NexGen Intersects Widespread Mineralization at Arrow

VANCOUVER, Nov. 18, 2016 /CNW/ - NexGen Energy Ltd. ("NexGen" or the "Company") (TSX:NXE, OTCQX:NXGEF) is pleased to report radioactivity results from 38 holes representing the conclusion of our highly successful summer drilling program on our 100% owned, Rook I property, Athabasca Basin, Saskatchewan.

At Arrow, strong mineralization continues to be drilled outside of the A2 High Grade Domain. Drill hole AR-16-112c2 intersected 39.0 m of total composite mineralization including 9.1 m of off-scale radioactivity (>10,000 cps with handheld RS-120 scintillometer) drilled below the grade shell of the A2 High Grade Domain. Drill hole AR-16-111c2 featured 5.0 m of minimum-greater-than-61,000 cps radioactivity also outside of the A2 High Grade Domain.  Additionally, drill hole AR-16-104c2 intersected 38.5 m of total composite mineralization including 5.05 m of off-scale radioactivity in the A2 shear with the strongest mineralization drilled 32 m below the A2 High Grade Domain.

With respect to infill drilling, the A2 shear continues to exceed expectations where scissor holes AR-16-106c1 and AR-16-111c1 intersected 63.0 m of total composite mineralization including 12.1 m of off-scale radioactivity and 49.5 m of total composite mineralization including 10.85 m of off-scale radioactivity, respectively. Significant mineralization in the A2 shear was also intersected in drill holes AR-16-104c3, -105c2, -106c2, -108c3, -108c4, -109c1, -109c3, -110c1 and -110c2 (see Figure 1).

Also at Arrow, the A3 shear has been significantly expanded where drill hole AR-16-105c1 intersected 70.5 m of total composite mineralization including 7.9 m of off-scale radioactivity. In addition, drill holes AR-16-105c2, -105c3, -110c1, -110c2 and -113c1 all intersected significant mineralization in the A3 shear (see Figure 2). In the A1 shear, AR-16-108c3 intersected 18.0 m of total composite mineralization including 3.5 m of off-scale radioactivity (see Figure 3).

At Harpoon, a total of 16 holes have been completed since the high grade discovery hole HP-16-08 was reported on August 11, 2016. Several holes intersected broad zones of mineralization including off-scale radioactivity beginning at approximately 200 m below surface. Drill hole HP-16-13 intersected 16.5 m of continuous mineralization including 2.95 m of off-scale radioactivity and HP-16-20 intersected 12.5 m of total composite mineralization including 2.15 m of off-scale radioactivity. The mineralized footprint at Harpoon has been traced over a strike length of at least 340 m on the Rook I property (Figure 5), and remains open in all directions.

A total of 53 assays remain pending from the 2016 drill program; 33 from Arrow (including four A2 Sub-Zone holes) and 20 holes from the Harpoon Discovery. In 2016 a total of 96,992 m were drilled at Rook I.  A total of 73,091 m were drilled at the Arrow Deposit (132,887 m in total to date), 7,285 m Harpoon and 16,616 m on regional targets along the Patterson Corridor. Once all pending 2016 assays are received for Arrow, the results will be incorporated into an updated NI 43-101 resource scheduled for release in H1 2017. In addition to the significant growth achieved during the year, the bulk of the A2 High Grade Domain has now been delineated at a drill hole spacing of 25 m x 25 m or less.

Highlights:

A2 High Grade Domain

• Scissor Hole AR-16-111c2 (40 m up-dip and southwest from AR-15-44b) intersected 39.0 m of total composite mineralization including 12.8 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 60.0 m section (524.5 to 584.5 m), and featured 5.0 m of minimum-greater-than-61,000 cps.
• Scissor hole AR-16-106c1 (97 m down-dip from AR-15-44b) intersected 63.0 m of total composite mineralization including 12.1 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 117.5 m section (407.5 to 525.0 m), and featured 2.5 m of minimum-greater-than-61,000 cps.  
• Scissor hole AR-16-112c2 (126 m down-dip and southwest from AR-15-44b) intersected 37.0 m of total composite mineralization including 9.1 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 45.0 m section (567.0 to 612.0 m), and featured 1.65 m of minimum-greater-than-61,000 cps. 
• Scissor hole AR-16-111c1 (77 m up-dip and southwest from AR-15-44b) intersected 49.5 m of total composite mineralization including 10.85 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 135.5 m section (436.0 to 571.5 m), and featured 1.0 m of minimum-greater-than-61,000 cps. 
• Scissor hole AR-16-106c2 (116 m up-dip from AR-15-44b) intersected 41.0 m of total composite mineralization including 9.7 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 72.5 m section (424.0 to 496.5 m), and featured 0.5 m of minimum-greater-than-61,000 cps. 
• Scissor hole AR-16-104c2 (130 m down-dip and southwest from AR-15-44b) intersected 38.5 m of total composite mineralization including 5.05 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 101.5 m section (631.5 to 733.0 m), and featured 0.5 m of minimum-greater-than-61,000 cps. 

