The continuing stream of high-grade drill results from NexGen Energy’s Arrow deposit has one analyst predicting 50% resource growth.
Throughout 2016, NexGen Energy Ltd. (NXE:TSX; NXGEF:OTCQX) has been announcing drill results. On Dec. 20, NexGen released the results from the final 10 holes of the 2016 drill program at the Arrow deposit, part of the Rook I property in the Athabasca Basin in Saskatchewan.
David Talbot, an analyst with Dundee Capital Partners, noted that “positive highlights include four intercepts along A2 Shear, and another on A3 Shear. Mineralization continues to be intersected at higher than [the] current resource grade of 2.63% U3O8.”
These results, Talbot stated, “complete 2016’s massive 73,091m drill program designed to expand and improve upon the existing 202 MM lbs resource at Arrow. We believe results should 1) increase confidence with closer spaced holes to upgrade to measured and indicated; 2) expand the mineralized footprint; and 3) delineate higher grade areas within areas previously believed to be lower grade. We estimate resource growth of at least 50% to over 300MM lbs U308.”
In a Dec. 14 report, Talbot noted that “management has spent time and effort attracting a strong and experienced technical team. Plenty of geotechnical and metallurgical work is going on behind the scenes in preparation for the PEA. This should provide a strong valuation footing for investors. In the meantime the Arrow Deposit continues to grow and improve with each press release.”
Gwen Preston, editor of Resource Maven, concurs, writing on Dec. 14, “If uranium continues to strengthen I would expect NXE shares to offer strong leverage, given that Arrow is the best uranium discovery in the world. The price will also rise as we approach that resource update, which could well grow the already-impressive 202-million lb. resource by 50%.”
Talbot is also optimistic: “We expect NXE …read more