NexGen Completes Phase I of Feasibility-Stage Drill Program Intersecting High Grade Mineralization and Preliminarily Assessed Robust Geotechnical and Hydrogeological Conditions in all Areas of Arrow
NexGen Completes Phase I of Feasibility-Stage Drill Program
Intersecting High Grade Mineralization and Preliminarily Assessed
Robust Geotechnical and Hydrogeological Conditions in all Areas of
Arrow
Vancouver, BC, August 7, 2019 – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE, NYSE MKT: NXE)
is pleased to report radioactivity results for an additional thirty-seven holes comprising 16,585.5 m from the
Company’s Feasibility -stage drilling program at our 100% owned, Rook I property in the Athabasca Basin
Saskatchewan. The Phase I resource component of the 2019 Feasibility stage program has completed 117 holes
totaling 50,968 m. Utilizing new directional drilling technology, A ziDrill, the Company was able to reduce the
metres required for Phase I conversion by 28% due to the ability to target mineralization more accurately with
deeper directional cuts from the pilot hole.
Further, an additional 14 holes of 6,314.4 m were compl eted designed to geotechnically and hydrogeologically
characterize the rock mass within areas of the proposed mine workings and the Underground Tailings
Management Facility (“UGTMF”).
In total, the 2019 Phase I winter drilling program comprised 131 completed holes totaling 57,282.4 m.
Phase I: Conversion of Indicated to Measured Mineral Resources
This current phase of the 2019 drilling program targeted the A2 and A3 High -Grade Domains for conversion of
Indicated to Measured Mineral Resources within the proposed mine plan at a drill hole spacing of between 9.0
m and 16.7 m (based on a geostatistical data spacing report compiled by Clayton V. Deutsch from Resource
Modeling Solutions). All drill holes were collared at a steep inclination, then shallowed out between -55° and -
60° before intersecting the target by utilizing the latest in directional drilling technology. The results below
highlight intersections through each of the A2 and A3 High Grade Domains, respectively.
A2 High-Grade Domain Highlights
• AR-19-265c2 intersected 53.5 m of total composite mineralization including 9.80 m of total composite
off-scale radioactivity (>10,000 to >61,000 cps) within a 109.0 m section (497.5 to 605.5 m). Additionally,
of the 9.80 m of off -scale mineralization intersected in the hole 2.0 m of massive -to-semi massive
pitchblende with minimum-greater-than-61,000 cps;
• AR-19-259c1 intersected 26.5 m of total composite mineralization including 8.40 m of total composite
off-scale radioactivity (>10,000 to >61,000 cps) within a 96.0 m section (549.0 to 645.0 m). Additionally,
of the 8.40 m of off -scale mineralization intersected in the hole 1.00 m of massive -to-semi massive
pitchblende with minimum-greater-than-61,000 cps;
• AR-19-253c1 intersected 41.0 m of total composite mineralization including 5.20 m of total composite
off-scale radioactivity (>10,000 to >61,000 cps) within an 80.0 m section (632.0 to 712.0 m);
• AR-19-262c1 intersected 37.5 m of total composite mineralization including 5.30 m of total composite
off-scale radioactivity (>10,000 to >61,000 cps) within an 88.0 m section (529.0 to 617.0 m).
A3 High-Grade Domain Highlights
• AR-19-256c1 intersected 38.5 m of total composite mineralization including 8.10 m of total composite
off-scale radioactivity (>10,000 to >61,000 cps) within a 96.0 m section (437.0 to 533.0 m). Additionally,
of the 8.10 m of off -scale mineralization intersected in the hole 1.5 m of massive -to-semi massive
pitchblende with minimum-greater-than-61,000 cps;
• AR-19-258c2 intersected 42.0 m of total composite mineralization including 10.85 m of total composite
off-scale radioactivity (>10,000 to >61,000 cps) within an 88.0 m section (413.5 to 501.5 m);
• AR-19-263c3 intersected 46.5 m of total composite mineralization including 7.20 m of total composite
off-scale radioactivity (>10,000 to >61,000 cps) within an 85.0 m section (584.0 to 669.0 m).
