Uranium Exploration Company Plans Drilling in Athabasca Basin

Source: Streetwise Reports 02/02/2024

Skyharbour Resources Ltd. recently released drilling plans for the company’s flagship Russell Lake and Moore uranium projects. See what analysts have to say about the company’s stock as uranium prices gain momentum.

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) announced in a press release that it had started its winter drill program on the company’s flagship projects, the Russell Lake uranium project and the Moore uranium project in Canada’s Athabasca Basin.

The program plans to cover a total of 8,000m in 18 to 22 drill holes across the two projects, according to the company, and it is fully funded and permitted. A total of 5,000m of drilling is planned at Russell Lake, which is intended to focus on the Fork, Grayling East, and M-Zone Extension zones, while testing geological structures that extend onto the project from the adjacent Wheeler River project.

The company reported that the Fork area, which contains mineralization structures associated with the McDougall Lake fault, will contain three angled holes, while the Grayling East target, which contains historical drilling and is believed to be highly prospective, will contain four holes.

A total of 3,000m of drilling is planned on the Moore project, which is intended to expand the Maverick Corridor and test targets on the Grid Nineteen area.

Fiona Harvey with The Guardian reported that the nuclear energy market looks set to break records by next year as a result of rising global demand for emissions-free energy sources.

The company stated that it intends to drill six holes on the Maverick Corridor, which has returned results of over 20% (U308) uranium mineralization in previous drill programs. On the Grid Nineteen area, the company intends to establish four or five drill holes. Skyharbour reports that the Grid Nineteen area returned promising results in previous programs.

Jordan Trimble, the CEO and President of Skyharbour, commented, “We are confident in the discovery potential and exploration upside at both projects given the high-grade mineralization in historical drill holes along with the many highly prospective target areas hosting the geology necessary for high-grade uranium deposition. Furthermore, for the first time in several years, we are infill and definition drilling at the high-grade Maverick Main Zone at Moore. With the uranium spot price around CA$100 lb and the very compelling fundamentals underlying the commodity, this drill campaign and its potential catalysts could not come at a better time.”

Uranium Reaching for Record Prices

On January 24, 2024, Fiona Harvey with The Guardian reported that the nuclear energy market looks set to break records by next year as a result of rising global demand for emissions-free energy sources.

Siddharth Rajeev with Fundamental Research Corp. rated the company on December 15, 2023, as a “Buy” with a target share price of CA$0.97.

Harvey reported that several countries in Europe and Asia, including Japan, are planning on bringing new or paused reactors online in order to keep up with green energy goals and rising global demand for electricity.

Barbara Kollmeyer with Marketwatch reported on January 15, 2024, that low global supply was driving uranium prices up towards a record US$103 per pound. This supply shortage shows no sign of letting up, indicating that prices are set to keep rising.

Potential 119% Return on Investment

Technical Analyst Clive Maund reviewed the uranium market on January 17, 2024, and rated Skyharbour Resources Ltd. positively. Maund commented that the stock, “which we bought again at correction lows about a week ago, have since taken off strongly higher. No action is required on our part.”

Siddharth Rajeev with Fundamental Research Corp. rated the company on December 15, 2023, as a “Buy” with a target share price of CA$0.97 and a potential return on investment of 119%. Rajeev cited several factors in his assessment of the company, including upcoming drilling by the company and its partners, as well as a highly favorable market.

On November 7, 2023, David Talbot with Red Cloud Securities rated the company as a “Buy” with a share target of CA$0.85 and a potential return on investment of 57%.

The company’s investor presentation reports a number of catalysts, including winter drill plans totaling 8,000m at the Russell and Moore Lake projects, drilling from partners Tisdale Clean Energy Corp. (TCEC:CSE) and North Shore Uranium Ltd. (NSU:TSX) at the South Falcon East and Falcon Uranium Projects, and the formation of new option and JV partnerships.

Ownership and Share Structure

[OWNERSHIP_CHART-6026]

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 2.47% of the company. According to Reuters, President and CEO Jordan P. Trimble owns 1.54% of the company with 2.79 million shares, Director David Daniel Cates owns 0.70% of the company with 1.27 million shares, and Chairman of the Board James Gaydon Pettit owns 0.23% of the company with 0.42 million shares.

Skyharbour reports that institutional investors own approximately 19.84% of the company, as Alps Advisors, Inc., owns 8.28% of the company with 14.99 million shares, Mirae Asset Global Investments (U.S.A) L.L.C. owns 4.83% of the company with 8.76 million shares, Sprott Asset Management L.P. owns 2.74% of the company with 4.96 million shares, M.M.C.A.P. Asset Management owns 2.02% of the company with 3.66 million shares, Incrementum AG owns 1.30% of the company with 2.36 million shares, Vident Investment Advisory, L.L.C. owns 0.34% of the company with 0.61 million shares, and DWS Investment GmbH owns 0.33% of the company with 0.60 million shares.

According to Refinitiv, there are 181.16 million shares outstanding with 176.36 million free float traded shares, while the company has a market cap of CA$101.5 and trades in the 52-week period between CA$0.32 and CA$0.64.

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Important Disclosures:

1. Skyharbour Resources Ltd. and Tisdale Clean Energy Corp. are a billboard sponsors of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources Ltd. and Tisdale Clean Energy Corp.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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( Companies Mentioned: SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE, )