NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE) (ASX: NXG) discovered localized uranium mineralization on its previously untested portion at the Patterson Corridor East (PCE).
As an example, the company announced on Monday that it intersected 19.8 meters of uranium between 347.7 and 367.5 meters in hole RK-24-183 with high grade radioactivity peaks of over 61,000 counts per second.
The follow-up drilling has discovered anomalous features similar to those found in the early discovery holes at Arrow in 2014, including favourable geology with elevated radioactivity, all located at the upper limits of the system.
Leveraging geological spatial relationships observed at Arrow, the company intends to strategically guide additional drill targets across the prospective hydrothermal system, which spans over 1.5 km. Results so far suggest potential extending along strike and down dip.
The overall setting closely resembles the structural controls observed at Arrow.
The target area resides within a large gravity low, accompanied by a series of disjointed conductive responses. NexGen interprets a regional, north-south cleavage plane bisecting the gravity low.
Additionally, the company observed a cleavage plane connecting Arrow, South Arrow, and Camp East.
“Drilling activity is being fully dedicated to this new discovery area to advance our understanding of scope and scale of mineralization,” Leigh Curyer, chief executive officer, said.
“This hole which intersected 3.0 m of up to 61,000 cps is significantly better on all metrics than RK-14-21(the Arrow discovery hole) which intersected less than 0.5 m of greater than 9,999 cps.”
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Arrow deposit is the Athabasca Basin’s flagship uranium project
The Arrow deposit stands as a flagship uranium project within the prolific Athabasca Basin of Saskatchewan, Canada. NexGen discovered it in 2014, and it drew a sufficient amount of attention in the mining industry because of its size, as well as the quality of the uranium and its economic potential.
Arrow benefits from a favourable jurisdiction and robust infrastructure, facilitating exploration and development efforts. It ranks among the largest undeveloped uranium deposits in the world, with a current estimated resource size of 337.4 million pounds of uranium.
It also boasts a net present value (NPV) of CAD$3.5 billion. The investment has been attractive enough to draw attention from companies like ATHA Energy Corp. (TSXV: SASK) (FRA: X5U) (OTCQB: SASKF), which holds a 10 per cent carried interest in key land, offering significant upside potential.
NexGen’s 2023 summer exploration program included drilling activity on the acreage covered by ATHA’s 10 per cent carried interest.
Furthermore, Arrow’s exploration potential remains considerable, with mineralization extending along strike and at depth. Continued drilling campaigns have consistently expanded the deposit’s footprint, indicating the presence of additional mineralization beyond the current resource boundaries. The company’s ongoing exploration efforts aim to further delineate and define the extent of the deposit, potentially enhancing its resource base and economic prospects.
ATHA Energy Corp. is a sponsor of Mugglehead news coverage
