NexGen Energy Ltd. - Hole AR-16-76c3 Returns 50.0 m at 15.05% U3O8 including 11.5 m at 49.53% U3O8


June 6, 2016

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VANCOUVER, June 6, 2016 /CNW/ - NexGen Energy Ltd. ("NexGen" or the "Company") (TSXV:NXE, OTCQX:NXGEF) is pleased to report assay results for four angled holes from our highly successful winter 2016 drilling program on our 100% owned, Rook I property, Athabasca Basin, Saskatchewan.

Drilling in the A2 shear at the Arrow Deposit continues to deliver strong assay results. Drill hole AR-16-76c3 which was drilled 58 m up-dip and southwest from hole AR-15-44b (56.5 m at 11.55% U3O8 “ see News Release dated June 15, 2015) has intersected 74.0 m at 10.28% U3O8 in the higher grade A2 sub-zone (the "Sub-Zone"). This intercept, which represents a continuous grade x thickness ("GT") of 761 also includes 50.0 m at 15.05% U3O8, 11.5 m at 49.53% U3O8 and 0.5 m at 80.00% U3O8. Also in the Sub-Zone, drill hole AR-16-78c1 intersected 37.5 m at 12.94% U3O8 and was drilled 69 m up-dip and northeast of hole AR-15-44b.

The Sub-Zone is defined by extensive intersections of dense accumulations of massive to semi-massive pitchblende, and is currently outlined by 22 drill holes. Assay results from four drill holes in the Sub-Zone remain pending.

Table 1: Higher Grade A2 Sub-Zone Angled Drill Holes

 

2015

AR-15-
59c22

AR-15-
54c12

AR-15-
58c12

AR-15-
622

AR-15-
44b2

AR-15-
49c22

AR-15-
57c32

Total composite mineralization =

75.5m

42.0m

86.0m

143.0m

135.6m

73.5m

62.5m

Total Off-scale (>10,000 to 29,999 cps)3 =

11.4m

5.9m

14.3m

17.8m

30.3m

15.7m

4.4m

Total Off-scale (>30,000 to 60,999 cps)3 =

4.5m

3.0m

3.9m

10.6m

7.8m

5.2m

2.5m

Total Off-scale (>61,000 cps)3 =

1.0m

0.5m

2.0m

2.0m

1.5m

2.2m

1.8m

Continuous GT (Grade x Thickness) =

371

277

200 and
345

787

655

605

319

 

2016

AR-16-
81c31

AR-16-
76c41

AR-16-
76c12

AR-16-
76c31

AR-16-
63c12

AR-16-
63c32

AR-16-
86c11

AR-16-
74c12

AR-16-
63c22

AR-16-
64c32

AR-16-
64c22

AR-16-
64c12

AR-16-
72c22

AR-16-
78c11

AR-16-
78c41

Total composite mineralization =

48.5m

105.7m

73.5m

67.5m

55.5m

147.0m

90.0m

88.0m

138.0m

102.0m

76.0m

74.0m

93.0m

64.0m

120.5m

Total Off-scale (>10,000 to 29,999 cps)3 =

5.2m

19.9m

14.8m

14.9m

6.9m

22.1m

8.8m

21.2m

17.1m

18.8m

16.0m

10.3m

7.0m

11.6m

25.8m

Total Off-scale (>30,000 to 60,999 cps)3 =

4.0m

1.0m

2.8m

5.0m

0.5m

3.0m

2.3m

1.2m

9.9m

2.5m

4.7m

3.7m

0.5m

3.0m

6.2m

Total Off-scale (>61,000 cps)3 =

2.5m

0.0m

5.3m

4.5m

0.0m

0.5m

2.0m

0.0m

13.9m

0.0m

5.5m

0.0m

1.7m

2.5m

5.5m

Continuous GT (Grade x Thickness) =

Assays
Pending

Assays
Pending

762

761

203

274
and
124

Assays
Pending

160
and
35

638
and
604

172
and
92

541

338

156
and
45

485

Assays
Pending

1 radioactivity results previously released

2 radioactivity and assays results previously released

3 minimum radioactivity using RS-120 gamma spectrometer

 

 

Highlights:

A2 Sub-Zone

  • AR-16-76c3 (58 m up-dip and southwest from AR-15-44b) intersected 74.0 m at 10.28% U3O8 (470.5 to 544.5 m) including 50.0 m at 15.05% U3O8 (494.5 to 544.5 m) and 0.5 m at 80.00% U3O8 (515.5 to 516.0 m).
  • AR-16-78c1 (69 m up-dip and northeast of AR-15-44b) intersected 37.5 m at 12.94% U3O8 (443.0 to 480.5 m) including 17.0 m at 20.25% U3O8 (443.5 to 460.5 m) and 4.0 m at 59.38% U3O8 (451.5 to 455.5 m).

Arrow, Activities & Financial

  • The land-based and basement hosted Arrow Deposit 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 most directions and at depth.
  • The spring 2016 program comprising 7,500 m of drilling continues with three drill rigs active. Concurrently, preparations are underway for a large summer drill program to begin in mid-June.
  • 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 will have cash on hand of $100M upon closing of the previously announced financing with CEF Holdings.

 

A three-dimensional view of the A2 Sub-Zone, drill hole locations and a close-up of the A2 long section are shown in Figures 1 to 3. Assay results are presented in Table 2.

Garrett Ainsworth, Vice-President, Exploration and Development, commented: "The A2 high grade domain is demonstrating strong grade and thickness continuity of massive to semi-massive uranium mineralization, evident with these two highly ranked GT's at Arrow a considerable distance apart. Delineation drilling at Arrow continues to impress."

