Mining Company Intersects 0.366% Uranium Over 1 Meter

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) announced in a press release that it has received the assay results for the Russell Lake Uranium Project, which was the focus of a 73,294 hectare drilling program in Saskatchewan. According to the press release, the drilling was focused on the Grayling Zone, where exceptional mineralization results were intercepted, and the Fox Lake Trail area.

The drill results included 0.151% triuranium octoxide (U3O8) over 5.9m at a depth of 338.4m, including 0.366% U3O8 over 1.0m at a depth of 343.3m at drill hole RSL23-01, and intersected 0.224% U3O8 over 1.0m along with 427ppm copper (Cu), 2760ppm nickel (Ni), 602ppm zinc (Zn), 1110ppm arsenic (As), and 811ppm vanadium (V) at drill hole RSL23-02.

Drilling on the Fox Lake Trail also found V, Ni, Cu, As, boron (B), and cobalt (Co).

The company was also encouraged by the presence of favorable geological formations, including faulting on the Grayling Zone, the presence of these other elements, quartzite ridges, and host lithologies that indicate the possibility of further mineralization.

The Grayling Zone and the Fox Lake Trail area also have large unexplored areas, including 35 kilometers that have not been tested, and the company is planning further programs to drill these areas.

Jordan Trimble, the President and CEO of Skyharbour, commented that “We are very pleased with the inaugural drilling program at the Russell Lake Uranium Project. Numerous holes at the Grayling target area intersected significant zones of the uranium mineralization… Skyharbour has also expanded the extent of the known mineralized zones to over a kilometer at Grayling.”

Uranium Market Reaching Historic Event

On October 3, 2023, Katusa Research discussed the possibility of a “black swan” event in the uranium market, which has, in the past, driven up uranium prices by as much as 600%. According to Katusa, we are in the midst of such an event caused by tighter supply and increasing demand for nuclear power as governments pursue green energy options.

Stockhead released a report on September 21, 2023, detailing the progress of the uranium market over the last decade. This report states that uranium prices are reaching heights not yet seen since the 1970s, and predicted record highs for the market: “Investors big on uranium recon we could see a bull run to rival the mid-2000s surge to US$145/lb, while others are urging caution.”

A "Buy" for Investors

Skyharbour was reviewed by technical analyst Clive Maund, who rated the company as a “buy,” but not speculative, for potential investors. Maund is optimistic about the company’s stock, and commented “on the long-term 5-year chart, we can see why the Head-and-Shoulders bottom has formed where it has – the price is down close to cyclical lows and in a zone of strong support which is clearly a good point for it to turn higher again.”

A Fundamental Research report reviewed the company at the end of June in 2022, which gave the company a target price of CA$0.75 per share, and rated it as a “buy.” There were a number of positive aspects of the company that the report highlighted, including its estimated ability to raise US$5 million, and the company’s strong foundation on its Russel Lake property.

Skyharbour has some catalysts to report, according to its investor presentation, including planning for a 2024 exploration program on the East Preston Uranium project’s K and H zones.

Ownership and Share Structure

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 2.19% of the company. According to Reuters, Jordan P. Trimble owns 1.46% of the company with 2.48 million shares, and David Daniel Cates owns 0.73% of the company with 1.25 million shares of the company.

Reuters reports that institutions own approximately 21.94% of the company, as Alps Advisors, Inc. owns 7.50% of the company with 12.79 million shares, Mirae Asset Global Investments (USA) LLC owns 4.80% of the company with 8.19 million shares, Sprott Asset Management LP owns 2.91% of the company with 4.96 million shares, Exchange Traded Concepts, LLC, owns 2.49% of the company with 4.24 million shares, MMCAP Asset Management owns 2.15% of the company with 3.66 million shares, Incrementum AG owns 1.38% of the company with 2.36 million shares, Vident Investment Advisory, LLC, owns 0.36% of the company with 0.61 million shares, and DWS Investment GmbH owns 0.35% of the company with 0.60 million shares.

There are 170.44 million shares outstanding and 165.98 million free float traded shares, stated Reuters, while the company has a market cap of CA$72.48 million and trades in the 52 week period between CA$0.32 and CA$0.64.

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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources Ltd.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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