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 had 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, "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."

Resource Stock Digest released a report that stated that uranium is entering a peak cycle that could see prices rise to as much as CA$200 per pound. 

A "Buy" for Investors

Earlier this year, 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 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.

The Resource Stock Digest report also positively reviewed Skyharbour positively, which it called "one to watch" in the current uranium market.

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. President and CEO Jordan P. Trimble owns 1.73% of the company with 2.79 million shares, and CPA David Daniel Cates owns 0.77% with 1.25 million shares.

The following Institutions own approx. 22% of the company. Alps Advisors, Inc. owns 6.69% with 11.4 million shares, Mirae Asset Global Investments LLC owns 4.91% with 8.36 million shares, Sprott Asset Management LP owns 3.07% with 4.96 million shares, Exchange Traded Concepts, LLC, owns 2.62% with 4.24 million shares, MMCAP Asset Management owns 2.26% with 3.66 million shares, Incrementum AG owns 1.38% with 2.35 million shares, Vident Investment Advisory, LLC, owns 0.38% with 0.61 million shares, and DWS Investment GmbH owns 0.37% with 0.60 million shares.

Skyharbour has two strategic corporate investors, with Denison Mines owning 11.4 million shares and Rio Tinto owning 3.5 million shares.

The company has over CA$4 million in the bank, with approx. CA$10 million expected to come in from option partner payments over the next twenty four months and a burn rate of about CA$125k.

There are 170.4 million shares outstanding, with 144.2 free-float traded shares. The company has a market cap of CA$95.4 million. It trades in the 52-week period between CA$0.32 and CA$0.63.

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. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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