Skyharbour Partner Company Azincourt Announces Drill Results at East Preston Property and Upcoming Summer/Fall Field Program
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
June 8, 2020
NEWS RELEASE
Skyharbour Partner Company Azincourt Announces Drill Results at
East Preston Property and Upcoming Summer/Fall Field Program
Vancouver, BC - Skyharbour Resources Ltd. (TSX-V: SYH) (OTCQB: SYHBF) (Frankfurt:
SC1P) (the “Company”) announces that partner company Azincourt Energy Corp. (“Azincourt”)
has released results from its winter 2020 phase two drill program at the East Preston uranium
project, located in the western Athabasca Basin, Saskatchewan, Canada. A summer/fall 2020
work program is already being planned to follow up on the drill program.
Preston Uranium Project Claims Map:
http://skyharbourltd.com/_resources/maps/SYH_Patterson_Lake_Area_Promo_20161212_blue
_hi_res.pdf
Skyharbour and Dixie Gold Inc. (“Dixie Gold”) entered into an Option Agreement (the
“Agreement”) with Azincourt whereby Azincourt has an earn -in option to acquire a 70% working
interest in a portion of the Preston Uranium Project known as the East Preston Property. Under
the Agreement, Azinco urt has issued common shares and will contribute cash and exploration
expenditure consideration totaling up to CAD $3,500,000 in exchange for up to 70% of the
applicable property area over three years. Of the $3,500,000 in project consideration, $1,000,000
will be in cash payments to Skyharbour and Dixie Gold, as well as $2,500,000 in exploration
expenditures over the three -year period. Skyharbour and Dixie Gold agreed to extend the
deadline for the remaining obligations owing to complete the acquisition of a 70% interest in the
Project, which include incurring a small portion of the exploration expenditures remaining on the
Project and completion of a final cash payment of CAD $400,000 (see News Release dated April
16, 2020). The deadline for these obligations has been extended through until March 31 st, 2021
and in consideration for the extension, Azincourt issued 5,000,000 common shares to Skyharbour
and Dixie Gold.
The 2020 Winter drill campaign continues to advance and enhance the prospectivity of the East
Preston project. Three main target areas were drill tested with promising basement lithologies
and graphitic structures intersected along with associated, anomalo us Rare Earth Element
(“REE”) mineralization and favourable alteration. The basement lithologies and litho -tectonic
setting at East Preston are very similar and appear analogous to the Patterson Lake South-Arrow-
Hook Lake/Spitfire uranium deposits’ host ro cks and setting, and the recognition of REE
mineralization setting appears to represent abasement mineralizing system similar to sandstone-
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hosted REE mineralization associated with uranium deposition observed at the Wheeler
River project in the eastern Athabasca.
Nine diamond drill holes totalling 2,431 meters were completed in three zones within a 7km x 2km
area. All drill holes targeted combined electromagnetic ± gravity geophysical and geochemical
anomalies in concert with structural/topographic discont inuities. East Preston hosts multiple
closely spaced discreet graphitic conductor trends with coincident gravity low anomalies often
indicative of alteration or thicker overburden due to enhanced glacial scouring over altered, or
structurally disrupted basement.
“We are very encouraged with the results from the 2020 winter drill program at East Preston” said
Ted O’Connor, Director and Technical Advisor for East Preston. “We continue to see the right
basement unconformity uranium setting – rocks, structure and alteration from drilling on the
project. The recognition of what is believed to be a basement analogue to uranium deposit related
REE mineralization and alteration suggests that mineralizing fluid systems were active on the
project, at the right time. The winter results combined with the number and strike extent of the
existing, untested prospective conductor corridor system target areas, ensures that the East
Preston project is advancing as we continue to vector towards our discovery goal.” continued Mr.
O’Connor.
“Drilling continues to show us we are on the right track at East Preston,” said Azincourt president
& CEO, Alex Klenman. “The presence of Rare Earth Element mineralization, similar to Wheeler
River, adds to the growing prospectivity of the pr oject. This data is a positive development that
demonstrates East Preston continues to reveal it has the necessary environment for uranium
deposition,” continued Mr. Klenman.
Numerous untested graphitic conductive corridor trends remain on the project for additional drill
testing. A summer 2020 ground geophysical targeting program is currently being planned and
scoped to support future drill programs based on the existing property -wide heli-borne VTEM
survey interpretation and results.
Drilling Details:
The 2020 winter diamond drilling program at the Five Island Lakes area comprised a total of
2,431m drilled in nine holes (Figure 1 – East Preston Drill Hole Location Map, below). The drilling
tested three zones within a 7km x 2km area, with targets priorit ized on basis of combined
geophysical and geochemical anomalies in concert with structural/topographic discontinuities. All
drill holes were analyzed downhole with a Mt. Sopris 2SNA gamma probe. Representative
lithologies and anomalous core samples were co llected and shipped to SRC Geoanalytical
laboratories in Saskatoon for complete geochemical analysis.
