Skyharbour Resources (TSX-V: SYH)(OTC: SYHBF) CEO Jordan Trimble on Drilling for New High Grade Uranium Discoveries at Russell Lake

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today, is the President and CEO of Skyharbour Resources, Mr. Jordan Trimble. Jordan, how are you?

Jordan Trimble: I'm doing well. It's good to be back on. Looking forward to catching up.

Gerardo Del Real: Let's get right into it. I was speaking to the VP of Exploration, of a company that we're both very familiar with, Fission 3.0, which appears is onto a discovery. It definitely has the market excited and I got to tell you, I personally am excited, because despite the fact that uranium continues to kind of hover right in the high forties, low fifties, the market really is rewarding, what looks like a discovery for Fission 3.0.

We're still waiting on assays, we're still waiting to see what the follow up, step out drilling looks like. But I say that to say, that that has to excite you, as a CEO of a company that's about to carry out multiple phases of diamond drilling, that's going to total roughly 10,000 meters, at the Russell Lake Uranium Project. Any thoughts on that?

And then let's talk about this program, because that's why we do it. We do this for a discovery and given how proximal you are, to your kind of strategic neighbor there, I think it can get fun really quick for Skyharbour shareholders.

Jordan Trimble: Yeah, no, absolutely. I mean, look, the discovery made by Fission 3.0, it's exciting. It's showcasing that quick value creation and share price appreciation, associated with these high grade discoveries in the Athabasca Basin. Needless to say, I think everyone's waiting to see what the geochem assays come back with, but a major development for sure, for a junior company and for an exploreco.

And as we've talked about many times, that's what we're here at Skyharbour looking to do. We're out there, in particular over the next 10 to 12 months at our flagship Russell Lake Project. We're out there looking to make a major high grade discovery. And so, the news that we had out this morning, the first of what will be several news releases, detailing this upcoming drill campaign, 10,000 meters fully funded. It's a program that we've been waiting for internally and I know a lot of shareholders have, as well. Really the first major drill program at this project, in a number of years.

For those that have been following the story, you'll know that Russell Lake, we've recently optioned it from Rio Tinto, bringing in Rio as a large shareholder and potentially a project partner, going forward. We announced and completed this deal in the summer, raised some money to fund the program, and this 10,000 meters will be carried out over multiple phases, which will bring us right through into the summer and fall of next year, looking at between three to 4,000 meters in each phase. Three phases over the course of the next 10 months, we'll be starting the first phase here shortly.

And as the news release highlights, we have a number of initial drill targets, that we've kicked out here. In particular, the Grayling Zone, which is a zone that's been previously drill tested, by several previous operators, including Hathor and Rio. Fairly widely spaced drill holes though, so that's really intriguing for us, is that you see these drill holes, that are in some cases hundreds of meters apart and they're mineralized. There's high grade mineralization in several drill holes, multi percent over skinny widths, at relatively shallow depths, between call it 330 to 360 meters, which is around where the unconformity lies, at that zone.

The zones that we're going to be drilling at this Grayling Zone, are along what is a 10 kilometer long conductive corridor, called the Grayling M corridor, which stretches from our property, onto Denison's Wheeler River Project and then back onto the Russell Lake Project, further up to the northeast. So, it's a fertile corridor. There are several zones that have historical drill holes, that have been put into them, that have mineralization both on our side, as well as on Denison's side. And in particular these first few drill holes, that we'll be drilling into the Grayling Zone, which I will note is right near the road, our camp. There's a 40 person exploration camp that we've inherited with the project and there's power lines that traverse along with the road.

So, it's nearby infrastructure, that services the McArthur River Mine to the north. But these first few drill holes, we’ll be further testing zones, that again, have had some historical drilling, but are along this conductive corridor and in particular, within an 800 meter zone of discontinuous uranium mineralization, across multiple drill fences. So, there's a lot of smoke there. There's some historical high grade hits in previous drill holes and widely spaced drill fences.

There's also offset in the unconformity, which can create these geological traps, which are really an ideal potential setting, for high grade uranium deposition. In fact, that's the case nearby at the Phoenix Deposit, at the Griffin deposit, at the Wheeler River Project, as well as further over to the east, at our Moore Lake project, at the Maverick zone.

So we're, we see all the right geological indicators and features and we're now going to be testing it, with this major drill campaign that we'll be starting here shortly.

Gerardo Del Real: I got to believe, Jordan, that given the over 95,000 meters of drilling, in over 230 drill holes, all of it, or most of it, which was done prior to 2010, that the crunching of the data had to be a pretty strenuous exercise. And I also got to believe, that having a partner and the technical expertise of a group like Rio Tinto, has been probably very beneficial to Skyharbour?

