Uranium Co. Makes 'Breakthrough' Discovery at Athabasca Basin Project

Source: Streetwise Reports 07/10/2024

Skyharbour Resources Ltd. SYHBF announced Tuesday that it had found the best intercept of uranium mineralization historically at its Russell Lake project in the central core of Canada's Eastern Athabascan Basin during Phase One of its 2024 winter drill program.

Hole RSL24-02 returned a 2.5-meter-wide intercept of 0.721% U3O8 at a relatively shallow depth of 338.1 meters, including 2.99% U3O8 over 0.5 meters at 339.6 meters just above the unconformity in the sandstone, the company said in a release.

This high-grade intercept is a new discovery at the recently identified Fork Target, the company noted.

"The discovery of multi-percent, high-grade, sandstone-hosted uranium mineralization at a new target is a major breakthrough in the discovery process at Russell — something that hasn't been seen before at the project with the potential to quickly grow with more drilling" President and Chief Executive Officer Jordan Trimble said.

Analyst David Talbot of Red Cloud Securities wrote in an updated research note on Tuesday that the results "help lay the groundwork for a follow-up summer drill program."

"We view this discovery positively and believe that it represents a breakthrough for Russell Lake, as previous exploration in this area was limited by interference from nearby powerlines" wrote Talbot, who rated the stock a Buy with a CA$0.65 per share target price. "These results help lay the groundwork for additional geological modeling on structures related to the McDougall Lake Fault corridor."

The mineralization is open in most directions, including along strike, and will be a focus of the future drilling. Skyharbour said it is fully funded and permitted for a follow-up summer drill campaign consisting of another 7,000-8,000 meters of drilling at its co-flagship Russell and Moore Projects.

"We are keen to follow-up on this discovery . . . this summer and fall" Trimble said. "Furthermore, additional assays are pending from Russell as well as from drilling carried out at our Moore project, while partner companies are advancing numerous other properties in our project portfolio."

Phase Two Results Still Pending

The company drilled more than 5,100 meters in 10 holes in two phases during the winter of 2024 at Russell Lake, according to the company. The first phase of drilling consisted of more than 3,000 meters in six holes, while the second phase consisted of more than 2,000 meters in four holes.

The cores and geochemical results have been obtained for Phase One. Results for the second phase are pending.

The Fork Target area is about 1 kilometers southwest of the central Grayling Target area and about 4 kilometers southeast of Denison Mines Corp.'s DNN Phoenix Deposit, Skyharbour said.

The company successfully intersected the intended target and conductor in hole RSL24-02, where high-grade uranium has now been discovered at a relatively shallow depth. It's now carrying out additional groundwork and geological modeling to refine the target area for summer drilling, including focusing on structures related to the associated McDougal Lake Fault Corridor.

About 3 kilometers to the southeast of the Fork Target area, drilling at the East Grayling Target in hole RSL24-06 confirmed the presence of graphitic host rocks at depth below the unconformity at 366.4 meters downhole, Skyharbour said. Locally anomalous uranium was intersected in the sandstone column with up to 448 parts per million thorium (ppm Th) and 912 ppm boron (B) intersected in the basement.

An Extensive Portfolio of Projects

Skyharbour has an extensive portfolio of uranium exploration projects in the Athabasca Basin, with 29 projects, 10 of which are drill-ready, covering over 587,000 hectares of mineral claims.

In addition to exploring for high-grade uranium deposits, the company uses a prospect generator strategy by bringing in partner companies to advance its secondary assets.

Partner companies include Azincourt Energy Corp. AZURF, Thunderbird Resources Ltd. VOYRD (formerly Valor Resources Ltd.), Basin Uranium Corp. BURCF, and Medaro Mining Corp. MEDAF. More recently, two earn-in option agreements have been signed with Tisdale Clean Energy Corp. TCEFF to option the South Falcon East project, as well as North Shore Uranium Ltd. to option the Falcon project.

Jeff Clark, who just took over Gwen Preston's The Maven Letter, which has now been christened Paydirt Prospector, said both the management team and the company's projects themselves are impressive.

"Skyharbour is fully funded, sitting on CA$7M in cash" he said in a June 26 Streetwise Reports article.

The Catalyst: Will Energy Transition Spark a Bull Market?

Uranium is a key to the ongoing clean energy revolution. Currently, its price was US$85.65 on Monday after surpassing US$100 earlier this year, according to Investing News Network.

Prices have contracted but remain historically high, the site said. Values have held in the US$85 range since June.

Many are calling for a uranium bull market, given a renewed focus on nuclear energy worldwide, is a possible source of power for the artificial intelligence (AI) revolution, IG Bank wrote.

"Amazon, for example, bought a nuclear-powered data center in the United States earlier this year, and Microsoft is pushing for small nuclear reactors (SMRs) to be contained within data centers" author Nadine Blayney wrote.

IG Bank noted that Morgan Stanley has estimated a nuclear renaissance could be worth US$1.5 trillion through 2050 in the form of capital investment.

Ownership and Share Structure

Management, insiders, and close business associates own approximately 5% of the company. According to Reuters, the CEO Trimble owns 1.54%, and Director David Cates owns 0.70%.

Institutional, corporate, and strategic investors own approximately 55% of the company. Denison Mines owns 6.3%, Rio Tinto owns 2.0%, Extract Advisors LLC owns 9%, Alps Advisors Inc. owns 9.91%, Mirae Asset Global Investments (U.S.A) L.L.C. owns 6.29%, Sprott Asset Management L.P. owns 1.5%, and Incrementum AG owns 1.18%, Reuters reported.

There are 182.53 million shares outstanding with 177.73 million free float traded shares, while the company has a market cap of CA$79.40 million and trades in a 52-week range of CA$0.33 and CA$0.64.

Important Disclosures:

1. Skyharbour Resources Ltd. and Tisdale Clean Energy Corp. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, North Shore Uranium Ltd., Skyharbour Resources Ltd., and Tisdale Clean Energy Corp. have a consulting relationship with an affiliate of Streetwise Reports, and pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Azincourt Energy Corp., North Shore Uranium Ltd., Skyharbour Resources Ltd., and Tisdale Clean Energy Corp.
3. Steve Sobek 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.