Figure 1 – East Preston Drill Hole Location Map:
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The East Preston project lies immediately south of the interpreted southern edge of the Athabasca
Basin, so no Athabasca sandstone was expected. Overburden thickness ranged from 15 to 33
m thick, and as expected, no Athabasca sandstone was intersected.
Results of the drilling confirms interleaved sequences of moderately to strongly deformed
orthogneissic basement rocks with compositions ranging from granodiorite to diorite, monzonite
to syenite, and gabbro with rare anorthosite. Most areas of the property have been further intruded
by minor 0.5 to 2m simple pegmatite and/or mafic (+ -lamprophyre) dykes, generally at or near
major lithologic contacts. Cohesive deformation fabrics abound, with ductile mylonitic fabrics the
most common, along with occasional more brittle-cohesive cataclastic fabrics, and rare brittle fault
gouge. In general, the more strongly deformed zones are associated with increased alteration
intensity, with mafic host rocks exhibiting elevated chlorite-garnet-biotite+-hematite+-epidote and
rare clay, and intermediate to felsic host rocks altered with elevated sericite(illite )-chlorite-
hematite+-garnet.
Graphite-rich (1-25%) intervals are notable in most holes with thicknesses ranging from 0.5 to
10m. Not surprisingly, they are generally found within the most strongly deformed rock sequences
and are invariably associated wit h vein and disseminated pyrite (1 -20%), and broad halos of
moderate to strong blue and grey quartz alteration. Although graphite-bearing deformation zones
may be found in any lithology, they are inordinately associated with darker (more mafic) schistose
host rocks. Collectively, these strongly altered and variably deformed graphitic orthogneisses
and schists constitute what Saskatchewan government geologists coined “pseudopelite” (i.e.
mimicking altered metasedimentary [semi-pelite] paragneiss). This rock “type” is one of the main
uranium hosting units along the Patterson Lake uranium deposit trend. Additional details by zone
are highlighted below:
A-Zone:
The A-zone was tested by three holes (EP20001 to 003) all of which intersected two or more
parallel graphite+ pyritic horizons mantled by strong bluish quartz-chlorite alteration over intervals
of 10’s of meters. Drilling in the A -zone confirms the presence of a basement -hosted north to
northeast trending cohesive fault zone, associated with strong hydr othermal fluid interactions
centred around graphite-rich strata. Anomalous probe radioactivity was detected bracketing the
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graphite-rich horizons in 2 out 3 of the A -zone holes and is also associated with anomalous
REE contents.
B-Zone:
The B -zone was tested by holes EP20006 to 009, with all four holes intersecting similar
sequences of graphite -rich rocks mantled by strong quartz -chlorite alteration. Hole EP20007
encountered significant radioactivity at 281m depth, with a best count of 2202 counts-per-second
(cps) over a 2m intercept averaging 816 cps. Analytical results for this interval returned 3.5 ppm
U, and 587 ppm Th over 4.25m with associated trace element enrichment (Cu, Zn, Pb, REEs).
Drilling in the B -zone confirms the presence of a second base ment hosted northeast trending
cohesive fault zone with a history of strong hydrothermal fluid interactions which includes the
presence of anomalous radioactivity.
The strong chlorite -silica alteration zones noted at both the A and B -zones that mantle the
graphitic rocks display ductile older structures with later semi -brittle to brittle reactivation
associated with anomalous radioactivity also display highly anomalous Rare Earth Element (REE)
contents. At the B -zone, Heavy REE (HREE) contents are far more enriched than Light REE
(LREE). HREE examples include Ce (up to 8660 ppm), La (up to 4800 ppm) and Nd (up to 2720
ppm) that are up to 100 times enriched relative to ‘normal’ background basement values, whereas
LREE examples Sm, Dy, Ho, etc. are enriched 5-10 times background. The anomalous intervals,
sampled over several metres have associated enrichment in S, B, P2O5, Zr and Th interpreted,
from chemical element associations, to represent some combination of sulphide, apatitite -
xenotime-zircon REE -bearing mineralizing fluids in silicified and reactivated fault zones. This
structural mineralizing system is interpreted to be post-Athabasca sandstone deposition and could
represent a basement-hosted analogue to the sandstone-hosted MAW Zone REE mineralization
on Denison Mines’ Wheeler River Project in Saskatchewan’s eastern Athabasca.
The MAW Zone is a sandstone -hosted HREE -Yttrium dominant mineralized system without
uranium, associated with silica -chlorite-dravite alteration, located directly along strike 5 k m
southeast of the Phoenix Uranium Deposit. The MAW Zone is also surrounded by multiple
uranium mineralized zones and uranium deposits along strike and along sub -parallel graphitic-
structural corridors, which is similar to the East Preston basement litho-tectonic setting. According
to historical researchers, the Maw Zone REE phosphate mineralization could represent the distal,
near surface expression of the diagenetic-hydrothermal system above developing unconformity-
type uranium deposits.
