Uranium news from Saskatchewan and elsewhere for September 13 to 19, 2014
by Greg Klein
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NexGen ends season with high-grade assays from Rook 1
A summer of largely successful drilling has come to a close at NexGen Energy’s (TSXV:NXE) Rook 1 project. Patterson Lake South’s neighbour got 33 holes totalling 18,885 metres, with 24 of the holes focusing on the Arrow zone. Radiometric results for the final two holes, released September 17, confirm the 515-metre strike for a zone that’s 215 metres wide and open in all directions. At the same time NexGen released the season’s first batch of assays, which the company said confirms mineralization indicated by previously reported radiometrics.
The last two holes were sunk vertically 15 metres northeast and southwest from the project’s previously released “landmark.” One hole found intersections totalling 123.9 metres of mineralization (not true width), with the shallowest intercept starting at 328.15 metres in vertical depth. The other showed a composite total of 107.9 metres of mineralization starting at 186 metres in depth.
These results come from a hand-held device that measures drill core radiation in counts per second. They’re no substitute for assays, which have yet to come for most of the season’s holes.
But assays for six earlier holes also released September 17 correlate well with the previously reported radiometric results, NexGen stated. Some highlights include:
- 0.13% U3O8 over 28.2 metres, starting at 292.5 metres in downhole depth
- 0.38% over 5.55 metres, starting at 618.1 metres
- 0.29% over 3.9 metres, starting at 639.1 metres
- 5.91% over 1.3 metres, starting at 650.8 metres
- 0.17% over 7.6 metres, starting at 502.2 metres
- 0.65% over 1.35 metres, starting at 514.3 metres
- 0.12% over 96.75 metres, starting at 181.25 metres
- 6.56% over 1.2 metres, starting at 540 metres
- 0.12% over 3.7 metres, starting at 606.3 metres
- 0.67% over 3.6 metres, starting at 621.9 metres
- 0.21% over 2.85 metres, starting at 524.35 metres
- 0.9% over 3.3 metres, starting at 600.55 metres
- 0.1% over 7.5 metres, starting at 386.5 metres
- 0.12% over 13.5 metres, starting at 401 metres
- 1.08% over 18.25 metres, starting at 456.8 metres
- 1.96% over 3.05 metres, starting at 482.4 metres
- 2.66% over 0.65 metres, starting at 499.3 metres
- 1.24% over 2 metres, starting at 505.45 metres
- 1.31% over 11.85 metres, starting at 522.4 metres
- 0.17% over 5.8 metres, starting at 541.2 metres
- 5.35% over 4.6 metres, starting at 569.6 metres
- 0.9% over 3.55 metres, starting at 540.7 metres
True widths were unavailable.
Thirty of 32 holes sunk on the Arrow zone over two seasons have shown mineralization. But not so with the project’s regional drilling, where five holes proved barren. The company still hopes they’ll show pathfinder elements.
Boasting a working capital of $6.5 million, NexGen’s now planning its winter campaign.
Uranium Energy Corp releases PEA for Anderson project
An Arizona project amenable to conventional mining and heap leach recovery would require low capital costs to produce a total of 16 million pounds of uranium over 14 years, according to a preliminary economic assessment announced September 16 by Uranium Energy Corp NYSE MKT:UEC.
Quoting all amounts in U.S. dollars, assuming a uranium price of $60 and using a 10% discount rate, the study calculated the Anderson project’s after-tax net present value at $76.4 million and the internal rate of return at 42%. With uranium at $65 a pound, the NPV comes to $101.1 million with a 50% IRR.
The initial capex comes to $43.9 million with an additional $8 million for four years of pre-production including development drilling, designing the mine and heap leach operation, as well as permitting. Another $87.6 million would be needed through years four to eight as the operation makes the transition from open pit to highwall and underground mining.
Heap leach recovery would produce a resin which would be processed at Energy Fuels’ (TSX:EFR) White Mesa mill in Utah.
The project has indicated resources showing 15.5 million pounds uranium oxide-equivalent for an open pit and another 1.5 million pounds underground. The inferred resources have 2.5 million pounds eU3O8 in the pit and 9.5 million pounds underground.
Future studies will examine vanadium as a byproduct.
UEC operates the Palangana in-situ recovery mine, Hobson processing plant and advanced-stage Goliad and Burke Hollow projects in Texas. Last April the company completed a PEA for its Slick Rock uranium-vanadium deposit in Colorado. UEC holds over 20 projects in the western U.S. and two more in Paraguay.
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