Impact: Positive
NexGen Energy announced the final scintillometer results from the 2025 drill program (~35,366m), completed at its Patterson Corridor East (PCE) discovery, located ~3.5km east of its flagship Arrow deposit in the Athabasca Basin. Results have expanded the total mineralized footprint to 700m vertical (was 600m) and 620m strike (was 600m). Five additional holes intersected off-scale radioactivity (>61k cps), increasing the vertical extent of high-grade mineralization to 412m (was 335m) and strike of 210m. While we don’t believe this zone is quite as thick or robust as Arrow, PCE is turning out to be a potentially world-class deposit in its own right. There is plenty of upside in almost every direction at PCE itself, but the potential for nearby repetition, a feature common in Athabasca Basin uranium deposits, could be another strong value driver. We estimate that PCE could host up to 75-100M lbs of mineral inventory at 2.25% U3O8 using 0.1% cutoff. As additional potential continues to build up at PCE and elsewhere on Nexgen’s exploration portfolio, we raise our target price to C$19.00/sh (was C$14.00/sh). We continue to see NexGen as a go-to stock as uranium prices begin to solidify here at the beginning of 2026.