NexGen scores higher grade uranium find than at flagship’s discovery hole in Saskatchewan

NexGen Energy (TSX: NXE; NYSE: NXE; ASX: NXG) has reported high-grade uranium assays east of its main Arrow deposit in northern Saskatchewan that are stronger than the first Arrow discovery hole a decade ago.  

The Patterson Corridor East (PCE) discovery hole RK-24-183 cut 13.5 metres grading 0.78% uranium oxide (U₃O₈) from 347.5 metres depth, including 0.5 metres at 10% U₃O₈ and another 0.5 metre at 6.23% U₃O₈, NexGen said in a release Wednesday. That compares with the 5.7 metres at 0.37% U₃O₈, including 0.2 metres at 5.77% U₃O₈ result from the RK-14-21 discovery hole in 2014 at Arrow, considered the largest development stage uranium deposit in Canada.  

Hole RK-24-193, 275 metres southwest along strike of RK-24-183 returned mineralization over 67.5 metres from 383.5 metres depth, including intervals up to 7,500 counts per second (cps) over 1.5 metres, according to gamma spectrometer readings.  

"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. “The growing potential of this latest discovery will drive the focus of the summer exploration program to determine the potential size and extent of mineralization. Efficient and bold testing of the overall system is the first priority.” 

Nuclear metal security  

The results at PCE come a day after NexGen announced the closure of its 2.7 million lb. purchase of U₃O₈ from Cayman Island fund manager MMCap International for US$250 million in unsecured convertible debentures. The debentures will be convertible to about 23 million common shares of NexGen, equal to about 4.3% of the company’s issued and outstanding common shares.