Skyharbour Intersects New High Grade Uranium at Maverick Zone including 3.11% U3O8 over 1.8m within 0.56% U3O8 over 15.2m as well as 1.33% U3O8 over 7.8m; Winter 2019 Drill Program Upcoming
Suite 1610 – 777 Dunsmuir Street, Vancouver, BC, Canada, V7Y 1K4
www.skyharbourltd.com
TSX-V Trading Symbol: SYH
Email: [email protected]
Telephone: (604) 687-3376
Facsimile: (604) 687-3119
December 18th, 2018
NEWS RELEASE
Skyharbour Intersects New High Grade Uranium at Maverick Zone including 3.11% U3O8
over 1.8m within 0.56% U3O8 over 15.2m as well as 1.33% U3O8 over 7.8m;
Winter 2019 Drill Program Upcoming
Vancouver, BC - Skyharbour Resources Ltd. (TSX-V: SYH)(OTCQB:
SYHBF)(Frankfurt:SC1P) (the “Company”) is pleased to announce the results from its 2018 fall
diamond drilling program at its 100% owned, flagship 35,705 hectare Moore Uranium Project ,
located approximately15 kilometres east of Denison Mine’s Wheeler River project and proximal
to regional infrastructure on the southeast side of the Athabasca Basin, Saskatchewan. Drillhole
ML18-14 intersected high grade uranium mineralization within the Main Maverick Zone consisting
of 3.11% U3O8 over 1.8 metres within an intercept containing 0.56% U3O8 over 15.2 metres. This
represents one of the broadest zones of uranium mineralization intersected on the property to
date and occurs from 264.5 metres to 279.7 metres downhole, and largely within the underlying
basement rocks. Of particular note is that the uranium mineralization continues well into the
basement rock in the above reported intercept illustrating the strong discovery potential below the
unconformity.
Moore Uranium Project Claims Map:
http://skyharbourltd.com/_resources/maps/MooreLakeRegionalTenure.jpg
Highlights:
Hole ML18-14 was drilled at the western end of the Main Maverick Zone and returned
0.56% U 3O8 over 15.2 metres from 264.5 metres to 279.7 metres downhole including
3.11% U3O8 over 1.8 metres
Most of this 15.2 metre mineralized intercept is hosted in the basement rock illustrating
the strong discovery potential below the unconformity at the Maverick Zone
Hole ML18-15 was also drilled at the western end of the Maverick Zone and returned
1.33% U3O8 over 7.8 metres from 264.3 metres to 272.1 metres downhole including 2.91%
U3O8 over 1.5 metres
This 7.8 metre intercept from hole ML18-15 also contained 0.44% Co and 1.62% Ni
Highlight holes ML18-14 and ML18-15 returned high grade uranium mineralization and
successfully expanded the known high grade Main Maverick Zone
Four exploratory holes testing deeper targets in the underlying basement rocks intersected
up to 80 metres of altered and structurally disrupted graphitic lithologies that returned
anomalous pathfinder results including uranium mineralization
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Only 2 kilometres of the total 4 kilometre long Maverick corridor have been systematically
drill tested leaving robust discovery potential along strike as well as at depth
Planning is currently underway for a minimum 3,000 metre winter diamond drilling program
to commence in the new year; additional news and details are forthcoming
Jordan Trimble, President and CEO of Skyharbour Resources, states: “The recently completed
fall diamond drill program at the Moore Project has expanded the known high grade zone at the
Maverick corridor with the discovery of uranium mineralization in the underlying basement rocks.
We will be commencing a winter drill program to follow up on these results and test more
extensively highly prospective targets in the basement rock at the Maverick corridor as well as
previously untested graphitic corridors . Skyharbour is well positioned to benefit from the
continuing uranium market recovery with strong discovery potential and ample upcoming news
flow from its drilling at Moore, as well as from its partner c ompanies’ Orano Canada Inc. and
Azincourt Energy’s recently announced and upcoming exploration programs. In the last year we
have witnessed increasing uranium prices and improving sentiment amid recent news including
additional supply cuts, continued growing demand for uranium in the developing world , several
new uranium funds buying physical material, and upward pressure on the spot price in part due
to Cameco’s recent and ongoing spot market purchases.”
