Skyharbour Resources
Ltd.’s (TSX-V: SYH)
(OTCQB: SYHBF)
(Frankfurt:
SC1P) (the “Company”) is pleased
to announce the closing of the previously reported Option Agreement
with Rio Tinto Exploration Canada Inc. (“RTEC”), a wholly owned
subsidiary of Rio Tinto Limited (“Rio Tinto”), to acquire up to
100% of the Russell Lake Uranium Project (the “Property” or
“Project”), which comprises 26 claims covering 73,294 hectares of
prospective exploration ground strategically situated between the
Company’s Moore Uranium project (to the east) and Denison Mines’
Wheeler River project (to the west) in the eastern portion of the
Athabasca Basin.
Russell Lake Project Location
Map:http://www.skyharbourltd.com/_resources/images/SKY-RussellLake-20220325-Inset.jpg
The Project is a premier, advanced-stage
exploration property given its large size, proximity to critical
regional infrastructure, and the significant amount of historical
exploration carried out on the property, which has identified
numerous prospective target areas and several high-grade uranium
showings as well as drill hole intercepts. The Property is
centrally located between Cameco Corp.’s Key Lake mill to the south
and McArthur River mine to the north. Access to the Property is via
Highway 914, which services the McArthur River Mine and runs
through the western extent of Property along with a high-voltage
powerline that energizes the existing mining operations in the
eastern portion of the Athabasca Basin.
Skyharbour has filed an NI 43-101 Technical
Report on the Russell Lake property written by Michelle McKeough,
P.Geo., of TerraLogic Exploration Inc. The Technical Report is the
culmination of previously reported and compiled historical data and
geological reports and was commissioned in preparation for an
upcoming drill program Skyharbour plans to carry out on the
project. It provides a detailed description of the project
including the historical exploration and drill results previously
reported, as well as recommendations for future exploration
programs. The Technical Report may be found under the Company's
profile at www.sedar.com.
Russell Lake Uranium
Project:
The Russell Lake Project is a large,
advanced-stage uranium exploration property totalling 73,294
hectares strategically located between Cameco’s Key Lake and
McArthur River Projects and adjoining Denison’s Wheeler River
Project to the west and Skyharbour’s Moore Uranium Project to the
east. Highway 914, which services the McArthur River mine, runs
through the western extent of the Property and greatly enhances
accessibility. Similarly, a high-voltage powerline situated
alongside Highway 914. Skyharbour’s acquisition of Russell Lake
creates a large, nearly contiguous block of highly prospective
uranium claims totalling 108,999 hectares between the Russell Lake
and the Moore uranium projects.
There has been a meaningful amount of historical
exploration carried out at Russell Lake but with most of it
conducted prior to 2010. The Property has been the subject of over
95,000 metres of drilling in over 230 drill holes. The Property’s
claims are in good standing for 2-22 years with assessment credits
built-up from previous programs.
Several notable exploration targets exist on the
property including the Grayling Zone, the M-Zone Extension target,
the Little Man Lake target, the Christie Lake target, and the Fox
Lake Trail target. More than 35 kilometres of largely untested
prospective conductors in areas of low magnetic intensity exist on
the Property as well.
At the Grayling Zone, drilling of the 2,200
metres long, up to 100 metres thick sub-parallel Grayling conductor
intersected an 800 metres long discontinuous zone of
basement-hosted uranium mineralization with localized perched and
unconformity-hosted associated mineralization along a graphitic
thrust fault. Drill hole RL-85-07 intersected 3.45% U3O8 over 0.3
metres at a depth of 363.2 metres and 0.1% U3O8 over 0.5m at a
depth of 366.4 metres. This target is prospective for additional
high-grade uranium discoveries and is open in several
directions.
At the M-Zone Extension target, historical
drilling at neighbouring Denison’s M-Zone along trend from the
Grayling Zone intersected basement hosted uranium of 0.70% U3O8
over 5.8 metres at a depth of 374.0 metres. Like the Grayling Zone,
the mineralization is hosted by a graphitic thrust fault. The
northeast extension of the M-Zone-Grayling corridor onto the
Property has seen limited drilling, but mineralization was
intersected in historical drilling, returning 0.7 metres of 0.123%
U3O8 at 619.1 metres depth in hole MZE-11-03.
