NexGen Energy is pleased to announce a new discovery of high grade mineralization at the Arrow deposit from our on-going winter-spring drilling program on our 100% owned Rook I Property, Athabasca Basin, Saskatchewan.
Drill hole AR-16-84c1 represents the strongest uranium intercept in the A1 shear zone to date in an area that is untested. Hole -84c1 was angled as a scissor hole with an azimuth to the northwest which drilled through the A2 High Grade Domain, and into the A1 shear zone. This hole intersected substantial accumulations of semi-massive pitchblende including 8.35 m of off-scale mineralization (>10,000 to 48,000 cps) within the A1 shear.
Additionally, hole -84c1 also intersected substantial off-scale radioactivity (from >10,000 to >61,000 cps) within the A2 High Grade Domain (Figures 1 and 3). Hole -84c1 intersected 6.45 m of off-scale mineralization within 39.5 m of total composite mineralization confirming the continuity and high grade nature of the A2 High Grade Domain.
One drill rig will continue to drill northwest azimuth scissor holes into the A2 and A1 high grade zones throughout the recently announced 7,500 m spring break-up drilling season.
AR-16-84c1 (65 m up-dip and southwest from AR-15-34b) intersected 55.0 m of total composite mineralization including 8.35 m of total composite off-scale radioactivity (>10,000 – 48,000 cps) within a 136.0 m section (602.5 to 738.5 m), which represents the strongest mineralization ever encountered within the A1 shear zone.
AR-16-84c1 (scissor hole to AR-15-49c2) intersected 39.5 m of total composite mineralization including 6.45 m of total composite off-scale radioactivity (10,000 – >61,000 cps) within a 108.0 m section (472.5 to 580.5 m) in the A2 high grade domain.
Arrow, Activities & Financial
The land-based and basement hosted Arrow zone currently covers an area of 865 m by 280 m with a vertical extent of mineralization commencing from 100 m to 920 m, and remains open in all directions and at depth.
The winter 2016 six drill rig program comprising 30,000 m of drilling is currently transitioning to our spring 2016 three drill rig program comprising 7,500 m of drilling.
The Company remains on track for release of an updated NI 43-101 resource estimate on the Arrow deposit due in the second half of 2016
The Company has cash on hand of $33M.
A drill hole location map, a cross section of drill hole AR-16-84c1 and A1 long section are shown in Figures 1 to 3. Table 2 has a summary of the mineralized intervals.
Garrett Ainsworth , Vice-President, Exploration and Development, commented: "The importance of this discovery of high grade mineralization within the A1 shear is clearly evident. Drill hole AR-16-84c1 has encountered the strongest and widest mineralization in the A1 shear to date.
"This high grade mineralization is characterized by semi-massive pitchblende and redox fronts with abundant pitchblende, and is what we see associated with the most intense alteration observed out of any of the Arrow deposit shear zones (the A1 to A4 shears). The high grade intercept in hole -84c1 is within a large untested area of the A1 shear that now has potential to host another high grade sub-zone. Hole -84c1 has also infilled and confirmed the high grade, continuous and sub-vertical nature of the A2 high grade domain."
Hole AR-16-84c1 was a directional hole collared from surface at an angled orientation (-70°) to the northwest (328° Azimuth). It was designed as a scissor hole to both verify the thickness of sub-vertically dipping mineralization in the A2 shear and to test the A1 shear at depth. Directional drilling was initiated at 204 m. The A1 and A2 shears were intersected at inclinations of -62° and -64°, respectively.
The hole intersected bleached and desilicified Athabasca Group sandstones between 120.2 m and the unconformity at 127.0 m. Basement lithologies consisted largely of semipelitic gneiss to granofel, and relatively narrow intervals of pelitic gneiss, pegmatite, orthogneiss and mylonite (the A1 through A3 shears).
The hole successfully intersected widespread mineralization in the A1, A2, and A3 shears that was associated with semi-massive to massive veins, stringers, worm-rock style, chemical solution fronts, blebs and flecks of pitchblende.
For the entire drill hole, a total composite mineralization of 107.0 m including 14.8 m of off-scale radioactivity (>10,000 ->61,000 cps) was intersected within a 328.5m section (410.5 to 739.0 m). In the A1 shear, 55.0 m of composite mineralization was intersected including 8.35 m of off-scale radioactivity, and in the A2 shear 39.5 m of composite mineralization was intersected including 6.45 m of off-scale radioactivity.
While in the A3 shear, 12.5 m of composite mineralization was intersected. The hole was terminated at 846.0 m. This drill hole represents the discovery of a new zone of mineralization in the A1 shear.
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects.