Canadian uranium firm NexGen Energy Ltd (CVE:NXE) said latest assays from the winter drill programme confirmed the high grade zone within the A1 shear (Arrow deposit) at the Rook I project in Saskatchewan.
Discovery hole AR-16-84c1 hit 28.5 metres at 2.13% uranium, including 11 metres at 3.99% uranium and an additional 18 metres at 0.98% in the A1 shear.
The new zone will be the focus of a 35,000m summer drill campaign as the firm pursues growth opportunities through continued infill, expansion and discoveries at Arrow and the Rook I project.
Meanwhile, the Cannon area lies 1.3 km along strike to the northeast of Arrow.
It was first drilled during the winter 2016 programme and anomalous radioactivity was hit in several holes.
Strongly anomalous concentrations have been confirmed in three holes at Cannon and the location remains a high priority target and further drilling is planned during the summer 2016 programme, the group said.
That summer programme at Arrow consists of 35,000 metres of drilling and is now underway with six drill rigs active. A seventh drill rig has been mobilized to the property and will be put into service imminently. The firm has cash on hand of around US$100 million.
Vice-president of exploration and development Garrett Ainsworth said: "The new high grade zone within the A1 shear has been confirmed with hole AR-16-84c1."
The result showed good continuity with high grade mineralization encountered in previously reported holes AR-16-91c3 and -91c4, he said.
Chief executive Leigh Curyer added: "This new high grade area within the A1 shear is very exciting and highlights the potential for growth inside and outside the current resource area of Arrow.
"In addition Cannon has been validated as a high priority target to be further drilled. The Recent high grade discoveries in the A1 shear, the 180 m southwest area as well as the successful infill drilling of the A2 Sub-Zone indicates we have substantial drilling to complete, in order to understand the ultimate scale of Arrow."