NexGen Drills Off-Scale in All Four Shears at the Arrow Deposit

NexGen Energy Ltd. ("NexGen" or the "Company") (TSXV:NXE, OTCQX:NXGEF) is pleased to announce further results from the winter-spring drilling program on our 100% owned Rook I Property, Athabasca Basin, Saskatchewan.  Eight drill holes have intersected extensive mineralization, and off-scale radioactivity (>10,000 to >61,000 cps) has been intersected in each of the A1, A2, A3 and A4 shears.

 

Within the A1 shear, the high grade mineralized interval from hole AR-16-84c1 (8.35 m of off-scale radioactivity with assays pending – see News Release dated April 14, 2016) has been confirmed and expanded with two further drill holes.  This is highlighted by hole AR-16-84c3 which was drilled 33 m down-dip and southwest of -84c1 intersected 35.5m of total composite mineralization, including 2.6 m of total composite off-scale mineralization.  This new area of high grade mineralization in the A1 shear is well outside and not part of the maiden Arrow deposit resource estimate that only includes drilling up to October 2015.   

Drilling has also continued to confirm the robust nature of mineralization in the A2 shear where drill holes AR-16-80c4, -81c3, and -86c1 all individually intersected more than 10 m of total composite off-scale mineralization. There is significant potential for expansion of the A2 high grade domain around each of these holes, and substantial massive to semi-massive uranium mineralization was intersected and remains wide open up dip and southwest from hole AR-16-86c1 in the higher grade A2 sub-zone (the "Sub-Zone").

Hole AR-16-86c1 returned the largest total composite mineralization to date across the A2 to A4 shears.  It was drilled at the currently defined southwest extent of the Sub-Zone intersecting 92.0 m of total composite mineralization in the A3 shear, and 246.0 m of total composite mineralization throughout the entire hole.

Within the A4 shear, 3.6 m of off-scale radioactivity has been intersected in drill hole AR-16-86c1, which is a 19 m step out down-dip from hole AR-16-76c1 (1.97% U3O8 over 28.0 m in the A4 shear - see News Release May 5, 2016).

 

Highlights:

 

A1 Shear:

• AR-16-84c3 (33 m down-dip and southwest from AR-16-84c1) intersected 35.5 m of total composite mineralization including 2.6 m of total composite off-scale radioactivity(>10,000 – 51,000 cps) within a 95.0 m section (677.5 to 772.5 m).

 A2 Shear:

• AR-16-86c1 (84 m up-dip and southwest from AR-15-44b) intersected 90.0 m of total composite mineralization including 13.05 m of total composite off-scale radioactivity(>10,000 – >61,000 cps) within a 115.5 m section (404.0 to 519.5 m) in the Sub-Zone.
• AR-16-81c3 (23 m down-dip and southwest from AR-16-80c4) intersected 48.5 m of total composite mineralization including 11.65 m of total composite off-scale radioactivity(>10,000 – >61,000 cps) within a 97.5 m section (513.5 to 611.0 m) in the Sub-Zone.

A3 Shear:

• AR-16-86c1 (32 m down-dip and southwest from AR-15-48c1) intersected 92.0 m of total composite mineralization including 0.2 m of total composite off-scale radioactivity(>10,000 – 15,000 cps) within a 130.0 m section (562.5 to 692.5 m).

A4 Shear:

• AR-16-86c1 (19 m down-dip from AR-16-76c1) intersected 63.5 m of total composite mineralization including 3.6 m of total composite off-scale radioactivity (>10,000 – 43,000 cps) within a 149.0 m section (696.5 to 845.5 m).

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

 

Arrow, Activities & Financial

• The land-based and basement hosted Arrow zone currently covers an area of 865 m by 280 mwith 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 30,000 m summer drill program to begin in mid to late June.
• The Company has cash on hand of $28M.

Drill hole location maps, and a close-up of the A2 longsection are shown in Figures 1 to 3.  

Garrett Ainsworth, Vice-President, Exploration and Development, commented: "These latest drill results of infill drilling continues to rapidly expand the size and scale of Arrow.  Drill hole AR-16-86c1 has returned the highest total composite mineralization to date, which demonstrates the strength and width extent of the mineralizing system responsible for precipitating the Arrow deposit." 

Leigh Curyer, Chief Executive Officer commented: "There are 27 assays pending from the winter program which includes 6 assays from the Sub-Zone and we are still actively drilling with 3 rigs.  In total 42 holes have been drilled at Arrow since the resource estimate and we plan to more than double that number by year-end. Planning for an expanded summer 2016 drill program is in process which will include infill and expansion drilling around Arrow, the 180 m southwest extension, Cannon and regional targets along trend from Arrow."

