 m). Between the currently defined A2 and A3
resource shells the hole intersected 36.0
m at 0.64% U3O8 (396.0 to
432.0 m) including 4.0 m at 5.23% U3O8
(402.05 to 406.5 m).
Drill hole locations and schematics are shown in Figures 1 to 5,
while assay results are displayed in Table 1.
Leigh Curyer, Chief Executive Officer, commented: "These results
highlight the strength of the technical setting of the Arrow
Deposit for development and the growth potential that remains at
Arrow. Five years ago today, NexGen discovered the Arrow
Deposit. With over 300,000m of
drilling since that date and Arrow continuing to show incredible
growth with these results, it is truly unique."
James Hatley, Senior
Vice-President, Project Development, commented: "The geotechnical
and hydrological conditions for shaft sinking at the Rook I Project
have been thoroughly investigated at the feasibility level by SRK,
and the bulk hydraulic conductivity in the basement rock from my
experience is excellent."
Troy Boisjoli, Vice-President,
Operations and Project Development, commented: "The assay results
from the Summer 2018 drill program have confirmed areas with future
growth potential at the Arrow Deposit. Another aspect confirmed by
these assay results was the strong geotechnical characteristics of
the A2 sub-zone. Both of these objectives were successfully
reached, supporting the planning for the 2019 drill program which
commenced in December 2018. We look
forward to continuing this systematic approach in advancing the
Arrow Deposit towards the completion of the Feasibility Study,
scheduled for H1/2020.
Development, Activities & Financial
- Expediting Arrow to Feasibility by initiation of a 2-stage
125,000m (10 rig) high density
drilling program that commenced in mid-December 2018 to focus on mine
optimization plans based on Measured and Indicated mineral
resources.
- As of January 31, 2019, the
Company had cash-on-hand of
approximately $110
million which fully funds NexGen for all drilling,
feasibility and development programs planned this year.
Table 1: Arrow Drill Hole Data
Drill
Hole
|
Athabasca Group -
Basement
Unconformity Depth
(m)
|
SRC Geoanalytical
Results
|
Hole
ID
|
Azimuth
|
Dip
|
Total
Depth
(m)
|
From
(m)
|
To
(m)
|
Interval
(m)
|
U3O8
(wt%)
|
AR-18-210c1
|
327
|
-70
|
876.5
|
115
|
606.5
|
607.0
|
0.5
|
0.04
|
AR-18-210c2
|
327
|
-70
|
957.5
|
N/A
|
No significant
intersections
|
AR-18-210c3
|
327
|
-70
|
946
|
N/A
|
No significant
intersections
