NXE NexGen Energy Ltd

VANCOUVER, Aug. 8, 2016 /CNW/ - NexGen Energy Ltd. ("NexGen" or the "Company") (TSX:NXE, OTCQX:NXGEF) is pleased to report assay results for seven holes from our recently completed winter 2016 drilling program on our 100% owned, Rook I property, Athabasca Basin, Saskatchewan.

Highlights:

A2 Sub-Zone

Scissor drilling collared from the southeast to the northwest at the Arrow Deposit has returned extensive high grade uranium mineralization in the higher grade A2 sub-zone (the "Sub-Zone").  

• Scissor hole AR-16-91c2 (38 m up-dip and northeast from AR-15-44b) intersected 40.5 m at 12.69% U3O8 (522.0 to 562.5 m) including 25.0 m at 19.97% U3O8 (526.0 to 551.0 m) and 1.5 m at 63.93% U3O8 (541.0 to 542.5 m).

Hole AR-16-91c2 has confirmed and increased the known width of the Sub-Zone and returned a continuous grade x thickness ("GT") of 514.  The Sub-Zone is now outlined by 23 holes, all of which intersected dense accumulations of massive-to-semi-massive pitchblende, sixteen of which were drilled after the release of the Company's maiden NI 43-101 compliant Inferred Mineral Resource for the Rook I project on March 3, 2016.

A2 Shear High-Grade Domain

Infill drilling continues to verify that mineralization in the A2 shear is both extensive and continuous. These include 3 scissor holes drilled outside of the Sub-Zone but inside the A2 High-Grade Domain; highlights include:

• Scissor hole AR-16-84c4 (30 m down-dip and northeast from AR-15-44b) intersected 38.0 m at 1.92% U3O8 (566.0 to 604.0 m) including 11.0 m at 6.15% U3O8 (573.5 to 584.5 m).
• Scissor hole AR-16-91c3 (96 m up-dip and northeast from AR-15-44b) intersected 18.5 m at 3.26% U3O8 (485.0 to 503.5 m) including 7.5 m at 7.40% U3O8 (490.5 to 498.0 m).

A1 Shear

Significant expansion of the newly discovered mineralized zone in the A1 shear has been confirmed. The A1 shear remains primarily untested, and is already host to mineralization over a strike length of 360 m.

• AR-16-91c3 (30 m up-dip and northeast from AR-16-84c1) intersected 19.0 m at 0.82% U3O8 (628.0 to 647.0 m) including 3.5 m at 3.05% U3O8 (639.5 to 643.0 m), and 6.0 m at 1.02% U3O8 (657.0 to 663.0 m).

Table 1: Higher Grade A2 Sub-Zone Drill Hole Comparison

Arrow, Activities & Financial

• The land-based and basement hosted Arrow Deposit currently covers an area of 870 m by 280 m with a vertical extent of mineralization commencing from 100 m to 920 m, and remains open in most directions and at depth.
• The summer 2016 program comprising 35,000 m of drilling is underway with seven drill rigs active.  
• The Company has cash on hand of approximately $91 million.

A three-dimensional view of the A2 High Grade Domain, long sections of the A1 and A2 shears, and a plan map are shown in Figures 1 to 4. Table 2 shows complete assay results.

Garrett Ainsworth, Vice-President, Exploration and Development, commented: "The robust nature of the higher grade A2 sub-zone is clearly evident with scissor hole AR-16-91c2 returning a continuous GT of 514.  The drill results continue to be outstanding whether the sub-vertically dipping mineralization is drilled from the northwest to the southeast or vice versa.  Additionally, the mineralized zone in the A1 shear is expanding rapidly since discovery hole AR-16-84c1."

Leigh Curyer, Chief Executive Officer commented: "These batch of results deliver two important objectives of the summer drilling program. Firstly, the scissor holes confirming the robust nature of the higher grade A2 sub-zone and secondly, expanding the area of mineralization within the A1 shear. The combination of infill drilling, expansion testing and regional exploration is meeting all the objectives of the summer program."

Composite parameters:

• Minimum thickness 0.5 m downhole
• Cutoff grade 0.01% U3O8
• Maximum internal dilution 2.00 m downhole
• U3O8 analyzed by ICP-OES at SRC Laboratories, Saskatoon, Saskatchewan
• All depths and intervals are meters downhole, true thicknesses are yet to be determined

Split core samples were taken systematically, and intervals were submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis. All samples were analyzed using ICP-MS for trace elements on partial and total digestions, ICP-OES for major and minor elements on a total digestion, and fusion solution of boron by ICP-OES. Mineralized samples were analyzed for U3O8 by ICP-OES and selected samples for gold by fire assay.

All assay batches reported herein are subjected to and have passed rigorous internal QA/QC protocols that include, but are not limited to, the blind  insertion of standard reference materials, blank materials and field duplicates into the sample stream at both random and systematic intervals.

Technical Information

All scientific and technical information in this news release has been prepared by or reviewed and approved by Mr. Garrett Ainsworth, P.Geo., Vice President – Exploration & Development for NexGen. Mr. Ainsworth is a qualified person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), and has verified the sampling, analytical, and test data underlying the information or opinions contained herein by reviewing original data certificates and monitoring all of the data collection protocols.

For details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the mineral resource set forth above please refer to the technical report entitled "Technical Report on the Rook 1 Property, Saskatchewan, Canada" dated effective April 13, 2016 (the "Rook 1 Technical Report") prepared by Mark B. Mathisen and David Ross, each of whom is a "qualified person" under NI 43-101. The Rook I Technical Report is available for review under the Company's profile on SEDAR at www.sedar.com.

About NexGen

NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production.

NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Discovery in February 2014 and Bow Discovery in March 2015. The Arrow Deposit's maiden Inferred mineral resource estimate is 201.9 M lbs U3O8 contained in 3.48 M tonnes grading 2.63% U3O8.

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation.  "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, the proposed use of proceeds and planned exploration activities. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connation thereof.

Such forward-looking information and statements are based on numerous assumptions, including among others, that the results of planned exploration activities are as anticipated, the price of uranium, the anticipated cost of planned exploration activities, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company's planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.

Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, pending assay results may not be consistent with preliminary results, discretion in the use of proceeds, alternative sources of energy, aboriginal title and consultation issues, reliance on key management and other personnel, potential downturns in economic conditions, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, availability of third party contractors, availability of equipment and supplies, failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.  The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.

SOURCE NexGen Energy Ltd.