What Dundee says about NexGen Now that the $10 million financing deal has been announced with Dundee, it is worth revisiting the detailed NexGen research report put out by Dundee (Feb. 19) after the Rook 1 drill announcemenet).
It's even more interesting to read in conjunction with the news today from FCU (that it has connected the first two of its multiple uraniumm zones in the Patterson Lake South discovery and that it is confident it is on the way to connecting them all.
NexGen is just east of of the FCU strike. This is what Dundee says (in a report that runs 8 pages in total):
"Conclusion:
"We continue to recommend NexGen Energy with a BUY and No Target. NexGen's announcement of a potential uranium discovery (pending assays) on its 100% owned Rook 1 property is not only a game-changing hole for NexGen, but the western side of the Athabasca Basin. It has become our belief that this entire, underexplored, western half of the basin has yet to show its full potential.
"Many investors seem to forget that Cluff Lake Mine produced over 60 MM lbs U3O8 and that Shea Creek already hosts 96 MM lbs itself. Shea is located just 40-50km to the north of the NexGen and the quickly growing PLS project is located just 4.5km from this intercept. The PLS discovery had made this entire area the center of investors' attention, which in turn makes NexGen's potential Rook 1 discovery all the more important from a capital markets point of view.
What's more impressive is that it was the first hole drilled into Target C that hit. Further drilling is required and NexGen has suggested that it will commit more resources to follow up. By convention, we will call this a potential discovery for now, until we see assay results. But based on conversations with management, review of scintillometer data, and knowing how these Athabasca basement rocks present themselves, we are thinking that perhaps NexGen has made the second discovery in the PLS area.
Link ink to full report: https://research.dundeecapitalmarkets.com/~/media/Dcm/Publications/CoverageListResearch/2014/February/N/NXE021914.pdf?dmc=1&ts=20140305T0811093739