Skyharbour Resources Ltd.'s (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) inaugural drilling encountered "one of the longest and most strongly mineralized drill intercepts" at its Russell Lake uranium project in the Athabasca Basin, reported Red Cloud Securities managing director and analyst David Talbot in a Nov. 3 research note.
"We believe this project shows great promise for a potential uranium discovery," Talbot wrote.
As such, Red Cloud reiterated its target price of CA$0.85 per share on the Canadian explorer, now priced CA$0.54 per share in comparison, noted Talbot.
From here, the return to target is an attractive 57%.
Skyharbour remains a Buy.
Grayling impresses
Of the total 9,600 meters (9,600m) Skyharbour drilled during the recent three-phase program at Russell Lake, 15 holes targeted the Grayling area, wrote Talbot, who discussed the results.
Grayling returned the best interval drilled thus far on the property. It was 0.151% U3O8 over 5.9m at 338.4m downhole, including 0.366% U3O8 over 1m. The interval was from hole RSL23-01, drilled near historical hole RL-00-22A that had shown 0.12% U3O8 over 2.2m.
Further, from RSL23-01 a 20m stepout hole was drilled, labeled RSL23-02, and it showed 0.224% U3O8 over 1m from 336.1m downhole.
These recent data, Talbot wrote, indicate Skyharbour hit the edge of a larger, higher-grade zone. Now, strike length at Grayling extends is more than 1 kilometer (1 km).
"The mineralization is accompanied by anomalous arsenic, copper, nickel, vanadium and zinc, showing all the hallmarks of an Athabasca-type uranium deposit," described Talbot.
Potential at Fox Lake Trail
Skyharbour drilled four holes in the Fox Lake Trail target, at the north end of the project. Results returned weak uranium mineralization in two holes. FLT-08-06, for instance, demonstrated 0.063% over 1m and 0.14% over 1m.
"Drilling at Fox Lake intersected anomalous uranium and pathfinder elements in the basement, demonstrating exploration upside potential," Talbot wrote.
Winter drilling imminent
Talbot pointed out that Russell Lake has 35 km of "prospective corridors in areas of low magnetics," mostly untested and never systematically drilled. Thus, Skyharbour plans to drill more, 4,000−5,000m, this winter, for one to follow up the encouraging Grayling results.
The analyst also indicated that the exploration company is seeking high-grade unconformity or basement-hosted uranium, typical of the nearby world-class deposits.
The upcoming work is budgeted at about CA$1.5 million, reflecting significant cost savings because Russell Lake is close to needed infrastructure.
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