Nexgen Energy’s Arrow Deposit, Southwestern Athabasca Basin, Saskatchewan: A Geostatistical Approach To Deposit Development

Discovered in 2014, the Arrow Uranium Deposit has undergone rapid development through successive drilling programs informed by geostatistical drill hole spacing studies. An independent third-party geostatistical drill hole spacing study was completed by Clayton V. Deutsch Consultants Inc. in 2017, evaluating the uncertainty of thickness, grade, density, and areal limit of the Arrow Deposit to determine a drill hole spacing suitable for Indicated Mineral Resources. Indicated spacing was defined to be 24 to 32 metres (“m”) to be within 15% of predicted for a nominal quarterly production volume with a probabilistic tolerance between 75 and 90%. The study not only defined the Indicated Mineral Resource resultant from the 2016 drill program, but also provided drill hole targeting criteria for subsequent drill programs aiming to convert Inferred to Indicated Mineral Resources. A subsequent geostatistical drill hole spacing study on the Arrow Deposit was completed by Clayton V. Deutsch with Resource Modeling Solutions in December 2018 to define Measured Mineral Resource spacing in support of the 2019 drill campaign. The study resulted in a drill hole spacing of 9 to 17 m to be within 15% of predicted for monthly and quarterly production volumes using an accepted industry probabilistic tolerance of 90%.