NexGen hits the ground running for winter 2015 drill program: Cantor Fitzgerald

Wed 10:33 am by Deborah Bacal

A total of 2,613 metres has been completed so far at the Arrow zone since the winter 2015 program began. A total of 8,000 metres of drilling is expected, with a budget of $8.0 million.

NexGen Energy (CVE:NXE) is the next uranium exploration company set to discover "a large, potentially world-class deposit", according to the latest research report from Cantor Fitzgerald.

The company hit the ground running for its winter 2015 drill program with five holes all hitting mineralization, and the Arrow zone being extended.

All holes hit substantial broad mineralization, said analyst Rob Chang, including the most intensive to date characterized by massive "visible pitchblende mineralization" and intensive off-scale radioactivity.

Drill highlights include an intercept of 129 metres, including 10.3 metres of off-scale radioactivity (greater than 10,000 cps) within a 328.5 metre section. Chang said that as a rule of thumb, a 5000 cps reading implies a 1% uranium oxide grade, and the relationship is exponential.

The hole extends the mineralization found in a previous hole by 30 metres southwest along strike.

A total of 2,613 metres has been completed so far at the Arrow zone since the winter 2015 program began. A total of 8,000 metres of drilling is expected, with a budget of $8.0 million.

Cantor's Chang also noted that drill hole AR-15-36 encountered mineralization 6.5 metres beneath the Athabasca Group and basement unconformity, which is "highly encouraging with respect to potential for shallow unconformity-style mineralization to the northeast of Arrow."

The Arrow discovery is located adjacent to Fission Uranium's Patterson Lake South project, which recently reported a maiden resource of 106 million pounds of uranium.

Cantor Fitzgerald has a buy, speculative rating on NexGen Energy. Shares were steady at 33 Canadian cents on Wednesday. The stock has risen 32 percent in the last year.