VANCOUVER - NexGen Energy Ltd. (TSX: TSX:NXE) (NYSE: NXE) (ASX: NXG) has announced significant uranium mineralization at its Patterson Corridor East site, with a notable intersection in drill hole RK-24-193, and high-grade uranium veins in RK-24-183. The discovery has prompted an expansion of the company's summer drilling program.
Drill hole RK-24-193, located 275 meters southwest of the discovery hole RK-24-183, revealed mineralization across 67.5 meters, including intervals with radioactivity levels up to 7,500 counts per second (cps) over 1.5 meters. Assays from RK-24-183 confirmed high-grade uranium veins over a 20-meter interval, with several sections totaling 13.5 meters at 0.78% U3O8, including segments at 10% U3O8 and 6.23% U3O8.
The results from these holes extend the current strike length to 275 meters at Patterson Corridor East, suggesting an upper edge to mineralization that is highly analogous to the early holes at Arrow, a nearby site within the same system.
In response to the findings, NexGen is ramping up its summer drilling program to include four drill rigs and target 22,000 meters at the site. The program aims to assess the broad hydrothermal system and expand the mineralized footprint, with primary testing between 400 and 700 meters below the surface.
Leigh Curyer, CEO of NexGen, stated that the geological similarities between the new findings and Arrow's upper areas indicate a highly prospective additional mineralized system. The company's focus for the summer is to determine the size and extent of this mineralization.
The expansion of the drilling program represents nearly three times the efforts of the previous winter program, with potential to increase based on results. The summer drilling is set to significantly advance the investigation of Patterson Corridor East and provide insights applicable to NexGen's broader exploration portfolio.
NexGen Energy is a Canadian company focused on developing clean energy fuel for the future, with its flagship Rook I Project in northern Saskatchewan poised to become a leading low-cost uranium mine. The company is listed on multiple stock exchanges and is headquartered in Vancouver, with operations in Saskatoon.
This news is based on a press release statement from NexGen Energy Ltd.
InvestingPro Insights
NexGen Energy Ltd. (NXE) has recently made headlines with its uranium discoveries, which could potentially enhance the company's growth trajectory. Investors interested in NXE can gain additional insights by considering key metrics and expert analysis available through InvestingPro. One noteworthy InvestingPro Tip is that NXE holds more cash than debt on its balance sheet, which may provide financial flexibility to fund its expanded summer drilling program and further exploration activities.
Another InvestingPro Tip suggests that NXE is trading at a low P/E ratio relative to near-term earnings growth. This could indicate that the stock is undervalued given its growth prospects, especially in light of the promising drilling results at Patterson Corridor East.
From the InvestingPro Data, we can glean that NXE has a market capitalization of 4450M USD, a relatively high P/E ratio of 104.76, and a Price / Book ratio as of the last twelve months as of Q1 2024 of 6.55. These figures, combined with a 108.95% return on investment over the past year, paint a picture of a company that has been performing well in the market, despite a negative EBITDA growth rate of -41.78% during the same period.
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