Monday, 24 June 2013 09:00 AM
SOURCE:[Metal Guru] - On June 20, 2013 NexGen Energy (NXE-TSX.V) began a 4,000 meter drilling program at the Radio Project in Eastern Athabasca Basin, Saskatchewan.
NexGen owns a portfolio of uranium exploration assets in the Athabasca Basin, including an option to earn a 70% interest in the Radio Project and a 100% interest in Rook 1.
After raising $15.6 million as a private company, NexGen listed on the Venture exchange in late April, 2013.
The Radio property is immediately adjacent to and on trend with Rio Tinto's (RIO-NYSE) Roughrider uranium deposit, purchased from Hathor in February 2012.
Previous geophysical surveys of the Radio property have included aerial VTEM and magnetics, ground gravity and DC resistivity. Interpretation of this data has indicated a number of anomalous features on the property.
Depth to the basement is estimated at 170 to 200 metres. Magnetic data reveals a number of zones similar to mineralization-hosting zones on adjacent properties.
"This is a very exciting milestone for the Company,” states Leigh Curyer, NexGen's CEO, “The Radio Project, is a highly prospective exploration target with the same geological structures that host hundreds of millions of pounds of high grade uranium running through the centre of our project.”
On May 22, 2013 NXE appointed Senior Geologist James Sykes and Exploration Geologist Matthew Schwab, both from Rio Tinto (RIO-NYSE). Sykes and Schwab sat on the drill rigs at the Roughrider Deposits.
According to the World Nuclear Association there are currently 435 nuclear reactors connected into national grids, 67 are under construction, 164 on order and 317 proposed.
2013 uranium demand is about 66,500 tonnes, while current mine output is 55,000 tonnes. The current shortfall is met by recycling weapons grade uranium from former Soviet Union nuclear weapons stockpiles. These Russian stockpiles are depleting fast.
The spot price of U3O8 is currently $39.85/lb. All but two of Japan’s 50 reactors have been shut down since the Fukushima incident 2 years ago. On June 19, 2013 Japan’s Nuclear Regulation Authority approved a set of new safety requirements for atomic power plants. The new requirements take effect July 8 and are expected to result in the re-opening of Japan’s Nuclear Program. Bloomberg predicts and average 2013 U3O8 price of $55.
The world is looking to the Athabasca Basin for future uranium supply. Alpha Minerals (AMW-TSX.V) has generated a 17-fold return in the last year because of the high-grade uranium discovery at Patterson Lake South (PLS) in the Athabasca Basin.
The other project is Rook 1 is immediately adjacent to the North East of the Patterson Lake South (PLS) uranium discoveries, owned 50/50 by Fission Uranium Corp (FCU-TSX.V) and Alpha Minerals Inc.
At Rook 1, NexGen will soon commence a DC resistivity survey in the southern section of Rook 1 adjacent to and along strike from PLS. This survey will assist the drill hole targeting for a 1500 metre diamond drilling campaign planned to commence in August."
The initial Radio project diamond drilling program is designed to test anomalies along strike from the Roughrider deposits. Drilling is expected to continue through to late July depending on ground conditions. The Radio Project has never been drill tested. The current drill program was launched three weeks ahead of schedule.
NXE is currently trading at .26 with a market capitalization of $23 million.