Leigh Curyer, Chief Executive Officer, commented: "The drill assay results reported herein continue to exceed our expectations. The spring program is progressing well with currently four assays pending in the Sub-Zone and 23 in total at Arrow. Drilling for the balance of spring will continue to focus at Arrow and at the new 180m southwest extension where early indications have been very encouraging. Preparations for the summer program are well advanced which will focus on continued Arrow delineation and extensions, the 180m southwest extension as well as high priority regional targets along the Patterson Corridor on Rook I."

Table 2: Arrow Zone Assay Results

       

Drill Hole

Athabasca Group
- Basement
Unconformity
Depth (m)

SRC Geoanalytical Results

Grade (U3O8%)
x Thickness (m)
(GT)

Hole ID

Azimuth

Dip

Total
Depth
(m)

From
(m)

To (m)

Interval
(m)

U3O8 (wt%)

AR-16-74c3

131

-69

714.00

113.80

449.50

454.50

5.00

0.03

0.15

         

515.50

516.00

0.50

0.04

0.02

         

521.50

523.00

1.50

0.04

0.06

         

552.00

554.00

2.00

0.23

0.46

         

565.50

566.50

1.00

0.20

0.20

         

569.50

571.50

2.00

0.91

1.82

         

574.00

580.50

6.50

1.85

12.03

         

587.50

590.00

2.50

0.30

0.75

         

592.50

606.00

13.50

0.63

8.51

         

613.50

620.50

7.00

0.02

0.14

         

633.50

634.50

1.00

0.06

0.06

         

653.00

653.50

0.50

0.02

0.01

AR-16-76c2

140

-70

609.00

114.95

434.50

437.00

2.50

0.30

0.75

         

472.50

475.50

3.00

0.23

0.68

         

479.00

481.00

2.00

0.02

0.03

         

483.50

506.00

22.50

0.38

8.48

         

510.50

541.00

30.50

2.70

82.22

         

587.00

596.00

9.00

0.12

1.08

         

598.50

603.00

4.50

0.05

0.22

AR-16-76c3

140

-70

606.00

114.95

470.50

544.50

74.00

10.28

760.72

       

incl.

494.50

544.50

50.00

15.05

       

incl.

510.50

525.50

15.00

41.26

       

incl.

514.00

518.00

4.00

67.05

       

incl.

514.00

525.50

11.50

49.53

       

incl.

515.50

516.00

0.50

80.00

         

586.00

587.50

1.50

0.03

0.05

         

594.50

595.50

1.00

0.04

0.04

AR-16-78c1

138

-68

564.00

110.95

396.00

440.50

44.50

0.14

6.23

         

443.00

480.50

37.50

12.94

485.25

       

incl.

443.50

460.50

17.00

20.25

       

incl.

451.50

455.50

4.00

59.38

         

485.50

491.50

6.00

0.06

0.36

                   

 

Composite parameters:

  • Minimum thickness 0.5 m downhole
  • Cutoff grade 0.01% U3O8
  • Maximum internal dilution 2.00 m downhole
  • U3O8 analyzed by ICP-OES at SRC Laboratories, Saskatoon, Saskatchewan
  • All depths and intervals are meters downhole, true thicknesses are yet to be determined

 

Split core samples were taken systematically, and intervals were submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis. All samples were analyzed using ICP-MS for trace elements on partial and total digestions, ICP-OES for major and minor elements on a total digestion, and fusion solution of boron by ICP-OES. Mineralized samples were analyzed for U3O8 by ICP-OES and selected samples for gold by fire assay.

All assay batches reported herein are subjected to and have passed rigorous internal QA/QC protocols that include, but are not limited to, the blind insertion of standard reference materials, blank materials and field duplicates into the sample stream at both random and systematic intervals.

The technical information in this news release has been approved by Garrett Ainsworth, P.Geo., Vice President “ Exploration & Development, a qualified person for the purposes of National Instrument 43-101 “ Standards of Disclosure for Mineral Projects. Mr. Ainsworth reviewed the data disclosed in this news release, including the sampling, analytical and test data underlying the information contained in this news release. Mr. Ainsworth has verified that the results are accurate by reviewing the official assay certificates provided to the Company.

About NexGen

NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production.

NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Discovery in February 2014. The Arrow Deposit's maiden Inferred mineral resource estimate is 201.9 M lbs U3O8 contained in 3.48 M tonnes grading 2.63% U3O8. Rook I also hosts the Bow Discovery which is 3.7 km along trend and northeast of Arrow and was made in March 2015.

The TSXV has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, the proposed use of proceeds and planned exploration activities. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connation thereof.

Such forward-looking information and statements are based on numerous assumptions, including among others, that the results of planned exploration activities are as anticipated, the price of uranium, the anticipated cost of planned exploration activities, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company's planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.

Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, pending assay results may not be consistent with preliminary results, discretion in the use of proceeds, alternative sources of energy, aboriginal title and consultation issues, reliance on key management and other personnel, potential downturns in economic conditions, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, availability of third party contractors, availability of equipment and supplies, failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.

SOURCE NexGen Energy Ltd.

Image with caption: "Figure 1: Three-dimensional view of the A2 High Grade domain (CNW Group/NexGen Energy Ltd.)". Image available at: http://photos.newswire.ca/images/download/20160606_C6654_PHOTO_EN_706470.jpg

Image with caption: "Figure 2: Arrow Deposit Drill Hole Locations (CNW Group/NexGen Energy Ltd.)". Image available at: http://photos.newswire.ca/images/download/20160606_C6654_PHOTO_EN_706472.jpg

Image with caption: "Figure 3: A2 Mineralized Shear Longsection (Close Up of Sub-Zone) (CNW Group/NexGen Energy Ltd.)". Image available at: http://photos.newswire.ca/images/download/20160606_C6654_PHOTO_EN_706474.jpg

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