Drill hole locations are shown in Figure 1, full drilling results can be found in Table 1. Drill hole descriptions can
be found at www.nexgenenergy.ca
Phase I: Testing Geotechnical and Hydrogeological Conditions within the proposed mine plan and
Underground Tailings Management Facility (“UGTMF”)
An additional 14 holes totaling 6,314.4 m were completed designed to geotechnically and hydrogeologically
characterize the rock mass within areas of the proposed mine plan and the UGTMF. The preliminary field analysis
indicated robust rock mass conditions in all areas. A report detailing the geotechnical results is being prepared
by North Rock Mining Solutions Inc. In addition, the hydrogeological data acquired from these holes is being
incorporated into the hydrogeological model which will characterize the favourable hydrogeological conditions
at Arrow, inclusive of the proposed UGTMF area . Both reports will be incorporated into to the Feasibility Study
and Environmental Assessment for the Arrow Deposit.
Development, Activities & Financial
• Phase I results are all pending final assays and will be released as received a nd finalized . The
commencement of Phase II is pending final compilation and analysis of all Phase I drilling results. All
programs for the Feasibility Study (H1 2020) and Environmental Assessment (H2 2020) are ongoing and
on schedule.
• NexGen commenced an Environmental Assessment on the Rook I Project on April 29, 2019 in accordance
with the requirements of both the Environmental Assessment Act and the Canadian Environmental
Assessment Ac t, 2012 (“CEAA 2012”) after receiving acceptance of the Rook I Project Description
(Technical Proposal) by the Canadian Nuclear Safety Commission (“CNSC”) and the Saskatchewan
Ministry of Environment (“SMOE”). In addition, NexGen filed an Initial Licence Application with the CNSC
under the Nuclear Safety and Control Act in order to obtain a Licence to Prepare Site and Construct for
the Project.
• NexGen welcomes the conclusion of the section 232 investigation as reported on July 1 2, 2019 by
Presidential Memoranda by which the President of the United States determined that he did not believe
uranium imports threaten to impair the national security of the United States. With the conclusion in
hand and support for the entire nuclear energy sector in th e United States, many industry observers
have reported market activity and utility demand interest has already increased since mid-July for spot and
mid-term delivery.
• As of July 31, 2019, the Company had cash-on-hand of approximately $80 million which fully funds
NexGen for all drilling, feasibility and development programs planned this year.
Leigh Curyer, Chief Executive Officer, commented: “The dual purpose 2019 Phase I drilling has produced another
batch of exceptional radio activity results highlighting Arrow’s unique high grade continuity throughout the ore
body, and from a development perspective, highly favourable ground conditions for the proposed mine plan and
UGTMF. I would like to take the opportunity to congratulate the NexGen team on the speed, accuracy, efficiency
and elite standards in executing Phase I ground work whilst in tandem successfully advancing permitting and
community objectives. It’s an exciting time at NexGen and the dedication of the team inclusive of our valued
service providers, community members and government is outstanding.”
Troy Boisjoli, Vice-President, Operations and Project Development, commented : “Today’s release represents a
great milestone for the Project as this last batch of Phase I holes continues to show the clear continuity of high-
grade mineralization across the A2 and A3 shears. These radioactivity results are particularly impressive
considering the advanced shallow angle of interception into the sub-vertical Arrow orebody that AziDrill has been
able to deliver over prior drill programs at Arrow. In addition, the preliminary geotechnical and hydrogeological
field results indicating highly competent ground conditions for sound extraction is excellent. The strength of the
Arrow resource and proposed mine plan has been further validated with the completion of the 2019 Phase 1 drill
program. We look forward to incorporating all these results into an updated mineral resource, Feasibility Study
and Environmental Assessment for submission.”
