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NexGen Drills 37.4 m of Off-Scale Expanding the High Grade Domain and Discovers Anomalous Radioactivity 1.3 km Northeast of Arrow
Vancouver, BC, April 18, 2016 - NexGen Energy Ltd. ("NexGen" or the "Company") (TSXV:NXE, OTCQX:NXGEF) is pleased to announce further results from our recently expanded winter-spring drilling program on our 100% owned Rook I Property, Athabasca Basin, Saskatchewan.
Drill hole AR-16-78c4 has intersected dense accumulations of massive pitchblende, which has expanded the higher grade A2 sub-zone (the "Sub-Zone") which makes up part of the A2 High Grade Domain (Figure 1, 3 to 6). The mineralization was intersected 59 m down-dip and northeast of AR-15-44b and features 37.4 m of off- scale radioactivity (>10,000 to >61,000 cps). This included 5.5 m at a minimum-of-greater-than 61,000 cps, of which 4.5 m was continuous. On a radioactivity basis, AR-16-78c4 ranks as one of the best holes ever drilled at Arrow. Importantly, the high grade mineralization encountered in hole -78c4 was predominately intersected outside of the current boundary of A2 High Grade Domain (Figure 3).
The A2 High Grade Domain hosts a National Instrument 43-101 compliant Inferred Mineral Resource estimate of 120.5 M lbs of U3O8 contained in 0.41 M tonnes grading 13.26% U3O8, which is within the total Arrow Deposit Inferred Mineral Resource estimate of 201.9 M lbs U3O8 contained in 3.48 M tonnes grading 2.63% (see news release dated March 3, 2016). The maiden resource estimate on Arrow includes drill holes to October 2015, and does not include the 40 drill holes completed so far in 2016.
In addition, anomalous radioactivity sourced from uranium (confirmed with RS-125 spectrometer scintillometer) has been drilled approximately 1.3 km northeast of the Arrow deposit (Figure 2). This new area, named Cannon, is coincident with a gravity low and weakened VTEM conductor. The area has very similar geophysical, lithological and alteration features to the Arrow deposit. To date, 11 holes have been drilled at Cannon, all of which intersected strong-to-intense hydrothermal alteration. Furthermore, 4 holes have intersected anomalous radioactivity of up to 1,300 cps (measured by RS-120 hand-held scintillometer). At least two highly prospective graphitic mylonite shear zones with large envelopes of strong-to-intense clay alteration have been identified. Cannon is open in all directions and is largely untested at the unconformity up-dip from basement structures that host anomalous radioactivity.
Highlights:
A2 Shear:
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AR-16-78c4 (59 m down-dip and northeast from AR-15-44b) intersected 120.5 m of total composite mineralization including 37.4 m of total composite off-scale radioactivity (>10,000 - >61,000 cps) within a 203.5m section (441.5 to 645.0 m), featuring 4.5 m of continuous mineralization at a minimum of greater than 61,000 cps in the Sub-Zone.