A3 Shear

• Scissor hole AR-16-105c1 (41 m down-dip from AR-15-57c2) intersected 70.5 m of total composite mineralization including 7.9 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 136.0 m section (588.5 to 724.5 m).
• Scissor hole AR-16-113c1 (64 m down-dip and northeast from AR-15-57c2) intersected 27.0 m of total composite mineralization including 3.2 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 137.5 m section (562.5 to 700.0 m).
• Scissor hole AR-16-105c2 (26 m up-dip from AR-15-57c2) intersected 40.5 m of total composite mineralization including 3.1 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within an 83.0 m section (536.0 to 619.0 m).

A1 Shear

• Hole AR-16-108c3 (198 m up-dip and northeast of AR-16-98c1) intersected 18.0 m of total composite mineralization including 3.5 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 60.0 m section (394.0 to 454.0 m).

Harpoon

• Hole HP-16-13 (34 m down-dip and southwest of HP-16-08) intersected 16.5 m of continuous mineralization (212.5 to 229.0 m) including 2.95 m of total composite off-scale radioactivity (>10,000 to >61,000 cps).
• Hole HP-16-20 (73 m up-dip and northeast of HP-16-08) intersected 12.5 m of total composite mineralization including 2.15 m of total composite off-scale radioactivity (>10,000 to >61,000 cps) within a 25.0 m section (183.5 to 208.5 m).

Table 1: Higher Grade A2 Sub-Zone Angled Drill Holes

Activities & Financial

• The summer 2016 program is now concluded and preparations for a fully-funded significant winter drilling program to begin in January 2017 are well underway.  
• An updated NI 43-101 resource estimate on the Arrow Deposit is scheduled for the first half of 2017.
• The Company has cash on hand of approximately $74 million.

Drill hole location maps and long sections are shown in Figures 1 to 6. Summaries of Arrow and Harpoon mineralized drill intervals are provided in Tables 2 and 3.

Garrett Ainsworth, Vice-President, Exploration and Development, commented: "Drilling across the mineralized shears at Arrow has significantly expanded the known extents of mineralization which remains largely open, while also meeting or exceeding our expectations on infill drilling.  The recent Harpoon Discovery continues to return impressive results, and remains open in all directions.  We have begun analyzing the drill data in preparation for an aggressive winter 2017 drill program."     

Leigh Curyer, Chief Executive Officer, commented: "The exploration and delineation progress made at the Arrow Deposit, and on the rest of the Rook I property in 2016 has been outstanding. The continuity of mineralization as well as the ability of the deposit to continue expanding throughout 2016 will culminate in an updated resource estimate in H1 2017.  Whilst drilling just shy of 100,000 m in 2016 has delivered further optimization of Arrow and a significant new discovery in Harpoon, substantial drilling is still required in the future prior to being in a position to ultimately estimate the true extent of Arrow.  Further, the Company has undertaken studies that will continue into 2017 to form the basis of a maiden pre-feasibility study scheduled for release in H2 2017 .  With $74 million in the treasury we remain in a very strong financial position to execute our objectives well into the future." 

Table 2: Arrow Deposit Drill Hole Data

Parameters:

• Maximum internal dilution 2.00 m downhole
• All depths and intervals are meters downhole, true thicknesses are yet to be determined
• "Anomalous" means >500 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
• "Off-scale" means >10,000 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
• Where "Min cps" is <500 cps, this refers to local low radiometric zones within the overall radioactive interval

Table 3: Harpoon Discovery Drill Hole Data

Parameters:

• Maximum internal dilution 2.00 m downhole
• All depths and intervals are meters downhole, true thicknesses are yet to be determined
• "Anomalous" means >500 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
• "Off-scale" means >10,000 cps (counts per second) total count gamma readings by gamma scintillometer type RS-120
• Where "Min cps" is <500 cps, this refers to local low radiometric zones within the overall radioactive interval

Due to the large number of drill holes reported in this news release we have moved the drill hole summaries to the NexGen Energy Ltd. website, which can be viewed here: http://nexgenenergy.ca/news/

Technical Information

Natural gamma radiation in drill core reported in this news release was measured in counts per second (cps) using a Radiation Solutions Inc. RS-120 gamma-ray scintillometer. The reader is cautioned that total count gamma readings may not be directly or uniformly related to uranium grades of the rock sample measured; they should be used only as a preliminary indication of the presence of radioactive minerals. All intersections are downhole. True thicknesses are yet to be determined.

Split core samples will be taken systematically, and intervals will be submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis. All samples sent to SRC will be 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 are analyzed for U₃O₈ by ICP-OES and select samples for gold by fire assay. Assay results will be released when received and after stringent internal QA/QC protocols are passed.

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, Bow Discovery in March 2015 and Harpoon Discovery in August 2016. 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.