NexGen Exploration Update and Plans for 18,000 Meter Winter Drill Program
December 3, 2014 (Source: CNW) — NexGen Energy Ltd. (NXE:TSXV) (“NexGen” or the “Company”) is pleased to provide an update on completed, ongoing and future exploration activities on the Company’s highly prospective uranium properties in the Athabasca Basin, Northern Saskatchewan. For reference, Figure 1 highlights NexGen’s global project portfolio in the Athabasca Basin.
- Rook I, location of the Arrow Discovery:
- Completed airborne VTEM and magnetometer surveys to now have full coverage across all of Rook I and the entire SW2 property portfolio which includes Bishop I & II, Meanwell and R-7 claims,
- Infill ground gravity at Rook I covering prospective conductor corridors is scheduled for December to assist in drill collar targeting for winter 2015,
- Radon in lake water sampling along the Patterson Conductor corridor to the northeast of Arrow along 4km of untested strike length.
- SW3 project portfolio (Rook II, Sandhill and Dufferin):
- Completed airborne gravity coverage across Rook II and Sandhill,
- Completed airborne VTEM and magnetometer surveys on Dufferin.
- Interpretation of all geophysical data will assist in defining drill collar locations for the upcoming 18,000 meter winter drill program commencing in early January 2015. Drilling will aim to define the extent of the Arrow zone and test a number of highly prospective regional targets on the Rook I claim that covers all the major uranium bearing conductor corridors in the South-Western region of the Athabasca Basin.
- Eastern Athabasca Basin Portfolio properties Madison and 2Z Lake completed airborne VTEM and magnetometer surveys
- Assay results from 16 drill holes from the summer 2014 exploration program on the Arrow zone are pending.
- Current geophysical and future drilling programs are well funded with $15M in the treasury
Garrett Ainsworth, NexGen’s Vice-President, Exploration and Development, commented “After an exceptionally successful summer drill campaign we have been strategically commissioning geophysical surveys, interpreting data as it becomes available, and planning for the winter 2015 drilling season. Upon completion of our fall 2014 geophysical surveys we will have full airborne VTEM coverage on our entire SW2 project, which will show all of the potential electromagnetic conductor targets within several conductor corridors that span across an emerging uranium district in the southwest Athabasca. Primarily focused on the Arrow zone, we also have plans to aggressively explore other highly prospective corridors within the Rook I property which all host a multitude of priority drill targets.”
Leigh Curyer, CEO commented, “The objective of these geophysical surveys and interpretation is to provide drill collar locations for extending the Arrow zone and to provide high quality target identification across the entire SW2 and SW3 portfolios. NexGen has the most dominant portfolio in this section of the Athabasca Basin covering the Basin boundary and all major known uranium bearing conductor corridors in the area. Given the geophysical signature of Arrow and the knowledge learnt from its discovery, the team is well positioned for future exploration success.”
Detailed airborne VTEM Plus and magnetometer surveys on 100 m line spacing totaling 793.1 line-km has been flown by Aeroquest Airborne on mineral disposition S-108095, which covers the northeast strike extension from the Arrow zone. The Arrow zone is associated with a north to northwest cross-cutting structure that appears to have developed drag folding of the electromagnetic (“EM”) conductor, and the initial interpretation shows that this same structure is repeated at least three times within a 4 km section northeast along strike from Arrow (see Figure 2). Favourable magnetic and gravity settings are also associated with these recently located VTEM conductors.
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As a follow-up to these encouraging VTEM results, a radon in lake water survey will be conducted as part of the upcoming winter 2015 exploration program with the goal of testing the EM conductors beneath Patterson Lake. Detailed grids will be laid out for radon in lake water sampling with a focus on the aforementioned cross-cutting structures.
The recently flown VTEM and magnetic survey on part of the Rook I property also covers an important portion of the Derkson conductor corridor where historical drill hole DER-04 (2.5 m of 0.2% U) is located 4.2 km to the northeast along trend of the Rook I property. Initial interpretation shows a major north to northwest cross-cutting structure through the northeast to southwest trending Derkson conductor corridor that has resulted in multiple significant EM conductor offsets of up to 350 m. Offsets, flexures, and breaks in EM conductors represent potential dilation zones, which are often necessary for substantial accumulations of high-grade uranium mineralization.
MWH Geo-Surveys Ltd. of Vernon, B.C. has been contracted to carry out an approximate 4,700 station ground gravity survey beginning in early-December to infill and expand on the existing coverage on Rook I. The objectives of the gravity surveys are two-fold:
- To detect, locate and characterize any low density anomalies in relation to offsets and flexures of known conductor trends interpreted from EM survey data;
- To refine and supplement interpreted magnetic trends that have the potential to be reactivated structures, particularly in the Precambrian basement and at or near the Athabasca unconformity, while updating and improving upon the local geology underlying the project areas from more regional concepts.
Of particular interest is the area located 1.2 km north along trend from Fission Uranium’s drill holes PLS14-255, -262, and -284, which all intersected anomalous radioactivity within graphitic pelitic gneiss (favourable host rock). As shown in Figure 3, this EM conductor, with associated radioactivity, trends onto NexGen’s Rook I property where significant offsets are observed. This is a highly prospective regional target for the Company’s winter 2015 drill campaign.
CGG Canada Services Ltd. has been contracted to carry out a 1,338 line-kilometre Falcon airborne gravity survey on the east portions of the Rook I, Bishop I and II, and Meanwell properties in December. Gravity data over this large of an area will assist in further refining exploration targets, and will complement the VTEM and magnetic data which has already been gathered.
