Name of the Project
Rook I uranium project.

Location
Saskatchewan, Canada.

Project Owner/s
Uranium miner NexGen Energy.

Project Description
Rook I is the biggest development-stage uranium project in Canada.

The project hosts the Arrow deposit, which, in turn, hosts measured and indicated mineral resources of 256.7-million pounds of uranium contained in 3.75-million tonnes grading 3.1%.a

The project has a mine life of 10.7 years, with average production estimated at up to 30-million pounds a year.

Average life-of-mine production is estimated at 21.7-million pounds a year of uranium.

Access to the underground Arrow deposit will be through two shafts, an 8-m-diameter production shaft (intake air) and a 5.5-m-diameter exhaust shaft (second egress). Access to the workings will be from the production shaft.

Conventional longhole mining will be used for production. The mining method will use mechanised equipment and conventional processes widely employed in the global mining industry.

The estimated mill capacity is targeted stated at 1 300 t/d of ore.

The key infrastructure contemplated includes:

• underground infrastructure, including materials handling systems, maintenance facilities, a fuel bay, an explosives magazine, ventilation, a paste backfill and a paste tailings distribution system, electrical and communications facilities, underground water supply and dewatering facilities.
• an underground tailings management facility.
• surface support infrastructure for the mine, including headframe and hoist facilities, a surface explosives magazine and ventilation fans.
• surface support infrastructure for the mill, including a process plant, a solvent-extraction plant, an effluent treatment plant and an acid plant.
• site support infrastructure, including an accommodation camp, liquefied natural gas (LNG) facilities, an LNG power plant, mine and mill dry facilities, analytical and metallurgical laboratory and maintenance, as well as warehouse and security buildings.
• a surface ore-storage stockpile facility, as well as waste-rock storage facilities for potentially acid-generating, nonpotentially acid-generating and special waste materials.
• water management facilities, consisting of two site water runoff ponds, six contact water process ponds, a potential acid-generating stockpile runoff collection pond, and conveyance and diversion structures.
• domestic and/or industrial waste management areas.
• an airstrip.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of C$6.32-billion and an internal rate of return of 45.2%, with a payback of one year, based on a uranium price of $95/lb.

Capital Expenditure
C$2.2-billion.

Planned Start/End Date
Not stated.

Latest Developments
NexGen has unveiled a major dual-market equity raising, securing commitments for about C$400-million in North America and A$400-million in Australia to fund the project.

The company has entered into two separate underwriting deals – one in Canada and the US, the other in Australia – that will collectively raise close to C$800-million at C$12.08 a share.

Under the Canadian leg, a syndicate of underwriters led by Merrill Lynch Canada has agreed to acquire 33.1-million shares on a bought deal basis, generating gross proceeds of about C$400-million.

Separately, Aitken Mount Capital Partners will underwrite the issue of 30.5-million shares, to be settled in the form of CHESS Depositary Interests, to sophisticated and professional investors in Australia. The issue price is set in line with that of the Canadian deal, equivalent to A$12.08 a share, with gross proceeds of about A$400-million. Canaccord Genuity will act as joint lead manager and bookrunner, but not underwriter for the Australian tranche.

The capital will be directed towards advancing engineering work and preproduction costs for Rook I.

NexGen has noted that the completion of each leg of the equity raising is not conditional on the other. 

The offers are expected to close on about October 15, subject to approvals from the TSX and the NYSE. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
NexGen Energy, tel +1 306 954 2275.