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 also 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.
Haywood does not have a rating or target price on Skyharbour, currently trading at CA$0.37 per share.
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