View
513
Download
0
Category
Tags:
Preview:
Citation preview
Arrow: A Rapidly Growing Uranium Discovery | June 2015
Disclaimer Information Contained In This Presentation
This presentation is a summary description of NexGen Energy Ltd. (“NexGen” or the
“Company”) and its business and does not purport to be complete. This presentation is
not, and in no circumstances is it to be construed as, a prospectus, an advertisement,
or a public offering of securities. No securities regulatory authority or similar authority
has reviewed or in any way passed upon the document or the merits of the Company’s
securities and any representation to the contrary is an offence.
Except where otherwise indicated, the information contained in this presentation has
been prepared by NexGen and there is no representation or warranty by NexGen or
any other person as to the accuracy or completeness of the information set forth
herein. This presentation includes information on adjacent properties that was
obtained from various publicly available sources referred to herein and the accuracy
and completeness of such information has not been verified by NexGen. Except as
otherwise stated, information included in this presentation is given as of the date
hereof. Neither the delivery of this presentation nor any sale made under the terms
described herein shall imply that the information herein is correct as of any date after
the date hereof.
All dollar amounts referenced herein, unless otherwise indicated, are expressed in
Canadian dollars.
Cautionary Note Regarding Forward-looking Information
Statements contained in this presentation that are not current or historical factual
statements may constitute “forward-looking information” within the meaning of
applicable securities laws including statements with respect to the properties, a
concurrent financing, our plans for exploration and development of our properties and
our financial condition, operations and prospects. The forward-looking information
reflects current expectations regarding future results, performance or achievements
and speaks only as of the date of this presentation. When used in this presentation,
forward-looking information can be identified by such words as “may”, “will”, “expect”,
“believe”, “plan”, “project”, “anticipate”, “intend”, “estimate” and other similar
terminology. Such forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause the actual results, performance or
achievements of the Company to be materially different from any future results,
performance or achievements expressed in or implied by such information. Such risks,
uncertainties and other factors include, but are not limited in any manner to those risks
set forth in this presentation under the heading “Risk Factors”, including, the risk that
no mineralization will be identified on the Radio and Rook I properties; the Company’s
dependence on third party financing; the Company’s limited operating history; risks
inherent in exploration activities; environmental and safety risks including increased
regulatory burdens; unexpected geological or hydrological conditions; a possible
deterioration in political support for nuclear energy; changes in government regulations
and policies, including trade laws and policies; demand for nuclear power; failure to
obtain necessary permits and approvals from government authorities; weather and
other natural phenomena; and other exploration, development, operating, financial
market and regulatory risks. The foregoing list of factors is not exhaustive.
The forward-looking information contained in this presentation requires management to
make certain assumptions including with respect to the financing and its ability to
successfully develop its properties. Although management of the Company believes
that the assumptions underlying, and the expectations reflected in, the forward-looking
information are reasonable, significant risks and uncertainties are involved in such
information. Management can give no assurances that its assumptions, estimates and
expectations will prove to have been correct. Forward-looking information should not
be read as guarantees of future performance or results, and will not necessarily be
accurate indications of whether or not or the times at or by which such performance or
results will be achieved. Many factors that are beyond the Company’s control could
cause actual results to differ materially from the results discussed in the forward-
looking statements.
2
3 Uranium Market (Demand) A Story of Stable Demand Growth and Uncertain Supply
Nuclear Electricity Growth • 930 GW needed by 2050 to support existing global decarbonisation mandates • Will represent 17% of the global energy supply • Equates to a 2.3 times increase in nuclear energy demand in just 35 years
Uranium Demand • Average demand growth estimated at 4% per year to 2024
Source: International Energy Agency (2015)
4 Uranium Market (Demand) Investment and Reactor Builds
• Currently 437 nuclear reactors in operation globally • As of April 2015, 65 nuclear reactors are under construction
• China: 26 currently, 23 under construction, 187 in planning/proposal phase • China Nuclear Power Corp. “looking to invest in Canada in the near future” (Dec. 2014)
• Another 496 reactors are in the planning/proposal phase 1.) Graph: International Energy Agency (2015) 2.) World Nuclear Association (2015)
1
2
5 Uranium Market (Supply) Lack of Economic Deposits
• In 2014 world uranium
consumption was 155Mlbs while mine supply accounted for 147Mlbs
• +20Mlbs from HEU agreement (now over)
• Estimated supply gap of
nearly 100Mlbs per year by 2030
• 11 of top 15 uranium
mines are in unstable jurisdictions (Russia, Kazakhstan, Niger)
End of HEU agreement in 2013 removed the equivalent of McArthur River’s annual production from supply
1.) World Nuclear Association (2015) 2.) World Nuclear Association estimate of 97,450tU demand and 53,000 tU supply in 2030
1
2
6 The Athabasca Basin The Source of Future Supply
1.) World Nuclear Association (2015) 2.) Cameco Corp. 3.) Based on US$45/lb U & US$1,300/oz Au
Remember: 1.00% U3O8 = 23.50 g/t gold!