|
AR-18-211c1
|
327
|
-70
|
1128.5
|
N/A
|
865.5
|
866
|
0.5
|
0.05
|
|
|
|
|
|
869
|
871
|
2
|
0.02
|
|
|
|
|
|
875
|
877
|
2
|
0.03
|
|
|
|
|
|
960.5
|
962.5
|
2
|
0.03
|
|
|
|
|
|
988
|
991
|
3
|
0.02
|
|
|
|
|
|
1088.5
|
1089.5
|
1
|
0.04
|
AR-18-211c2
|
327
|
-70
|
1014.5
|
N/A
|
No significant
intersections
|
AR-18-211c3
|
327
|
-70
|
1063.5
|
N/A
|
647
|
647.5
|
0.5
|
0.01
|
|
|
|
|
|
865.5
|
866.5
|
1
|
0.02
|
|
|
|
|
|
953.5
|
954.5
|
1
|
0.03
|
AR-18-212c1
|
325
|
-67
|
807.5
|
97.7
|
No significant
intersections
|
AR-18-213c1
|
327
|
-65
|
765.5
|
98.85
|
No significant
intersections
|
AR-18-214c1
|
327
|
-65
|
891.5
|
111
|
149.5
|
151
|
1.5
|
0.01
|
|
|
|
|
|
157
|
161.5
|
4.5
|
0.13
|
|
|
|
|
|
337
|
337.5
|
0.5
|
0.05
|
AR-18-215c1
|
327
|
-70
|
990.5
|
N/A
|
883.5
|
884
|
0.5
|
0.02
|
|
|
|
|
|
906
|
906.5
|
0.5
|
0.02
|
AR-18-216c1
|
327
|
-65
|
483.5
|
107.4
|
No significant
intersections
|
AR-18-217c1
|
327
|
-73.5
|
1233.5
|
122.5
|
196
|
202
|
6
|
0.02
|
|
|
|
|
|
727.5
|
728
|
0.5
|
0.02
|
|
|
|
|
|
964.5
|
966
|
1.5
|
0.35
|
|
|
|
|
|
969.5
|
971
|
1.5
|
0.04
|
|
|
|
|
|
977.5
|
978.5
|
1
|
0.10
|
AR-18-218c1
|
327
|
-65
|
827
|
97.8
|
No significant
intersections
|
AR-18-219c1
|
327
|
-65
|
663.5
|
133.95
|
342.5
|
347
|
4.5
|
0.05
|
|
|
|
|
|
353
|
354
|
1
|
0.15
|
|
|
|
|
|
358
|
371
|
13
|
0.08
|
|
|
|
|
|
375
|
375.5
|
0.5
|
0.03
|
|
|
|
|
|
381.5
|
383
|
1.5
|
0.02
|
|
|
|
|
|
387
|
416
|
29
|
0.08
|
|
|
|
|
|
420
|
421.5
|
1.5
|
0.01
|
|
|
|
|
|
424.5
|
435
|
10.5
|
0.05
|
|
|
|
|
|
438
|
472
|
34
|
0.14
|
|
|
|
|
|
572
|
579.5
|
7.5
|
0.07
|
|
|
|
|
|
586.5
|
590
|
3.5
|
1.87
|
|
|
|
|
incl.
|
587
|
588
|
1
|
5.73
|
|
|
|
|
|
593
|
595.5
|
2.5
|
0.02
|
|
|
|
|
|
600.5
|
605
|
4.5
|
0.17
|
|
|
|
|
|
610
|
612
|
2
|
0.43
|
|
|
|
|
|
621
|
625.5
|
4.5
|
0.32
|
|
|
|
|
|
631
|
631.5
|
0.5
|
0.21
|
AR-18-220c1
|
327
|
-68
|
744.5
|
130.35
|
331
|
332
|
1
|
0.02
|
|
|
|
|
|
335.5
|
337.5
|
2
|
0.04
|
|
|
|
|
|
359.5
|
362
|
2.5
|
0.03
|
|
|
|
|
|
365
|
380.5
|
15.5
|
0.12
|
|
|
|
|
|
383.5
|
391.5
|
8
|
0.18
|
|
|
|
|
|
396
|
432
|
36
|
0.64
|
|
|
|
|
incl.
|
402.5
|
406.5
|
4
|
5.23
|
|
|
|
|
|
435.5
|
441
|
5.5
|
0.08
|
|
|
|
|
|
444.5
|
456
|
11.5
|
0.05
|
|
|
|
|
|
475
|
491
|
16
|
0.03
|
|
|
|
|
|
501
|
508.5
|
7.5
|
0.11
|
|
|
|
|
|
512
|
548
|
36
|
1.12
|
|
|
|
|
incl.
|
520.5
|
521.5
|
1
|
8.55
|
|
|
|
|
incl.
|
528.5
|
530.5
|
2
|
10.06
|
|
|
|
|
|
578
|
594.5
|
16.5
|
1.43
|
|
|
|
|
incl.