The Little Man Lake Zone target is 500 metres
long, 10 to 15 metres thick, 25 to 35 metres wide, and is a zone of
prospective geology associated with an unconformity depression. The
last drilling in this area was in 1989, prior to modern uranium
exploration models, with historical uranium grades ranging from
0.03% up to 0.1% U3O8 at around 300 metres depth.
At the Fox Lake Trail target area, uranium
mineralization was intersected in a few historical drill holes.
Significant intercepts include 0.0743% U3O8 over 1.0 metres at
525.5 metres depth in hole FLT-08-06, and 0.053% U3O8 over 0.3
metres at 516.9 metres depth in hole FLT-11-14. A prospective
quartzite ridge runs through the area along with anomalous
geochemistry in faulted basement metasediments. Significant
sandstone-hosted sulphides are also found in this area.
The Christie Lake target area contains
basement-hosted uranium mineralization with historical drill
results returning 0.17% U3O8 over 0.4 metres at 436.4 metres depth
in hole CL-10-03. A prospective clay altered basement fault system
runs throughout this area.
In addition to the aforementioned target areas,
there are more than 35 kilometres of untested conductors on the
Property underlain by rocks of low magnetic intensity, suggestive
of prospective graphitic meta-pelitic basement rocks. The Project
has seen limited exploration in the previous twelve years, so
minimal modern exploration techniques and methods have been used to
expand existing zones of mineralization as well as to make new
discoveries.
There is a fully permitted exploration camp on the Project
suitable for over forty people located on the highway and within 5
kilometres of Denison’s Phoenix deposit. Skyharbour is planning an
initial phase of exploration and drilling at the Project with
details forthcoming.
Terms of the Agreement:
Under the terms of the Option Agreement, which
now has TSX Venture Exchange (the “Exchange”) approval, Skyharbour
may acquire up to a 100% interest in the Russell Lake Uranium
Project and will become operator of the Project during the earn-in
period and afterwards if a joint venture is formed.
An initial majority 51% interest in the Property
may be earned by paying CAD $508,200, which has been paid, and
issuing 3,584,014 common shares of Skyharbour, which has been
issued, to RTEC. Skyharbour must also fund CAD $5,717,250 in
exploration expenditures, inclusive of a 10% management fee to
Skyharbour, over a period of three years, of which a
total of CAD $1,905,750 must be spent within eighteen months.
Skyharbour at this point can elect to enter into a 51% / 49% joint
venture with RTEC subject to a standard dilution clause, or the
Company can earn additional interest in the project.
Skyharbour may then acquire an additional 19% to
earn a total of a 70% interest in the Property by paying CAD
$1,588,125 in cash or by issuing 2,226,096 shares. Additionally,
Skyharbour must fund CAD $6,352,500 in exploration expenditures,
inclusive of a 10% management fee to Skyharbour, over a period of
the following two years.
Upon Skyharbour earning a 70% interest, the
Company may elect to continue on a 70% / 30% joint venture basis,
subject to a standard dilution clause, or it may acquire the
remaining 30%, if RTEC elects not to contribute, for a total
undivided interest of 100% of the Property by paying CAD
$33,033,000 in cash or by issuing 42,598,565 shares or a
combination thereof to prevent RTEC from owning over 19.9% of
Skyharbour.
Upon Skyharbour’s 100% acquisition, the Property
will become subject to a 1% NSR Royalty payable to RTEC. The
royalty may be reduced to 0.5% by payment of USD $750,000 to RTEC.
The claims comprising the Property are subject to various existing
underlying royalties to other parties. All securities issued in
connection with the Option will be subject to a hold period ending
four months and one day after issuance.
Qualified Person:
The technical information in this news release
has been prepared in accordance with the Canadian regulatory
requirements set out in National Instrument 43-101 and reviewed and
approved by David Billard, P.Geo., a Consulting Geologist for
Skyharbour as well as a Qualified Person.
About Rio Tinto Limited:
Rio Tinto is one of the largest mining and
metals companies globally, operating in 35 countries with over
49,000 employees. Rio Tinto’s purpose is to produce materials
essential to human progress.
