NexGen reports key uranium find at Rook I property

VANCOUVER, BC - NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE) (ASX: NXG), a $2.8 billion uranium exploration company currently trading slightly below its InvestingPro Fair Value, has announced a significant discovery at its Rook I property, with drillhole RK-25-232 revealing a broad zone of intense mineralization. This hole encountered 3.9 meters of greater than 61,000 counts per second (cps), signifying a high concentration of uranium within a larger 13.8-meter mineralized interval.

The discovery, which commences at a depth of 452.2 meters, is considered one of the shallowest high-grade intersections at the Patterson Corridor East (PCE) and remains open in all directions. The high-grade subdomain has now doubled in size to a 210-meter strike and 335-meter vertical extent, a substantial increase from the 100-meter strike and 170-meter vertical extent reported in November 2024. Despite the promising development, the stock has experienced a 25.7% decline over the past six months, reflecting the broader market’s cautious stance on pre-revenue mining companies.

NexGen’s CEO Leigh Curyer described the intercept from RK-25-232 as "geologically exceptional" and a "transformational moment" for the PCE, comparing its potential to the company’s Arrow deposit. The discovery aligns with Canada’s broader efforts to optimize the development of energy fuel resources.

The recent drilling success at PCE follows an initial discovery of new vein-type basement-hosted uranium in February 2024. NexGen’s focus will continue to be on expanding this high-grade zone and assessing the magnitude of the regional mineralizing event at Rook I.

With assays from 2024 drilling expected in April, NexGen is poised to commence construction of the Rook I Project, pending the completion of the Canadian Nuclear Safety Commission (CNSC) approval process. While the company maintains a strong balance sheet with more cash than debt, InvestingPro analysis reveals current negative EBITDA of $53.4M, typical for companies in the development phase. For deeper insights into NexGen’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

This announcement is based on a press release statement from NexGen Energy Ltd.

In other recent news, Stifel analysts have initiated coverage of NexGen Energy Ltd. with a Buy rating and set a price target of Cdn$16.00. This development highlights the potential of NexGen’s Rook 1 project, which is expected to produce uranium at a rate comparable to Cameco’s Canadian production. The Rook 1 project is positioned as a crucial supply source, especially between 2030 and 2036, when demand from U.S. utilities is anticipated to rise. Analysts from Stifel emphasized the scarcity of new, reliable uranium supply sources, suggesting that Rook 1’s production will be highly sought after. The project is ready for construction pending full permitting and is noted for being a high-margin, long-life asset in a prime mining location. Additionally, there is potential for Rook 1 to attract merger and acquisition interest due to its strategic importance in the uranium market. Stifel’s initiation of coverage with a positive outlook underscores the project’s potential impact on the global uranium supply chain.

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