Nexgen Energy Ltd T.NXE

RE:Look at all the fcu scum

[teevee]

420alltheway,
FCU has many issues. For example, because mineralization PLS is so erratic and spread out over many kilometers, the new zones to the NW and SE will have to be large enough to warrant stand alone development. Adding more pounds to the 780 and 00 zones might be helpful and add to the PEA, but for the new 1515W, 840W and 1620E zones, they have to be large enough to be stand alone open pit mine developments. As far as I can tell, none is close to that.

FCU's mineralization is erratic and pod like and that is why they have to infill drill on 10 meter spacing versus 25 meter spacing at NXE's Arrow deposit. It is likely that none of the new zones will be large enough to warrant development, so any pounds added in the new zones is meaningless.

Then there is the matter of 50 - 100 meters of water saturated glacio fluvial sediments overlying bedrock. A real world example is Pine Point where much ore was left in the ground at the Pine Point open pit Pb-Zn mine because of ground water problems.When Cominco attempted dewatering, monitoring wells over 10 kilometers away were affected!!! The 50-100 meters of glaciofluvial sediments under Paterson Lake and the 780 and 1620E zones extend to the south under the 840 west zone. FCU has drilled ground water monitoring wells to test draw down and flow rates. This data will be critical to determine whether or not open pits can be economically developed, and if near bedrock surface high grade can be extracted without having to treat too much water. As far as I am concerned, the jury is out on FCU until all geotechnical work is done and evaluated, and factored into an updated PEA or PFS.It could be that FCU's PLS deposits are a big "goose egg". Why be exposed to that kind of risk when you can just own $NXE?

Also noteworthy, is that Haywood is the first to use a DCF model for NXE valuation and has a target of $6/share.