VANCOUVER, British Columbia, Dec. 18, 2018 (GLOBE NEWSWIRE) -- Skyharbour Resources Ltd. (TSX-V: SYH)(OTCQB: SYHBF)(Frankfurt:SC1P) (the “Company”) is pleased to announce the results from its 2018 fall diamond drilling program at its 100% owned, flagship 35,705 hectare Moore Uranium Project, located approximately 15 kilometres east of Denison Mine’s Wheeler River project and proximal to regional infrastructure on the southeast side of the Athabasca Basin, Saskatchewan. Drillhole ML18-14 intersected high grade uranium mineralization within the Main Maverick Zone consisting of 3.11% U3O8 over 1.8 metres within an intercept containing 0.56% U3O8 over 15.2 metres. This represents one of the broadest zones of uranium mineralization intersected on the property to date and occurs from 264.5 metres to 279.7 metres downhole, and largely within the underlying basement rocks. Of particular note is that the uranium mineralization continues well into the basement rock in the above reported intercept illustrating the strong discovery potential below the unconformity.
Moore Uranium Project Claims Map:
- Hole ML18-14 was drilled at the western end of the Main Maverick Zone and returned 0.56% U3O8 over 15.2 metres from 264.5 metres to 279.7 metres downhole including 3.11% U3O8 over 1.8 metres
- Most of this 15.2 metre mineralized intercept is hosted in the basement rock illustrating the strong discovery potential below the unconformity at the Maverick Zone
- Hole ML18-15 was also drilled at the western end of the Maverick Zone and returned 1.33% U3O8 over 7.8 metres from 264.3 metres to 272.1 metres downhole including 2.91% U3O8 over 1.5 metres
- This 7.8 metre intercept from hole ML18-15 also contained 0.44% Co and 1.62% Ni
- Highlight holes ML18-14 and ML18-15 returned high grade uranium mineralization and successfully expanded the known high grade Main Maverick Zone
- Four exploratory holes testing deeper targets in the underlying basement rocks intersected up to 80 metres of altered and structurally disrupted graphitic lithologies that returned anomalous pathfinder results including uranium mineralization
- Only 2 kilometres of the total 4 kilometre long Maverick corridor have been systematically drill tested leaving robust discovery potential along strike as well as at depth
- Planning is currently underway for a minimum 3,000 metre winter diamond drilling program to commence in the new year; additional news and details are forthcoming
Jordan Trimble, President and CEO of Skyharbour Resources, states: “The recently completed fall diamond drill program at the Moore Project has expanded the known high grade zone at the Maverick corridor with the discovery of uranium mineralization in the underlying basement rocks. We will be commencing a winter drill program to follow up on these results and test more extensively highly prospective targets in the basement rock at the Maverick corridor as well as previously untested graphitic corridors. Skyharbour is well positioned to benefit from the continuing uranium market recovery with strong discovery potential and ample upcoming news flow from its drilling at Moore, as well as from its partner companies Orano Canada Inc. and Azincourt Energy’s recently announced and upcoming exploration programs. In the last year we have witnessed increasing uranium prices and improving sentiment amid recent news including additional supply cuts, continued growing demand for uranium in the developing world, several new uranium funds buying physical material, and upward pressure on the spot price in part due to Cameco’s recent and ongoing spot market purchases.”
Fall 2018 Drill Program Summary and Upcoming Winter 2019 Drill Program Plans:
The recently completed fall diamond drilling program was expanded and totaled 3,800 metres in eight drill holes. These holes which were drilled to a depth of up to 750 metres tested both sandstone/unconformity and basement-hosted targets along the high grade Maverick structural corridor.
Moore Uranium Project Regional Grid Targets Map:
Skyharbour is funded for and planning a minimum 3,000 metre 2019 winter diamond drilling program slated to commence in the New Year. This drill program will test both unconformity and basement targets along the high grade Maverick corridor, as well as essentially untested prospective conductive corridors identified by Skyharbour’s technical team. Of particular interest are potential underlying basement feeder zones to the unconformity-hosted high grade uranium present at the Maverick corridor. These targets have seen limited historical drill testing.
Moore Uranium Project Maverick Corridor Drilling Map:
Drilling at the Maverick Corridor:
Four drill holes in the recently completed program tested the high grade Maverick Main Zone. The best results were from ML18-14 which intersected 0.56% U3O8 over 15.2 metres including 3.11% U3O8 over 1.8 metres. This mineralization largely occurs in the strongly altered graphitic basement rocks. Of further note is that highly anomalous uranium and pathfinder elements continue several metres to depth below this intercept illustrating the strong discovery potential in the underlying basement rocks.
Drill Hole ML18-15 returned 1.33% U3O8 over 7.8 metres from 264.3 metres to 272.1 metres downhole including 2.91% U3O8 over 1.5 metres. There were also significant cobalt and nickel results in hole ML18-15 including 0.44% Co and 1.62% Ni over the 7.8 metre intercept.
Moore Uranium Project Main and East Maverick Zones Drilling Map:
Four exploratory holes in this program tested deeper targets in the underlying basement rocks. These holes intersected up to 80 metres of altered and structurally disrupted graphitic lithologies that returned anomalous pathfinder results including uranium mineralization.
