NexGen Energy (NXE-V) Radon Discovery Could Signal New Uranium Find
Tuesday morning brought good news for NexGen Energy, which has received initial results from a radon in-lake water survey at the Rook I property, located in the southwest region of the Athabasca Basin.
NexGen said it has hit radon values along a 480-meter-long zone that ranges from 20 to 150 meters wide. The radon was discovered about 400 meters northeast along strike from the Arrow zone.
The announcement is more good news for the western part of the Athabasca Basin. The release of Fission Uranium’s (FCU-T) maiden resource estimate last week led to rising interest in several surrounding companies, such as Azincourt Uranium (AAZ-V), as well as NexGen. Due to NexGen’s close proximity to the Patterson Lake South project, the company saw quick gains on the same day as the announcement.
Speaking on Tuesday’s news, Leigh Curyer, CEO of NexGen, said, ”Arrow is currently developing rapidly into a significant resource in its own right. To identify an additional target zone meeting all geophysical and geochemical parameters to justify drilling only 1km north east of Arrow is incredibly exciting for the company.”
NexGen has just started an $8-million winter drill program using three diamond drill rigs. Two are focused on the Arrow zone, while a third is solely focusing on targets to the northeast and southwest of Arrow, along what is called the Patterson Conductor Corridor. Unlike the nearby Fission property, which is predominantly shallow, the targets at Arrow are focused on deeper, higher-grade uranium mineralization within basement rocks.
“The results of this radon in lake water survey adds another layer of data that further enhances the prospectivity of this target area situated 400 m northeast along strike from the Arrow zone, which has now become a high priority to drill during this winter program,” said Garrett Ainsworth, NexGen’s vice president of exploration and development.
The company also has a radon in-lake water survey in progress with a focus on prospective cross-cutting structures.
Summer results revealed high-grade intercepts, including 0.49 percent over 92 meters and 15.47 percent over 4.5 meters, with uranium starting around the 100-meter depth range.
“In short — the stars are lining up for a potential uranium discovery just 400m NE of the Arrow zone,” said David Talbot, an analyst with Dundee Capital Markets, in a report. “However, this anomaly suggests mineralization below the lake. Its sheer size infers that either the rocks were ideal in spreading radon over a large area, or that mineralization might not be that deep.“
Talbot has given the company a “buy” rating, but no target price. By the close of markets, NexGen had risen 4.62 percent to close at $0.34 per share.
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NXE-V News Release Jan 20, 2015
Strong Radon Anomalies Yield High Priority Drill Target Zone 400m Northeast along Strike from the Arrow Zone
NexGen Energy is pleased to report on initial results from a radon in lake water survey by RadonEx Exploration Management Ltd. at our 100% owned Rook I property, located in the southwest part of Saskatchewan's Athabasca Basin.
Highlights include:
A multi-point 480 m long by 20 to 150 m wide radon in lake water anomaly has been discovered 400 m northeast along strike from the Arrow zone (see Figure 1);
Radon values up to 10.4 pCi/L are in the same range as the radon values that lead to the discovery of the R390E R780E zones at the adjacent PLS property by the Alpha-Fission joint venture (see news release February 19th, 2013);
This radon anomaly discovery has developed a high priority drill target that will be drilled during the ongoing winter 2015 program;
Location of this clustered radon anomaly is optimally situated where the southeast dipping VTEM conductor is projected to reach the unconformity.Garrett Ainsworth, Vice President, Exploration & Development commented, "The results of this radon in lake water survey adds another layer of data that further enhances the prospectivity of this target area situated 400 m northeast along strike from the Arrow zone, which has now become a high priority to drill during this winter program. The results from all geophysical and geochemical surveys conducted to date in this particular area of Rook I, all continue to support that the 4 km strike length northeast of Arrow within the Patterson Conductor Corridor has excellent potential to discover additional zones of basement mineralization, as well as Athabasca sandstone hosted and unconformity-style mineralization."
Leigh Curyer, Chief Executive Officer commented, "Arrow is currently developing rapidly into a significant resource in its own right. To identify an additional target zone meeting all geophysical and geochemical parameters to justify drilling only 1km north east of Arrow is incredibly exciting for the Company."
A detailed airborne VTEM Plus and magnetometer survey on 100 m line spacing was flown over the northeast strike extension from the Arrow zone. The Arrow zone is associated with a north-northwest cross-cutting structure, which is interpreted to repeat at least three times within a 4 km section northeast along strike from Arrow (see Figure 2). Favourable magnetic and gravity settings are also associated with these recently located VTEM conductors. As a follow-up to these encouraging VTEM results, a radon in lake water survey is in progress with a focus on these prospective cross-cutting structures.
RadonEx Exploration Management of St. Lazare, Quebec has been contracted to conduct an approximate 1,700 station radon in lake water survey over VTEM conductors beneath Patterson and Beet Lakes. Detailed radon sampling has just begun along an approximate 4 km strike length to the northeast of the Arrow zone with 309 samples recovered thus far. In General, sample location spacing is 20 m apart along lines that are 50 to 100 m apart. Radon results will be released as they become available, and are interpreted.
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 exploration professionals with a track record in the discovery of unconformity-style and basement hosted uranium deposits in Canada.
NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook 1, location of the Arrow Discovery, and an option to earn a 70% interest in the Radio Project, immediately adjacent to Rio Tinto's Roughrider Deposit.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43- 101 and reviewed on behalf of NexGen Energy Ltd., by Garrett Ainsworth, P.Geo., Vice President – Exploration & Development, a qualified person.
Leigh Curyer,
Chief Executive Officer
NexGen Energy Ltd.
+1 604 428 4112
lcuryer@nexgenenergy.ca
www.nexgenenergy.ca |
