NexGen Energy Ltd. announced the discovery of new intense uranium mineralization on its 100% owned SW2 Property, 3.5 kilometers (km) east of NexGen?s world-class Arrow Deposit. The new mineralized occurrence in RK-24-183 is located on a previously untested conductor segment of Patterson Corridor East (?PCE?). Localized uranium mineralization was intersected for 19.8 meters (m) between 347.7 and 367.5 m, with peaks up to >61,000 counts per second (cps).

Exploration is predominantly open in all directions including over 1.5 km along strike. Follow up drilling intersected anomalous features including hematite-quartz breccia, strong silicification, dravitic clay fracture fill, redox alteration, and elevated radioactivity similar to early discovery holes at Arrow in 2014 at the upper limits of that system. Kinematics indicate reverse displacement synonymous with the interpreted structural setting.

Use of geological spatial relationships observed at Arrow allows for controlled vectoring of additional drill targets across the prospective hydrothermal system which spans over 1.5 km. Results to date indicate potential that extends along strike and down dip. The overall setting is an approximate analog for the structural controls of Arrow.

The target area lies within a large gravity low coupled with a series of disjointed conductive responses. An interpreted regional, north-south cleavage plane bisects the gravity low. A cleavage plane is also interpreted to connect Arrow, South Arrow, and Camp East.

Sinistral, strike-slip displacement via contractional jog was hypothesized to account for the geophysical characteristics. This movement sense compares favourably with the sinistral, strike-slip reactivation noted as a key contributor to deposit formation at Arrow. Semi-massive replacement by uranium mineralization is tied to brittle-ductile reactivation of steeply dipping, discrete shear zones bracketed by silicified orthogneiss.

Localized semi-massive mineralization includes primary uraninite and secondary uranium minerals. Textural characteristics of mineralization and associated alteration indicate a well-developed hydrothermal system with fluid pathways provided by the structural disruption. In particular, the role of bounding silicification, mineralization style, and stacked brittle-ductile faults are analogous to features found at Arrow.