Airborne radiometric data from the entire Rook I property has been ranked and examined using custom techniques developed by Peridot Geoscience Ltd. The interpretation map is shown in Figure 4. The summary of this interpretation follows:
- Definition of distinct radiometric potassium-thorium (K-Th) Classes was completed to assist with defining the distribution of surface materials within the property;
- Identification of uranium-thorium anomalism (U-Th) relative to K-Th Classes and gross uranium content (eU);
- Preliminary spatial review of ranked U-Th anomalies, identifying significant clusters and trends related to background lithology, structure, and topography.
- The ranked airborne radiometric dataset will be integrated into the broader exploration model for the Rook I property, and used as an additional layer to prioritize uranium anomalism.
Condor Consulting has begun processing and analysing the available data from a series of airborne geophysical surveys comprising VTEM and magnetometer, GeoTEM and magnetometer, and Falcon airborne gravity surveys over the SW2 project. This will provide a comprehensive interpretation of multiple layers of data that will be invaluable in planning future exploration programs with the best potential for success.
A LiDAR survey was flown by Eagle Mapping Ltd. on the Rook I property, which consisted of 8 survey points or more per square meter in order to produce an accurate one meter contour map. This survey will further assist with targeting high-grade uranium mineralization at the Arrow zone.
Detailed airborne VTEM Plus and magnetometer surveys on 100 m line spacing totaling 860.3 line-km has been flown on the southern portion of the Dufferin property, which has revealed EM conductors belonging to and associated with the Virgin River Shear Zone (“VRSZ”). A preliminary map is shown in Figure 5. The VRSZ is a uranium fertile domain that hosts Cameco’s Centennial uranium deposit and their Dufferin uranium zone.
CGG Canada Services Ltd. has been contracted to carry out a 1,811 line-km Falcon airborne gravity survey on our Rook II and Sandhill properties in December. Gravity data over this large of an area will rapidly show areas of interest that warrant further exploration, and with accompanying ground HLEM and magnetic data will finalize drill targets along the VRSZ.
Condor Consulting has begun processing and analyzing the available data from a series of airborne geophysical surveys comprising VTEM and magnetometer, GeoTEM and magnetometer, Falcon airborne gravity, and ground HLEM surveys over the SW3 project.
Madison and 2Z Lake Properties
Detailed airborne VTEM Plus and magnetometer surveys on 100 m line spacing totaling 176.7 line-km has been flown on the Madison property, and 78.0 line-km has been flown on the 2Z Lake property.
Winter 2015 Drilling
The winter 2015 drill campaign is contemplating 18,000 m utilizing three A5 diamond drill rigs operated by Aggressive Drilling from Prince Albert, Saskatchewan. The majority of drilling is planned to occur at the Arrow zone or along strike to the northeast and southwest from Arrow. Highly prospective regional drill targets on the Rook I property have also been developed within the Derkson conductor corridor, and north of Fission Uranium’s Far East radioactive drill intersections.
Corporate: Appointment of Grace Marosits, Chief Financial Officer
Andriyko Herchak (former Chief Financial Officer) has transitioned to a consulting role with the Company and will provide ongoing financial and commercial administration advice. Mr Herchak was instrumental in establishing the financial systems at NexGen and his past & future contribution is greatly appreciated. The Company is pleased to announce the appointment of Grace Marosits as Chief Financial Officer. Ms. Marosits obtained her Chartered Accountant designation from Deloitte, where she specialized in audit and taxation, and also holds a Bachelor of Commerce degree from the University of British Columbia. She has also previously worked in senior corporate accounting positions at Westcoast Energy (which became Spectra Energy) and Ballard Power.
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of exploration professionals with a track record in the discovery of unconformity-style uranium deposits in Canada.
NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook 1, location of the Arrow Discovery, and an option to earn a 70% interest in the Radio Project, immediately adjacent to Rio Tinto’s Roughrider Deposit.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43- 101 and reviewed on behalf of NexGen Energy Ltd., by Garrett Ainsworth, P.Geo., Vice President – Exploration & Development, a qualified person.
Chief Executive Officer
NexGen Energy Ltd.
The TSXV has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Generally, but not always, forward looking information is identifiable by the use of words such as “will” and planned” and similar expressions. Forward-looking information is based on the then current expectations, beliefs, assumptions, estimates and forecasts about the Company’s business and the industry and markets in which it operates. Such information is not a guarantee of future performance and undue reliance should not be placed on forward-looking information. Assumptions and factors underlying the Company’s expectations regarding forward-looking information contained herein include, among others: that general business and economic conditions will not change in a material adverse manner; that financing will be available if and when needed on reasonable terms; that the Company’s current exploration activities can be achieved and that its other corporate activities will proceed as expected; that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned exploration activities will be available on reasonable terms and in a timely manner.
Although the assumptions made by the Company in providing forward looking information are considered reasonable by management at the time the forward-looking information is given, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information also involves known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information, including, among others: risks related to the availability of financing on commercially reasonable terms and the expected use of the proceeds; changes in the market; potential downturns in economic conditions; industry conditions; actual results of exploration activities being different than anticipated; changes in exploration programs based upon results of exploration; future prices of metal; availability of third party contractors; availability of equipment and supplies; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks; changes in laws and regulations; community relations; and delays in obtaining governmental or other approvals or financing. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. NexGen undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
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