NexGen Energy Ltd. (NXE:TSX; NXE:NYSE.MKT) reported its highest-grade uranium assay to date from the Patterson Corridor East (PCE) area of its 100%-owned Rook I project in Saskatchewan's Athabasca Basin. Drill hole RK-25-256 intersected 5.5 meters grading 21.4% U3O8, including 2.5 meters at 46.1% U3O8 and a peak of 0.5 meters at 74.8% U3O8. An additional nearby intercept returned 1.5 meters at 5.28% U3O8.
The high-grade zone in RK-25-256 is located approximately 119 meters down-dip from the previously drilled hole RK-25-232 and 51 meters beyond RK-25-254. According to the company, intense uranium mineralization is now interpreted across a dip extent of at least 215 meters.
"This ultra-high grade 0.5 meter at 74.8% U3O8 takes PCE into a rare mineralized category on a world scale for uranium deposits," said NexGen CEO Leigh Curyer in a news release. He noted that the mineralization style is similar to Arrow, the company's flagship deposit located 3.5 kilometers to the west.
Vice President of Exploration Jason Craven added that the results elevate the company's understanding of PCE and indicate strong potential for additional basement-hosted uranium systems within the region. According to NexGen, it controls over 190,000 hectares of prospective land across 140 kilometers of the southwest Athabasca Basin.
The PCE results build on earlier intercepts at RK-25-232, which returned 15.0 meters at 15.9% U3O8, and RK-24-222, which intersected 17.0 meters at 3.85% U3O8. NexGen has described the PCE zone as a developing discovery with a 600-meter by 600-meter mineralized footprint.
US Uranium Output Expands, but Fuel Supply Chain Remains a Challenge
Uranium prices remained elevated through late 2025, reflecting expectations of increased global demand for nuclear power. According to Nuclear News in November, the spot price of uranium was US$80.00 per pound at the end of October, down slightly from the September high of US$82.63 but well above the March low of US$64.23. Long-term uranium prices reached US$85.00 per pound in October, the highest level of the year. Trading Economics reported a futures price of US$80.80 per pound on November 3, up more than 3% from a year earlier. Analysts attributed recent price strength to policy moves including a US$80 billion U.S. government agreement with Westinghouse Electric to build new reactors, alongside plans to expand enrichment capacity and streamline construction licensing. A report by DataM Intelligence projected that the uranium market would grow at an annual rate of 4.86%, reaching US$13.59 billion by 2032.
Ari Fund portfolio manager Stephen Gorenstein highlighted uranium as one of the core beneficiaries of what he described as a new U.S.‑driven resources cycle. In an interview published on December 5, he noted that the United States has become increasingly focused on securing long‑term access to materials essential for its energy and manufacturing goals. He pointed to uranium as a key example, citing tightening supply conditions and the country's efforts to reduce reliance on foreign sources.
Red Cloud Securities maintained its "Buy" rating and raised its target price to CA$14.00 per share.
Gorenstein said the United States had been "caught off guard" by its exposure to overseas uranium supply chains, particularly those linked to geopolitical competitors.
He observed that demand for nuclear fuel is rising as the U.S. expands its focus on energy security, and he described the current market as one where genuine supply tightness is being amplified by strained relations between major producer nations.
According to Gorenstein, long‑term uranium pricing has strengthened, reflecting these structural pressures. He noted that term prices reached decade highs of US$86 per pound in late 2025, underscoring the shift in market dynamics.
He added that U.S. policymakers are unlikely to allow the country to remain short of uranium supply in the future, and he expects continued efforts to secure reliable access to nuclear fuel materials.
Analysts Highlight Patterson Corridor Results and Resource Upside
On December 2, David A. Talbot, Managing Director and Head of Equity Research at Red Cloud Securities, issued a positive update on NexGen Energy Ltd. following the announcement of the highest-grade assay results to date from the Patterson Corridor East (PCE) discovery. Located approximately 3.5 kilometers east of the Arrow deposit in the Athabasca Basin, the PCE zone was described as a vein-type basement-hosted deposit discovered in February 2024 that has since expanded into what Talbot called a "potential standalone deposit."
