NexGen submits draft EIS for its Rook uranium project in Saskatchewan

NexGen Energy (TSX: NXE; NYSE: NXE) has advanced its 100% owned Rook uranium property by submitting the project's draft environmental impact statement (EIS) to Saskatchewan's Ministry of Environment and the Canadian Nuclear Safety Commission.

The submission includes letters of support for the project from Clearwater River Dene Nation (CRDN), Birch Narrows Dene Nation (BNDN), and Buffalo River Dene Nation (BRDN). The First Nations in the region have endorsed the project, the company said.

"The draft EIS... is a culmination of many years of detailed data collection, analysis and design," said Leigh Curyer, the company's CEO, in a press release. "Upon review and approval of the environmental assessment, the Rook I Project will deliver enormous economic, social, and community benefits, while being a major supplier of carbon-free base load energy fuel."

Located about 40 km east of the Alberta-Saskatchewan border in the province's northwest, the project includes seven mineralized locations, of which the Arrow deposit has undergone the most investigation.

Drill core from NexGen Energy's Arrow project in northern Saskatchewan. Credit: NexGen Energy

Based on a feasibility study completed in 2021, the project is expected to produce an average of 21.7 million lbs. of uranium annually for 10.7 years. The total initial capital cost has been pegged at $1.3 billion.

At an 8% discount rate, the project would generate a post-tax net present value (NPV) of $3.5 billion and a post-tax internal rate of return (IRR) of 52.4%.

The company began working on the draft EIS in 2019. The document, which is required by provincial and federal regulatory authorities, assesses the potential positive and adverse effects as well as the mitigation measures and monitoring programs the company plans to implement.

The EIS also includes the "demonstration of meaningful engagement with affected Indigenous groups, local communities, and the public, and the incorporation of Indigenous and local knowledge into the environmental assessment," NexGen said.

With the submission of the EIS, the authorities have begun their review. The authorities will next provide "a comprehensive environmental assessment process in accordance with the separate requirements," the company said.

The project's mineral reserves total 4.5 million tonnes grading 2.37% uranium for 239.6 million lbs. uranium. Its measured and indicated resources total 3.7 million tonnes grading 3.10% uranium for 256.7 million lb. of uranium.

At press time in Toronto, shares of NexGen Energy were trading at $4.92, up 20 ? or 4.2%, within a 52-week trading range of $4.44 and $8.30.