Uranium Market Commentary and Update:
The uranium market has recently shown notable signs of recovery with increasing uranium prices and improving sentiment, and this recovery appears to be accelerating amid recent news and several sector developments. Analysts that cover the sector have stated that this could be a sustained upswing as they are currently seeing some of the best fundamentals since pre-Fukushima which should be supportive of higher uranium prices as a major supply-side response is playing out while the sticky demand-side continues to improve. Uranium production is on the decline and expected to be approx. 135 million lbs U3O8 in 2018 given recent closures and project deferrals while demand continues to rise and is expected to be approx. 192 million lbs as per UxC in 2018. The spot uranium price is just over $28.50 / lb U3O8 which is still well below the average all-in global cost of production and significant price appreciation is needed to justify this production as well as developing new mines to ensure sustainable and secure supply to meet growing global demand.
In more recent news, mine closures and production curtailment continue to dominate headlines while US lawmakers are starting to take notice of external pressures on what is deemed a strategic industry. Major production cuts and depleting mine reserves appear to be working their way into the uranium market and driving prices higher. The two largest producers, Cameco and KazAtomProm, have announced large supply cuts in 2017 and 2018 including Cameco’s suspension of operations at the world’s largest uranium mine, McArthur River, as well as KazAtomProm’s announcement that it will cut 20% of planned production over the next three years and produce 60.1 million lbs in 2018. More recently, the Kazakh Energy Minister suggested there would be another 6% production cut over previous expectations to 56.2 million lbs. Additionally, several new uranium holding companies and funds have emerged including Yellow Cake PLC, Uranium Trading Corp. and Tribeca Capital Partners which have collectively raised hundreds of millions of dollars to purchase physical material effectively taking further spot supply from circulation. Lastly, Cameco recently announced their plans to purchase 11-15 million lbs. of uranium directly in the spot market in 2018 and 2019 to fulfill their contracts.
On the demand side, there are 453 operating nuclear reactors and 55 new reactors under construction globally. China continues to be at the forefront of demand growth and has the largest reactor pipeline including 43 operating reactors, 15 under construction and another 179 planned or proposed, making up a significant portion of the global pipeline of non-operating units. Furthermore, the situation in Japan finally seems to be improving with nine reactors at full commercial operation with several more slated to come back online shortly, up from just three last year. Japan has reiterated a long term nuclear commitment of 20-22% of its power mix by 2030.
Moore Uranium Project Overview:
In June 2016, Skyharbour secured an option to acquire Denison Mine's Moore Uranium Project, on the southeastern side of the Athabasca Basin, in northern Saskatchewan. The project consists of 12 contiguous claims totaling 35,705 hectares located 42 kilometres northeast of the Key Lake mill, approx. 15 kilometres east of Denison’s Wheeler River project, and 39 kilometres south of Cameco’s McArthur River uranium mine. Unconformity style uranium mineralization was discovered on the Moore Project at the Maverick Zone in April 2001. Historical drill highlights include 4.03% eU3O8 over 10 metres including 20% eU3O8over 1.4 metres, and in 2017, Skyharbour announced drill results including 6.0% U3O8 over 5.9 metres including 20.8% U3O8 over 1.5 metres at a vertical depth of 265 metres. In addition to the Maverick Zone, the project hosts other mineralized targets with strong discovery potential which the Company plans to test with future drill programs. The project is accessible via winter and ice roads which simplifies logistics and lowers costs.
Moore Lake Uranium Project Geophysics Map:
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Richard Kusmirski, P.Geo., M.Sc., Skyharbour’s Head Technical Advisor and a Director, as well as a Qualified Person.
About Skyharbour Resources Ltd.:
Skyharbour holds an extensive portfolio of uranium and thorium exploration projects in Canada's Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals with five drill-ready projects. In July 2016, Skyharbour acquired an option from Denison Mines, a large strategic shareholder of the Company, to acquire 100% of the Moore Uranium Project which is located approx. 15 kilometres east of Denison's Wheeler River project and 39 kilometres south of Cameco's McArthur River uranium mine. Moore is an advanced stage uranium exploration property with high grade uranium mineralization at the Maverick Zone with drill results returning up to 6.0% U3O8 over 5.9 metres including 20.8% U3O8 over 1.5 metres at a vertical depth of 265 metres. Skyharbour has signed option agreements with Orano Canada Inc. and Azincourt Energy whereby Orano and Azincourt can earn in up to 70% of the Preston Project through a combined $9,800,000 in total exploration expenditures, as well as $1,700,000 in total cash payments and Azincourt shares. Preston is a large, geologically prospective property proximal to Fission Uranium's Triple R deposit as well as NexGen Energy's Arrow deposit. The Company also owns a 100% interest in the Falcon Point Uranium Project on the eastern perimeter of the Basin which contains an NI 43-101 inferred resource totaling 7.0 million pounds of U3O8 at 0.03% and 5.3 million pounds of ThO2 at 0.023%. The project also hosts a high-grade surface showing with up to 68% U3O8 in grab samples from a massive pitchblende vein, the source of which has yet to be discovered. The Company's 100% owned Mann Lake Uranium project on the east side of the Basin is strategically located adjacent to the Mann Lake Joint Venture operated by Cameco, where high-grade uranium mineralization was recently discovered. Skyharbour's goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions.
Skyharbour’s Uranium Project Map in the Athabasca Basin:
To find out more about Skyharbour Resources Ltd. (TSX-V: SYH) visit the Company’s website at www.skyharbourltd.com.
SKYHARBOUR RESOURCES LTD.
President and CEO
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Skyharbour Resources Ltd.
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This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.