NexGen Rook I uranium project wins Saskatchewan okay

Saskatchewan granted NexGen Energy (TSX:NXE; NYSE:NXE; ASX:NXG) environmental approval for its Rook I uranium project in the province’s far north, the first such authorization in two decades, the company says.

Now the project, forecast to cost $1.3 billion to build, awaits federal environmental consent as it conducts pre-construction site work, the company said in a news release on Thursday.

Both the company and BMO Capital Markets called the approval a major milestone for Rook I, which is expected to produce 21.7 million lbs. of uranium annually for nearly 11 years, according to a 2021 feasibility study.

“The update keeps it on track for a potential go-ahead decision next year,” BMO mining analyst Alexander Pearce wrote in a note to clients on Thursday. “NexGen is now focused on the Federal environmental assessment approval process.”

Uranium prices touched a 15-year high of US$74.50 per lb. last week as the demand to replace fossil fuels increases. About 60 nuclear plants are under construction in countries such as China, Russia and India. Rook I is said to be Canada’s largest development-stage project for the nuclear fuel.

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