Figure 1: Arrow Deposit Drill Hole Locations
Table 1: Arrow Deposit Drill Hole Data
Drill Hole
Athabasca Group -
Basement Unconformity
Depth (m)
Handheld Scintillometer Results (RS-
120/125)
Hole ID Azimuth Dip Total
Depth (m)
From
(m) To (m) Width
(m) CPS Range
AR-19-251c1 327 -65 577.50 141.25 480.00 481.00 1.00 <500 - 5000
503.00 506.50 3.50 <500 - 14500
520.00 521.00 1.00 <500 - 61000
523.50 524.50 1.00 <500 - 3000
531.00 532.50 1.50 4000 - 61000
537.00 539.00 2.00 <500 - 1700
543.00 545.00 2.00 <500 - 1800
556.50 557.00 0.50 <500 - 590
AR-19-251c2 327 -65 666.50 N/A 424.50 425.00 0.50 <500 - 1400
463.00 465.00 2.00 <500 - 15000
470.00 483.50 13.50 <500 - 33000
486.00 501.00 15.00 <500 - 61000
512.00 514.00 2.00 <500 - 1200
581.50 594.00 12.50 <500 - 61000
597.50 600.00 2.50 <500 - 750
608.00 609.00 1.00 <500 - 1000
611.50 612.50 1.00 <500 - 3400
623.00 627.50 4.50 <500 - 12100
646.00 647.50 1.50 <500 - 2400
AR-19-252c1 327 -65 756.50 129.40 483.50 484.00 0.50 <500 - 2350
502.50 503.00 0.50 <500 - 15200
507.00 508.00 1.00 <500 - 2350
513.50 515.00 1.50 <500 - 1250
559.00 560.00 1.00 600 - 47600
564.50 565.00 0.50 <500 - 2200
574.00 577.50 3.50 <500 - 49000
580.50 587.50 7.00 <500 - 52800
600.00 600.50 0.50 <500 - 6800
610.50 620.50 10.00 <500 - 61000
633.00 635.00 2.00 <500 - 4400
642.00 648.50 6.50 <500 - 2400
652.50 653.00 0.50 520 - 860
661.50 662.00 0.50 <500 - 3400
664.50 665.00 0.50 <500 - 950
667.50 679.00 11.50 <500 - 61000
685.50 695.50 10.00 <500 - 10500
699.00 699.50 0.50 <500 - 1500
703.50 705.50 2.00 <500 - 3700
721.50 724.50 3.00 <500 - 14000
AR-19-252c2 327 -65 801.50 N/A 487.50 489.00 1.50 <500 - 1500
509.50 511.50 2.00 <500 - 8400
543.00 543.50 0.50 <500 - 510
546.00 547.00 1.00 <500 - 4140
559.00 559.50 0.50 <500 - 1400
576.50 584.00 7.50 <500 - 20500
589.50 592.50 3.00 <500 - 45000
595.50 604.00 8.50 <500 - 61000
606.50 611.00 4.50 <500 - 19000
620.00 628.00 8.00 <500 - 44000
634.00 634.50 0.50 <500 - 540
637.50 650.50 13.00 <500 - 3400
656.00 657.00 1.00 <500 - 2100
661.00 669.00 8.00 <500 - 2000
676.00 703.00 27.00 <500 - 61000
723.50 729.50 6.00 <500 - 27000
738.00 738.50 0.50 <500 - 580
745.00 746.00 1.00 <500 - 7200
755.50 757.00 1.50 <500 - 12600
777.50 779.50 2.00 <500 - 13000
AR-19-252c3 327 -65 804.50 N/A 496.50 497.00 0.50 <500 - 850
515.50 521.50 6.00 <500 - 6800
528.00 530.00 2.00 <500 - 9000
551.00 555.00 4.00 <500 - 12700
567.50 568.00 0.50 <500 - 760
580.50 581.50 1.00 <500 - 750
590.50 593.50 3.00 <500 - 45000
606.00 607.00 1.00 <500 - 61000
612.50 621.00 8.50 <500 - 61000
623.50 646.00 22.50 <500 - 61000
649.50 657.00 7.50 <500 - 3800
663.50 671.00 7.50 <500 - 3050
674.00 681.00 7.00 <500 - 1500
684.00 700.00 16.00 <500 - 61000
702.50 704.00 1.50 <500 - 660
706.50 711.50 5.00 <500 - 18100
718.50 729.50 11.00 <500 - 61000
738.00 739.00 1.00 1200 - 47900
750.00 755.00 5.00 <500 - 11600
774.00 776.00 2.00 <500 - 9600
783.50 784.50 1.00 <500 - 61000