The presence of similar HREE mineralization in basement structures displaying silica and boron
enrichment at East Preston confirms mineralizing basement fluid systems were active and,
although this system is not uranium-bearing, the litho-tectonic setting and conditions remain highly
prospective for basement-host uranium mineralization discovery in the vicinity. Follow-up drilling
is warranted at both A-Zone and B-Zone conductor trends as both infill drilling and strike extension
testing.
Swoosh Zone:
Two holes (EP20004 and 005) tested the Swoosh zone which is a target of interest due to
especially strong surface geochemical and radon anomalies over a 4km long drainage lineament.
Neither hole intersected significant radioactivity or graphitic strata, but a number of rubbly sections
bounded by quartz -chlorite+-hematite alteration indicates the presence of late brittle fault
structures in this sparsely tested zone. This zone returned the best hydrothermal sulphide
pathfinder results with up to 1.5 ppm Ag over 1m and 673 ppm Zn over 1m in hole EP20005. No
immediate follow-up drilling is presently warranted for the Swoosh area.
Follow-Up Summer 2020 Program:
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Based on the recent drilling results and the similar geological and structural setting to the
prolific Patterson Lake trend, detailed follow-up drilling is recommended for the existing A- and B-
zones, along with step-out drilling to the northeast and south along the B-zone trend, to the South
zone along the SW strike extension of the A-zone. The additional target areas that have yet to be
drill tested are also recommended for target refinement and future drill testing (Figure 2 – East
Preston Project Target Area Location Map with VTEM Interpretation, below).
Figure 2 – East Preston Project Target Area Location Map with VTEM Interpretation:
A summer 2020 work program is currently being planned. Helicopter -supported ground
geophysical surveys including Horizontal Loop Electromagnetic (HLEM) and/or ground gravity
methods are being scoped for completion later this summer/fall 2020. The surveys will be utilized
to refine, prioritize, and better locate conductive corridors more precisely in several of the currently
untested areas depicted in Figure 2. Survey planning, layout and specifications will be star ted
ideally this month, however, with the current COVID -19 travel restrictions into and out of
northwestern Saskatchewan, in particular, there is presently no indication of potential survey
execution timing.
Three prospective conductive, low magnetic sign ature corridors have been discovered on the
Property. The three distinct corridors have a total strike length of over 25 km, each with multiple
EM conductor trends identified. Ground prospecting and sampling work completed to date has
identified outcrop, soil, biogeochemical and radon anomalies, which are key pathfinder elements
for unconformity uranium deposit discovery. The East Preston Project has multiple long linear
conductors with flexural changes in orientation and offset breaks in the vicinity of interpreted fault
lineaments – classic targets for basement-hosted unconformity uranium deposits. These are not
just simple basement conductors; they are clearly upgraded/enhanced prospectivity targets
because of the structural complexity. The targets are b asement-hosted unconformity related
uranium deposits similar to NexGen’s Arrow deposit and Cameco’s Eagle Point mine. East
Preston is near the southern edge of the western Athabasca Basin, where targets are in a near
surface environment without Athabasca sandstone cover – therefore they are relatively shallow
targets but can have great depth extent when discovered. The project ground is located along a
parallel conductive trend between the PLS-Arrow trend and Cameco’s Centennial deposit (Virgin
River-Dufferin Lake trend).
Quality Assurance, Quality Control and Data Verification:
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Drill core samples were interval grab samples of interesting lithologies from 0.7m to 2 m in length,
split in half longitudinally, with one -half of the core retained, and the other half placed in sealed
bags and shipped to SRC Geoanalytical Laboratories (SRC) in Saskatoon, SK for sample
preparation, processing and ICP-MS multi-element analysis using Total and Partial digestion, gold
by fire assay and boron by fusion. SRC is an ISO/IEC 17025/2005 and Standards Council of
Canada certified analytical laboratory. The Company’s Qualified Persons for the drill program, Mr.
Jarrod Brown, P.Geo. of TerraLogic Exploration Inc. and Mr. Ted O’Connor, P.Geo. have verified
the data disclosed, including drilling, sampling and analytical data. The program is designed to
include analytical quality assurance and control routines comprising the systematic use of
standards, blanks and duplicate samples.
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 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 six drill -ready projects. 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 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 cash 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 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%. The Company's 100% owned Mann Lake Urani um 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 at:
Telephone: 604-639-3856
Or:
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Simon Dyakowski
Corporate Development and Communications
Skyharbour Resources Ltd.
Telephone: 604-639-3850
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.