Rook I is NexGen's 100%-owned flagship property which hosts the land-based, basement hosted and high-grade Arrow deposit comprised of a series of 5 sub-vertical mineralized shear zones - A1 to A5 - which vary in thicknesses between 4 and 25 m. The mineralized area is currently defined as 280 m wide by 875 m in strike with mineralization starting at 110 m from surface and extending to 980 m. The 100%-owned Arrow deposit has an Indicated mineral resource estimate of 179.5Mlbs U3O8 contained within 1.18Mt grading 6.88% U3O8 including a high-grade core of 164.9Mlbs U3O8 contained within 0.40Mt grading 18.84% U3O8 and an Inferred mineral resource estimate of 122.1Mlbs U3O8 contained within 4.25Mt grading 1.30% U3O8 (see the Company's technical disclosure statement: http://www.nexgenenergy.ca/corporate/corporate-governance/). Arrow remains open in most directions and at depth. The Rook I property also hosts the Harpoon, Bow and Cannon discoveries which are located 4.7 km, 3.7 km and 1.3 km northeast into the Athabasca Basin from Arrow, respectively.
Athabasca Basin Setting
Arrow Mineral Resource Estimate Summary - December 20, 2016 (the "Effective Date")
|Structure||Tonnage (tonnes)||Grade (U3O8 %)||Metal U3O8 (U3O8 lbs)|
|Indicated Mineral Resources|
|A2 High Grade||400,000||18.84||164,900,000|
|Inferred Mineral Resources|
|A2 High Grade||30,000||12.72||8,600,000|
|A3 High Grade||150,000||8.74||28,200,000|
|180 m SW||110,000||0.94||2,300,000|
- CIM Definition Standards were followed for Mineral Resources.
- Mineral Resources are reported at a cut-off grade of 0.25% U3O8 based on a long-term price of US$65 per lb U3O8 and estimated costs.
- A minimum mining width of 1.0 m was used
- Numbers may not add due to rounding.
NexGen successfully published an updated Indicated and Inferred mineral resource estimate based on drilling to the end of the summer 2016 program which included only 200 drill holes. Utilizing a unique drilling methodology comprising 95% angled drill holes allowed NexGen to pierce 2-3 shears with each hole given the fact the deposit is comprised of parallel stacked and sub-vertical shear zones. This enabled the Company to define the Arrow deposit efficiently both in terms of time and cost. The Company is well-funded with approximately C$65 million in the treasury.
Importantly, the Company is dedicated to putting the most dollars into the exploration efforts compared to G&A spending. In 2016, the ratio of dollars-in-the-ground to corporate G&A was >12:1.
Current Plan View of Arrow Zone
The Company recently initiated a 35,000 m winter 2017 drill campaign which will focus on expansion as well as infill drilling the Arrow Deposit. Of the 7 total rigs utilized in this program, 5 will use directional drilling and target the Arrow Deposit. An additional two rigs will focus on identifying new zones of mineralization, both laterally and along strike from Arrow. Additionally, the Company will continue advanced engineering and environmental programs which will encompass geotechnical, metallurgical, hydrogeological, site characterization, community consultation and environmental studies. These studies, combined with the winter 2017 drill results will be included and form the basis of a maiden pre-feasibility study in H2/2017.
A2 High Grade Domain
Additionally, NexGen has successfully identified an A2 High Grade Domain which is characterized by substantial accumulations of dense semi-massive and massive pitchblende and carries across a strike length of over 300 m. As of the updated mineral resource estimate which included drilling only until the end of 2016 drilling accounted for an Indicated mineral resource of 164.9 Mlbs U3O8 (0.40 Mt at 18.84% U3O8). This high-grade core of Arrow represents a top tier mineral asset in its own right and makes up only part of the global resource estime.
NexGen completed its highly successful and expanded summer 2015, 5 rig, 33,000 m campaign which exceeded the goals the Company set out prior to the start of the program. The goals were to further define the extents of Arrow by systematically testing the zone including the A2 and A3 high-grade zones in order to be in the position to publish a maiden resource by the end of the summer.
