NexGen Energy Ltd.
(NXE-T) C$9.93
New Discovery Made 3.5km East of Arrow
Event
NexGen Energy announced the discovery of a new zone of mineralization 3.5km
east of the Arrow deposit. Separately, NexGen will be hosting its Q4/23 conference
call today at 8:30 am ET 1-888-664-6392. See our note on the Q4/23 and year end
results.
Impact: POTENTIALLY POSITIVE
Patterson Corridor East (PCE) discovery — Hole RK-24-183 intersected
uranium mineralization between 347.7m and 367.5m approximately 3.5km east
of the Arrow deposit on the wholly-owned SW2 property. The interval was defined
by visual semi-massive primary uranium mineralization along with handheld
spectrometer results, which included 3m at over 61,000 counts per second (cps).
Follow-up drilling in surrounding holes have identified similar uranium indicators
found at Arrow including strong silicification, redox alteration, and elevated
radioactivity. The target area lies within a large gravity low along specific structural
controls similar to Arrow.
Drilling activities are expected to be dedicated to this area. Given the potential
for a larger discovery the company plans to allocate further exploration work at
the PCE discovery. The company noted that PCE is open in all directions at the
moment including 1.5km along strike. We expect questions on today's call with
respect to the size of the drill program and budget for 2024.
Our take — We view the discovery as potentially positive. The discovery is very
early stage (pre-assay results), but it could lead to a larger discovery and provide
positive news flow for NexGen as the company continues to work through the
remaining stages of the federal permitting and licensing for Arrow.