Talbot noted that drill hole RK-25-256 returned 21.4% U3O8 over 5.5 meters, including 2.5 meters at 46.1% and 0.5 meters at 74.8% U3O8. A separate adjacent intercept hit 1.5 meters grading 5.28% U3O8. He added that high-grade shoots appear to occur approximately 70 meters apart and that the zone's mineralization remains open in all directions. According to the report, drilling has consistently demonstrated the continuity of a high-grade core, with PCE now estimated to measure 300 meters wide and extend more than 600 meters along both plunge and vertical dimensions.
Red Cloud increased its unmodeled resource valuation for NexGen to 60 million pounds U3O8, up from 37 million pounds, with Talbot noting that additional value could come from either Arrow or PCE. The firm maintained its "Buy" rating and raised its target price to CA$14.00 per share, up from CA$13.30. The valuation was based on a 1.05x multiple to a NAV estimate of CA$13.31, applying an EV/lb of US$3 to secondary deposits. Talbot identified pending drill results, upcoming commission hearings in 2026, and early-stage construction as near-term catalysts for the company.
In a December 4 report, analyst Jeff Clark highlighted NexGen Energy's latest drill results from Patterson Corridor East (PCE), calling them the company's "highest-grade uranium assays to date." Hole RK-25-256 intersected 5.5 meters of 21.4% U₃O₈, including 0.5 meters at 75.8% U₃O₈. Clark noted that mineralization at PCE shares similarities with the Arrow deposit, just 3.5 kilometers away, and suggested the findings "strengthen the case that Rook 1's upside may stretch far beyond Arrow alone." While he emphasized the market's focus remains on the pending environmental approval for Arrow, he described NexGen as approaching a "bet-the-company moment" and maintained a full position.
Advancing a District-Scale Uranium Portfolio in a High-Demand Market
NexGen's Rook I project has been positioned as one of the highest-grade, large-scale uranium assets globally, according to the company's investor presentation. The Arrow deposit, which forms the core of the development, holds probable mineral reserves of 239.6 million pounds grading 2.37% U3O8 and remains open along strike and at depth.
The Patterson Corridor East discovery, just east of Arrow, is considered a potential new zone within what the company describes as a district-scale uranium trend. NexGen has identified more than 150 exploration targets across 27 corridors within its land package and is continuing exploration drilling to refine the extent of PCE mineralization.
Development at Rook I remains subject to permitting, with the final Canadian Nuclear Safety Commission hearing scheduled for February 2026. The project has received formal support from four Indigenous communities and is designed for a 24-year operating period with underground tailings storage to reduce the environmental footprint.
Streetwise Ownership Overview*
NexGen Energy Ltd. (NXE:TSX; NXE:NYSE.MKT)
Rook I's potential economic contribution was estimated in a 2025 economic impact study at CA$37 billion over construction and the first 11 years of operation. NexGen has also secured 10 million pounds of uranium in sales commitments at market-related pricing and reported CA$1.2 billion in cash as of mid-October 2025.
The growing global demand for nuclear fuel, driven by clean energy goals and rising energy needs from artificial intelligence infrastructure, continues to support interest in high-grade uranium developments like Rook I. NexGen's exploration and development programs remain focused on advancing the project toward construction and production while expanding its resource base.
Ownership and Share Structure 1
Institutions own approximately 56.51% of NexGen.
Among them, the top owners include L1 Capital Pty Ltd. at about 5.07%, Mirae Asset Global Investments at about 5.04%, Van Eck Associates Corporation at about 3.89%,
Strategic Entities hold 4.56%. Management & Insiders currently hold about 1.9% of shares outstanding. The rest is retail.
NexGen currently has 607.91 million shares outstanding. Recent data show its total market capitalization is around US$5.68 billion. The 52‑week trading range has been approximately US$3.91 to US$9.99.
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- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
