The Arrow Zone Broadens with Continued Significant Intercepts of Uranium Mineralization

VANCOUVER, Aug. 20, 2014 /CNW/ - NexGen Energy Ltd. (TSX-V: NXE) ("NexGen" or the "Company") is pleased to announce ongoing results from the summer 2014 drilling program from the 100% owned portion of the Rook I property, Athabasca Basin, Saskatchewan.  The width of the Arrow zone has been increased from 180 to 215 m with aggressive 50 m step outs to the northwest in drill holes AR-14-24 and -26 (see Figure 1). 

Highlights:

• Drilling along a NW-SE fence line has expanded the width of the Arrow zone from 180 to 215 m.  The Arrow zone has developed a significant footprint with a strike length of 515 m, and remains open in all directions.
  
• AR-14-27 intersected 111.05 m total composite mineralization including 2.2 m off-scale radioactivity (>10,000 cps) within a 185.95 m section (226.65 to 412.6 m). 
  
• AR-14-25 intersected 158.55 m total composite mineralization including 0.75 m off-scale radioactivity (>10,000 cps) within a 401.3 m section (247.9 to 649.2 m). 
  
• AR-14-26 intersected 69.82 m total composite mineralization including 2.15 m off-scale radioactivity (>10,000 cps) within a 360.0 m section (437.2 to 797.2 m). This represents the deepest mineralization intersected to date, which further enforces the robust mineralizing system at Arrow.
  
• 25 of 27 drill holes completed at Arrow to date have intersected uranium mineralization. 

A total of 15,318.05 m has been drilled at the Rook I property as of August 17^th, 2014.  An additional five drill holes (AR-14-23 to -27) have been completed at the Arrow zone since the August 5^th, 2014 news release update on drilling results.  Drill hole details and spectrometer (handheld RS-125) results are summarized in Table 1.

Three holes (RK-14-43 and -45) have been completed at Area A within the Rook I property, which is also reported in this news release.

Garrett Ainsworth, NexGen's Vice-President, Exploration and Development, commented "The recent fence of drill holes has resulted in a two-fold success:  an exploration model that shows multiple sub-vertical stacked mineralized shear zones at Arrow that has given us even greater confidence going forward in targeting high grade zones; and we have expanded the breadth of Arrow from 180 to 215 m.  The summer 2014 drill campaign has truly been a game changer, and our hardworking field team has been the key to this accomplishment."   

Leigh Curyer, CEO commented, "Every drill hole at Arrow is accelerating our understanding of the factors controlling mineralization. This batch of results increases the number of broad vertical parallel zones of mineralization to the N-NW. Further, the characteristics we are seeing at such an early stage of exploration at Arrow are analogous to other significant uranium deposits in the Athabasca Basin."

Table 1: Arrow Discovery Zone Drill Hole Data

Parameters:

• Maximum internal dilution 2.00 m downhole
• All depths and intervals are meters downhole
• "Anomalous" means min 5 cm at >500 cps (counts per second) total count gamma readings by gamma spectrometer type RS-125
• "Off-scale" means >10,000 cps (counts per second) total count gamma readings by gamma spectrometer type RS-125
• Where "Min cps" is <500 cps, this refers to local low radiometric zones within the overall radioactive interval

Natural gamma radiation in drill core reported in this news release was measured in counts per second (cps) using a Radiation Solutions Inc. RS-125 gamma-ray spectrometer. 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. Core interval measurements and 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 the partial and total digestions, ICP-OES for major and minor elements on the 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.

ARROW ZONE DRILLING

Hole AR-14-23 targeted the potential for high grade uranium mineralization up-dip from RK-14-27 at approximately the Athabasca Group sandstone and basement unconformity.  Athabasca Group sandstone was intersected from 80.0 m to the unconformity depth of 99.0 m where strong bleaching and extreme desilicification were observed throughout.  The basement rocks are composed primarily of semipelitic to pelitic gneiss with graphitic intervals common between 438.4 to 464.8 m.  Pegmatite injections were observed throughout the basement sequence.  Strong clay alteration intervals are very common, especially between 126.0 and 186.0 m where core recovery was minimal, and locally strong clay alteration is common down to 264.8 m.  Sporadic dravite veins and alteration are common from 272.9 m to the end of hole depth of 459.0 m.  The projected structure from RK-14-27 was intersected, however, no significant radioactivity was intersected.    