AR-19-253c1 327 -65 712.00 125.45 442.50 443.50 1.00 <500 - 2650
528.00 528.50 0.50 <500 - 1100
537.00 540.50 3.50 <500 - 1800
558.50 560.00 1.50 <500 - 15500
568.00 573.00 5.00 <500 - 650
580.00 584.00 4.00 <500 - 4000
587.50 589.50 2.00 <500 - 2200
594.50 595.00 0.50 <500 - 910
623.50 624.00 0.50 <500 - 730
639.50 672.00 32.50 <500 - 61000
681.00 683.00 2.00 <500 - 15000
690.00 696.00 6.00 <500 - 52800
AR-19-253c2 327 -65 744.50 N/A 442.00 442.50 0.50 <500 - 720
506.00 507.50 1.50 <500 - 12000
538.50 541.50 3.00 <500 - 1900
547.00 548.00 1.00 <500 - 840
552.50 558.50 6.00 <500 - 2500
568.50 569.00 0.50 660 - 3150
583.50 585.00 1.50 <500 - 1050
591.50 592.00 0.50 <500 - 1580
606.00 609.00 3.00 <500 - 820
635.50 640.50 5.00 <500 - 2500
651.00 685.00 34.00 <500 - 61000
687.50 688.50 1.00 <500 - 6640
692.50 701.00 8.50 <500 - 13200
706.50 709.50 3.00 <500 - 3350
742.00 742.50 0.50 <500 - 1000
AR-19-254c1 327 -65 684.50 133.10 479.00 480.00 1.00 <500 - 5600
522.00 522.50 0.50 <500 - 550
527.50 528.00 0.50 <500 - 790
533.50 534.00 0.50 <500 - 620
616.50 625.00 8.50 <500 - 6500
631.50 641.00 9.50 <500 - 10200
649.00 651.50 2.50 <500 - 15000
657.00 663.00 6.00 <500 - 12000
AR-19-254c2 327 -65 699.50 N/A 468.50 469.00 0.50 <500 - 550
471.50 472.00 0.50 <500 - 900
483.50 484.00 0.50 700 - 13100
514.50 515.00 0.50 <500 - 1100
528.00 529.50 1.50 <500 - 25000
533.00 534.50 1.50 <500 - 25000
538.50 539.50 1.00 <500 - 29100
542.50 550.50 8.00 <500 - 2800
609.50 610.00 0.50 <500 - 580
622.00 623.50 1.50 <500 - 3300
628.00 658.00 30.00 <500 - 24000
665.50 670.00 4.50 <500 - 61000
AR-19-255c1 327 -65 609.50 122.40 505.00 506.00 1.00 <500 - 1580
510.50 513.00 2.50 <500 - 1700
520.00 523.50 3.50 <500 - 1400
545.50 565.00 19.50 <500 - 61000
568.50 569.00 0.50 670 - 2000
588.00 589.00 1.00 <500 - 5600
AR-19-255c2 327 -65 609.50 N/A 523.00 523.50 0.50 <500 - 7500
526.00 532.50 6.50 <500 - 4400
551.00 561.50 10.50 <500 - 61000
565.00 568.00 3.00 <500 - 910
579.00 579.50 0.50 <500 - 750
582.00 587.50 5.50 <500 - 4000
AR-19-255c3 327 -65 626.00 N/A 436.50 437.00 0.50 <500 - 2600
454.00 454.50 0.50 850 - 1300
504.00 507.50 3.50 <500 - 700
510.50 511.50 1.00 <500 - 2600
514.00 520.50 6.50 <500 - 2600
528.00 530.00 2.00 <500 - 5700
533.50 535.50 2.00 <500 - 3960
538.50 539.50 1.00 <500 - 4300
549.00 550.00 1.00 <500 - 2400
567.50 584.50 17.00 <500 - 61000
587.50 589.50 2.00 <500 - 2100
603.00 603.50 0.50 570 - 1240
606.00 606.50 0.50 <500 - 500
AR-19-256c1 327 -65 537.00 141.00 453.50 456.50 3.00 <500 - 23000
467.00 467.50 0.50 800 - 27000
471.50 472.50 1.00 <500 - 15200
478.00 512.00 34.00 <500 - 61000
AR-19-256c2 327 -65 552.50 N/A 457.50 458.50 1.00 <500 - 5850
463.00 467.50 4.50 <500 - 6300
470.00 470.50 0.50 <500 - 1500
474.00 476.00 2.00 <500 - 4000
480.00 481.00 1.00 750 - 13000
484.50 485.00 0.50 <500 - 720
488.00 489.00 1.00 <500 - 1400
492.00 516.50 24.50 <500 - 61000
AR-19-256c3 327 -65 705.20 N/A 461.50 462.00 0.50 <500 - 1600