Nexgen Energy Ltd. · TSX:NXE
Nexgen Energy — Investor Presentation (June 2015)
33 slides from Nexgen Energy's investor presentation, June 2015
Slide 1: Arrow: A Rapidly Growing Uranium Discovery
Arrow: A Rapidly Growing Uranium Discovery | June 2015
Slide 2: Disclaimer
2 Disclaimer Information Contained In This Presentation uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, This presentation is a summary description of NexGen Energy Ltd. (“NexGen” or the
Slide 3: Uranium Market (Demand)
3 Uranium Market (Demand) A Story of Stable Demand Growth and Uncertain Supply Nuclear Electricity Growth • 930 GW needed by 2050 to support existing global decarbonisation mandates • Will represent 17% of the global energy supply • Equates to a 2.3 times increase in nuclear energy demand in just 35
Slide 4: Uranium Market (Demand)
4 Uranium Market (Demand) Investment and Reactor Builds 1 • Currently 437 nuclear reactors in operation globally • As of April 2015, 65 nuclear reactors are under construction • China: 26 currently, 23 under construction, 187 in planning/proposal phase • China Nuclear Power Corp. “looking to invest
Slide 5: Uranium Market (Supply)
5 Uranium Market (Supply) Lack of Economic Deposits • In 2014 world uranium consumption was 155Mlbs while mine supply accounted for 147Mlbs • +20Mlbs from HEU agreement (now over) 1 • Estimated supply gap of nearly 100Mlbs 2 per year by 2030 • 11 of top 15 uranium mines are in unstable jurisdictions
Slide 6: The Athabasca Basin
6 The Athabasca Basin The Source of Future Supply • Global average resource grades 1 ~0.10% U3O8 • Athabasca Basin mines produce at over 100X global average resource grade • McArthur River produced 18.6Mlbs at 14.87% U3O8 in 2 2014 3 Remember: 1.00% U3O8 = 23.50 g/t gold! 1.) World Nuclear Associati
Slide 7: Project Overview
7 Project Overview Focus: High-tonnage, high-grade, technically superior assets in shallow sections of the Athabasca Basin Portfolio Characteristics • Straddles the edge and inside of the Athabasca Basin • Enables NexGen to find basement-hosted, unconformity-hosted and sandstone-hosted mineralizatio
Slide 8: Arrow Discovery
Arrow Discovery 8 Rook I Project Location & Conductor Corridors • Most dominant land position in the Southwest Athabasca Basin • Arrow discovered Feb 2014 with 1st drill hole and hit 44 of 46 holes since • Land-based discovery located straddling and inside the Athabasca Basin boundary • Basement-hos
Slide 9: Successful Drilling at Arrow
Successful Drilling at Arrow 9 44 of 46 Drill Holes Intersected High-grade Uranium Mineralization NexGen’s Drilling Methodology: 1. Wide step-outs 2. Angled Holes: 90% of holes drilled are angled 3. Efficient capital allocation: 8:1 $ in the ground to $ to G&A 4. Incredible hit rate: 96% of holes hi
Slide 10: Arrow: A2 & A3 Shears
Arrow: A2 & A3 Shears 10 Plan view of Arrow
Slide 11: 2015: Expansion of A2 Shear
2015: Expansion of A2 Shear 11 • AR-15-44b (angled): • 190.7m total composite mineralization incl. 40.47m off- scale (>10,000cps to >61,000cps) in both A2 and A3 shears • Intersected 39.5m off-scale (>10,000cps to >61,000cps) in the A2 shear • AR-15-41 (angled): • 57.0m at 2.31% U3O8, including 16.5
Slide 12: A2 Shear: AR-14-30
12 A2 Shear: AR-14-30 Hole AR-14-30 ranks as one of the best holes ever drilled in the Athabasca Basin
Slide 13: 2015: A New High-grade Shear Found
2015: A New High-grade Shear Found 13 • February 24, 2015 discovery of new high-grade mineralized shear zone; A3 • AR-15-41 (angled): • 20.5m at 4.30% U3O8 • AR-15-39 (angled): • 29.5m at 2.27% U3O8 • Holes to date in A3 shear show it to have significantly larger dimensions than A2
Slide 14: Arrow: A2 & A3 Cross-Section
Arrow: A2 & A3 Cross-Section 14 2 High-grade shear zones now identified at Arrow • Both A2 and A3 Zones remain open in every direction • NE extent of Arrow opened up with AR-15-40b (11.5m at 0.99% U3O8) A2 Dimensions: • 88m strike length • 340m vertical extent • 11-27.5m true width A3 Dimensions: •
Slide 15: How Arrow Stacks Up
How Arrow Stacks Up Arrow Zone (J? \ __ Tamarack mcclean f r - ‘a ; it Midwes Crystalline Basement Athabasca Sandstone Cigar Lake athe nro McArthur River By B,C »\ Shea Creek Millennium \s- curs ©NexGen i NXE Energy Ltd. 15
Slide 16: The Eagle Point Analogy
The Eagle Point Analogy 16 Eagle Point is an underground mine operated by Cameco - Eagle Point current mineral reserves: 15.2Mlbs at 0.61% U3O8. 2014 annual production of 4.2Mlbs1 - Underground mine using longhole stoping in the competent basement rock - Eagle Point deposits are located on the easte
Slide 17: Dravite Breccia – McArthur River & Arrow
Dravite Breccia – McArthur River & Arrow 17 Arrow: AR-14-15 422.25m Dravite associated (or proximal) to mineralization McArthur River: Dravite-Chlorite-filled Breccias associated with high-grade mineralization 1 1.) Cameco Corp.
