NexGen Energy Ltd (TSX: NXE) (NYSE: NXE) (ASX: NXG) discovered higher grade uranium assays at its Patterson Corridor East (PCE) than originally discovered at its flagship Arrow deposit ten years ago.
Released on Thursday, the discovery hole RK-24-183 in the Patterson Corridor East intersected 13.5 meters grading 0.78 per cent uranium oxide (U3O8) from a depth of 347.5 meters. This includes two intervals: 0.5 meters at 10 per cent U3O8 and another 0.5 meters at 6.23 per cent U3O8.
Comparatively, the RK-14-21 discovery hole at Arrow, which is considered Canada’s largest development stage uranium deposit, intersected 5.7 meters at 0.37 per cent U3O8 in 2014, including 0.2 meters at 5.77 per cent U3O8.
“Our team has assessed the geological similarities between RK-24-183 and RK-24-193 and the upper areas of Arrow, which indicates the high prospectivity of an additional mineralized system 3.5 km east of Arrow,” CEO Leigh Curyer said.
Meanwhile, hole RK-24-193, located 275 meters southwest along the strike from RK-24-183, intersected mineralization over 67.5 meters starting at a depth of 383.5 meters. Gamma spectrometer readings indicated intervals reaching up to 7,500 counts per second (cps) over 1.5 meters.
The results at PCE come shortly after NexGen closed its 2.7 million pound purchase of U3O8 from fund manager MMCap International for USD$250 million in convertible debentures. Additionally, the specifics about the debentures include being convertible to about 23 million shares, which is equal to 4.3 per cent of the company.
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Debenture financing to maximizing Nexgen inventory value
NexGen owns the Rook I Project, which hosts the Arrow Deposit. It’s the largest development-stage uranium project in Canada. The project is centered around the land-based, basement-hosted Arrow Deposit, one of the world’s leading uranium resources.
The company released a feasibility study for Rook I in 2021. The company also outlined an 11-year operation that would produce 21.7 million pounds of U3O8 annually and cost USD$1.3 billion to build.
Arrow hosts measured and indicated resources of 3.8 million tonnes grading 3.1 per cent U3O8, containing 256.7 million pounds of U3O8, and 4.4 million inferred tonnes grading 0.83 per cent U3O8, containing 80.7 million pounds of U3O8.
Furthermore, ATHA Energy Corp. (TSXV: SASK) (FRA: X5U) (OTCQB: SASKF) holds upside in NexGen’s properties through a 10 per cent carried interest. Nearby assets include the Shea Creek Deposit. The deposit also includes indicated resources of 68 million pounds and inferred resources of 28 million pounds. The Triple R Deposit has a resource size of 130.4 million pounds and a net present value (NPV) of CAD$1.2 billion. The Arrow Deposit boasts a resource size of 337.4 million pounds and an NPV of CAD$3.5 billion.
The project maintains a robust economic profile and includes elite ESG commitments, focusing on environmental protection and maximizing community benefits through a partnership approach.
ATHA Energy Corp. is a sponsor of Mugglehead news coverage