 

Table 2: Arrow Deposit Drill Hole Data

 

 

Parameters:

• Maximum internal dilution 2.00 m downhole
• All depths and intervals are meters downhole
• "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

Natural gamma radiation in drill core reported in this news release was measured in counts per second (cps) using a Radiation Solutions Inc. RS-120 gamma-ray scintillometer. The reader is cautioned that total count gamma readings may not be directly or uniformly related to uranium grades of the rock sample measured; they should be used only as a preliminary indication of the presence of radioactive minerals. All intersections are downhole. True thicknesses are yet to be determined.

Split core samples will be taken systematically, and intervals will be submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis. All samples sent to SRC will be 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 are analyzed for U₃O₈ by ICP-OES and select samples for gold by fire assay. Assay results will be released when received and after stringent internal QA/QC protocols are passed.

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.

The mineral resource at the Arrow Deposit was completed by RPA Inc. and has an effective date of January 14, 2016. The mineral resource is reported at a cut-off grade of 0.25% U3O8. The cut-off is based on a long-term uranium price of USD$65/lb U3O8. The mineral resource is classified into the inferred category based on the CIM Definition Standards. For details regarding the geology and mineralization of the Arrow Deposit, the drilling, sampling and analytical procedures followed and the estimation methodology used in the preparation of the mineral resources, please refer to the Company's Amended and Restated News Release dated March 3, 2016, which is available under the Company's profile on the SEDAR website at www.sedar.com.

ARROW DEPOSIT DRILLING

AR-16-80c4

Hole AR-16-80c4 was a directional hole that departed pilot hole AR-16-80c3 at 282 m. It tested the A2 shear 23 m down-dip and northeast of AR-16-59c2 (5.42% U3O8 over 68.5 m in the A2 shear). Directional drilling was initiated at 297 m and the A2 shear was intersected an at an inclination of -67°.

Since the hole departed the pilot hole below the unconformity, no Athabasca Group sandstones were intersected. Basement lithologies consisted largely of semipelitic gneiss to granofel, and relatively narrow intervals of pelitic gneiss and mylonite (the A2 shear). The hole successfully intersected weakly to strongly anomalous radioactivity in the A2 shear that was associated with semi-massive to massive veins, stringers, worm-rock style, chemical solution fronts, blebs and flecks of pitchblende. A total composite mineralization of 60.5 m including 10.7 m of off-scale radioactivity (>10,000 - >61,000 cps) was intersected within a 94.0 m section (488.5 to 604.5 m) before the hole was terminated at 618.0 m.

AR-16-81c2

Hole AR-16-81c2 was a directional hole that departed pilot hole AR-16-81c1 at 261 m. It tested the A2 shear 25 m down-dip and southwest of AR-16-59c2 (5.42% U3O8 over 68.5 m in the A2 shear) and the A3 shear 38 m down-dip and southwest of AR-16-81c1. Directional drilling was initiated at 285 m. The A2 and A3 shears were both intersected at an inclination of -66°.

Since the hole departed the pilot hole below the unconformity, no Athabasca Group sandstones were intersected. Basement lithologies consisted largely of semipelitic gneiss to granofel, and relatively narrow intervals of pelitic gneiss and mylonite (the A2 through A4 shears). The hole successfully intersected weakly to strongly anomalous radioactivity in the A2 through A4 shears that was associated with stringers, chemical solution fronts, blebs and flecks of pitchblende. A total composite mineralization of 123.3 m including 9.9 m of off-scale radioactivity (>10,000 - >61,000 cps) was intersected within a 411.0 m section (498.0 to 909.0 m). In the A2 shear 23.0 m of composite mineralization was intersected including 4.9 m of off-scale radioactivity. In the A3 shear, 36.0 m of composite mineralization was intersected. In the A4 shear 37.5 m of composite mineralization was intersected including 0.1 m of off-scale radioactivity. In addition, intermittent mineralization and alteration continued past the A4 shear where 26.8 m of total composite mineralization including 4.9 m of off-scale radioactivity was intersected before the hole was terminated at 942.0 m.

AR-16-81c3

Hole AR-16-81c3 was a directional hole that departed pilot hole AR-16-81c2 at 285 m. It tested the A2 shear 23 m down-dip and southwest of AR-16-80c4 (10.7 m of off-scale radioactivity in the A2 shear, assays pending) and the A3 shear 38 m down-dip and northeast of AR-16-81c2. Directional drilling was initiated at 438 m. The A2 and A3 shears were intersected at inclinations of -67° and -66°, respectively.

