Americore Resources (TSXV: AMCO)
Drilling Value in the Silver State
NexGen Energy (TSX: NXE; NYSE: NXE) has begun construction of its C$2.2 billion (US$1.6 billion) Rook I uranium project in Saskatchewan, advancing a development that the company believes could become one of the world’s largest and lowest-cost sources of uranium and redraw the global nuclear fuel supply map.
The underground mine and mill are designed to produce 30 million pounds of uranium per year once fully operational, representing roughly 20% of current global supply and about half of Western Hemisphere supply. By comparison, Cameco’s McArthur River-Key Lake operation is licensed to produce 25 million pounds annually, with 2026 output guidance of 14 million to 16.5 million pounds. If Rook I reaches its targeted production rate, NexGen would join the ranks of the world’s major uranium suppliers.
NexGen said in a social media post that the groundbreaking marks progress already underway and another step toward production and becoming a leading uranium supplier for the next generation of nuclear energy. Major earthworks and surface infrastructure are advancing: a 3,000-foot airstrip has been commissioned, expanded site accommodations are complete and occupied, the full 5,840-foot airstrip is expected by year-end, and shaft development is planned for 2027.
On the regulatory front, the Canadian Nuclear Safety Commission approved the environmental assessment and granted a construction licence in March, clearing the final hurdle before construction could begin.
A 2021 feasibility study outlined an 11-year mine life producing 233.6 million pounds of yellowcake. The study estimated an after-tax net present value at an 8% discount rate of C$3.5 billion, an internal rate of return of 52.4%, and a payback period of 0.9 years.
The project still faces about four years of construction and development before production can begin. As nuclear power assumes a larger role in meeting electricity demand and Canada seeks to expand its position in the global nuclear fuel market while strengthening domestic supply chains, Rook I could become a key variable in the global uranium supply picture.
