Follow Us! Like Our Page!

NexGen Announces Elite Environmental and Economic Results from the Rook I Feasibility Study

Press Release

VANCOUVER, BC , Feb. 22, 2021  – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE) (NYSE: NXE) is pleased to announce the positive results of an independent Feasibility Study (“FS” or the “Study”), Mineral Reserve and Mineral Resource update of the basement-hosted Arrow Deposit, located on the Company’s 100% owned Rook I project (“Arrow” or the “Project”) in the Athabasca Basin in Saskatchewan , Canada.  The FS was completed jointly by leading consultants including: Stantec Consulting Limited (“Stantec”), Wood Canada Limited. (“Wood”), and Roscoe Postle Associates Inc. (“RPA”, now part of SLR Consulting ( Canada ) Ltd), with other technical inputs completed by sub-consultants.

Leigh Curyer, Chief Executive Officer, commented:

“The environmental and economic results from the Rook I Feasibility Study place the Project as one of the leading global resource projects with an elite ESG profile. Today’s delivery of the Feasibility Study is a significant milestone which transitions NexGen into the next key stage of advancement. The results will be included in the Environmental Assessment and Licensing processes which incorporates engagement, consultation, monitoring and data collection since 2013.

The NexGen team’s commitment to elite standards is evident throughout all aspects of the feasibility study, and the organization as a whole.  With a minimal physical and carbon footprint, NexGen is uniquely positioned to become a world leader in the production of clean energy fuel.

The global energy matrix is undertaking an enormous shift that will rely heavily on nuclear energy to deliver the decarbonization commitment for today’s and future generations.  It is proven to be a safe, clean and most reliably efficient form of power generation known to humankind.  With all major countries signalling significant infrastructure spending, and re-prioritizing green energy policy as their major focus over this coming decade and beyond, Rook I will be a material component in the delivery of those global objectives.

I would like to take the opportunity to congratulate the entire NexGen team, and thank the local communities where we operate, as well as the Government of Saskatchewan and the Federal Government Canada for their outstanding commitment and support for execution of the Rook I Project’s development to date.”

Highlights

Table 1 – Summary of Arrow Deposit Feasibility Study (based on US $50 /lb U 3 O 8 )

FS ($ CAD)

After-Tax NPV @ 8%

$3.47 Billion

After-Tax Internal Rate of Return (IRR)

52.4%

After-Tax Payback

0.9 Year

Pre-Commitment Early Works Capital

$158 Million

Project Execution Capital

$1,142 Million

Total Pre-Production Capital Costs

(“CAPEX”)

$1,300 Million

Average Annual Production (Years 1-5)

28.8 M lbs U 3 O 8

Average Annual After – Tax Net Cash Flow

(Years 1-5)

$1,038 Million

Average Annual Production (Life of Mine)

21.7 M lbs U 3 O 8

Average Annual After – Tax Net Cash Flow

(Life of Mine)

$763 Million

Nominal Mill Capacity

1,300 tonnes per day

Average Annual Mill Feed Grade

2.37% U 3 O 8

Mine Life

10.7 Years

Average Annual Operating Cost (“OPEX”,

Life of Mine)

$ 7.58

(US $5.69)/lb U 3 O 8

1)

The economic analysis was based on the timing of a final investment decision (“FID”) and does not include the Pre-Commitment Early Works Capital, which are costs NexGen intends on expending prior to the FID.  Pre-Commitment Early Works scope includes site preparation and the supporting infrastructure (concrete batch plant, Phase I camp accommodations and bulk fuel storage) required to support full Project Execution Capital.

2)

FS based on CAD $1.00 = US $0.75 and US $50/lb U 3 O 8 price.

Webcast and Conference Call

NexGen will host a webcast and conference call today, February 22, 2021 at 8:30AM Eastern Standard Time .

To join the call please dial (+1) 416 764 8659 (local/international) or (+1) 888 664 6392 ( North America toll free) with passcode 89503308 and an operator will assist.

To join the webcast, please copy the following link to your browser: https://produceredition.webcasts.com/starthere.jsp?ei=1435461&tp_key=3a0aec72f1 where you will be directed to join the webcast.

Top 5 Feasibility Study Outcomes

  1. Enhanced Environmental Performance – Optimized facilities layout reducing the project footprint by approximately 20% and lowering on-site personnel transportation and ore haulage. Optimized shaft sizing, water useage through advanced water recycling and plant engineering, all reflecting elite environmental standards . With respect to the proposed shaft, mine workings and Underground Tailings Management Facility (“UGTMF”) locations, geotechnical and hydrogeological testing validated highly competent rock with no significant alteration, no major structures, and low hydraulic conductivity.
  2. High Return on Capital with  0.9 Year Payback Period and Life-of-Mine Production Flexibility – Incorporating a consensus US$50 per lb uranium price over the life of the mine, provides high economic returns. A function of the Arrow Deposit geometry combined with the competent ground conditions enables decoupled production areas in both the A2 and A3 zones, allowing strategic flexibility of mine sequencing and production.
  3. CAPEX Accuracy – Nominal 4% increase over the Pre-Feasibility Study (“PFS”) or 1.6% – (incorporating inflation rates of 2019: 1.95% and 2020: 0.62%) increase in CAPEX from the PFS due to the following key areas: enhanced environmental performance, refined mine design, change in shaft diameter, shaft collar and freeze depths, optimized size of the power plant, paste fill plant, requirement for an additional waste rock storage area, and first principle calculations for indirect costs.  The production shaft was increased to 8.0 m in diameter (from 6.5 m in diameter in PFS) to provide increased production flexibility, optimization of the radiation and ventilation management, ensuring the mine is elite from a safety perspective.
  4. OPEX Accuracy – Average OPEX reduced by 1% per tonne. Reduction in mining, processing and G&A costs per tonne, with an increase in paste fill cost per tonne based on paste fill binder requirements.  Cost per pound will be among the lowest in the sector at US$5.69 per lb.
  5. Highest Level of Mineral Resource Confidence – First time declaration of Measured Mineral Resources of 2,183 kt grading 4.35% U 3 O 8 , containing 209.6 M lbs U 3 O 8 . Measured and Indicated Mineral Resources total 3,754 kt grading 3.10% U 3 O 8 , containing 256.7 M lbs U 3 O 8 supporting initial 10.7 year mine life (11% increase).

Mineral Resources

The updated Mineral Resource Estimate has an effective date of June 19, 2019 and builds upon the Mineral Resource Estimate used in the PFS by incorporating holes drilled in 2018 and 2019. The updated Mineral Resource Estimate is principally comprised of Measured Mineral Resources – the highest level of confidence determination within Mineral Resources – with Measured Mineral Resources of 209.6 M lbs of U 3 O 8 contained in 2,183 kt grading 4.35% U 3 O 8 , Indicated Mineral Resources of 47.1 M lbs of U 3 O 8 contained in 1,572 kt grading 1.36% U 3 O 8 , and Inferred Mineral Resources of 80.7 M lbs of U 3 O 8 contained in 4,399 kt grading 0.83% U 3 O 8 , summarized below in Table 2. The drill hole spacing defining the Measured and Indicated Mineral Resources is supported by two leading and independent geostatistical drill hole spacing studies.

Read More: https://www.nexgenenergy.ca/news/nexgen-announces-elite-environmental-and-economic-results-from-the-rook-i-feasibility-study

ILR4

NationTalk Partners & Sponsors Learn More