Since the hole departed the pilot hole below the unconformity, no Athabasca Group sandstones were intersected. Basement lithologies consisted largely of semipelitic gneiss to granofel, and relatively narrow intervals of pelitic gneiss and mylonite (the A2 through A4 shears). The hole successfully intersected weakly to strongly anomalous radioactivity in the A2 through A4 shears that was associated with stringers, chemical solution fronts, blebs and flecks of pitchblende. A total composite mineralization of 111.0 m including 12.1 m of off-scale radioactivity (>10,000 - >61,000 cps) was intersected within a 392.0 m section (513.5 to 905.5 m). In the A2 shear 48.5 m of composite mineralization was intersected including 11.65 m of off-scale radioactivity. In the A3 shear 36.5 m of composite mineralization was intersected. In the A4 shear 25.5 m of composite mineralization was intersected including 0.45 m of off-scale radioactivity. The hole was terminated at 932.0 m.

AR-16-84c2

Hole AR-16-84c2 was a directional hole that departed pilot hole AR-16-84c1 at 234 m. It tested the A2 shear 17 m down-dip and to the northeast of AR-16-64c2 (11.15% U3O8 over 48.5 m in the A2 shear) and the A1 shear 44 m down-dip and southwest of AR-16-84c1 (8.35 m of off-scale radioactivity in the A1 shear, assays pending). Directional drilling was initiated at 264 m. The A1 and A2 shears were intersected at inclinations of -66° and -67°, respectively.

Since the hole departed the pilot hole below the unconformity, no Athabasca Group sandstones were intersected. Basement lithologies consisted largely of semipelitic gneiss to granofel, and relatively narrow intervals of pelitic gneiss and mylonite (the A1 through A3 shears). The hole successfully intersected weakly to strongly anomalous radioactivity in the A1 through A3 shears that was associated with stringers, chemical solution fronts, blebs and flecks of pitchblende. A total composite mineralization of 81.5 m of mineralization including 6.3 m of off-scale radioactivity (>10,000 - >61,000 cps) was intersected within a 301 m section (409.5 to 710.5 m). In the A1 shear 17.5 m of composite mineralization was intersected. In the A2 shear 55.5 m of composite mineralization was intersected including 6.3 m of off-scale radioactivity. In the A3 shear 8.5 m of composite mineralization was intersected. The hole was terminated at 864.0 m.

AR-16-84c3

Hole AR-16-84c3 was a directional hole that departed pilot hole AR-16-84c2 at a depth of 264 m. It tested the A2 shear 15 m up-dip and southwest from AR-16-84c2 (6.3 m of off-scale radioactivity in the A2 shear, assays pending) and the A1 shear 33 m down-dip and southwest of AR-16-84c1 (8.35 m of off-scale radioactivity, assays pending). Directional drilling was initiated at 285 m. The A1 and A2 shears were intersected at inclinations of -63° and -66°, respectively.

Since the hole departed the pilot hole below the unconformity, no Athabasca Group sandstones were intersected. Basement lithologies consisted largely of semipelitic gneiss to granofel, and relatively narrow intervals of pelitic gneiss and mylonite (the A1 through A3 shears). The hole successfully intersected weakly to strongly anomalous radioactivity in the A1 through A3 shears that was associated with stringers, chemical solution fronts, blebs and flecks of pitchblende. A total composite mineralization of 97.0 m of mineralization including 11.95 m of off-scale radioactivity (>10,000 - >61,000 cps) was intersected within a 352.5 m section (420.0 to 772.5 m). In the A1 shear 35.5 m of mineralization including 2.6 m of off-scale radioactivity was intersected. In the A2 shear 46.0 m of composite mineralization including 9.35 m of off-scale radioactivity was intersected. In the A3 shear 15.5 m of composite mineralization was intersected. The hole was terminated at 813.0 m.

AR-16-85c1

Hole AR-16-85c1 was a directional hole collared from surface at an angled orientation (-70°) to the southeast (143° azimuth). It tested the A2 shear 21 m up-dip and northeast of AR-15-54c1 (7.03% U3O8 over 39.5 m in the A2 shear) and the A3 shear 86 m down-dip and southwest AR-15-48c1 (5.43% U3O8 over 24.0 m). Directional drilling was initiated at 231 m. The A2 and A3 shears were intersected at inclinations of -70° and -69°, respectively. 