Hole AR-14-24 was drilled as an approximate 50 m step out northwest from mineralization intersected in AR-14-21a.  Athabasca Group sandstone was intersected from 110.5 m to the unconformity depth of 123.2 m where strong to extreme bleaching and desilicification were observed throughout.  Basement rocks are composed primarily of semipelitic gneiss 123.2 to 620.5 m with a local graphitic interval from 538.0 to 552.0 m, graphitic pelitic gneiss from 620.5 to 668.8 m, and intercalated dioritic to granodioritic gneiss with pyroxene-rich gabbro intervals and pelitic gneiss intervals from 668.8 to 732.0 m.  Gouges, breccias, shears and faults are common throughout the entire drill hole. Weak to moderate clay and chlorite alteration was observed throughout, and dravite was very common from 315.0 to 651.7 m.  A total composite of 60.55 m of mineralization including 2.5 m off-scale radioactivity was intersected within a 385.7 m section (304.6 to 690.3 m).

Hole AR-14-25 was drilled as an approximate 50 m step out to the northwest from mineralization intersected in RK-14-27 (1.04% U3O8 over 29.0 m from 235.0 to 264.0 m as per June 2, 2014 news release).  Athabasca Group sandstone was intersected from 85.3 m to the unconformity depth of 97.0 m where strong bleaching and desilicification were observed throughout.  The basement rocks are composed primarily of semipelitic to pelitic gneiss from 97.0 to 583.6 m with graphite common between 424.5 m to 437.9 m, garnetiferous pelitic to garnetite gneiss from 583.6 to 761.5 m, and dioritic gneiss with anatectic pegmatite injections down to the end of hole depth of 769.5 m.  Major structures are very common from the unconformity down to 257.4 m, graphitic shears and mylonites from 424.5 to 437.8 m, and breccias and faults from 580.1 to 598.1 m.  Moderate to locally strong clay alteration is associated with structural zones down to 257.4 m, whereas locally moderate chlorite is associated with the deeper structures.  Dravite-lined fractures are common from 462.2 to 514.0 m.  A total composite of 158.55 m of mineralization including 0.75 m off-scale radioactivity was intersected within a 401.3 m section (247.9 to 649.2 m).

Hole AR-14-26 was drilled as an approximate 50 m step out to the northwest from mineralization intersected in AR-14-24.  Athabasca Group sandstone was intersected from 93.0 m to the unconformity depth of 120.0 m where weak to moderate bleaching and desilicification were observed throughout.  The basement rocks are composed primarily of semipelitic gneiss from 120.0 to 683.2 m with local graphitic shear zones occurring locally from 572.5 to 606.9 m, and 732.0 to 738.9 m. A coarse garnetite occurs from 739.0 to 763.2 m within a larger unit comprising graphitic pelitic gneiss from 683.2 to 787.5 m. An intercalated package of semipelitic gneiss, pelitic gneiss, granodioritic gneiss, and gabbro was intersected to the end of hole depth at 849.0 m.  Major structural zones include: 241.2 to 258.4 m (chlorite shear zone), 272.1 to 310.5 m (major fault zone highly clay altered with zones of strong hematite and chlorite), 577.0 to 607.0 m (several moderate graphitic shears), 732.0 to 738.9 m (shows moderate graphitic shearing with intense chlorite alteration), and from 738.9 to 763.2 m (Brittle reactivated shear zone with moderate chlorite and clay alteration occurring congruently with weak graphite).  Moderate to strong clay and hematite alteration dominate from 120.0 to 357.0 m, weak to strong clay and chlorite alteration with intermittent moderate hematite alteration were observed from 357.0 to 849.0 m, and intermittent dravite alteration was noted from 403.0 to 596.0 m.  A total composite of 69.82 m of mineralization including 2.15 m off-scale radioactivity was intersected within a 360.0 m section (437.2 to 797.2 m).