|
588.5
|
592.5
|
4
|
5.68
|
|
|
|
|
|
597
|
599
|
2
|
0.05
|
|
|
|
|
|
624.5
|
625.5
|
1
|
0.10
|
|
|
|
|
|
641.5
|
646.5
|
5
|
0.05
|
|
|
|
|
|
657
|
660.5
|
3.5
|
0.02
|
|
|
|
|
|
680
|
682.5
|
2.5
|
0.04
|
AR-18-220c1a
|
327
|
-68
|
441
|
448
|
445
|
446.5
|
1.5
|
0.06
|
GAR-18-006
|
147
|
-80
|
737.4
|
100.8
|
518
|
522
|
4
|
0.21
|
|
|
|
|
|
576
|
578
|
2
|
0.55
|
|
|
|
|
|
600
|
601
|
1
|
0.03
|
GAR-18-006a
|
147
|
-80
|
155.4
|
101
|
No significant
intersections
|
GAR-18-007
|
147
|
-68
|
671.4
|
93
|
No significant
intersections
|
GAR-18-008
|
147
|
-65
|
629.6
|
96.05
|
597
|
598.5
|
1.5
|
0.10
|
|
|
|
|
|
617.5
|
618
|
0.5
|
0.18
|
GAR-18-009
|
147
|
-70
|
641.4
|
101
|
No significant
intersections
|
GAR-18-010
|
147
|
-90
|
650.44
|
98
|
548
|
551
|
3
|
0.06
|
|
|
|
|
|
553.5
|
555
|
1.5
|
0.12
|
|
|
|
|
|
558
|
559
|
1
|
0.01
|
GAR-18-011
|
147
|
-65
|
799.5
|
95.05
|
No significant
intersections
|
GAR-18-012
|
327
|
-75
|
1043.4
|
N/A
|
564.5
|
566
|
1.5
|
0.05
|
|
|
|
|
|
589
|
589.5
|
0.5
|
0.02
|
|
|
|
|
|
602.5
|
606
|
3.5
|
0.28
|
|
|
|
|
|
766
|
767.5
|
1.5
|
0.02
|
GAR-18-013
|
147
|
-90
|
650.4
|
108.9
|
No significant
intersections
|
GAR-18-014
|
327
|
-80
|
659.4
|
101
|
No significant
intersections
|
GAR-18-015
|
147
|
-90
|
701.47
|
96.35
|
No significant
intersections
|
GAR-18-016
|
327
|
-65
|
660
|
128.85
|
492
|
493
|
1
|
0.09
|
|
|
|
|
|
534
|
539.5
|
5.5
|
0.04
|
|
|
|
|
|
550
|
554.5
|
4.5
|
0.04
|
|
|
|
|
|
574.5
|
607
|
32.5
|
6.65
|
|
|
|
|
incl.
|
583
|
593
|
10
|
20.04
|
|
|
|
|
incl.
|
605
|
607
|
2
|
4.43
|
|
|
|
|
|
617.5
|
627.5
|
10
|
1.43
|
|
|
|
|
incl.
|
622.5
|
626
|
3.5
|
3.19
|
GAR-18-017
|
327
|
-65
|
717
|
127.75
|
503
|
504
|
1
|
0.11
|
|
|
|
|
|
514.5
|
515
|
0.5
|
2.03
|
|
|
|
|
|
517.5
|
518
|
0.5
|
0.36
|
|
|
|
|
|
521.5
|
522
|
0.5
|
0.04
|
|
|
|
|
|
530
|
532.5
|
2.5
|
1.35
|
|
|
|
|
|
535.5
|
537
|
1.5
|
0.11
|
|
|
|
|
|
563.5
|
567
|
3.5
|
0.06
|
|
|
|
|
|
577.5
|
578.5
|
1
|
0.17
|
|
|
|
|
|
581
|
599
|
18
|
0.06
|
|
|
|
|
|
616.5
|
624
|
7.5
|
3.03
|
|
|
|
|
incl.
|
620
|
623.5
|
3.5
|
6.34
|
|
|
|
|
|
627
|
631
|
4
|
0.12
|
|
|
|
|
|
638.5
|
640
|
1.5
|
0.02
|
|
|
|
|
|
650.5
|
661
|
10.5
|
0.04
|
|
|
|
|
|
666
|
669
|
3
|
0.07
|
Parameters:
- Maximum internal dilution 2.0 m
downhole
- Minimum thickness of 0.5 m
downhole
- Cutoff grade 0.01% U3O8
- All depths and intervals are metres downhole, true thicknesses
are yet to be determined. Resource modelling in conjunction with an
updated mineral resource estimate is required before true
thicknesses can be determined.
- 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. All other technical information in this news
release has been approved by Mr. James
Hatley, a Professional Engineer, Senior Vice-President –
Project Development for NexGen. Mr. Hatley is a qualified
person for the purposes of NI 43-101 and has reviewed the
underlying the information or opinions contained herein on mine
design.
A technical report in respect to the PFS is filed on SEDAR
(www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) and is
available for review on NexGen Energy's website
(www.nexgenenergy.ca).
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 "Arrow
Deposit, Rook I Project Saskatchewan NI 43-101 Technical Report on
Pre-feasbility Study" dated effective 5
November, 2018 (the "Rook 1 Technical Report") prepared by
Paul O'Hara, P.Eng., Jason J. Cox, P.Eng., David M. Robson, P.Eng., M.B.A., Mark B. Mathisen, C.P.G. 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 and EDGAR (www.sec.gov/edgar.shtml) 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 and is available
on NexGen Energy's website (www.nexgenenergy.ca).
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 2, 2018
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.