Stock jumps 35% as Results Produce Signs of District Scale Discovery
TORONTO, ON / ACCESSWIRE / August 27, 2014 / NexGen Energy Ltd. (NXE-TSXv) has done it again, outshining impressive drill results already produced in its summer drilling program for uranium. Its first vertical drill hole, AR-14-30 exhibits "exceptionally strong mineralization over significant intervals" according to the company in a news update released yesterday.
Drill hole AR-14-30 is being explored to determine the depth extents found at hole AR-14-15, which has already produced the best assays so far at the Arrow zone.
The surging share price reflects investor confidence in what’s yet to come. The company is currently exploring the Athabasca Basin in Saskatchewan, Canada. The Athabasca Basin is already the world’s highest-grade uranium location and tenacious exploration came good for Fission Uranium
(FCU:TSXv, FCUUF:OTCQX), a $415m company just 6km away from NexGen Energy’s Rook 1 property.
The Arrow zone of the Rook 1 property features 28 reported widely spaced drill holes, with 26 of those holes intersecting uranium mineralization. The news yesterday builds on earlier results, particularly from as recently as August 5th when the company increased drilling from 13,500 to 18,500 m as a result of promising results.
The news comes a good time for uranium prices as they finally start to recover from a slump. The price has climbed above $30 for the first time since spring this year.
The analysts know a good buy when they see one, with Dundee Capital Markets continuing to recommend a BUY on NexGen Energy suggesting the drill hole was a "Barnburner".
With close to $10M in the bank and $22M in warrants that can be exercised, NexGen currently has a market cap of $82m.
Figure 1: Arrow Discovery Drill Hole Locations (gravity background)
SOURCE: Resource Reports