• Global average
resource grades ~0.10% U3O8
• Athabasca Basin mines produce at over 100X global average resource grade
• McArthur River produced 18.6Mlbs at 14.87% U3O8 in 2014
1
2
3
7 Project Overview Focus: High-tonnage, high-grade, technically superior assets in shallow sections of the Athabasca Basin
Portfolio Characteristics
• Straddles the edge and inside of the Athabasca Basin
• Enables NexGen to find basement-hosted, unconformity-hosted and sandstone-hosted mineralization
• Hosts the land-based Arrow discovery
8 Arrow Discovery Rook I Project Location & Conductor Corridors
• Most dominant land position in the Southwest Athabasca Basin
• Arrow discovered Feb 2014 with 1st drill hole and hit 44 of 46 holes since
• Land-based discovery
located straddling and inside the Athabasca Basin boundary
• Basement-hosted high-grade mineralization that grows all directions and at depth
Rook I hosts all the known uranium bearing conductor corridors in the region
9 Successful Drilling at Arrow 44 of 46 Drill Holes Intersected High-grade Uranium Mineralization
NexGen’s Drilling Methodology:
1. Wide step-outs 2. Angled Holes: 90% of
holes drilled are angled 3. Efficient capital
allocation: 8:1 $ in the ground to $ to G&A
4. Incredible hit rate: 96% of holes hit mineralization
Results: Current Area of Mineralization:
• Length x width 515 m x 215 m
• Depth 100 m to 920 m
10 Arrow: A2 & A3 Shears Plan view of Arrow
11 A2: Continues to Expand
• AR-15-44b (angled):
• 56.5m at 11.55% U3O8
including 20m at 20.68%
U3O8 and 1.00m at 70%
U3O8 • Total composite GT (Grade X
Thickness) of 853.55
• AR-15-41 (angled):
• 57.0m at 2.31% U3O8,
including 16.5m at 7.43%
U3O8
• AR-15-39 (angled):
• 27.0m at 2.82% U3O8
• AR-15-34b (angled):
• 70.0m at 2.2% U3O8 including
11.0m at 8.95% U3O8
12 A3: New High-grade Shear Developing • February 24, 2015 discovery of new
high-grade mineralized shear zone;
A3
• AR-15-41 (angled):
• 20.5m at 4.30% U3O8
• AR-15-39 (angled):
• 29.5m at 2.27% U3O8
• AR-15-45b (angled):
• Longest total composite
mineralization with 226m,
including 9.80m off-scale
radioactivity (>10,000 to
54,000cps) - Assays pending
• Holes to date in A3 shear show it
to have significantly larger
dimensions than A2
13 Arrow: A2 & A3 Cross-Section
• Both A2 and A3
Zones remain
open in every
direction
• NE extent of Arrow
opened up with
AR-15-40b (11.5m
at 0.99% U3O8)
A2 Dimensions:
• 88m strike length
• 340m vertical extent
• 11-27.5m true width
A3 Dimensions:
• 73m strike length
• 420m vertical extent
• 30-78.6m true width
2 High-grade shear zones now identified at Arrow
14
Athabasca Basin Setting
15 The Eagle Point Analogy Eagle Point is an underground mine operated by Cameco
- Eagle Point current mineral reserves: 15.2Mlbs at 0.61% U3O8. 2014 annual production of 4.2Mlbs
- Underground mine using longhole stoping in the competent basement rock
- Eagle Point deposits are located on the eastern edge of the Athabasca Basin, and are part of the Rabbit Lake Uranium district which also includes the Rabbit Lake and Collins Bay deposits.
- Rabbit Lake District produced +198Mlbs of uranium concentrates since production began in 1975
1.) Cameco Corp.
1
1
16 Dravite Breccia – McArthur River & Arrow
1.) Cameco Corp.
