Drilling has revealed massive pitchblende near NexGen Energy's (OTCQX:NXGEF) Arrow zone on the Rook 1 property in the Athabasca Basin. Here's what the analysts have to say.
According to NexGen Energy Ltd. (OTCQX:NXGEF), drilling in the area 180 meters southwest of Arrow has intersected significant off-scale radioactivity associated with extensive visible uranium mineralization. The company plans to conduct summer drilling to determine if this new area is connected to the Arrow Zone.
Analyst Rob Chang of Cantor Fitzgerald sees this as big news: "This newly identified area could be a separate mineralized pod from Arrow or an extension that is 180m away from the current known dimensions of what is already a world-class uranium deposit."
This discovery "could be the first step to what may be a substantial increase in uranium resources at this world-class project," added Chang.
He is particularly intrigued by the alteration zone 230 meters below surface; its intense dravite-rich hydrothermal breccias are "a strong indicator of high-grade uranium mineralization in the area." This zone is a target for future drilling.
Colin Healey of Haywood sees these latest drill results as highlighting the potential of the development of a new area, writing, "Today's results include the strongest radioactivity encountered to date in the new area, and look promising for the potential to add pounds here outside our model."
According to Healey, two upcoming catalysts are continued results from spring/summer drilling and an updated resource estimate at Arrow that he anticipates will be released in the second half of 2016.
Haywood believes "NexGen is peerless in the Athabasca Basin and globally as an exploration/developer play, as it controls a large, world-class, high-grade uranium deposit in a proven operating district, with the scale (201.9 Mlb U3O8) to be standalone economic right from the maiden resource."
Gwen Preston, editor of Resource Maven newsletter, notes the ongoing success of NexGen's off-the-chart drill results by writing, "Another set of holes, another off-scale result from NexGen's Arrow project in the Athabasca Basin." She highlights that "the hit is not a straightforward extension of the high-grade sub-zone," as the off-scale radioactivity was outside the perimeters of the known resource. "The three good holes included the highest radioactivity from the zone to date and if this area pans out NexGen will look to see if it connects to Arrow."
The NexGen news flow with continue, as more drilling is planned. "The ramped-up summer program will kick off shortly and will see seven rigs at work at Arrow," commented Preston.
This article was compiled by The Gold Report.
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