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NexGen Discovers New High Grade Zone in the A1 Shear with 8.35 m of Off-Scale Mineralization
Vancouver, BC, April 14, 2016 - NexGen Energy Ltd. ("NexGen" or the "Company") (TSXV:NXE, OTCQX:NXGEF) is pleased to announce a new discovery of high grade mineralization at the Arrow deposit from our on-going winter-spring drilling program on our 100% owned Rook I Property, Athabasca Basin, Saskatchewan.
Drill hole AR-16-84c1 represents the strongest uranium intercept in the A1 shear zone to date in an area that is untested. Hole -84c1 was angled as a scissor hole with an azimuth to the northwest which drilled through the A2 High Grade Domain, and into the A1 shear zone (Figures 1, 2, and 3). This hole intersected substantial accumulations of semi-massive pitchblende including 8.35 m of off-scale mineralization (>10,000 to 48,000 cps) within the A1 shear.
Additionally, hole -84c1 also intersected substantial off-scale radioactivity (from >10,000 to >61,000 cps) within the A2 High Grade Domain (Figures 1 and 3). Hole -84c1 intersected 6.45 m of off-scale mineralization within
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m of total composite mineralization confirming the continuity and high grade nature of the A2 High Grade Domain.
One drill rig will continue to drill northwest azimuth scissor holes into the A2 and A1 high grade zones throughout the recently announced 7,500 m spring break-up drilling season (see news release dated April 4, 2016).
Highlights:
A1 Shear:
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AR-16-84c1 (65 m up-dip and southwest from AR-15-34b) intersected 55.0 m of total composite mineralization including 8.35 m of total composite off-scale radioactivity (>10,000 - 48,000 cps) within a 136.0 m section (602.5 to 738.5 m), which represents the strongest mineralization ever encountered within the A1 shear zone.
A2 Shear:
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AR-16-84c1 (scissor hole to AR-15-49c2) intersected 39.5 m of total composite mineralization including 6.45 m of total composite off-scale radioactivity (10,000 - >61,000 cps) within a 108.0 m section (472.5 to 580.5 m) in the A2 high grade domain.
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 three drill rig program comprising 7,500 m of drilling.
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The Company remains on track for release of an updated NI 43-101 resource estimate on the Arrow deposit due in the second half of 2016
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The Company has cash on hand of $33M.
A drill hole location map, a cross section of drill hole AR-16-84c1 and A1 long section are shown in Figures 1 to
3. Table 2 has a summary of the mineralized intervals.
Garrett Ainsworth, Vice-President, Exploration and Development, commented: "The importance of this discovery of high grade mineralization within the A1 shear is clearly evident. Drill hole AR-16-84c1 has encountered the strongest and widest mineralization in the A1 shear to date. This high grade mineralization is characterized by semi-massive pitchblende and redox fronts with abundant pitchblende, and is what we see associated with the most intense alteration observed out of any of the Arrow deposit shear zones (the A1 to A4 shears). The high grade intercept in hole -84c1 is within a large untested area of the A1 shear that now has potential to host another high grade sub-zone. Hole -84c1 has also infilled and confirmed the high grade, continuous and sub-vertical nature of the A2 high grade domain.
Leigh Curyer, Chief Executive Officer commented: "This winter program has been incredibly successful at Arrow. Just as with past programs, Arrow keeps surprising. Hitting 8.25 m of off-scale mineralization within the A1 shear 65 m from the nearest hole in that zone is an example that Arrow itself has a considerable amount of drilling to complete before fully understanding its ultimate size. The spring break-up program will target this area and others that have been under tested as well as further defining the 180 m southwest extension and the A2 High Grade Domain."
Figure 1: Arrow Drill Hole Locations
Figure 2: Cross Section of AR-16-84c1 and Arrow Deposit Grade Shell Facing Southwest