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Disclaimer Information Contained In This Presentation
This presentation is a summary description of NexGen Energy Ltd. (“NexGen” or the
“Company”) and its business and does not purport to be complete. This presentation is
not, and in no circumstances is it to be construed as, a prospectus, an advertisement,
or a public offering of securities. No securities regulatory authority or similar authority
has reviewed or in any way passed upon the document or the merits of the Company’s
securities and any representation to the contrary is an offence.
Except where otherwise indicated, the information contained in this presentation has
been prepared by NexGen and there is no representation or warranty by NexGen or
any other person as to the accuracy or completeness of the information set forth
herein. This presentation includes information on adjacent properties that was
obtained from various publicly available sources referred to herein and the accuracy
and completeness of such information has not been verified by NexGen. Except as
otherwise stated, information included in this presentation is given as of the date
hereof. Neither the delivery of this presentation nor any sale made under the terms
described herein shall imply that the information herein is correct as of any date after
the date hereof.
All dollar amounts referenced herein, unless otherwise indicated, are expressed in
Canadian dollars.
Cautionary Note Regarding Forward-looking Information
Statements contained in this presentation that are not current or historical factual
statements may constitute “forward-looking information” within the meaning of
applicable securities laws including statements with respect to the properties, a
concurrent financing, our plans for exploration and development of our properties and
our financial condition, operations and prospects. The forward-looking information
reflects current expectations regarding future results, performance or achievements
and speaks only as of the date of this presentation. When used in this presentation,
forward-looking information can be identified by such words as “may”, “will”, “expect”,
“believe”, “plan”, “project”, “anticipate”, “intend”, “estimate” and other similar
terminology. Such forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause the actual results, performance or
achievements of the Company to be materially different from any future results,
performance or achievements expressed in or implied by such information. Such risks,
uncertainties and other factors include, but are not limited in any manner to those risks
set forth in this presentation under the heading “Risk Factors”, including, the risk that
no mineralization will be identified on the Radio and Rook I properties; the Company’s
dependence on third party financing; the Company’s limited operating history; risks
inherent in exploration activities; environmental and safety risks including increased
regulatory burdens; unexpected geological or hydrological conditions; a possible
deterioration in political support for nuclear energy; changes in government regulations
and policies, including trade laws and policies; demand for nuclear power; failure to
obtain necessary permits and approvals from government authorities; weather and
other natural phenomena; and other exploration, development, operating, financial
market and regulatory risks. The foregoing list of factors is not exhaustive.
The forward-looking information contained in this presentation requires management to
make certain assumptions including with respect to the financing and its ability to
successfully develop its properties. Although management of the Company believes
that the assumptions underlying, and the expectations reflected in, the forward-looking
information are reasonable, significant risks and uncertainties are involved in such
information. Management can give no assurances that its assumptions, estimates and
expectations will prove to have been correct. Forward-looking information should not
be read as guarantees of future performance or results, and will not necessarily be
accurate indications of whether or not or the times at or by which such performance or
results will be achieved. Many factors that are beyond the Company’s control could
cause actual results to differ materially from the results discussed in the forward-
looking statements.
The technical information in this presentation has been prepared in accordance with
the Canadian regulatory requirements set out in National Instrument 43-101 and
reviewed on behalf of NexGen Energy Ltd., by Garrett Ainsworth, P.Geo., Vice
President – Exploration & Development, a qualified person.
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3 Uranium Market (Demand) A Story of Stable Demand Growth and Uncertain Supply
Nuclear Electricity Growth
• Nuclear energy fuels 11% of the global electricity needs • 930 GW needed by 2050 to support existing global decarbonisation mandates • Equates to a 2.3 times increase in nuclear energy demand in just 35 years
Uranium Demand
• Average demand growth estimated at ~4% per year to 2024 Source: International Energy Agency (2015), World Nuclear Association (2015)
4 Uranium Market (Demand) Investment and Reactor Builds
• 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 in Canada in the near future” (Dec. 2014)
• Another 496 reactors are in the planning/proposal phase 1.) Graph: International Energy Agency (2015) 2.) World Nuclear Association (2015)
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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)
• Estimated supply gap of
nearly 100Mlbs per year by 2030
• 11 of top 15 uranium
mines are in unstable jurisdictions (Russia, Kazakhstan, Niger)
End of HEU agreement in 2013 removed the equivalent of McArthur River’s annual production from supply
1.) World Nuclear Association (2015) 2.) World Nuclear Association estimate of 97,450tU demand and 53,000 tU supply in 2030
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6 The Athabasca Basin The Source of Future Supply
1.) World Nuclear Association (2015) 2.) Cameco Corp. 3.) Based on US$45/lb U & US$1,300/oz Au
Remember: 1.00% U3O8 = 23.50 g/t gold!
