Skyharbour Resources (SYH): A Wise Investment in Uranium Exploration and Project Generation

Skyharbour Resources (TSX-V: SYH), a uranium exploration company with prime assets in the Athabasca Basin, is poised to capitalize on the anticipated resurgence in the uranium market. The company’s extensive portfolio of uranium exploration projects and strategic joint ventures with industry leaders make it a wise investment for those seeking to benefit from the rising demand for nuclear power. With eighteen projects covering over 460,000 hectares of mineral claims, Skyharbour is well-positioned to become a major player in the uranium mining industry.

The company’s 100% interest in the Moore Uranium Project, acquired from Denison Mines, boasts high-grade uranium mineralization and is located near major uranium mining operations in Canada. Adjacent to the Moore Project, Skyharbour recently optioned the Russell Lake Uranium Project from Rio Tinto, offering further exploration upside potential.

Moore Uranium Project: A High-Grade Uranium Discovery

Skyharbour’s Moore Uranium Project has shown promising results, hosting high-grade uranium mineralization at the Main Maverick Zone and revealing strong discovery potential along the 4.7-kilometer Maverick structural corridor.

Historical Drill Results and Discovery

The Main Maverick Zone was initially discovered by JNR Resources in the early 2000s, with historical drill results revealing significant uranium concentrations, such as 4.03% eU3O8 over 10m. Skyharbour has conducted several diamond drill programs, encountering high-grade uranium mineralization in multiple drill holes.

Recent Drill Programs and Intercepts

Recent drilling campaigns have continued to uncover high-grade, shallow uranium intercepts, including 20.8% U3O8 over 1.5m at 264m and 9.12% U3O8 over 1.4m at 278m. Drill holes ML-199 and ML-202 have intersected high-grade uranium mineralization at the Main Maverick Zone and Maverick East Zone, respectively.

Exploring Basement Feeder Zones and New Targets

Skyharbour has identified and refined new targets in the underlying basement rocks using modern exploration methods. Drill hole ML19-06 intersected a broad zone of uranium mineralization within the Maverick East Zone, with an interval of 0.62% U3O8 over 12.0 meters. A drill program in the Fall of 2020 tested both unconformity and basement targets along the Maverick corridor, with drill hole ML20-09 revealing the longest continuous drill intercept of uranium mineralization discovered to date at the project.

Summer/Fall 2021 Drill Program

The 2021 summer/fall drill program consisted of 6,598 meters in nineteen diamond drill holes, with drill hole ML21-03 returning 2.54% U3O8 over 6.0 meters. The program also highlighted the potential of underlying basement feeder zones, which had seen limited historical drill testing.

Extensive Exploration and Moore Uranium Project History

The Moore Uranium Project has been the subject of extensive exploration, with over $45 million in expenditures and more than 150,000 meters of diamond drilling in over 390 drill holes. In June 2016, Skyharbour secured an option to acquire the project from Denison Mines and has since fulfilled its earn-in. The project is conveniently located in the southeastern side of the Athabasca Basin, close to several other major uranium projects and mills.

Spring 2022 Drilling Program

The spring 2022 drilling program comprised 2,467 meters in seven drill holes, targeting the Grid Nineteen conductors, the Viper target area, and the Maverick East Zone. Future drill programs will continue to test targets identified along the Maverick East Zone, Grid Nineteen conductors, and other regional targets with strong geochemical and geological indicators of uraniferous mineralizing systems.

The Moore Uranium Project has demonstrated high-grade uranium exploration potential and provides Skyharbour with promising opportunities.

Additionally, Skyharbour has joint ventures with Orano Canada at the Preston Project, Azincourt Energy at the East Preston Project, and several other active option partners. These partnerships allow the company to leverage the expertise and resources of its partners while retaining a carried interest and upside exposure in the uranium exploration projects.

