NexGen Energy (TSX-V:NXE, StockForum), a Vancouver-based uranium exploration and development firm operating the Radio Uranium project in the Athabasca Basin, Saskatchewan, Canada, received coverage from David A. Talbot and Aaron Salz at Dundee Capital Markets with Dundee continuing to support a buy recommendation with no target.
Dundee considers NexGen's recent potential uranium discovery at its wholly-owned Rook 1 property to be a game changer hole for not only the company but also for the western side of the Athabasca Basin.
According to the report, Dundee feels that the western side of the basin is yet to show its full potential as nearby Cluff Lake Mine produced 60m+ pounds of U308 and Shea Creek currently holds 96m pounds of the material.
With the PLS discovery causing major investor interest, analysts at Dundee feel NexGen's discovery has become all the more important and are suitably impressed with the company's hitting on the first hole drilled into Target C.
Even though further work needs to be carried out and the discovery still remains classified as potential, analysts are of the mind, due to management interviews and scintillometer data, that perhaps NexGen has made the second discovery in the PLS area.
The report went on to note that RK-14-21, still being drilled at the time of reporting to a depth of 322 metres, showed the sporadic uranium mineralization intersections to have the potential of being part of a larger system due to the elevated radiometrics starting at 49 metres.
NexGen was in the news recently when the company rocketed 82% on the discovery announcement at Rock 1.
Currently there are 128.0m outstanding shares with a market cap of $53.1 million.