• Global average
resource grades ~0.10% U3O8
• Athabasca Basin mines produce at over 100X global average resource grade
• McArthur River produced 19Mlbs at average grade of 14.87% U3O8 in 2014
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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 mineralization
• Hosts the land-based Arrow discovery
8 Arrow Discovery Rook I Project Location & Conductor Corridors
• Most dominant land position in the Southwest Athabasca Basin
• Arrow discovered Feb 2014 with 1st drill hole and drilling at +90% hit rate
• Land-based discovery
located straddling and inside the Athabasca Basin boundary
• Basement-hosted high-grade mineralization that grows all directions and at depth
Rook I hosts all the known uranium bearing conductor corridors in the region
9 Successful Drilling at Arrow +90% of 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: +90% of holes hit mineralization
Results: Current Area of Mineralization:
• Length x width 645 m x 215 m
• Depth 100 m to 920 m
13 Arrow: A2 & A3 Cross-Section
• 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:
• 300m strike length
• 340m vertical extent
• 11-27.5m true width
A3 Dimensions:
• 295m strike length
• 420m vertical extent
• 30-78.6m true width
2 High-grade shear zones now identified at Arrow
15 The Eagle Point Analogy Eagle Point is an underground mine operated by Cameco
- Eagle Point current mineral reserves: 15.2Mlbs at 0.61% U3O8. 2014 annual production of 4.2Mlbs
- Underground mine using longhole stoping in the competent basement rock
- Eagle Point deposits are located on the eastern edge of the Athabasca Basin, and are part of the Rabbit Lake Uranium district which also includes the Rabbit Lake and Collins Bay deposits.
- Rabbit Lake District produced +198Mlbs of uranium concentrates since production began in 1975
1.) Cameco Corp.
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16 Dravite Breccia – McArthur River & Arrow
1.) Cameco Corp.
Arrow: AR-14-15 422.25m Dravite associated (or proximal) to mineralization
McArthur River: Dravite-Chlorite-filled Breccias associated with high-grade
mineralization 1
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Bow: New Discovery 3.7km NE of Arrow
BO-15-10:
• 9.5m @ 0.20%
U3O8 including
1m @ 1.44%
U3O8
• 66m step-out to
east of drill hole
BO-15-02
• Now identified a
350m strike
length of
anomalous
radioactivity at
Bow
• Currently drilling
land target to
NE of Bow
20 Patterson Conductor Corridor 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
22 Summer Drill Targeting – Bow, Derkson
• 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
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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 (<100m thick) sandstone-hosted uranium mineralization, and is along strike from U-mineralized conductors. Represent good potential for discovery of new basement-hosted uranium deposits.
24 NexGen Summary • Arrow, a world-class uranium discovery that keeps growing
• 44 of 46 holes hit mineralization (~96% hit rate)
• Aggressive and deliberate drilling methodology
• Area of mineralization 645 m x 215 m, vertical extent commencing from 100 m down to 920 m
• Two high-grade shear zones; A2 & A3 identified with broad intercepts of high-grade uranium encountered
• Arrow remains open in every direction and at depth with AR-15-44b – recently drilled 50, 100 and 210m step outs to southwest all hit mineralization
• A brand new discovery made 3.7km northeast of Arrow called “Bow”
• Closed C$27.3M bought-deal financing in May 2015
• Aggressive 5 rig, 25,000m summer 2015 program underway
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Arrow: Perspective on Size The Empire State Building next to Arrow
Empire State Building Total height: 443m
(~54% of Arrow’s height)
Arrow Total height: 820m
(starting from 100m of
surface)
Image made via Leapfrog software using latest drill data from Arrow zone. No NI 43-101 has been published for the Arrow zone to date.
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Executive, Board & Technical Team
Executive
Leigh Curyer Chief Executive Officer
Garrett Ainsworth VP Exploration & Development
Grace Marosits Chief Financial Officer
Travis McPherson Corporate Development Manager
Board
Chris McFadden Chairman
Richard Patricio
Trevor Thiele
Craig Parry
Gerry Feldman
James Currie Directors
Technical Team
Garrett Ainsworth VP Exploration & Development
Adam Engdahl Project Manager - Saskatchewan
Galen McNamara Project Manager - Geology
Technical Advisory
Andrew Browne former VP Exploration & Development
Craig Parry Director
Strong team with a successful track record in uranium exploration and
development.
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Capital Structure
Shares Issued & Outstanding 253,414,116
Warrants ($0.45 - $0.65) 20,532,728
Options ($0.30 - $0.46) 21,957,446
Fully Diluted 295,904,290
Cash ~C$30M
Ownership Management/Directors
Tigers Realm Minerals & Associates
Mega Uranium
~6%
~14%
~9%
1.) As of July 15, 2015 2.) Company recently closed C$27.3M financing
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31 The Éléonore Example Putting Arrow’s depth extent in context
Goldcorp’s Newest Mine:
Mine Plan • 1,145m depth (starting at 55m
from surface)
Average Gold Grade • 6.34g/t Au (equivalent to 0.27%
U3O8)
Development Capex • US$1.8 billion
1.) Goldcorp 2.) Based on US$45/lb U & US$1,300/oz Au
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32 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 size and grade, but faces significant challenges due to fact ore is sandstone-hosted and requires futuristic mining methods
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Analyst Coverage
Mike Kozak - Cormark
Securities Inc. (416) 943 6749 BUY C$1.75
Rob Chang – Cantor
Fitzgerald Canada (416) 849 5008 TOP PICK N/A
David Sadowski –
Raymond James Ltd. (604) 659 8255 BUY C$1.80
David Talbot – Dundee
Capital Markets (416) 350 3082 BUY N/A
Andrew Mikitchook–
Edgecrest Capital (416) 687 6613 BUY C$1.10
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Contact
Travis McPherson
Corporate Development
C: +1 604.816.2686
T: +1 604.428.4112
tmcpherson@nexgenenergy.ca
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