The hole intersected strongly to intensely bleached Athabasca Group sandstones between 99.0 m and the unconformity at 114.4 m. Basement lithologies consisted largely of semipelitic gneiss to granofel, and relatively narrow intervals of pelitic gneiss and mylonite (the A2 through A4 shears). The hole successfully intersected widespread anomalous radioactivity in the A2 through A4 shears that was associated with semi-massive to massive veins, stringers, chemical solution fronts, blebs and flecks of pitchblende. A total composite mineralization of 81.0 m including 3.5 m of off-scale radioactivity (>10,000 - >61,000 cps) was intersected within a 550.5 m section (404.5 to 955.0 m). In the A2 shear, 26.5 m of composite mineralization was intersected including 3.15 m of off-scale radioactivity. In the A3 shear, 29.0 m of composite mineralization was intersected including 0.2 of off-scale radioactivity. In the A4 shear, 25.5 m of composite mineralization was intersected including 0.15 m of off-scale radioactivity. The hole was terminated at 978.0 m. 

AR-16-85c2

Hole AR-16-85c2 was a directional hole that departed pilot hole AR-16-85c1 at 253 m. It tested the A2 shear 26 m up-dip and northeast of AR-16-76c1 (11.29% U3O8 over 67.5 m in the A2 shear). Directional drilling was initiated at 264 m and the A2 shear was intersected at an inclination of -74°.

Since the hole departed the pilot hole below the unconformity, no Athabasca Group sandstones were intersected. Basement lithologies consisted largely of semipelitic gneiss to granofel, and relatively narrow intervals of pelitic gneiss and mylonite (the A2 shear). The hole successfully intersected weakly to strongly anomalous radioactivity in the A2 shear that was associated with stringers, worm-rock style, chemical solution fronts, blebs and flecks of pitchblende. A total composite mineralization of 46.0 m including 1.15 m of off-scale radioactivity was intersected within a 173.0 m section (428.0 to 601.0 m) before the hole was terminated at 606 m.

AR-16-86c1

Hole AR-16-86c1 was a directional hole collared from surface at an angled orientation (-70°) to the southeast (143° azimuth). It tested the A2 shear 17 m down-dip and southwest of AR-16-48c1 (0.91% U3O8 over 60.0 m in the A2 shear) and the A3 shear 32 m down-dip and southwest of AR-16-48c1 (5.43% U3O8 over 24.0 m in the A3 shear). Directional drilling was initiated at 225.0 m. The A2 and A3 shear were intersected at inclinations of -69° and -70°, respectively.

The hole intersected strongly to intensely bleached and desilicified Athabasca Group sandstones between 99.0 m and the unconformity at 110.5 m. Basement lithologies consisted largely of semipelitic gneiss to granofel, and relatively narrow intervals of pelitic gneiss and mylonite (the A2 through A4 shears). The hole successfully intersected widespread anomalous radioactivity in the A2 through A4 shears that was associated with semi-massive to massive veins, stringers, chemical solution fronts, blebs and flecks of pitchblende. A total composite mineralization of 246.0 m including 16.85 m of off-scale radioactivity (>10,000 to >61,000 cps) was intersected within a 589.0 m section (256.5 to 845.5 m). In the A2 shear 90.0 m of composite mineralization including 13.05 m of off-scale radioactivity was intersected. In the A3 shear 92.0 m of composite mineralization including 0.2 m of off-scale radioactivity was intersected. In the A4 shear 63.5 m of composite mineralization including 3.6 m of off-scale radioactivity was intersected. The hole was terminated at 897 m.

REGIONAL DRILLING

Throughout the Winter 2016 season the Company completed eight holes regionally on the Rook I property in three areas. No mineralization was intersected.

Holes RK-16-84, -85, -87, -89 were drilled as a fence approximately 190 m along strike to the northeast of the Arrow resource grade shell. Each of the holes intersected highly prospective structure and/or alteration and the area remains prospective at depth.

Hole RK-16-94 tested the termination of the VTEM conductor approximately 1,000 m southwest of the Bow discovery. Intermittent and locally strong clay, chlorite and hematite alteration was encountered throughout the basement.

Holes RK-16-95 through -97 were drilled as a fence to test a near coincident circular gravity low and VTEM conductor break between the Arrow Deposit and the Cannon area. Again each of the holes intersected highly prospective structures and/or alteration.

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 inFebruary 2014. The Arrow Deposit's maiden Inferred mineral resource estimate is 201.9 M lbs U₃O₈contained 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 connotation 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.