Arrow: AR-14-15 422.25m Dravite associated (or proximal) to mineralization
McArthur River: Dravite-Chlorite-filled Breccias associated with high-grade
mineralization 1
17
Bow: New Discovery 3.7km NE of Arrow
BO-15-10:
• 2.5m total
composite
mineralization
including 0.10m
off-scale
(>10,000cps to
>10,200cps)
• 66m step-out to
east of BO-15-
02
• Now identified a
350m strike
length of
anomalous
radioactivity at
Bow
18
BO-15-10: Visible Pitchblende
19 Patterson Conductor Corridor Multiple targets along 7kms of conductor corridor
BO-15-10, -02
drilled into a
gravity low
anomaly with
coincident
VTEM
conductor
and radon in
lake water
anomaly with
peak reading
of 36.0pCi/L
20 On Land Gravity Low: Summer 2015
21 Summer Drill Targeting – Bow, Derkson
• Multiple high
priority targets
based on the
same
geophysical
signature as
Arrow
• Land-based
• Regional
summer drill
program to
further define
Bow and drill
first holes in
Derkson
conductor
corridor
22
Eastern Athabasca Basin Portfolio
High Quality Portfolio:
1. Radio: located directly adjacent to and long strike of Roughrider, Rio Tinto acquired for $654M in February 2012.
2. Thorburn Lake: 9 of 15 drill holes have intersected uranium mineralization.
3. Madison and 2Z Lake: contain shallow (<100m thick) sandstone-hosted uranium mineralization, and is along strike from U-mineralized conductors. Represent good potential for discovery of new basement-hosted uranium deposits.
23
NexGen Summary • Arrow, a world-class uranium discovery
• 44 of 46 holes hit mineralization (~96% hit rate)
• Aggressive and deliberate drilling methodology
• Area of mineralization 515 m x 215 m, vertical extent commencing from 100 m down to 920 m
• Two high-grade shear zones; A2 & A3 identified with broad intercepts of high-grade uranium encountered
• Expansion of A2 high-grade shear and discovery of A3 which looks significantly larger than A2
• A brand new discovery made 3.7km northeast of Arrow called “Bow”
• Recently closed C$27.3M bought-deal financing
• Aggressive 5 rig, 25,000m summer 2015 program to start in early June
24
Arrow: Perspective on Size The Empire State Building next to Arrow
Empire State Building Total height: 443m
(~54% of Arrow’s height)
Arrow Total height: 820m
(starting from 100m of
surface)
Image made via Leapfrog software using latest drill data from Arrow zone. No NI 43-101 has been published for the Arrow zone to date.
25
APPENDICIES
26
NexGen Outperforming Peers
* 3-month share price returns in Canadian Dollars as of June 12, 2015
27
Executive, Board & Technical Team
Executive
Leigh Curyer Chief Executive Officer
Garrett Ainsworth VP Exploration & Development
Grace Marosits Chief Financial Officer
Travis McPherson Corporate Development Manager
Board
Chris McFadden Chairman
Richard Patricio
Trevor Thiele
Craig Parry
Gerry Feldman
James Currie Directors
Technical Team
Garrett Ainsworth VP Exploration & Development
Adam Engdahl Project Manager - Saskatchewan
Galen McNamara Project Manager - Geology
Technical Advisory
Andrew Browne former VP Exploration & Development
Craig Parry Director
Strong team with a successful track record in uranium exploration and
development.
28
Capital Structure
Shares Issued & Outstanding 251,928,896
Warrants ($0.425 - $0.65) 20,839,796
Options ($0.30 - $0.46) 22,360,637
Fully Diluted 295,129,329
Cash ~C$30M
Ownership Management/Directors
Tigers Realm Minerals & Associates
Mega Uranium
~6%
~14%
~9%
1.) As of June 1, 2015 2.) Company recently closed C$27.3M financing
1
2
29 The Éléonore Example Putting Arrow’s depth extent in context
Goldcorp’s Newest Mine:
Mine Plan • 1,145m depth (starting at 55m
from surface)
Average Gold Grade • 6.34g/t Au (equivalent to 0.27%
U3O8)
Development Capex • US$1.8 billion
1.) Goldcorp 2.) Based on US$45/lb U & US$1,300/oz Au
1
1
2
1
1
30 Arrow: No Freezing
• Arrow is basement-hosted which means NO freezing would be required
• Unlike McArthur River and Cigar Lake which have 600 and 480m of sandstone on top of the ore bodies, respectively - Arrow only has 10-20m of sandstone within 80m of surface
• Cigar Lake is world-class in size and grade, but faces significant challenges due to fact ore is sandstone-hosted and requires futuristic mining methods
31
Analyst Coverage
Mike Kozak - Cormark
Securities Inc. (416) 943 6749 BUY C$1.10
Rob Chang – Cantor
Fitzgerald Canada (416) 849 5008 BUY N/A
Andrew Mikitchook–
Edgecrest Capital (416) 687 6613 BUY C$0.85
David Talbot – Dundee
Capital Markets (416) 350 3082 BUY N/A
32
Contact
Travis McPherson
Corporate Development
C: +1 604.816.2686
T: +1 604.428.4112
tmcpherson@nexgenenergy.ca
Recommended