NexGen has an option to acquire 70% (First right on final 30%) of the Radio project, which is located in the North East Athabasca Basin, directly adjacent to Rio Tinto’s Roughrider deposits (total indicated + inferred resources of 58Mlb at an average grade of 4.73% U3O8). Rio Tinto acquired Hathor Exploration, previous owner of the Roughrider deposits, for $654m in December 2011.
Within a 10km radius of Radio is approximately 170Mlb of uranium resources at average grades of 1–11% U3O8. Management believes that Radio covers the extension of the interpreted E-W structural corridor, which hosts Roughrider.
NexGen completed the first ever exploration program in the summer of 2013 completing 2,500m of
2013 drilling confirmed the presence of significant bleaching, desilicification, clay alteration, and structural disruptions in the overlying Athabasca sandstone, and of clay alteration and structures in the basement rocks, particularly in holes RD-13-06, RD-13-08, and RD-13-09. All of these features are known to occur at or in the vicinity of uranium mineralization in the Athabasca Basin. Several sheared and altered graphitic horizons were intersected at least 200 m below the unconformity in the basement rocks in hole RD-13-08. Preliminary structural orientations indicate that the graphitic horizons are dipping southeast and will intersect the unconformity 50 to 100 m northwest of RD-13-08.
Radio is located directly adjacent to and covers the eastern extension of the interpreted structural corridor that hosts Rio Tinto’s Roughrider deposits (total indicated + inferred resources of 58Mlb at an average grade of 4.73% U3O8). Rio Tinto acquired Hathor Exploration, previous owner of the Roughrider deposits, for A$654m in December 2011.
In May 2011, detailed aeromagnetic and VTEM surveys were conducted over the property and confirmed the presence of certain structural trends similar to those hosting mineralisation on adjacent properties in the area, such as Roughrider, MidWest and Dawn Lake.
Significantly, certain drill targets in Radio are interpreted to be on the same structural trend that hosts the Roughrider deposits.
During 2012, detailed ground gravity and resistivity surveys have been completed covering Radio, on a 200m line separation oriented N-S over the entire property. Interpretation completed to date has confirmed at least eight priority targets requiring detailed drilling. An initial diamond drilling program is planned for winter 2012–13 and is expected to commence in January 2013.
The exploration targets comprise Athabasca Basin ‘unconformity-style’ uranium deposits primarily associated with structurally disturbed zones within the lower Proterozoic metamorphic basement lithologies, similar to those drilled at Roughrider East and Far East. Typical target footprint size is small, being up to only several hundred metres long and up to 100m wide, beneath approximately 200m of barren cover quartzite of the Basin. Known deposits are steeply dipping.
The property is near existing infrastructure, with two of the world’s largest vertically integrated uranium producers (Areva and Cameco) operating uranium mines and processing facilities in the area.
Tenement history and exploration
The Radio project claim area dates back to the original 1969 claim rush. However despite the occurrence of a number of low-level regional exploration geophysical and geochemical targets and the proximity to identified uranium deposits, Radio was never drilled.
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