NexGen reports ‘high-calibre’ uranium results from drilling at PCE target in Saskatchewan

[Redator]

Drilling by NexGen Energy (TSX, NYSE: NXE; ASX: NXG) has returned results as high as 0.5 metre grading 68.8% uranium oxide (U₃O₈) at its Patterson Corridor East (PCE) target in northwestern Saskatchewan.

That result, in hole RK-25-232, was part of a 15-metre intercept at 15.9% U₃O₈ from 552.4 metres depth, including 3 metres grading 47.8% U₃O₈ and 1.5 metres at 29.4%, NexGen reported Tuesday. PCE is about 3.5 km east of NexGen’s main Arrow deposit in the Athabasca basin, about 750 km north of Saskatoon.

“RK-25-232 is an exceptionally high-calibre intersection considering the program is very early in the evaluation of PCE,” NexGen CEO Leigh Curyer said in a release. “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.”

Project approval looms

The PCE results come as NexGen prepares for Canadian Nuclear Safety Commission hearings later this year and early next year for its Rook 1 project. It’s the final stage of approval that is to render a decision on Canada’s largest development-stage uranium project.

NexGen shares gained 1.1% to C$8.87 apiece on Tuesday morning in Toronto, for a market capitalization of C$5 billion. The stock has traded in a 12-month range of C$5.59 to C$12.51.

High grades at depth

Hole RK-24-222 also returned significant results, with 17 metres grading 3.85% U₃O₈ from 753 metres depth, including 3 metres at 10.1% U₃O₈ and 0.5 metre grading 28.2% U₃O₈ within massive replacement style mineralization, NexGen said.

RK-24-207 cut 9.5 metres at 2.91% U₃O₈ from 801 metres depth, including 0.5 m at 28.2% U₃O_8. 

Since March 2024, NexGen has drilled more than 47,425 metres at PCE across 64 holes, with 35 of them intersecting mineralization.

11-year mine

NexGen has proposed Rook 1 as an underground mine and mill development, centred around the Arrow deposit.

Rook 1 has potential for an initial 11-year mine capable of producing 21.7 million lb. of U₃O₈ annually during the first five years, with production estimated to reach as high as 30 million lb. per year, according to a feasibility study update published last August.

With C$1.3 billion in capital expenditures, it is projected to be the largest and lowest-cost uranium mine in the world. The project contains 3.7 million measured and indicated tonnes, grading 3.1% U₃O₈.