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 twenty-four projects covering over 504,000 hectares of mineral claims, Skyharbour is well-positioned to become a major player in the uranium mining industry.
Today, the Company announced that it has acquired 100% of the South Dufferin Uranium Project from Denison Mines Corp. The South Dufferin Project comprises 12,282 hectares (30,349 acres) over nine claims in the Athabasca Basin.
The new properties recently staked along with South Dufferin bring Skyharbour’s total land package that it has ownership interest in to 504,356 hectares (1,246,290 acres), across twenty-four properties, representing one of the largest project portfolios in the region.
The company is currently focused on its ongoing 10,000m drill program at the Russell Lake project, South Dufferin will become a part of Skyharbour’s prospect generator business as the Company will seek strategic partners to advance this asset.
The South Dufferin Project covers the southern extension of the Virgin River Shear Zone, which hosts known high-grade uranium mineralization at Cameco Corp.’s Dufferin Lake zone approximately 13 kilometres to the north (highlight drill results of 1.73% U3O8 over 6.5 metres) and Cameco Corp.’s Centennial deposit approximately 25 kilometres to the north (includes drill intersections up to 8.78% U3O8 over 33.9 metres).
Historical exploration work on the Project consists of airborne EM, magnetic, and radiometric surveys, lake water and sediment sampling, prospecting and ground-truthing of airborne anomalies, geological mapping, and diamond drilling. Some of the historical drill holes intersected elevated uranium with locally anomalous base metal and boron concentrations as well as significant clay alteration.
Exploration potential exists for basement-hosted uranium mineralization associated with the Dufferin Lake fault and parallel faults within the Virgin Lake Shear zone. With numerous mineralized showings to the north of the Project, exploration efforts at South Dufferin have advanced the project to a discovery-ready state. The project is drill ready with numerous prospective targets warranting follow up work.
Jordan Trimble, President and CEO of Skyharbour Resources, states: “We are very pleased to have reached an agreement with Denison to acquire a 100% interest in South Dufferin, adding to our recently staked properties and to our dominant uranium project portfolio in the Athabasca Basin. South Dufferin complements our more advanced-stage exploration assets including Russell Lake, Moore and South Falcon Point, and provides additional ground to option or joint-venture out to new partner companies as a part of our prospect generator business. Furthermore, Denison Mines has been a valuable strategic partner for a number of years and we welcome them as an even larger shareholder now.”
David Cates, President and CEO of Denison Mines and a Director of Skyharbour, states: “Skyharbour has a large exploration project portfolio, with a unique mix of partner-optioned and funded projects as well as the dual-flagship and Skyharbour-operated Russell Lake and Moore Lake properties. With this transaction, Denison increases its ownership in Skyharbour in exchange for a prospective exploration property that became non-core in the Denison portfolio given our development and exploration focus in areas proximal to our flagship Wheeler River and McClean Lake properties. We are pleased to increase our shareholdings in Skyharbour and look forward to the continued collaboration between our companies.”
The stock is up 1.32% at time of writing on today’s news and Skyharbour sits at a market cap just above $57 million.
A major technical break occurred with a breakdown below the major support zone on April 17th 2023. This zone has been held since Summer 2022. A breakdown and follow through would have been bearish. However, what happened after is why retests are so important in technical analysis.
Skyharbour stock ended up reclaiming the broken support level in a matter of days initiating a false breakdown. This is usually a very strong bullish signal, and you can see the momentum the stock has had after the fakeout. We are now approaching a key resistance level around the $0.40 zone. From here, the stock could pullback as traders take profits at this resistance zone. Or, the bulls can continue the upside momentum and trigger a breakout.
A breakout is a possibility given the strong recent price action in uranium as seen on the chart of the Global Uranium X ETF and the Sprott Physical Uranium Trust pictured above. A strong move and recovery which is seeing U.UN test the major breakdown zone as resistance.
