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Off-Scale Uranium Gives Birth to a New Guerilla in the Basin

Wednesday, 06 August 2014 08:33 AM

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NexGen Energy drilling at Arrow Produces Strongest and Shallowest Mineralization to Date

Vancouver, BC / Aug 6, 2014 / Drill results revealed today in a press release by Canadian-based NexGen Energy (NXE-TSXv) showed exciting potential at the Arrow uranium project in the Athabasca Basin, Saskatchewan. Featuring nine widely spaced holes, 5 with off-scale radioactivity, and very clear strike and width dimensions provided, now astute investors and analysts have the ammunition to model out tonnage potential.

It's an early glimpse to see if a guerilla is lurking in the jungle.

To get volumetric tonnage potential, simple calculations suggest that a 515m strike, 180m width, a depth of 50m (most intervals have run 50m+ of total composite mineralization) and assuming a specific gravity of 2.5, tonnage may be quite a large number even though only 22 holes have been drilled.

The only missing piece of the puzzle, would be to get a clear idea of overall grade.

The announcment reported CPS counts and not actual assays, however, the title stated that these results were the strongest and shallowest to date, which comparing to the highlights of the winter program (29m of 1.04% U3O8 and 124.1m of 0.68% U3O8) suggest that the next set of assays may excite the investors.

Drilling season is an eventful time, for the good and bad.   NexGen investors can only have faith in a repeat performance of the Fission Uranium discovery (FCU-TSXv) just 6 Km’s south of NexGen’s Arrow discovery, which has seen many multiples on their investment while it's climbed to $450M market cap.

The Athabasca Basin hosts the world's highest-grade uranium deposits and with results pending, investors will be waiting to see if NexGen becomes the next guerilla in the jungle.

At print, NexGen is currently trading at $0.30 per share with a market cap of ~$50M.

 

Source: Resource Reports

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