] - On August 16, 2013 NexGen Energy (NXE- TXE.V) announced that it has begun a two drill, 3,000 meter program on the Rook I project in the Athabasca Basin, Saskatchewan, Canada. The stock traded 1.3 million shares and surged 30% to .52 on the news.
The Rook I project is immediately adjacent to, and on trend with the recent high-grade uranium discoveries at the Patterson Lake South project operated by joint venture partners Fission Uranium (FCU-TSX.V) and Alpha Minerals (AMW-TSX.V).
FCU and AMW have risen from penny stocks to a combined value of over $381 million in the last year. The Rook 1 target was identified prior to the PLS discovery.
NexGen raised $15.6 million as a private company. It was IPO’d on the Venture exchange in April, 2013. After an over-subscribed round of financing, NexGen currently has $9 million in the cash to execute the drill program.
Detailed geophysical surveys of the Rook I project have included aerial VTEM and magnetics, and ground gravity. A recent DC resistivity survey was conducted over the area of the property that is continuous with the Patterson Lake conductors. The results of the resistivity survey have refined previous targets, and introduced new target areas.
The drilling program will test priority target areas defined by overlapping geophysical anomalies. One drill will be dedicated to target area A, testing the northeast extension of the Patterson Lake South conductor trend.
A second helicopter-supported drill rig will be testing target areas A through D. Drilling is expected to continue through to late September depending on weather conditions.
"The Rook I Project hosts a number of highly prospective targets identified by NexGen's recently competed geophysical surveys,” states Leigh Curyer, NexGen's CEO, “The results of the various geophysical surveys completed since acquisition have increased our pre-existing confidence with respect to the prospectivity of Rook I.”
NexGen has a veteran team of exploration professionals with a track record in the discovery of unconformity-style uranium deposits in Canada. As well as Curyer who was integral in the merger of Aflease Gold and Uranium Resources to Uranium One, the team includes senior geologists James Sykes and Matthew Schwab who joined NexGen from Rio Tinto (RIO-NYSE).
V.P of Explorations, Andrew Browne has been exploring for uranium for 40 years. Leigh and Andrew are focused on properties with strong geophysical signatures that exhibit the prospect of high grade high tonnage at economically developable depths.
NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including, an option to earn a 70% interest in the Radio Project, immediately adjacent to Rio Tinto's Roughrider Deposit and a 100% interest in Rook 1, immediately adjacent to the north east of Patterson Lake South.
The recent share price performance of Fission Uranium and Alpha Minerals, gives a hint to the short term upside of NexGen, should the current drilling program confirm the geophysical modelling.
NexGen’s properties are all situated in the middle of Saskatchewan’s Athabasca basin, which contains known uranium reserves offering the energy equivalent of 19 billion barrels of oil.
China has 28 nuclear reactors under construction, with another 49 planned and 120 proposed. Vietnam, Turkey, Indonesia, Egypt and Kazakhstan are all building their first reactors.
NXE is currently trading at .49 with a market capitalization of $56 million.
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