One of Skyharbour’s most significant assets is its project generator strategy, which enables the company to advance its properties through partnerships with other firms. This approach allows for additional exploration financed by other companies, stock/cash payments made to Skyharbour, and increased news flow, ultimately benefiting shareholders.

Skyharbour’s management and insider shareholders hold a significant stake in the company, demonstrating their belief in its potential. Other key shareholders include Denison Mines Corp., Sprott Uranium Miners ETF, Sachem Cove Partners, OTP Fund Management Ltd., and Rio Tinto, among others.

Experienced and Successful Management and Geo Team

Skyharbour Resources boasts a highly skilled management and geological team with decades of experience in the resource industry, focusing on management, corporate finance and strategy, uranium exploration, and development. This team brings a wealth of expertise to the table, ensuring the company’s continued success.

Jordan Trimble: President, CEO, and Director

Jordan Trimble, B.Sc., CFA, is an entrepreneur who has held various roles with numerous resource industry companies, specializing in management, corporate finance and strategy, shareholder communications, business development, and capital raising. Previously, he served as the Corporate Development Manager for Bayfield Ventures, a gold company acquired by New Gold in 2014. Mr. Trimble holds a Bachelor of Science Degree from the University of British Columbia and is a CFA® Charterholder.

Dave Billard: Geologist and Consultant

With over 35 years of experience in exploration and development, Dave Billard, P.Geo., has contributed to the discovery and development of significant gold deposits in northern Saskatchewan. He served as Chief Operating Officer, Vice President Exploration, and Director for JNR Resources Inc. before its acquisition by Denison Mines in 2013. Mr. Billard is currently a geological consultant based in Saskatoon.

Christine Mckechnie: Uranium Geologist

Christine Mckechnie, M.Sc., is a geologist specializing in uranium deposits, particularly basement-hosted unconformity-related deposits in the Athabasca Basin. She has co-authored four peer-reviewed journal papers and has worked for various companies, including Claude Resources Inc., JNR Resources Inc., CanAlaska Uranium Ltd., and Cameco Corp.

David Cates: Director

David Cates, CPA, MAcc, serves as a Director for Skyharbour and is the President and CEO of Denison Mines (TSX: DML). He previously held positions at Kinross Gold Corp. and PwC LLP, focusing on the resource industry.

Paul Matysek: Strategic Advisor

Paul Matysek, M.Sc., P.Geo, is a mining entrepreneur with over 35 years of experience in the mining industry. He founded Energy Metals Corporation and led its growth to a $1.8 billion market capitalization before its acquisition by Uranium One Inc. in 2007. He has also served as President and CEO of Goldrock Mines Corp., Lithium One Inc., and Potash One Inc.

Jim Pettit: Chairman and Director

Jim Pettit brings over 30 years of experience in the resource industry, specializing in finance, corporate governance, management, and compliance. He was previously Chairman and CEO of Bayfield Ventures Corp., which was sold to New Gold in 2014.

Uranium Market Outlook

The uranium market is primed for a turnaround, driven by growing global demand for electricity, increasing nuclear investments from China, India, and Russia, and a current supply gap that is only expected to widen. With over 50% of current contracts expiring by 2025, utilities will soon need to secure new sources of uranium. Recent supply cuts, development project deferrals, and underinvestment in the uranium market further support the case for a rebound.

Moreover, global approval for nuclear power continues to grow as it is increasingly recognized as an environmentally sustainable investment. This shift in perception, coupled with the rising demand for nuclear energy, creates a unique opportunity for Skyharbour Resources to capitalize on the market’s recovery.

Conclusion

Skyharbour Resources is a wise investment for those looking to gain exposure to uranium exploration. With a diverse portfolio of prime assets in the Athabasca Basin, strategic joint ventures, and a project generator strategy, the company is well-positioned to benefit from the improving uranium market fundamentals. As global demand for clean, reliable energy continues to rise, Skyharbour Resources stands to reap the rewards for shareholders.

On April 11, 2023, the company currently trades at $0.36 CAD per share for a market cap of $52.13 million.