Skyharbour Resources (TSX-V: SYH) is a preeminent uranium and thorium exploration company focused in the prolific Athabasca Basin of Saskatchewan, which is one of the most favourable jurisdictions to work in globally. Despite a challenging resource market and a particularly depressed uranium sector, Skyharbour has forged ahead with accretive and opportunistic acquisitions, value-add exploration, and the formation of synergistic partnerships to help advance projects in a less equity-dilutive manner. Furthermore, Skyharbour has been able to raise the necessary capital to execute on its plans having raised over $3 million in the last 18 months with both retail and institutional involvement which fully finances the company for its upcoming exploration programs. It has been a dismal market for uranium exploration companies but Skyharbour and its management sees it as an opportunity to build the foundation needed for success going forward.
Skyharbour recently reported diamond drill assay results from its 100-per-cent-owned, 79,003-hectare Falcon Point Uranium and Thorium Property located 55 kilometres east of the Key Lake Mill. The drill program consisted of five diamond drill holes totalling 1,278 metres with four of the five holes intersecting uranium and thorium mineralization. Drill hole FP-15-05 intersected a 14.0 metre wide mineralized zone starting at 134.5 metres down-hole depth consisting of the highest grade mineralization found to date in the deposit area. These intersections include 0.172 per cent U3O8 and 0.112 per cent ThO2 over 2.5 metres as well as 0.165 per cent U3O8 and 0.112 per cent ThO2 over 2.0 metres within a broader interval containing 0.103 per cent U308 and 0.062 per cent ThO2 over 6.0 metres. The drill program tested high-priority targets in and around the current uranium and thorium resource at the JNR Fraser Lakes Zone B deposit. It was successful in discovering additional mineralization at higher grades than the deposit average and was the company’s first work program at Falcon Point (previously called Way Lake) since acquiring the property from Denison Mines in the summer 2014.
Jordan Trimble, president and CEO of Skyharbour Resources, states: “We are excited to have intersected the highest grade uranium mineralization found to date in the deposit area on the Falcon Point Project. Similar to other notable high grade Athabasca Basin deposits, we are seeing the character of the uranium mineralization changing at depth as the grade is increasing which illustrates the strong discovery potential going forward at the project. Furthermore, we will be commencing a summer field program shortly consisting of prospecting and vegetation/soil sampling in and around a high grade 48 per cent U3O8 surface showing on the Hook Lake target near the northern end of the property.”
Background on the Falcon Point project
In May 2014, Skyharbour announced the purchase of a 100 per cent interest in the Falcon Point Project (previously Way Lake) from Denison (TSX: DML). The Falcon Point property hosts an NI 43-101 mineral resource of 7.0 million pounds U3O8 inferred at an average grade of 0.03 per cent U3O8 and 5.3 million pounds ThO2 inferred at an average grade of 0.023 per cent ThO2 within 10.4 million tonnes using a cutoff grade of 0.01 per cent U3O8. In addition to the deposit on the south end of the project, at the north end of the project high grade mineralization has been discovered with up to 48 per cent U3O8 in historic grab samples from a massive pitchblende vein at the Hook Lake target. The source of this high-grade uranium mineralization has yet to be discovered.
As a well-diversified land holder in the Athabasca Basin, Skyharbour also holds interest in one of the largest land packages (127,495 hectares) strategically located near Fission Uranium’s (TSX: FCU) Patterson Lake South (“PLS”) high-grade Triple R uranium deposit, as well as NexGen Energy’s (TSX-V: NXE) recent high-grade uranium discovery on their Rook 1 Project at the Arrow target. These new discoveries demonstrate the potential for high-grade uranium on the margins of the western side of the Basin where significantly less exploration has been carried out. Skyharbour’s properties host favourable geology for the occurrence of PLS style uranium mineralization.
Utilizing the JV model to advance projects without significant equity dilution, Skyharbour is partners with three other companies in the Western Athabasca Syndicate which was formed to explore the PLS property package in an operationally effective, cost efficient manner. Each of the companies has an option to earn in 25 per cent by incurring exploration expenditures over two years totalling a combined $6 million. Skyharbour is the operator of the project and will fund $1 million with the three partner companies funding the remaining $5 million. Fifteen high-priority drill target areas at the flagship Preston Project associated with eight prospective exploration corridors have been successfully delineated through the extensive exploration carried out thus far. A total of $4.2 million in exploration has been carried out to date of the $6 million planned.
Lastly, Skyharbour has a 60 per cent interest in the Mann Lake Uranium Project located on the east side of the Basin 25 kilometres southwest of Cameco’s McArthur River Mine. This serves as a strategic holding for the company and offers exposure to one of the most prolific uranium mining districts in the world being on the same main mine trend that hosts notable high-grade uranium deposits and operating mines. The project boasts highly prospective geology and robust discovery potential as identified by the historic work consisting of over $3 million in exploration including drilling. The property is also adjacent to the Mann Lake Joint Venture operated by Cameco (52.5 per cent) with partners Denison Mines (30 per cent), and AREVA (17.5 per cent) where high-grade, basement-hosted uranium mineralization has been recently discovered.