NexGen Announces Initiation of Maiden Preliminary Economic Assessment and Off-Scale Mineralization in the 180m Southwest Gap
NexGen Announces Initiation of Maiden Preliminary Economic
Assessment and Off-Scale Mineralization in the 180m Southwest Gap
Vancouver, BC, April 27, 2017 – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX:NXE,
OTCQX:NXGEF) is pleased to report commencement of an independen t maiden Preliminary Economic
Assessment (“PEA”) on the Arrow Deposit, and results from the on-going winter 2017 drilling program at our
100% owned, Rook I property, Athabasca Basin, Saskatchewan.
Initiation of Maiden PEA:
Advanced work has commenced on an independent maiden PEA which will incorporate the updated mineral
resource estimate released on March 6, 2017 (see News Release dated March 6, 2017) . The PEA is scheduled
to be completed late Q2/early Q3 2017 and will outline the following key aspects of Arrow:
• Annual production rate,
• Operating life,
• Mining method,
• Capital expenditures,
• Operating costs,
• Economic returns including: internal rate of return, net present value, payback period and sensitivity
analysis.
Roscoe Postle Associates Inc., a leading independen t consulting company with substantial experience in the
Athabasca Basin, and around the globe will be preparing the PEA.
Drilling Highlights:
Southwest Shallow Dravite A2
Drilling in a previously identified area of strong hydrothermal alteration within the A2 shear located
southwest of Arrow, has intersected mineralization including off-scale radioactivity for the first tim e. This
new area of mineralization begins 170 m below surface and is located 275 m up-dip and southwest of the A2
Mineral Resource domains . Highlighted holes include:
• Scissor hole AR-17-128 intersected 6.0 m of total composite mineralization including 1.1 m of total
composite off-scale radioactivity (>10,000 to 32,000 cps) within a 23.0 m section (195.0 to 218.0 m).
• Scissor hole AR-17-125 (50 m down-dip from AR-17-128) intersected 10.5 m of total composite
mineralization including 0.15 m of total composite off-scale radioactivity (>10,000 to 12,500 cps)
within a 13.0 m section (236.0 to 249.0 m).
Southwest A3 & A4 Gap Drilling
Strong off-scale radioactivity has been intersected in the ‘gap’ area located southwest of the Arrow resource
domains, and northeast of the 180 m Southwest Area Mineral Resource domains. The Southwest Gap Area
was not incorporated into the updated mineral resource estimate and represents a key resource expansion
opportunity , which has just begun to be targeted. Highlighted holes include:
• Hole AR-17-131c3 (85 m northeast and down-dip from AR-16-97) inters ected 64.5 m of total
composite mineralization including 6.6 m of total composite off-scale radioactivity (>10,000 to
>61,000 cps) within 337.0 m section (646.0 to 983.0 m) in the A 3 through A5 shears, and all of the
off-scale in this hole was encountered in the A3 shear.
• Hole AR-17-123c4 (30 m southwest from AR-16-97) intersected 75.5m of total composite
mineralization including 2.8 m of total composite off-scale radioactivity (>10,000 to >61,000 cps)
within 183.0 m section (660.0 to 843.0 m) in the A4 and A5 shears.
• Hole AR-17-123c3 (55 m southwest and down-dip from AR-16-97) inters ected 83.0m of total
composite mineralization including 1.3 m of total composite off-scale radioactivity (>10,000 to
14,000 cps) within 503.5 m section (442.0 to 945.5 m) in the A2 through A5 shears.
Arrow, Activities & Financial:
• The 2017 winter program comprising a minimum of 35, 000 m of drilling with seven drill rigs, will
continue into early May 2017.
• A maiden Preliminary Economic Assessment is scheduled to be completed in late Q2 / early Q3 2017.
• The Company has cash on hand of approximately $58 million.
A longitudinal section and a map showing drill hole locations are shown in Figures 1 and 2. Table 1 i s a
summary of the mineralized intervals.
Garrett Ainsworth, Vice-President, Exploration and Development, commented: “The Southwest Gap area is
showing extensive resource growth potential within the A3 and A4 shears. This area remains largely
untested at depth, which is encouraging given the o verall southwest plunge of the Arrow mineralization .