Jordan Trimble: No, that's a great point to bring up and you're absolutely right. I mean, we've spent months now parsing through the data, the historical exploration and results at the project, which really is a big asset to have. Having that kind of historical data and the previous work that's been done, it allows us to go in there much more confidently and drill these holes, knowing that we are in fertile zones, in corridors, this isn't grassroots early stage exploration. This is an advanced stage exploration asset, where we feel that any next drill hole that's drilled there, could be a major discovery, a high grade discovery, and we're confident that we can deliver a new discovery here, in the next 12 months. And obviously, we're setting out to do that here with this drill program. And you're absolutely right, having Rio as a partner and really also having Denison, their flagship project, Wheeler River is adjacent to us.

As I mentioned with this first corridor, these first few targets that we're testing, this is a conductive corridor that trends from the Wheeler River Project onto Russell Lake. And so, Denison's a large shareholder of ours, strategic partner. So yes, we are working with other companies and other groups, to help with the targeting. And our team in Saskatoon has done a phenomenal job, over the last few months, really refining these targets at this initial target area.

But one thing I will note too, and you talked about the extent of the work that's been carried out at this project over several decades now. It's a big property, it's over 73,000 hectares, over double the size of Moore Lake, right? So, this is a project that really has no lack of targets. There's just some that are a little more advanced than others.

In addition to drilling some of the higher priority initial targets, in the first few phases, we're going to be looking at some of the regional targets, as well, in prioritizing those for future drill programs that we carry out.

So again, very, very excited to get to work. It's a major development for us to get started at Russell Lake. And as we've talked about in the past, this project, very strategic location, wedged between the McArthur River Mine Project, the Key Lake Mill to the south, Denison's Wheeler River Project to the west and our Moore Lake project, to the east.

And we are planning, as I've mentioned previously, additional drilling and programs at Moore Lake. Having the infrastructure that we have at Russell, will bring the drill cost down, not just at Russell Lake, but also at the adjacent Moore Lake Project.

Gerardo Del Real: Looking forward to results there. Of course, you have done a brilliant job of advancing and growing that prospect generator business model. You have several new partner companies, that are coming in and funding exploration. So, a lot of shots on goal. You want to touch on that briefly, before I let you go, Jordan?

Jordan Trimble: For sure. So, we've announced in the last several months, a couple of new option agreements being signed, most notably the one at our South Falcon East Project, with Tisdale Energy, really our largest option agreement, in the way of commercial terms and valuation. So, these two new option partners complement our existing five partner companies, for a total of seven. So, two of those being joint venture partners, one with Orano at Preston and another with Azincourt at East Preston. Azincourt's commencing a 6,000 meter drill program here shortly, at the East Preston Project.

And then the other five companies, as I mentioned, Tisdale Energy at South Falcon East, recently announced, as well as Yellow Rocks at Usam and Wallee. And then the previous, or the other three option partner companies, that we've signed up with over the last several years, ASX-listed Valor, which is working at our Hook Lake project, earning in at that property, as well as Basin Uranium Corp, at Mann Lake. And the Yurchison Project is being earned in currently by Medaro Mining.

So, most of these companies are planning exploration and drill programs, that they'll be funding the lion's share of, over the next 12 months. And in total, we now have signed option agreements, that would see partner companies contributing to over 70 million in combined exploration expenditures, cash payments coming into Skyharbour and share issuances coming into Skyharbour, as well.

So, a significant amount of money potentially coming in, assuming that these partner companies all earn in, at their respective projects. Like I say, we're really building the company up, to be a one stop shop, for high grade exploration and discovery potential in the Athabasca Basin, across a diversified asset base, throughout the Athabasca Basin, with funding coming predominantly from partner companies.

And so, as you said, multiple shots on goal. We're expecting somewhere in the ballpark of 30 to 35,000 meters of combined drilling, between us and our partner companies, over this 12 month period. By far, the most significant combined drill campaign ever carried out by us and our partner companies.

So needless to say, a lot of news flow and hopefully going into a continued improving uranium market and in particular, a reversal in the equities here. We've obviously seen some softness in the market, along with the broader market, but as you pointed out, the commodity price is held in there. The metal price has stayed stable here, it's consolidated. And I do believe we'll be in for a very strong year, next year in 2023.

Gerardo Del Real: I think 2023 is going to be an absolute blast. Jordan, thank you so much for your time. Let's catch up again soon.

Jordan Trimble: Sounds good, thanks Gerardo.

 
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