Hole AR-14-27 was drilled to intersect the interpreted plunge of mineralization intersected in RK-14-27 (1.04% U3O8 over 29.0 m from 235.0 to 264.0 m as per June 2, 2014 news release), and AR-14-25.  Athabasca Group sandstone was intersected from 90.0 m to the unconformity depth of 100.4 m where strong bleaching and desilicification were observed throughout.  The basement rock consists of semipelitic gneiss intercalated with weakly graphitic pelitic intervals from 100.4 m to the end of hole depth at 546.0 m.  Clay and chlorite altered shears were observed from 224.0 to 230.8 m and 285.6 to 286.2 m, and a graphitic chloritic shear from 386.0 to 393.5 m. Major fault zones are present from 314.3 to 319.2 m, 334.5 to 338.5 m, and 349.2 to 351.0 m. Strong clay alteration was prevalent from 100.4 to 197.0 m, weak to moderate clay, chlorite and hematite persist intermittently below 197.0 m, and dravite alteration begs to drill deeper from 417.2 to end of hole. A total composite of 111.05 m of mineralization including 2.2 m off-scale radioactivity was intersected within a 185.95 m section (226.65 to 412.6 m).   

AREA A DRILLING

The inferred east extension of the highly fertile PL-3B EM conductor was further tested in Area A in three drill holes (RK-14-43 and -45).

Drill hole RK-14-43 intersected the basement at 60.0 m, and no Athabasca Group sandstone was present. The basement rocks comprised pelitic to graphitic pelitic gneiss from 60.0 to 103.8 m.  Semipelitic to quartzitic gness was intersected from 103.8 m to the end of hole depth of 273.0 m. Strong clay and intermittent strong hematite alteration persisted from 60.0 to 100.4 m, and weak to strong clay and chlorite alteration was observed from 103.8 to 273.0 m. No anomalous radioactivity was encountered.

Drill hole RK-14-44 intersected the basement at 75.0 m, and no Athabasca Group sandstone was present. The basement rocks comprised semipelitic and quartzitic gneiss from 75.0 to 103.7 m, which were underlain by granodioritic gneiss and gabbro from 103.7 m to the end of hole depth of 273.0 m. Moderate to strong clay, chlorite, and hematite were observed from 75.00 to 88.35 m, which waned to weak to moderate from 88.35 to 103.7 m.  Locally strong clay alteration was present from 182.80 to 193.25 m.  No anomalous radioactivity was encountered.

Drill hole RK-14-45 intersected the basement at 86.5 m, and no Athabasca Group sandstone was present. The basement rocks comprised granodioritic gneiss, dioritic gneiss, and gabbro from 86.5 to 340.7 m, which were underlain by semipelitic gneiss 340.7 m to the end of hole depth of 342.0 m. Moderate to extreme clay and chlorite alteration was observed from 86.5 to 144.0 m, and weak hematite alteration persisted from 133.0 to 342.0 m.  No anomalous radioactivity was encountered.

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 exploration professionals with a track record in the discovery of unconformity-style uranium deposits in Canada.

NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook 1, location of the Arrow Discovery, immediately adjacent to the northeast of the Fission/Alpha Patterson Lake South Discovery, and an option to earn a 70% interest in the Radio Project, immediately adjacent to Rio Tinto's Roughrider Deposit.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43- 101 and reviewed on behalf of NexGen Energy Ltd., by Garrett Ainsworth, P.Geo., Vice President – Exploration & Development, a qualified person.

Leigh Curyer,
Chief Executive Officer
NexGen Energy Ltd.
+1 604 428 4112
lcuryer@nexgenenergy.ca
www.nexgenenergy.ca

The TSXV has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Generally, but not always, forward looking information is identifiable by the use of words such as "will" and planned" and similar expressions. Forward-looking information is based on the then current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates.  Such information is not a guarantee of future performance and undue reliance should not be placed on forward-looking information. Assumptions and factors underlying the Company's expectations regarding forward-looking information contained herein include, among others: that general business and economic conditions will not change in a material adverse manner; that financing will be available if and when needed on reasonable terms; that the Company's current exploration activities can be achieved and that its other corporate activities will proceed as expected; 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 are considered reasonable by management at the time the forward-looking information is given, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information also involves 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, including, among others: risks related to the availability of financing on commercially reasonable terms and the expected use of the proceeds; changes in the market; potential downturns in economic conditions; industry conditions; actual results of exploration activities being different than anticipated; changes in exploration programs based upon results of exploration; future prices of metal; 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 or financing. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. NexGen 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. The reader is cautioned not to place undue reliance on forward-looking information.

SOURCE NexGen Energy Ltd.