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TICKERS: SYH; SYHBF; SC1P

5 Highlights of New Drill Results From U3O8 Project
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The recent findings at this Athabasca Basin property include discovery of uranium mineralization in the sandstone unit, noted a Haywood Securities report.

Results are back from Skyharbour Resources Ltd.'s (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) phase one winter drill program at Russell Lake and showed "a novel zone of uranium mineralization" in the Fork zone there, reported Haywood Securities analyst Marcus Giannini in a July 9 research note.

"This new zone, in conjunction with refined geophysical data and a renewed interpretation of the project's structural controls, should aid in vectoring in on a discovery of scale at Russell," Giannini wrote.

The Canadian explorer's total winter drill campaign at Russell Lake, in Saskatchewan's Athabasca Basin, covered 5,152 meters (5,152m) in two phases, 3,094m in phase one and 2,058m in phase two.

Positive, Encouraging Indicators

The analyst discussed the phase one results (phase two results are pending) and presented the reasons they are notable:

1) They revealed the discovery of a previously unknown area of uranium mineralization at Russell Lake.

2) They included the best intercept ever returned on the property: 2.5m of 0.721% U3O8, including 0.5m of 2.99% U3O8, demonstrated in hole RSL24-02. This intercept began at 338.1m downhole, a "relatively shallow depth" and "just above the unconformity in the overlying sandstone unit," according to Giannini.

The drill bit encountered this standout intercept in the Fork zone, a new target that has not been explored much due to obscuration by power lines on geophysical surveys, wrote the analyst.

Specifically, RSL24-02 tested a northeast to east-trending conductor, about 150m southeast of hole RSL24-01.

3) The results demonstrated the first known occurrence of mineralization within the sandstone unit. Typically, this indicates more mineralization lies in the underlying basement rock. Giannini pointed out, too, that the presence of structures cutting across the primary conductor, as yet untested, could mean broader zones of mineralization exist that trend in a north-south direction.

4) The results showed the presence of hematite alteration in sandstone, which intersects the unconformity about 342m below surface, seen in hole RSL24-01. Underlying this alteration, wrote Giannini, are "variably graphitic cordierite-bearing pelitic gneisses within intermediate to felsic intrusions."

Anomalous uranium was detected in the sandstone column. Weakly anomalous boron was detected below the unconformity. Anomalous vanadium and nickel were detected in the graphitic conductor.

Hole RSL24-01 targeted the northernmost conductor at Fork. This is about 650m to the southwest of the Grayling area's western portion.

5) The results included intervals of bleached, fractured, and faulted sandstone starting at 198m and extending almost to the unconformity, shown in hole RSL234-04 (which missed its intended target depth). In the basement rocks, from 343−347m downhole, anomalous uranium, nickel, cobalt, zinc, and vanadium were encountered amid strong chlorite alteration.

"We remain encouraged by these geochemical signatures, lithological occurrences, and overall structural setting, which fit nicely into the unconformity-type uranium deposit model within the basin," Giannini commented.

Near-Term Work Plans, Catalysts

Skyharbour's plans call for additional drilling this summer, not only at Russell Lake, 4,500−5,000m, but also at the company's flagship Moore project in the Athabasca, 2,500−3,000m. Drill results will follow.

In the meantime, assays should come back for phase two drilling at Russell Lake. The four holes of this phase targeted the M zone extension where historical drilling encountered basement-hosted uranium. This area is highly prospective, given the similarity of its cross structures to those at nearby Denison Mines Corp.'s (DML:TSX; DNN:NYSE.MKT) Phoenix and Gryphon projects.


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Important Disclosures:

  1. Skyharbour Resources Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
  2. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Haywood Capital Markets, Skyharbour Resources Ltd., July 9, 2024

This research report is only for informational purposes. Nothing contained in this report is, or should be, relied upon as a promise or representation as to the future performance. The opinions and information in this communication constitutes the current judgment of the authors as of the date and time of this report and are subject to change without notice. There is no representation, warranty or other assurance that any projections contained in this report will be realized. Past performance is not indicative of future results.

This report is not intended to provide personal investment advice. Investors are encouraged to seek advice regarding the advisability or suitability of any investments or strategies discussed in this report. Individuals involved in the production of research materials operate independently and without influence from any other Haywood Securities Inc. departments, including Haywood Securities Inc. affiliates.

This report is not and is not to be construed as: (i) an offer to sell or solicitation of an offer to buy securities; (ii) an offer to transact business in any jurisdiction; or (iii) investment advice to any party. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in our research is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. Products and services described herein are only available where they can be lawfully provided.

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I, Marcus Giannini, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.





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