NexGen Energy (TSX, NYSE: NXE; ASX: NXG) has started construction of its C$2.2-billion ($1.6-billion) Rook I uranium project in Saskatchewan, advancing what could become one of the world’s largest new sources of uranium.
The underground mine and mill are expected to take about four years to build and are designed to eventually produce about 30 million lb. of uranium annually. By comparison, Cameco’s McArthur River-Key Lake operations are licensed to produce 25 million lb. annually, with 2026 guidance of 14 million to 16.5 million pounds.
Rook I’s development comes as nuclear power assumes a larger role in meeting growing electricity demand, increasing the strategic importance of uranium supplies. Canada is also seeking to expand its position in the global nuclear fuel market while strengthening domestic supply chains.
Building Rook I
Major earthworks and surface infrastructure are already advancing at the project, NexGen said. An initial 3,000-foot airstrip has been commissioned and expanded site accommodations are complete and occupied.
The company expects to finish the full 5,840-foot airstrip by year-end, while shaft development is planned for 2027.
The Canadian Nuclear Safety Commission approved NexGen’s environmental assessment in March and granted a licence to construct Rook I, clearing the project’s final regulatory hurdle before construction.
A 2021 feasibility study outlined an 11-year mine life producing 233.6 million lb. of yellowcake. The study estimated an after-tax net present value at an 8% discount rate of C$3.5 billion, a 52.4% internal rate of return and a 0.9-year payback period.
The scale of Rook I would put NexGen among major uranium suppliers if the project reaches its targeted production rate, but the mine still faces a multiyear construction and development period before production can begin.
