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 November 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.
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, which 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 one to follow up on 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.
|Want to be the first to know about interesting Uranium investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
- 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.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
For additional disclosures, please click here.
Disclosures For Red Clous Securities, Skyharbour Resources Ltd., November 3, 2023
Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities.
Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.
Company Specific Disclosure Details: Red Cloud Securities Inc. is a market maker in the equity of the issuer.
Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password. Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report