Athabasca uranium stocks rally on NexGen (V.NXE) discovery and 82% jump

Peter Kennedy Peter Kennedy, Stockhouse
2 Comments| February 19, 2014

NexGen Energy Ltd. (TSX: V.NXE, Stock Forum) shares soared by over 80% Tuesday on news of a uranium discovery in Saskatchewan’s Athabaska Basin.

Significant uranium mineralization has been discovered on the Rook 1 project, the company said in a press release.

Trading at 41 cents, a jump of 82% on the previous day, NexGen has a market cap of $53.8 million, based on 128 million shares outstanding. The 52-week range is 60 cents and 22.5 cents.

NexGen owns a portfolio of exploration properties in the Athabasca Basin, including an option to earn a 70% interest in the Radio Project, immediately adjacent to Rio Tinto PLc’s (NYSE: RIO, Stock Forum) Roughrider Deposit and a 100% stake in Rook 1, immediately adjacent to the north east of Fission Uranium Corp.’s (TSX: V.FCU, Stock Forum) Patterson Lake South project.

Fission Uranium shares rose 9.7% to $1.30 in early afternoon trading Tuesday.

Other active companies in the region include Aldrin Resource Corp. (TSX: V.ALN, Stock Forum), Makena Resources Inc. (TSX: V.MKN, Stock Forum), Skyharbour Resources Ltd. (TSX: V.SYH, Stock Forum).

Aldrin was up 7% to 7.5 cents. Makena jumped 15% to 11.5 cents. Skyharbour jumped 13.6% to 12.5 cents.

Rook 1 is immediately adjacent to, and along strike to the northeast of the Patterson Lake South discovery. Nexgen is focusing on three separate conductors, one of which (3B) is interpreted to be the same conductor that hosts the PLS discovery.

“The Arrow prospect represents a totally new zone of uranium mineralization in the southwestern Athabasca Basin, completely unrelated to any other known occurrence in the region,’’ said Andrew Browne, NexGen’s vice-president, exploration and development.

FULL DISCLOSURE: Makena Resources, Aldrin Resource Corp and Fission Uranium are Stockhouse Publishing clients.

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