NexGen rises on uranium PFS results

Investors have rewarded British Columbia uranium developer NexGen by pushing its Toronto-listed equity up by nearly 14% on Monday, following the release of the prefeasibility study (PFS) results and a mineral resource update of the Arrow deposit in the Athabasca basin in Saskatchewan.

The PFS delivered a “substantial improvement” to the 2017 preliminary economic assessment (PEA) with a 64% increase in average yearly after-tax net cash flow, CEO Leigh Curyer said in a news release announcing the study results.

The PFS incorporated only the indicated mineral resource of Arrow, which reduced its mine life, but increased the average grade, while maintaining a consistent capital expenditure and lowered yearly operating expenses.

The PFS envisions an underground mine that will operate for nine years, rather than the previously estimated 15 years at a lower mining rate of 1 039 t/d, compared with 1 448 t/d considered in the PEA.

The focus on the indicated mineral resource increased the average grade from 1.73% U3O8 to 3.09% U3O8, lifting production to 25.4-million pounds a year, from 18.5-million pounds a year.

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