Fall 2018 Drill Program Summary and Upcoming Winter 2019 Drill Program Plans:
The recently completed fall diamond drilling program was expanded and totaled 3,800 metres in
eight drill holes . These holes which were drilled to a depth of up to 750 metres tested both
sandstone/unconformity and basement-hosted targets along the high grade Maverick structural
corridor.
Moore Uranium Project Regional Grid Targets Map:
http://skyharbourltd.com/_resources/maps/Moore-Lake-Property-Wide.jpg
Skyharbour is funded for and planning a minimum 3,000 metre 2019 winter diamond drilling
program slated to commence in the New Year. This drill program will test both unconformity and
basement targets along the high grade Maverick corridor , as well as essentially untested
prospective conductive corridors identified by Skyharbour’s technical team. Of particular interest
are potential underlying basement feeder zones to the unconformity-hosted high grade uranium
present at the Maverick corridor. These targets have seen limited historical drill testing.
Moore Uranium Project Maverick Corridor Drilling Map:
http://skyharbourltd.com/_resources/projects/Moore-Lake-Maverick-Trend-w-geophys-
inset_20170515_v2.pdf
Drilling at the Maverick Corridor:
Four drill holes in the recently completed program tested the high grade Maverick Main Zone. The
best results were from ML18-14 which intersected 0.56% U3O8 over 15.2 metres including 3.11%
U3O8 over 1.8 metres. This mineralization largely occurs in the strongly altered graphitic basement
rocks. Of further note is that highly anomalous uranium and pathfinder elements continue several
metres to depth below this intercept illustrating the strong discovery potential in the underlying
basement rocks.
Drill Hole ML18-15 returned 1.33% U 3O8 over 7.8 metres from 264.3 metres to 272.1 metres
downhole including 2.91% U 3O8 over 1.5 metres . There were also significant cobalt and nickel
results in hole ML18-15 including 0.44% Co and 1.62% Ni over the 7.8 metre intercept.
Moore Uranium Project Main and East Maverick Zones Drilling Map:
http://skyharbourltd.com/_resources/projects/Moore-Lake-Maverick-Detail_20170515.pdf
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Four exploratory holes in this program tested deeper targets in the underlying basement
rocks. These holes intersected up to 80 metres of altered and structurally disrupt ed graphitic
lithologies that returned anomalous pathfinder results including uranium mineralization.
Uranium Market Commentary and Update:
The uranium market has recently shown notable signs of recovery with increasing uranium prices
and improving sentiment, and this recovery appears to be accelerating amid recent news and
several sector developments. Analysts that cover the sector have stated that this could be a
sustained upswing as they are currently seeing some of the best fundamentals since pre -
Fukushima which should be supportive of higher uranium prices as a major supply-side response
is playing out while the sticky demand-side continues to improve. Uranium production is on the
decline and expected to be approx. 135 million lbs U3O8 in 2018 given recent closures and project
deferrals while demand continues to rise and is expected to be approx. 192 million lbs as per UxC
in 2018. The spot uranium price is just over $28.50 / lb U3O8 which is still well below the average
all-in global cost of production and significant price appreciation is needed to justify this production
as well as developing new mines to ensure sustainable and secure supply to meet growing global
demand.
In more recent news, mine closures and production curtailment continue to dominate headlines
while US lawmakers are starting to take notice of external pressures on what is deemed a
strategic industry. Major production cuts and depleting mine reserves appear to be working their
way into the uranium market and driving prices higher. The two largest producers, Cameco and
KazAtomProm, have announced large supply cuts in 2017 and 2018 including Cameco’s
suspension of operations at the world’s largest uranium mine, McArthur River, as well as
KazAtomProm’s announcement that it will cut 20% of planned production over the next three
years and produce 60.1 million lbs in 2018. More recently, the Kazakh Energy Minister suggested
there would be another 6 % production cut over previous expectations to 56.2 million lbs.
Additionally, several new uranium holding companies and funds have emerged including
Yellow Cake PLC, Uranium Trading Corp. and Tribeca Capital Partners which have collectively
raised hundreds of millions of dollars to purchase physical material effectively taking further spot
supply from circulation. Lastly, Cameco recently announced their plans to purchase 11-15 million
lbs. of uranium directly in the spot market in 2018 and 2019 to fulfill their contracts.
