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22 www.resourceworld.com a u g u s t / s e p t e m b e r 2 0 1 5 b r o k e r ' s p i c k s S h a y n e N y q u v e s t T wo companies have caught my attention this month and both are worthy of a brief description. First up is nexGen energy [NXE-TSXV]. This well-financed uranium explorer is aggressively drilling and expanding its high-grade Arrow discovery in south- western Athabasca Basin, Saskatchewan. NexGen owns a 100% interest in the Rook 1 property which hosts numerous uranium-bearing conductor corridors. The most important one is the Patterson Lake corridor. This corridor hosts three ura- nium discoveries: Fission Uranium's Triple R deposit and NexGen's Arrow and Bow discoveries. To date, 44 of 46 holes that NexGen has drilled into the Arrow discovery inter- sected high-grade uranium mineralization. The most recent drill results included an assay averaging 20.68% U 3 O 8 over 20 metres (hole AR-15-44b). Let's add some perspective to these numbers. A drill interval with a grade of just 1% U 3 O 8 /tonne represents a concen- tration of 22.04 lbs of U 3 O 8 /tonne. Using current uranium prices of US $36.50/lb, this translates into an in-situ value of US $804/tonne. If we look at the gold equiva- lent grade, it works out to 25.8 g/t gold for just 1% of U 3 O 8 . NexGen recently tabled a 20.68% U 3 O 8 grade over 20 metres! Mineralization in the Arrow Zone is defined over an area 215 metres wide by 515 metres long that starts at a depth of 100 metres from surface and extends to a depth of 920 metres. NexGen also intersected off-scale radio- activity at its Bow target 3.7 km northeast of the Arrow Zone along the same Patterson Lake conductor corridor with the best assays returning 9.5 metres averaging 0.2% U 3 O 8 including a 1-metre section averaging 1.44% U 3 O 8 . Garrett Ainsworth, VP of Exploration and Development, believes the Bow Zone proves there is potential to discover additional mineral- ization at Rook 1 and has set his sights on testing another promising target 1 km NE of Bow this summer. This summer, NexGen began a five-rig, 25,000-metre, drilling campaign with the goal of further defining Arrow mineraliza- tion as well as testing several high priority targets in the Derkson Corridor which runs parallel to the Patterson Lake corridor. The company anticipates tabling a NI 43-101 resource estimate for the Arrow discovery in the Q4 2015. The second company I wish to high- light is Orosur Mining [OMI-TSX; AIM], a diversified South American producer, developer and explorer which produced 53,485 ounces gold in its 2014/2015 year from its wholly-owned open pit and underground San Gregorio gold mine in Uruguay at cash costs of US $912/oz. Orosur has stated 2015/2016 guidance of producing 50,000-55,000 ounces at cash costs of US $850-$950/oz. The company has steadily reduced its all-in sustaining costs (AISC) since new management took office in mid-2013. AISC costs include other expenses such as gen- eral office spending and capital used in mine development and production. For its 2014/2015 year, Orosur anticipates AISC of US $1,150-$1,200/oz. While on the sur- face, this may seem marginal at today's gold prices, Orosur still operates at below the average global AISC, while funding its exploration and development work in past two years amounting to over US $25 million. The company has a strong track record of reserve replacement and resource con- version. In 2013/2014, Orosur added 75,000 ounces of reserves. Currently, San Gregorio has NI 43-101 proven and prob- able reserves of 195,000 ounces averaging 2.01 g/t gold. Since 2003, Orosur has pro- duced 896,267 ounces and never had reserves in excess of 350,000 ounces. Orosur plans to start underground min- ing the west area of its SG Deeps Project once mine approvals are received. The area is expected to initially produce 30,000- 35,000 oz over 15-18 months. Funding for the SG Deeps underground is expected to come from internal cash and non-dilutive finance. Orosur has three other assets in South America; the Anillo gold-silver project in Chile (optioned and funded by Asset Chile) and the Pantanillo gold project (with a 1 million ounce M&I resource and positive 2012 PEA); and in Colombia, the high-grade Anza gold-zinc discovery. Orosur has a market capitalization of only about $15 million and is produc- ing about 50,000 ounces gold per year. I believe the company will continue to improve operating margins and expand resources at the mine site ultimately posi- tioning itself to take full advantage of any upswing in the gold market. n Shayne Nyquvest is an Investment Advisor with Mackie Research Capital. This article was prepared, in part, by Thomas Schuster. The opinions, estimates and projections herein are those of the author and may not reflect that of Mackie Research Capital. The information and opinions contained herein have been compiled and derived from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or com- pleteness. The issuer(s) mentioned in this report may not be suitable for all investors. Please consult an investment professional for advice regarding your particular circumstance. Neither the author nor MRCC accepts liability what- soever for any loss arising from any use of this report or its contents. Information may be avail- able to MRCC which is not reflected herein. This report is not to be construed as a research report, or an offer to sell or a solicitation for an offer to buy any securities. Shayne Nyquvest is the ben- eficial owner of Nexgen Energy Ltd. shares. nexGen energy and Orosur Mining make the grade