Slide 18: Bow: New Discovery 3.7km NE of Arrow
18 Bow: New Discovery 3.7km NE of Arrow BO-15-10: • 2.5m total composite mineralization including 0.10m off-scale (>10,000cps to >10,200cps) • 66m step-out to east of BO-15- 02 • Now identified a 350m strike length of anomalous radioactivity at Bow
Slide 19: BO-15-10: Visible Pitchblende
19 BO-15-10: Visible Pitchblende
Slide 20: Patterson Conductor Corridor
Patterson Conductor Corridor 20 Multiple targets along 7kms of conductor corridor BO-15-10, -02 drilled into a gravity low anomaly with coincident VTEM conductor and radon in lake water anomaly with peak reading of 36.0pCi/L
Slide 21: On Land Gravity Low: Summer 2015
21 On Land Gravity Low: Summer 2015
Slide 22: Summer Drill Targeting – Bow, Derkson
Summer Drill Targeting – Bow, Derkson 22 • Multiple high priority targets based on the same geophysical signature as Arrow • Land-based • Regional summer drill program to further define Bow and drill first holes in Derkson conductor corridor
Slide 23: Eastern Athabasca Basin Portfolio
23 Eastern Athabasca Basin Portfolio High Quality Portfolio: 1. Radio: located directly adjacent to and long strike of Roughrider, Rio Tinto acquired for $654M in February 2012. 2. Thorburn Lake: 9 of 15 drill holes have intersected uranium mineralization. 3. Madison and 2Z Lake: contain shallow (<1
Slide 24: NexGen Summary
24 NexGen Summary • Arrow, a world-class uranium discovery • 44 of 46 holes hit mineralization (~96% hit rate) • Aggressive and deliberate drilling methodology • Area of mineralization 515 m x 215 m, vertical extent commencing from 100 m down to 920 m • Two high-grade shear zones; A2 & A3 identified
Slide 25: Arrow: Perspective on Size
25 Arrow: Perspective on Size The Empire State Building next to Arrow Arrow Total height: 820m (starting from 100m of surface) Empire State Building Total height: 443m (~54% of Arrow’s height) Image made via Leapfrog software using latest drill data from Arrow zone. No NI 43-101 has been published f
Slide 26: Appendices
APPENDICIES 26 € Ay. ©NexGen NXE
Slide 27: NexGen Outperforming Peers
27 NexGen Outperforming Peers * 3-month share price returns in Canadian Dollars as of May 20, 2015
Slide 28: Executive, Board & Technical Team
28 Executive, Board & Technical Team Executive Strong team with a Leigh Curyer Chief Executive Officer successful track record in Garrett Ainsworth VP Exploration & Development uranium exploration and Grace Marosits Chief Financial Officer development. Travis McPherson Corporate Development Manager
Slide 29: Capital Structure
29 Capital Structure 1 Shares Issued & Outstanding 251,928,896 Warrants ($0.425 - $0.65) 20,839,796 Options ($0.30 - $0.46) 22,360,637 Fully Diluted 295,129,329 Cash 2 ~C$30M Ownership Management/Directors ~6% Tigers Realm Minerals & Associates ~14% Mega Uranium ~9% 1.) As of June 1, 2015 2.) Compan
Slide 30: The Éléonore Example
30 The Éléonore Example Putting Arrow’s depth extent in context 1 Goldcorp’s Newest Mine: Mine Plan • 1,145m depth (starting at 55m from surface) 1 Average Gold Grade • 6.34g/t Au1 (equivalent to 0.27% U3O8)2 Development Capex • US$1.8 billion 1 1.) Goldcorp 2.) Based on US$45/lb U & US$1,300/oz Au
Slide 31: Arrow: No Freezing
31 Arrow: No Freezing • Arrow is basement-hosted which means NO freezing would be required • Unlike McArthur River and Cigar Lake which have 600 and 480m of sandstone on top of the ore bodies, respectively - Arrow only has 10-20m of sandstone within 80m of surface • Cigar Lake is world- class in siz
Slide 32: Analyst Coverage
32 Analyst Coverage Mike Kozak - Cormark (416) 943 6749 BUY C$1.10 Securities Inc. Rob Chang – Cantor (416) 849 5008 BUY N/A Fitzgerald Canada Andrew Mikitchook– (416) 687 6613 BUY C$0.85 Edgecrest Capital David Talbot – Dundee (416) 350 3082 BUY N/A Capital Markets
Slide 33: Contact
33 Contact Travis McPherson Corporate Development C: +1 604.816.2686 T: +1 604.428.4112 tmcpherson@nexgenenergy.ca