VANCOUVER, Dec. 12, 2019 – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE, NYSE MKT: NXE) is pleased to report assay results for an additional forty holes from the Company’s recently completed Feasibility-stage drilling program at the 100% owned, Rook I property in the Athabasca Basin Saskatchewan.
Intersections of the Arrow Deposit during the 2019 drilling campaign continue to verify the overall continuity of the A2 and A3 Pre-Feasibility Study (“PFS”, see News Release dated November 5, 2018) Indicated Domains and confirm the highest confidence Measured Resource spacing. Figures 1 and 2 demonstrate the continuity of high-grade mineralization at the Arrow Deposit as targeted by NexGen by comparing results from the 2019 drill program against the PFS Indicated Domains.
All 2019 drill holes were collared at a steep inclination, then shallowed out between -55° and -60° before intersecting the target by utilizing the latest in directional drilling technology.
The results below highlight intersections through the A2 and A3 High-Grade Domains for Indicated-to-Measured resource definition only. For complete hole results please see results Table 1.
A2 High-Grade Domains
- AR-19-229c5 intersected 46.0 m at 4.51% U3O8 (614.0 to 660.0 m) including 4.0 m at 15.21% U3O8 (629.0 to 633.0 m). The target was intersected at a dip of -58.8°, approximately 12.0 m along strike to the southwest of AR-16-096c3 (21.5 m at 2.33% U3O8);
- AR-19-241c2 intersected 17.0 m at 4.51% U3O8 (567.0 to 584.0 m) including 6.0 m at 10.84% U3O8 (570.0 to 576.0 m). The target was intersected at a dip of -56.3°, approximately 13.0 m down-dip to the northeast of AR-19-241c1 (15.0 m at 4.52% U3O8 including 6.0 at 10.84% U3O8);
- AR-19-243c3 intersected 30.0 m at 3.09% U3O8 (609.5 to 639.5 m) including 8.0 m at 11.35% U3O8 (615.5 to 623.5 m). The target was intersected at a dip of -56.2°, approximately 11.0 m along strike to the northeast of AR-16-112c2 (40.5 m at 6.18% U3O8 and 24.0 m at 10.35% U3O8);
- AR-19-247c1 intersected 27.5 m at 2.14% U3O8 (617.5 to 645.0 m) including 6.0 m at 5.11% U3O8 (632.0 to 638.0 m). The target was intersected at a dip of -54.3°, approximately 20.0 m up-dip from AR-19-237c1 (25.0 m at 2.14% U3O8);
A3 High-Grade Domains
- AR-19-238c3 intersected 21.0 m at 1.76% U3O8 (496.5 to 517.5 m) including 9.0 m at 3.94% U3O8 (496.5 to 505.5 m). The target was intersected at a dip of -60.0°, approximately 9.0 m along strike to the northeast of AR-17-159c2 (49.0 m at 2.30% U3O8 and 2.0 at 9.88% at U3O8);
- AR-19-248c2 intersected 44.0 m at 1.66% U3O8 (515.5 to 559.5 m) including 16.0 m at 3.65% U3O8 (527.5 to 543.5 m). The target was intersected at a dip of -55.9°, approximately 14.0 m along strike to the northeast of AR-14-008 (10.0 m at 2.50% U3O8).
Leigh Curyer, Chief Executive Officer, commented: “The assay releases from our completed Feasibility-stage drill program continue to highlight and confirm our confidence in the continuity of mineralization across the A2 and A3 high-grade domains. NexGen continues feasibility study programs for scheduled release in H1 2020 together with advancing all aspects of the Environmental Assessment scheduled for submission in H2 2020.”
Troy Boisjoli, Vice-President, Operations and Project Development, commented: “The predictability of mineralization at Arrow, as demonstrated by the 2019 drilling, further enhances the Mineral Resource estimate which supports the proposed mine plan and production profile at Arrow. In my experience the predictability of mineralization is a key component lending confidence to future production targets and this continuity demonstrated at Arrow with 309 drill holes to date is stronger than anything I’ve seen before.”
Development, Permitting, Activities & Financial
- The completed winter 2019 drilling program was comprised of 131 holes totaling 57,282.4 m of which 117 drill holes, totaling 50,968 m (inclusive of 32 m in overcuts) were solely designed around infill feasibility study drilling and 14 drill holes totaling 6,314.4 were primarily designed to test the geotechnical and hydrogeological characteristics of the rock mass in areas of proposed mine workings and UGTMF.
A total of 37 assays remain pending from the 2019 Feasibility-stage drilling program and 14 dual purpose geotechnical and hydrogeological characterization holes of which 9 were drilled within the Arrow mine plan footprint and 5 within the UGTMF.
- NexGen formally commenced an Environmental Assessment on the Rook I Project on April 29, 2019 in accordance with the requirements of both the Environmental Assessment Act and the Canadian Environmental Assessment Act, 2012 (“CEAA 2012”) after receiving acceptance of the Rook I Project Description (Technical Proposal) by the Canadian Nuclear Safety Commission (“CNSC”) and the Saskatchewan Ministry of Environment (“SMOE”). In addition, NexGen filed an Initial Licence Application with the CNSC under the Nuclear Safety and Control Act in order to obtain a Licence to Prepare Site and Construct for the Project.
- On December 5, 2019 NexGen announced the successful entering into of Study Agreements with four local communities within the Rook I project area to formally engage with the communities to identify potential impacts to Aboriginal and treaty rights and socio-economic interests and identify potential avoidance and accommodation measures in relation to the Project whilst acknowledging the duty to consult remains with the Crown. Further, the Study Agreements commit the Parties to negotiate Impact Benefit Agreements in good faith and as early in the regulatory process as possible to allow the Parties greater certainty, including certainty that current and future potential concerns between the Parties can be addressed through the processes set out in the Impact Benefit Agreement.
- As of December 9, 2019, the Company had cash-on-hand of approximately $60 million which fully funds NexGen for all drilling, feasibility and development programs planned this year.
Drill hole locations are shown in Figure 3. Full drilling results can be found in Table 1. Drill hole descriptions can be found at www.nexgenenergy.ca.