About Skyharbour Resources Ltd.:
Skyharbour holds an extensive portfolio of
uranium exploration projects in Canada's Athabasca Basin and is
well positioned to benefit from improving uranium market
fundamentals with fifteen projects, ten of which are drill-ready,
covering over 450,000 hectares of land. Skyharbour has acquired
from Denison Mines, a large strategic shareholder of the Company, a
100% interest in the Moore Uranium Project which is located 15
kilometres east of Denison's Wheeler River project and 39
kilometres south of Cameco's McArthur River uranium mine. Moore is
an advanced-stage uranium exploration property with high-grade
uranium mineralization at the Maverick Zone that returned drill
results of up to 6.0% U3O8 over 5.9 metres including 20.8%
U3O8 over 1.5 metres at a vertical depth of 265 metres.
Adjacent to the Moore Uranium Project is Skyharbour’s recently
optioned Russell Lake Uranium Project from Rio Tinto, which hosts
historical high-grade drill intercepts over a large property area
with robust exploration upside potential. The Company is actively
advancing these projects through exploration and drill
programs.
Skyharbour has a joint-venture with
industry-leader Orano Canada Inc. at the Preston Project whereby
Orano has earned a 51% interest in the project through exploration
expenditures and cash payments. Skyharbour now owns a 24.5%
interest in the Project. Skyharbour also has a joint venture with
Azincourt Energy at the East Preston Project whereby Azincourt has
earned a 70% interest in the project through exploration
expenditures, cash payments and share issuance. Skyharbour now owns
a 15% interest in the Project. Preston and East Preston are large,
geologically prospective properties proximal to Fission Uranium's
Triple R deposit as well as NexGen Energy's Arrow deposit.
Furthermore, the Company owns a 100% interest in the South Falcon
Point Uranium Project on the eastern perimeter of the Basin, which
contains a NI 43-101 inferred resource totaling 7.0 million pounds
of U3O8 at 0.03% and 5.3 million pounds of ThO2 at
0.023%.
Link to the South Falcon
Point Resource
Estimate:https://skyharbourltd.com/_resources/Way%20Lake%20Fraser%20Lakes%20Zone%20B.pdf?v=0.146
Skyharbour has several active option partners
including: ASX-listed Valor Resources on the Hook Lake Uranium
Project whereby Valor can earn-in 80% of the project through CAD
$3,500,000 in exploration expenditures, $475,000 in cash payments
over three years and an initial share issuance; CSE-listed Basin
Uranium Corp. on the Mann Lake Uranium Project whereby Basin
Uranium can earn-in 75% of the project through $4,000,000 in
exploration expenditures, $850,000 in cash payments as well as
share issuances over three years; and CSE-listed Medaro Mining
Corp. on the Yurchison Project whereby Medaro can earn-in an
initial 70% of the project through $5,000,000 in exploration
expenditures, $800,000 in cash payments as well as share issuances
over three years followed by the option to acquire the remaining
30% of the project through a payment of $7,500,000 in cash and
$7,500,000 worth of shares.
Skyharbour's goal is to maximize shareholder
value through new mineral discoveries, committed long-term
partnerships, and the advancement of exploration projects in
geopolitically favourable jurisdictions.
Skyharbour’s Uranium Project Map in the
Athabasca
Basin:http://www.skyharbourltd.com/_resources/images/SKY-SaskProject-Locator-20220324.jpg
To find out more about Skyharbour Resources Ltd.
(TSX-V: SYH) visit the Company’s website
at www.skyharbourltd.com.
SKYHARBOUR RESOURCES LTD.
“Jordan
Trimble” Jordan
TrimblePresident and CEO
For further information contact myself or:Riley TrimbleCorporate
Development and CommunicationsSkyharbour Resources Ltd. Telephone:
604-687-3376Toll Free: 800-567-8181Facsimile: 604-687-3119Email:
info@skyharbourltd.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
The securities offered have not been, and will
not be, registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any U.S. state securities
laws, and may not be offered or sold in the United States or to, or
for the account or benefit of, United States persons absent
registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state
securities laws. This press release does not constitute an offer to
sell or the solicitation of an offer to buy securities in the
United States, nor in any other jurisdiction.
This release includes certain statements that
may be deemed to be "forward-looking statements". All statements in
this release, other than statements of historical facts, that
address events or developments that management of the Company
expects, are forward-looking statements, including the Private
Placement. Although management believes the expectations expressed
in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ
materially from those in the forward-looking statements. The
Company undertakes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors, should change. Factors that could cause actual results to
differ materially from those in forward-looking statements, include
market prices, exploration and development successes, regulatory
approvals, continued availability of capital and financing, and
general economic, market or business conditions. Please see the
public filings of the Company at www.sedar.com for further
information.
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