Uranium Co. Follows Discovery With More High-Grade Results

Source: Streetwise Reports 07/12/2024

Skyharbour Resources Ltd. SYHBF has announced assay results from the 2024 winter diamond drilling program at its 100%-owned Moore Lake uranium project in the Athabasca Basin of Saskatchewan.

A highlight of the nine-hole campaign totaling 2,864 meters of drilling included hole ML24-08, which intersected 5 meters of 4.61% U3O8 from a relatively shallow downhole depth of 265.5 meters to 270.5 meters, including 10.19% U3O8 over 1 meter at the Main Maverick Zone, the company said.

"The drill results announced here demonstrate the high-grade, shallow endowment of uranium mineralization at the Main Maverick Zone" President and Chief Executive Officer Jordan Trimble said. "We continue to expand this main zone and will be drilling this summer to further delineate the numerous high-grade zones of uranium on the Maverick Corridor taking advantage of regional infrastructure including the exploration camp at our adjacent Russell Lake project to bring our costs down."

Skyharbour said it plans to continue advancing Moore through additional drilling in 2024 in conjunction with a fully funded summer drilling program to follow up on its new discovery at Russell Lake, marking a major breakthrough in the discovery process at the project.

The company said an intercept from hole RSL24-02 at Fork returned a 2.5-meter-wide intercept of 0.721% U3O8 at a relatively shallow 338.1 meters, including 2.99% U3O8 over 0.5 meters at 339.6 meters just above the unconformity in the sandstone. Skyharbour said it was the best intercept of uranium mineralization historically at the Russell Lake project.

Analyst David Talbot of Red Cloud Securities wrote in an updated research note on Tuesday that the results at Russell Lake "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.

Mineralization Expansion Potential

Skyharbour noted that all of the holes drilled in the Main Maverick Zone last winter intersected significant uranium mineralization with the goal of further expanding and delineating the known zone of mineralization.

Hole ML24-03 intersected a broad interval of high-grade mineralization grading 1.11% U3O8 over 11.5 meters starting at 266.8 meters downhole, including 2.0 meters of 5.87% U3O8, the company said.

There is expansion potential at both of the high-grade Main Maverick and Maverick East Zones, and substantial portions of the 4.7-kilometer-long Maverick corridor remain to be systematically drill-tested, leaving discovery potential along strike as well as at depth in the basement rocks.

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

Two exploratory holes drilled in the Grid 19 area intersected structurally disrupted graphitic pelitic accompanied by significantly anomalous pathfinder element geochemistry, Skyharbour said in Thursday's release.

Preparation is underway for a fully funded 2,500- to 3,000-meter summer drill program at Moore focused on the Maverick zones, as is a follow-up 4,500- to 5,000-meter drill program at Russell Lake.

The company said it drilled more than 5,100 meters in 10 holes in two phases during the winter of 2024 at Russell Lake. 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 at Russell Lake. Results for the second phase are pending.

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. VOYRF (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.

The Catalyst: Energy Demand Surge Coming

The nation's largest utility companies are warning of a coming energy demand surge from EVs and AI that could be unlike anything seen since the widespread adoption of heat pumps and air conditioners pushed demand sky-high in the 20th Century, according to a June 30 piece by Spencer Kimball for CNBC.

Rystad Energy predicted that data centers and EVs alone will add 290 terrawatt hours (TWh) of new demand by 2030.

"Overall, the combined expansion of traditional and AI data centers, along with chip foundries, will increase demand cumulatively by 177 TWh from 2023 to 2030, reaching a total of 307 TWh" noted Rystad, an independent research and energy intelligence company. "Despite data centers currently representing a relatively modest portion of total electricity demand in the U.S., this marks a more than two-fold increase compared to 2023 levels, which stood at 130 TWh, highlighting the efforts of the U.S. to position itself as a global data center hub."

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.

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$79.86 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.