Targeted drill testing has paid off with the discov ery of off-scale radioactivity in a new area of the A2 shear
located 170 m below the surface. The strength and core lengths of alteration and radioactivity in thi s new
area reminds us of how large the overall Arrow mineralized system is, and how little it has been explored.”
Leigh Curyer, Chief Executive Officer, commented: “The drill results today paired with those previous ly
released from our ongoing winter 2017 program demonstrate how much material room there is for Arrow to
expand and optimize in terms of grade and tonnage. Commencement of an initial PEA is an important step in
providing guidance as to the economic power of Arrow relative to other sources of current and future mined
uranium worldwide. Noting, this initial PEA will be subsequently updated as the Arrow resource is furt her
defined.”
Figure 1: Arrow Deposit Schematic Long section
Figure 2: Arrow Deposit Drill Hole Locations
Table 1: Arrow Deposit Drill Hole Data
Drill Hole Athabasca
Group -
Basement
Unconformity
Depth (m)
Handheld Scintillometer Results (RS-120)
Hole ID Azimuth Dip
Total
Depth
(m)
From (m) To (m) Width (m) CPS Range
AR-17-122 147 -70 381.50 96.10 240.50 253.00 12.50 <500 - 8500
AR-17-123c1 147 -70 906.50 101.50 672.50 675.50 3.0 0 <500 - 1000
688.00 688.50 0.50 <500 - 560
708.00 708.50 0.50 <500 - 1050
725.00 727.00 2.00 <500 - 2340
730.50 733.50 3.00 <500 - 2100
830.00 831.00 1.00 <500 - 6400
AR-17-123c2 147 -70 864.50 101.50 651.00 655.00 4.0 0 <500 - 4600
657.50 658.00 0.50 <500 - 1140
668.50 670.00 1.50 <500 - 60000
675.00 676.00 1.00 <500 - 4100
680.50 684.00 3.50 <500 - 6600
687.00 688.00 1.00 <500 - 9800
707.00 720.50 13.50 <500 - 15000
725.50 742.00 16.50 <500 - 9700
753.50 754.00 0.50 <500 - 1710
761.00 761.50 0.50 <500 - 740
778.50 779.50 1.00 <500 - 530
784.50 791.00 6.50 <500 - 3900
825.00 825.50 0.50 <500 - 630
833.50 835.00 1.50 <500 - 1360
843.50 844.50 1.00 <500 - 560
847.50 850.00 2.50 <500 - 1350
AR-17-123c3 147 -70 984.50 101.50 442.00 443.00 1.0 0 <500 - 720
653.50 654.50 1.00 <500 - 13000
658.50 661.50 3.00 <500 - 8600
665.00 670.00 5.00 <500 - 11000
682.00 683.00 1.00 <500 - 1800
688.00 688.50 0.50 <500 - 630
697.50 736.50 39.00 <500 - 13000
739.00 761.00 22.00 <500 - 14000
783.00 784.00 1.00 <500 - 2300
794.00 797.00 3.00 <500 - 1150
800.00 800.50 0.50 <500 - 670
803.50 804.00 0.50 <500 - 620
817.00 818.00 1.00 <500 - 720
836.00 836.50 0.50 <500 - 885
848.00 848.50 0.50 <500 - 570
881.50 884.50 3.00 <500 - 1100
945.00 945.50 0.50 <500 - 550
AR-17-123c4 147 -70 864.50 101.50 660.00 667.50 7.5 0 <500 - 3900
672.50 673.50 1.00 700 - >61000
676.00 679.50 3.50 <500 - 13000
686.00 692.50 6.50 <500 - 7500
695.50 707.50 12.00 <500 - 29000
710.50 738.00 27.50 <500 - 30000
740.50 754.00 13.50 <500 - 54000
757.50 760.00 2.50 <500 - 5000
790.00 790.50 0.50 <500 - 760
829.00 829.50 0.50 <500 - 5000
842.50 843.00 0.50 <500 - 550
AR-17-124 147 -70 411.00 93.40 No Anomalous Radioac tivity
AR-17-125 327 -70 417.00 N/A 236.00 241.50 5.50 <50 0 - 3450
244.00 249.00 5.00 <500 - 12500
AR-17-128 327 -70 357.00 N/A 195.00 198.00 3.00 <500 - 18000