Table 1: Higher Grade A2 Sub-Zone Drill Hole Comparison
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2015
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AR-15- 59c22
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AR-15- 54c12
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AR-15- 58c12
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AR-15- 622
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AR-15- 44b2
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AR-15- 49c22
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AR-15- 57c32
|
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Total composite mineralization =
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75.50 m
|
42.00 m
|
86.00 m
|
143.00 m
|
135.60 m
|
73.50 m
|
62.50 m
|
|
Total Off-scale (>10,000 to 29,999 cps)3 =
|
11.40 m
|
5.90 m
|
14.30 m
|
17.75 m
|
30.25 m
|
15.70 m
|
4.40 m
|
|
Total Off-scale (>30,000 to 60,999 cps)3 =
|
4.50 m
|
3.00 m
|
3.85 m
|
10.60 m
|
7.75 m
|
5.20 m
|
2.50 m
|
|
Total Off-scale (>61,000 cps)3 =
|
1.00 m
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0.50 m
|
2.00 m
|
2.00 m
|
1.50 m
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2.15 m
|
1.80 m
|
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Continuous GT (Grade x Thickness) =
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371
|
277
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200 and 345
|
787
|
655
|
605
|
319
|
|
2016
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AR-16- 76c41
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AR-16- 76c11
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AR-16- 76c31
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AR-16- 63c12
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AR-16- 63c31
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AR-16- 74c11
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AR-16- 63c22
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AR-16- 64c31
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AR-16- 64c22
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AR-16- 64c12
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AR-16- 78c11
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AR-16- 78c4
|
|
Total composite mineralization =
|
105.7 m
|
73.50 m
|
67.5 m
|
55.50 m
|
147.00 m
|
88.00 m
|
138.00 m
|
102.00 m
|
76.00 m
|
74.0 m
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64.00 m
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120.5 m
|
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Total Off-scale (>10,000 to 29,999 cps)3 =
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19.85 m
|
14.75 m
|
14.85 m
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6.85 m
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22.10 m
|
21.2 m
|
17.10 m
|
18.75 m
|
15.95 m
|
10.30 m
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11.60 m
|
25.75 m
|
|
Total Off-scale (>30,000 to 60,999 cps)3 =
|
1.00 m
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2.75 m
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5.00 m
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0.50 m
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3.00 m
|
1.15 m
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9.90 m
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2.50 m
|
4.70 m
|
3.70 m
|
3.00 m
|
6.15 m
|
|
Total Off-scale (>61,000 cps)3 =
|
0.00 m
|
5.25 m
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4.50 m
|
0.00 m
|
0.50 m
|
0.00 m
|
13.85 m
|
0.00 m
|
5.50 m
|
0.00 m
|
2.50 m
|
5.50 m
|
|
Continuous GT (Grade x Thickness) =
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Assays Pending
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Assays Pending
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Assays Pending
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203
|
Assays Pending
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Assays Pending
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638 and 604
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Assays Pending
|
541
|
338
|
Assays Pending
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Assays Pending
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1 radioactivity results previously released
2 radioactivity and assays results previously released 3 minimum radioactivity using RS-120 scintillometer
Arrow, Activities & Financial
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The land-based and basement hosted Arrow zone currently covers an area of 865 m by 280 m with a vertical extent of mineralization commencing from 100 m to 920 m, and remains open in all directions and at depth.
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The winter 2016 six drill rig program comprising 30,000 m of drilling is currently transitioning to our spring 2016, 7,500 m of drilling program.
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The Company has cash on hand of $33M to fund its 2016 programs.
Drill hole location maps, a cross section of drill hole AR-16-78c4, and A2 and A3 long sections are shown in Figures 1 to 6. Table 2 has a summary of the mineralized intervals.
Garrett Ainsworth, Vice-President, Exploration and Development, commented: "Drilling in the A2 High Grade Domain continues to return exceptional results as shown by the abundant dense accumulations of massive to semi-massive pitchblende in drill hole AR-16-78c4, which has materially expanded this domain. In addition, our regional drilling 1.3 km northeast of the Arrow deposit has discovered anomalous radioactivity at Cannon. This new area confirms the large and robust nature of the uranium mineralizing system responsible for the Arrow deposit and Bow zone hosts potential for additional discoveries along the Patterson Conductor Corridor."
Leigh Curyer, Chief Executive Officer commented: "The objectives for the winter 2016 drilling program have been met on all fronts. Arrow infill drilling continues to confirm the robustness of mineralization with AR-16-
78c4 ranking as one of the best radioactive results to date at Arrow. The early signs at Cannon are very encouraging and will be a focus of summer 2016 drill program balanced with continual Arrow infill, zone expansion, and testing to the southwest along the conductor corridor. These results place multiple demands on the available drill rigs and management will continue to systematically allocate meters in an optimal manner within the program objectives."
Figure 1: Arrow Drill Hole Locations