NexGen Energy Ltd. (TSE: NXE) (NYSE: NXE) (ASX: NXG) has discovered some of the highest grade basement hosted uranium vein intercepts in the world at Patterson Corridor East (PCE) in the Athabasca Basin in Saskatchewan.
Announced on Wednesday, the phase assay results include a peak intercept of 0.5 meters at 68.8 per cent U3O8, in drillhole RK 25 232. Also included is 3.0 m at 47.8 per cent U3O8 and 1.5 m at 29.4 per cent U3O8.
Assay results from two standout holes at PCE, RK 24 222 and RK 25 232, reveal intense high-grade mineralization 200 metres apart. These results confirm both scale and continuity early in the discovery phase. Since the last update, winter drilling has added momentum. Crews intersected off-scale mineralization in 9 new holes, raising the total to 13 high-grade intercepts. This further strengthens confidence in the significance of the emerging zone.
Since the initial discovery on March 11, 2024, the company has completed 64 drillholes, totalling 47,425.9 metres. Of those, 35 holes hit mineralization, which remains open in most directions.
“Identical to Arrow, mineralization at PCE is wholly hosted in competent basement rock and exhibits all the same characteristics of an intense high-grade mineralized system,” said Leigh Curyer, chief executive officer.
RK-24-222 returned 17.0 metres at 3.85 per cent U₃O₈, including 3.0 metres at 10.1 per cent U₃O₈ and a 0.5-metre intercept at 28.2 per cent U₃O₈ within massive replacement-style uranium mineralization. These strong results are advancing NexGen’s understanding of the PCE system and guiding the next phase of exploration targeting.
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Uranium market faces significant challenges
The global uranium sector is experiencing a resurgence in 2025. This has been propelled by the growing demand for advanced nuclear technologies such as Small Modular Reactors (SMRs) and microreactors. These innovations offer scalable, low-carbon energy solutions, particularly appealing to industries requiring reliable power. Typically, these include artificial intelligence based programs and remote communities.
SMRs and microreactors use high assay low enriched uranium (HALEU) fuel, enriched to between 5 per cent and 20 per cent uranium-235.
This is higher than the 3–5 per cent enrichment used in conventional reactors. The increased enrichment enhances reactor efficiency and longevity, making high grade uranium essential for these next generation technologies.
However, the uranium market faces significant challenges. Analysits project global demand to reach 190–200 million pounds by 2025, while primary production is expected to fall short by 60–70 million pounds. Geopolitical tensions increase these tensions, notably the U.S. ban on Russian uranium imports enacted in 2024, which aimed to reduce reliance on Russian nuclear materials. Russia previously accounted for 27 per cent of U.S. enriched uranium demand. The ban has intensified the urgency to develop domestic uranium enrichment capabilities. Furthermore, companies like Centrus Energy expanding operations to meet HALEU requirements.
In response to these dynamics, uranium prices have surged, getting to over $100 per pound in 2025. These are the highest in over a decade. This price increase reflects both the supply constraints and the increased demand driven by the adoption of SMRs and microreactors.
To address the supply demand imbalance, investments are underway in uranium exploration and production to address the supply and demand imbalance.
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