NexGen aggressively tested the extents of Arrow by drilling and hitting on 3 step-outs in increments of 50, 100 and 210 m to the southwest of AR-15-44b. Due to the fact all of the holes hit mineralization, the decision was made to expand the program in order to infill the space between -44b and the 210 m southwest extension. Not only was the company successfully in doing that, but in doing so NexGen discovered the higher grade A2 sub-zone which is now defined as a sub-horizontal sub-zone of the A2 high-grade shear that is characterized by substantial massive to semi-massive pitchblende mineralization and very high-grades of uranium.
Also in the summer program, NexGen successfully identified a brand new high-grade shear called the A4 which runs parallel to the southeast of the A3. Hole AR-15-58c1 which was drilled 53 m up dip and southwest from -44b (and which also pierced the higher grade A2 sub-zone) intersected 5 m @ 7.23% U3O8 and 19 m @ 2.01% U3O8.
A fully-funded 18,000 m 2015 winter program was initiated in early January (expanded to over 21,000 m) and exceeded the Company's expectations.
The winter 2015 program was successful in extending the area of known mineralization at the A2 shear zone by an additional 88 m to the southwest (from AR-14-30). Also, the Company discovered the new mineralized A3 shear which appears to be even larger than the A2 shear. Mineralization intersected in the A2 and A3 shears show true widths of these high-grade mineralized zone of approximately 11.0 - 48.3 m and 30.0 - 78.6 m, respectively (see news release dated March 23, 2015).
Additionally, the winter 2015 program successfully made a completely new uranium discovery 3.7 km to the NE of Arrow, called: "Bow".
The Discovery of Arrow - Winter 2014
The Company initially drilled their flagship Rook I project in August 2013 with a 3,000 m drill campaign which resulted in eleven of twelve holes confirming the presence of strong clay and hematite alteration. This first pass program was exploratory in nature with no hole being drilled closer than 200 m.
NexGen followed up the successful summer 2013 drill campaign with an expanded 6,000 m winter program in January 2014. The company discovered high-grade uranium at the on land Arrow target with the first drill hole, AR-14-1 (twenty-first hole ever drilled by NexGen at Rook I property). It encountered multiple structural zones containing uranium mineralization. At the time of drilling this discovery hole at the Arrow zone, no other holes existed within a 4 km radius.
Summer 2014, A Game Changer
The summer 2014 program totaled 18,885.8 m in 33 drill holes on the Rook I property (24 drill holes at the Arrow discovery, and 9 drill holes regionally on Rook I). Shortly after the company released the initial assay results from drill hole AR-14-15, they drilled the first ever vertical hole at the Arrow zone in AR-14-30 which returned one of the best drill holes ever drilled in the Athabasca Basin history (909 on a total composite "GT" - grade x thickness metric).
In August 2014, the Company released assay results from AR-14-15 which was the fifteenth hole drilled at the Arrow zone to-date (see news release August 7, 2014).
Hole AR-14-15 returned two wide intervals of uranium mineralization:
The Upper High-Grade Uranium Interval (564.00 to 586.35 m):
- 3.42% U3O8 over 22.35 m
- Including 10.72% U3O8 over 6.85 m
- Including 15.74% U3O8 over 4.50 m
- Including 26.10% U3O8 over 2.60 m
- Highest assay within the interval: 55.8% U3O8 over 0.45 m
- 1.52% U3O8 over 32.0 m
- 10.40% U3O8 over 3.15 m
- Highest assay within the interval: 43.7% U3O8 over 0.35 m
AR-14-30 returned multiple high-grade intercepts, including (see tables below):
- 7.54% U3O8 over 63.50 m
- Including 10.32% U3O8 over 46.00 m
- Including 35.19% U3O8 over 7.00 m
- Including 66.80% U308 over 0.50 m