Explorer Finds High-Grade Uranium in Athabasca Basement Rock

Source: Streetwise Reports   01/22/2019

This explorer finds new uranium at its flagship project, while an option partner plans a $2.2 million exploration program.

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB), a uranium exploration company with projects in the Athabasca Basin of Saskatchewan, Canada, reported high-grade uranium drill results.

Late last year, Skyharbour announced initial results from its fall 2018 drill program at the Maverick Zone of its 100%-owned Moore Uranium Project, its flagship project.

This drill program consisted of approximately 3,800 meters in 8 holes, of which two have returned high-grade uranium values and four other holes were drill-testing deeper targets in the underlying basement rocks. Those four “exploratory” holes encountered up to 80 meters of altered lithologies, which contain minerals that act as pathfinder elements for uranium mineralization.

“Skyharbour Resources could be an interesting way to gain exposure to the sector.” – Thibaut Lepouttre, Caesars Report

Jordan Trimble, Skyharbour’s president and CEO, told Streetwise Reports, “A lot of the historical findings were found in the sandstone that is located right above the basement rock. Many times, explorers wouldn’t even bother drilling into the basement rock. But discoveries like NexGen’s Arrow, Fission’s Triple R, and Denison’s Gryphon deposits—all in the Athabasca Basin—have all been found in the basement rock. We’re trying to emulate the success of these companies with what they’ve found in the basement.”

Skyharbour reported that drilling at the Main Maverick area revealed high-grade uranium. Hole ML18-14 returned 0.56% U₃O₈ over 15.2 meters from 264.5 meters to 279.7 meters downhole, including 3.11% U₃O₈ over 1.8 meters.

Hole ML18-15 intercepts showed 1.33% U₃O₈ over 7.8 meters from 264.3 meters to 272.1 meters downhole, including 2.91% U₃O₈over 1.5 meters, and 0.44% Co and 1.62% Ni.

Caesars Report‘s Thibaut Lepouttre noted on Dec. 26, that grades of 0.56% “correspond to approximately 12 pounds of uranium with a current gross value of $480/t (using a uranium price of $40/pounds).”

Skyharbour stated that only 2 kilometers of the 4-kilometer-long Maverick corridor have been “systematically drill tested leaving robust discovery potential along strike as well as at depth.”

The company is planning winter drill program of a minimum of 3,000 meters at the Moore Uranium Project.

Private Placement

In early December, Skyharbour closed a total of CA$600,000 in gross proceeds through a non-brokered private placement of 1,333,333 flow-through shares at a price of CAD $0.45 per share.

Management announced that a “strategic, institutional investor subscribed for the full amount of the financing.”

The company plans to use the funds for more exploration and upcoming drilling plans.

Option Partners

Skyharbour has optioned its Preston Project to Orano Canada (previously AREVA Resources Canada Inc.); Orano Canada has an option to acquire up to a 70% working interest by expending up to CA$8 million in exploration and cash payments over six years.

The project is located in the Western Athabasca Basin, near NexGen’s Arrow deposit and Fission Uranium’s Triple R deposit.

Orano plans to carry out a CA$2.2 million exploration and drill program in 2019 on the Preston Project. The company’s exploration plans include 4,850 meters of diamond drilling.

Skyharbour’s CEO Jordan Trimble, commented, “We are excited for the upcoming commencement of exploration and drilling programs by Orano Canada at the Preston Project. With a proposed CA$2.2 million budget over the next year we are looking forward to the results that this significant amount of exploration can yield as we work with our strategic partner to further advance the project. Orano Canada has a very knowledgeable technical team with a long history in the Athabasca Basin, which will help to unlock value at this strategic, district-scale property.”

Trimble also commented on Skyharbour’s hybrid prospect generator model, “Skyharbour continues to execute on its key objectives by adding value to its project base in the Basin through ongoing mineral exploration at its flagship, high-grade Moore Uranium Project while utilizing the prospect generator model to advance its other projects with strategic partners.”

Skyharbour has optioned the East Preston uranium project to Azincourt Energy, which is exploring the property, currently by conducting a Vtem survey.

An “Interesting Way to Gain Exposure to the Sector”

Thibaut Lepouttre of Caesars Report noted, “It’ll be a busy winter for Skyharbour, as it will advance its own Moore uranium project while joint venture partners Orano and Azincourt Energy (AAZ.V) will ramp up their exploration efforts on the two uranium properties they are currently earning in on.”

Lepouttre expects a stronger uranium market in 2019, and he believes “Skyharbour Resources could be an interesting way to gain exposure to the sector.”

Rick Mills of Ahead of the Herd too is keeping uranium and Skyharbour “on his radar.”

SYH shares are currently sitting at around $0.39.

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1) Nikia Wade compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosure from Caesars Report
The author has a long position in Skyharbour Resources. Skyharbour is a sponsor of the website. Please read the disclaimer.

Disclosure from Ahead of the Herd
Richard Mills owns shares of Skyharbour Resources (TSX.V:SYH). SYH is an advertiser on his site aheadoftheherd.com.

( Companies Mentioned: SYH:TSX.V;SYHBF:OTCQB, )