On the demand side, there are 453 operating nuclear reactors and 55 new react ors under
construction globally. China continues to be at the forefront of demand growth and has the largest
reactor pipeline including 43 operating reactors, 15 under construction and another 179 planned
or proposed, making up a significant portion of the global pipeline of non -operating units.
Furthermore, the situation in Japan finally seems to be improving with nine reactors at full
commercial operation with several more slated to come back online shortly , up from jus t three
last year. Japan has reiterated a long term nuclear commitment of 20 -22% of its power mix by
2030.
Moore Uranium Project Overview:
In June 2016, Skyharbour secured an option to acquire Denison Mine's Moore Uranium Project,
on the southeastern side of the Athabasca Basin, in northern Saskatchewan. The project consists
of 12 contiguous claims totaling 35,705 hectares located 42 kilometres northeast of the Key Lake
mill, approx. 15 kilometres east of Denison’s Wheeler River project, and 39 kilometres south of
Cameco’s McArthur River uranium mine. Unconformity style uranium minera lization was
discovered on the Moore Project at the Maverick Zone in April 2001 . Historical drill highlights
include 4.03% eU3O8 over 10 metres including 20% eU3O8over 1.4 metres , and in 2017,
Skyharbour announced drill results including 6.0% U3O8 over 5.9 metres including 20.8% U3O8
over 1.5 metres at a vertical depth of 265 metres . In addition to the Maverick Zone, the project
hosts other mineralized targets with strong discovery potential which the Company plans to test
with future drill programs. The project is accessible via wint er and ice roads which simplifies
logistics and lowers costs.
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Moore Lake Uranium Project Geophysics Map:
http://skyharbourltd.com/_resources/maps/MooreLake-Basic-geo-revamp.jpg
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 r eviewed and
approved by Richard Kusmirski, P.Geo., M.Sc., Skyharbour’s Head Technical Advisor and a
Director, as well as a Qualified Person.
About Skyharbour Resources Ltd.:
Skyharbour holds an extensive portfolio of uranium and thorium exploration projects in Canada's
Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals
with five drill-ready projects. In July 2016, Skyharbour acquired an option from Denison Mines, a
large strategic shareholder of the Company, to acquire 100% of the Moore Uranium Project which
is located approx. 15 kilometres east of Denison's Wheeler River project and 39 kilometres south
of Cameco's McArthur River uraniu m mine. Moore is an advanced stage uranium exploration
property with high grade uranium mineralization at the Maverick Zone with drill results returning
up to 6.0% U3O8 over 5.9 metres including 20.8% U3O8 over 1.5 metres at a vertical depth of 265
metres. Skyharbour has signed option agreements with Orano Canada Inc. and Azincourt Energy
whereby Orano and Azincourt can earn in up to 70% of the Preston Project through a combined
$9,800,000 in total exploration expenditures, as well as $1,700,000 in total ca sh payments and
Azincourt shares. Preston is a large, geologically prospective property proximal to Fission
Uranium's Triple R deposit as well as NexGen Energy's Arrow deposit. The Company also owns
a 100% interest in the Falcon Point Uranium Project on the eastern perimeter of the Basin which
contains an NI 43 -101 inferred resource totaling 7.0 million pounds of U 3O8 at 0.03% and 5.3
million pounds of ThO2 at 0.023%. The project also hosts a high -grade surface showing with up
to 68% U3O8 in grab samples from a massive pitchblende vein, the source of which has yet to be
discovered. The Company's 100% owned Mann Lake Uranium project on the east side of the
Basin is strategically located adjacent to the Mann Lake Joint Venture operated by Cameco,
where high -grade uranium mineralization was recently discovered. 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://skyharbourltd.com/_resources/SYH_Landpackage_2014.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 Trimble
President and CEO
For further information contact myself or:
Nick Findler
Corporate Development and Communications
Skyharbour Resources Ltd.
Telephone: 604-687-3850
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: [email protected]
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NEWS RELEASE.
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 forwa rd-looking statements. 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, 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.