URANIUM: NexGen begins feasibility drilling at Arrow deposit

[caption id="attachment_1003726650" align="aligncenter" width="452"] Planned surface infrastructure for the Arrow uranium mine. (Image: NexGen Energy)[/caption] SASKATCHEWAN – NexGen Energy is embarking on the largest drill program in its history at the Rook I project in the Athabasca Basin. Approximately 125,000 metres is planned, the results from which will be used in a bankable feasibility study for the Arrow uranium deposit. There are three objectives:

• Convert high grade indicated resources to measured. The high grade indicated resource is currently 2.9 million tonnes grading 4.03 uranium oxide for 256.6 million lb. of contained U₃O₈. About 71,000 metres of drilling will be done to upgrade resources.
• Convert inferred resources to the indicated category. The current inferred resource is 4.8 million tonnes grading 0.86% U₃O₈ and containing 91.7 million lb. of uranium oxide. About 54,000 metres will be drilled to accomplish this.
• A further 12,500 metres will be drilled for geotechnical and hydrogeological characterization in the area of potential surface infrastructure, underground development, and a tailings management facility.

NexGen says that the basement hosted Arrow deposit will not require freezing of the surrounding rock during development and mining. The Arrow pre-feasibility study put the after fax net present value (8% discount) at $3.7 billion and the after tax internal rate of return at 56.8%. The initial capital cost would be $1.25 billion for a mine and 1,039 t/d processing plant. Additional information about the Arrow project is available at www.NexGenEnergy.ca.