Saskatchewan is open for business. NexGen Energy (TSX: NXE) this morning indicated that the province has granted environmental assessment approval for its flagship Rook I Project.
The approval, the first to be granted in over two decades for a uranium project in the province, now enables the company to proceed to the federal environmental approval stage. All responses related to the federal technical review are said to have been submitted already.
NexGen is looking to move forward as quickly as it can, having already filed the initial applications for approvals for site development, including earthworks, shaft sinking infrastructure, site water and mine waste management facilities, and ancillary infrastructure.
Found in the southwest of the Athabasca Basin, the Rook I Project is the largest development stage uranium project in the country, and is centered around the Arrow Deposit. The project as a whole has measured and indicated mineral resources of 256.7 million pounds of 3.10% U3O8, and has an estimated mine life of 10.7 years.
The feasibility study conducted by NexGen outlines an after-tax NPV (8%) of $3.47 billion, and an IRR of 52.4% at $50 per pound uranium.
In terms of the next steps of project approval, NexGen will need permits to commence project construction, as well as conduct a Canadian Nuclear Safety Commission hearing to obtain its Federal EA and license approval.
NexGen Energy last traded at $7.94 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.