(Adds analyst comment and updates shares.)

NexGen Energy (NXE.TO, NXE) on Thursday said it has launched a 43,000-meter drill program to test the extent of mineralization at Patterson Corridor East (PCE) in the Arrow Deposit of Saskatchewan.

Drilling in 2025 will investigate high-grade zones within the broad mineralized footprint and determine potential for additional mineralization within the same target area.

"This highly prospective area continues to be the central focus of our exploration efforts given the clear potential demonstrated to date at PCE," said NexGen chief executive Leigh Curyer. "This is a strategic focus to contribute sustainable supply to the growing demand for uranium to fuel the global energy needs."

National Bank of Canada retained its outperform rating and $13.50 price target on NexGen shares following the news.

"We note that while exploration results at PCE remain positive, it remains early stage on this discovery and the company's focus remains on the development of the Rook I Project before anything else," the bank said. "We currently only include value for the unmodeled Rook I mineral resources, with any potential discovery at PCE as pure upside to our model"

NexGen shares were last seen up $0.19 to $9.89 on the Toronto Stock Exchange.