215.00 218.00 3.00 <500 - 32000
AR-17-130 327 -70 321.00 N/A 181.50 183.00 1.50 <500 - 19000
AR-17-131c1 147 -70 857.50 100.50 659.50 660.00 0.50 1600 - >61000
785.00 785.50 0.50 <500 - 3200
AR-17-131c2 147 -70 963.50 100.50 671.00 671.50 0.5 0 <500 - 1150
674.00 674.50 0.50 <500 - 1400
718.00 718.50 0.50 <500 - 520
749.00 749.50 0.50 <500 - 2000
752.50 753.50 1.00 520 - 8500
759.50 760.50 1.00 <500 - 2000
765.50 769.00 3.50 <500 - 14000
771.50 776.00 4.50 <500 - 4400
788.50 793.50 5.00 <500 - 55000
821.50 822.00 0.50 <500 - 1010
828.50 829.00 0.50 <500 - 14200
857.00 858.00 1.00 <500 - 3080
869.50 870.50 1.00 <500 - 8800
AR-17-131c3 147 -70 1029.50 100.50 646.00 667.50 21.50 <500 - >61000
671.00 678.50 7.50 <500 - 11000
724.50 725.00 0.50 <500 - 1100
756.00 757.50 1.50 <500 - 570
761.50 768.50 7.00 <500 - 2000
772.50 773.00 0.50 <500 - 1100
777.50 785.50 8.00 <500 - 1650
804.00 806.50 2.50 <500 - 4250
809.00 809.50 0.50 <500 - 530
816.50 819.00 2.50 <500 - 3000
881.00 881.50 0.50 <500 - 940
908.00 908.50 0.50 <500 - 770
913.50 914.50 1.00 <500 - 510
919.00 923.50 4.50 <500 - 2210
933.50 937.00 3.50 <500 - 1550
940.50 942.00 1.50 <500 - 680
952.00 952.50 0.50 <500 - 700
982.50 983.00 0.50 <500 - 525
AR-17-132 327 -70 232.00 N/A No Anomalous Radioacti vity
AR-17-134 327 -70 401.00 102.50 234.00 239.00 5.00 <500 - 5400
AR-17-135 327 -70 285.00 102.40 No Anomalous Radioa ctivity
AR-17-137 327 -70 366.00 N/A No Anomalous Radioacti vity
AR-17-139 327 -70 321.00 N/A No Anomalous Radioacti vity
AR-17-140 327 -70 477.00 108.60 262.00 263.50 1.50 <500 - 1240
AR-17-141 327 -70 330.00 N/A No Anomalous Radioacti vity
AR-17-142 327 -70 348.00 N/A No Anomalous Radioacti vity
AR-17-145 327 -70 315.00 N/A No Anomalous Radioacti vity
Parameters:
• Maximum internal dilution 2.00 m downhole
• All depths and intervals are meters downhole, true thicknesses are yet to be determined. Resource mode lling in
conjunction with an updated mineral resource estimate is required before true thicknesses can be estimated.
• “Anomalous” means >500 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
• “Off-scale” means >10,000 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
• Where “Min cps” is <500 cps, this refers to local low radiometric zones within the overall radioactive interval
Arrow Deposit Drilling
AR-17-122
Hole AR-17-122 was collared from surface at an angl ed orientation (-70°) to the southeast (147° Azimuth). It
was designed to test strong, shallow clay-breccia s tyle dravite alteration in the 180 m southwest area in the
A2 shear. The A2 shear was interested at an inclination of -71°.
The hole intersected silicified and hematized Athab asca Group sandstones between 95.9 m and the
unconformity at 96.1 m. Basement lithologies largely consisted of semi-pelitic gneiss and narrow intervals of
pelitic gneiss and mylonite. The hole successfully intersected anomalous radioactivity associated with
disseminated and fracture-hosted pitchblende minera lization. Continuous composite mineralization of 12 .5
m was intersected from 240.5 to 253.0 m in the A2 s hear. The hole was terminated at 381.5 m and