SW1 Overview

Since the acquisition by NexGen of the SW1 property (the “Property”) in 2012, NexGen has systematically developed the property through testing with numerous studies and geophysical surveys. The resulting geophysical signature on the Property, particularly the Gartner Lake Corridor (“GLC”), displays strong similarities to the Rook I property (Figure 1) which hosts Arrow, Canada’s largest to-be developed uranium deposit currently in the Environmental Assessment process. Those similar characteristics include a strong conductive signature with numerous off-sets coincident with discrete gravity lows and steep magnetic gradients (Figure 2, Figure 3). Analysis of historic drilling has also revealed prospective structure and alteration that coincides with highly- favourable geophysical properties for potential uranium mineralization.

Geophysical History

The Property is situated on the western limb of a regional fold structure with the Patterson Lake Uranium Corridor and the Arrow Deposit situated on the eastern limb (Figure 1). Historical drill core from the Property show that the area contains similar host rocks as the Arrow Deposit. Given this geological affiliation, NexGen commissioned the same airborne geophysical techniques that led to the discovery of the Arrow Deposit in February 2014. A VTEM survey defined several discrete and disjointed conductive corridors on the Property, similar to what was seen at Arrow. Follow-up ZTEM surveys were conducted in conjunction with HeliFalcon gravity gradiometry surveys over the entire Property. These surveys defined additional corridors and numerous gravity anomalies, several of which are coincident with the dislocation of the conductors (Figure 4), similar to the Arrow Deposit (Figure 4). The development of the Property has led to high-confidence targets that are prime for focused exploration through drilling.

Drill Program

Exploration drilling with a minimum of 4,000 m, utilizing 2 drill rigs, will commence imminently on the Property. The program is designed to test the highest-priority anomalies, analogous to those at the Arrow Deposit, for uranium mineralization that has been highlighted by geophysical surveys and the analysis of historic drilling.

Figure 1: SW1 Property and Rook I Property with Similar Geophysical Signatures

SW1 Property and Rook I Property with Similar Geophysical Signatures

Figure 2: SW1 Property with Identified Target Areas

SW1 Property with Identified Target Areas

Figure 3: SW1 Property with Conductive Corridors Analogous to Rook I

SW1 Property with Conductive Corridors Analogous to Rook I

Figure 4: SW1 Target Areas with Gravity Anomalies Coincident with EM Conductor Breaks

SW1 Target Areas with Gravity Anomalies Coincident with EM Conductor Breaks