Source: The Energy Report 03/23/2017
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NexGen’s latest mineral resource estimate for the Rook I property has caught the attention of industry analysts.
Earlier this month, NexGen Energy Ltd. (NXE:TSX; NXGEF:OTCQX) released an updated mineral resource estimate for the 100%-owned Rook I property in Canada’s uranium-rich Athabasca Basin. The estimate includes Indicated resources of 179.5 million pounds (179.5 Mlb) of U3O8 in 1.18 million tonnes (1.18 Mt) grading 6.88% U3O8, including the high-grade A2 core of 164.9 Mlb of U3O8 in 0.40 Mt grading 18.84% U3O8. The Inferred resource estimate is 122.1 Mlb in 4.25 Mt grading 1.30% U3O8.
The company noted that the 2016 drilling has “converted 89% of the March 2016 Arrow Deposit Maiden Inferred Mineral Resource into the updated Indicated Mineral Resource category. This level of conversion is truly unprecedented, which continues to confirm the strong continuity of grade and thickness seen across the Arrow deposit converted.”
Paradigm Capital analyst David Davidson noted in a March 7 research report that “NexGen’s discovery of the Arrow uranium deposit represents one of the larger and highest-grade discoveries in the Athabasca basin in decades. After only three years of drilling, the company released an updated NI-43-101 indicated & inferred resource of 5.5 Mt grading 2.5% U3O8 for a contained 302Mlb of U3O8. Additional drilling in all likelihood will expand the resource, which should allow for a potential development scenario.”
Looking ahead, Davidson added, “NXE is well into its planned 35,000m 2017 winter drill campaign and we remain convinced that additional uranium pounds will be added, albeit at a slower rate than to date.”
A March 20 uranium outlook report by BMO Capital Markets had analyst Alexander Pearce and Edward Sterck reporting, “We …read more