Skyharbour Partner Company Azincourt’s Initial Drilling Confirms East Preston Basement Prospectivity
Suite 1610 –777 Dunsmuir Street, Vancouver, BC, Canada, V7Y1K4
www.skyharbourltd.com
TSX-V Trading Symbol: SYH
Email: [email protected]
Telephone: (604) 687-3376
Facsimile: (604) 687-3119
June 17th, 2019
News Release
Skyharbour Partner Company Azincourt’s Initial Drilling Confirms East Preston
Basement Prospectivity
Vancouver, BC - Skyharbour Resources Ltd. (TSX-V:SYH) (OTCQB:SYHBF)
(Frankfurt:SC1P) (the “Company”) is pleased to announce that its partner company Azincourt
Energy Corp. (“Azincourt”) has reported results from the recent phase one drill program at the
East Preston Uranium Project, located in the western Athabasca Basin, Saskatchewan, Canada.
Preston Uranium Project Map:
http://skyharbourltd.com/_resources/maps/SYH-Patterson-Lake.pdf
The initial drill campaign has confirmed the prospectivity of the East Preston project, as basement
lithologies and graphitic structures intersected at East Preston are very similar and appear to be
analogous to the Patterson Lake South, Arrow and Hook Lake/Spitfire uranium deposit host rocks
and setting. A total of 552 mete rs of drilling was completed in three holes prior to the onset of
spring break-up conditions that impacted the duration of the program. The rapid onset of spring
required shifting from entirely overland-supported drilling to helicopter-supported drilling. All drill
holes targeted multiple closely spaced discreet graphitic conductors with coincident gravity low
anomalies often indicative of alteration or thicker overburden due to enhanced glacial scouring
over altered, or structurally disrupted basement.
Azincourt’s President and CEO, Alex Klenman stated: “We are certainly very pleased with the
results of the first few holes, it’s an excellent start to initial drill testing at East Preston. We have
confirmed the project contains the appropriate environment – both geologically and geochemically
– that is consistent with uranium mineralization in the area. That’s a significant confirmation, and
to be able to determine this at the outset is a very positive development. These are the right
graphitic-rich host rocks and given we have just started drilling, we’re obviously optimistic about
what’s ahead. We have dozens of high priority targets yet to drill, and thanks to recent substantial
institutional support we are well funded to execute a much larger phase two program. Permitting
is already underway, we have the cash, and we have the targets. Our timing looks good with
sector developments as well. We’re excited to get more drill holes in the ground and will announce
details of the upcoming phase two drill campaign soon.”
The East Preston project lies immediately south of the interpreted southern edge of the Athabasca
Basin and o verburden thickness ranged from 15 m to 33m thick with no Athabasca sandstone
intersected. Numerous untested graphitic conductive trends remain on the project for drill testing,
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and additional targets have been generated from the recent VTEM survey that now covers
the entire East Preston project lands. The basement rocks intersected comprised am phibolite-
grade (high-grade) metamorphic pelitic/mafic to pssamopelitic/felsic gneisses and schists with
pegmatitic partial melt segregations. Numerous intervals of blue quartz ‘units’ interpreted as either
amphibolite-grade orthoquartzite, or silica -flooded, altered gneissic precursors were also
intersected. The gneissic rocks often become highly strained displaying mylonitic to proto -
mylonitic textures.
All drill holes intersected at least two intervals of graphitic pelitic gneiss/schist, sufficiently
explaining the HLEM and VTEM conductors targeted. In drill holes EP19001 and EP19002, the
graphitic rocks intersected were primarily stratigraphic with little associated structural disruption.
Drill hole EP19003 intersected moderate to strong structural upgrading within the upper graphitic-
pyritic unit encountered. Anomalous radioactivity was observed immediately in the hanging wall
upper contact of this graphitic fault interval associated with partial melt pegmatite.
East Preston Uranium Project Initial Drill Pad Locations:
http://skyharbourltd.com/_resources/maps/figure1-20190617.jpg
Downhole probe results showed anomalous radioactivity predominantly attributed to thorium
related to observed partial melt pegmatitic gr anite intervals in drill core. Drill core samples
collected were submitted to SRC Geoanalytical Laboratories in Saskatoo n for ICP -MS Total
Digest, ICP-MS Partial digest, Boron by fusion and Gold fire assay chemical analysis. Trace
element geochemistry shows anomalous results for basement -hosted unconformity uranium
deposit pathfinders Ni, Co, Cu, Zn and As associated with g raphitic schist intervals. Graphitic
rocks hosting uranium mineralization are often associated with Ni-Co-As, Cu and Zn sulphides in
anomalous, to substantial quantities. The presence of these pathfinder elements adds additional
information and will enhanc e vectoring towards the most prospective areas of the conductor
systems.
Drill Hole Analysis:
EP19001 (Pad B, 094/ -45°): PAD B on L2400 target ed the confluence of north and northeast-
trending conductors (prospective structure) with a coincident gravity a nomaly (potential
alteration), and a positive airborne radiometric anomaly (a potential mineralization indicator). This
hole successfully intersected g raphite-rich intermediate-mafic gneiss and schist units between
105-145m (5-10% graphite), and 157.2-181.9m (2-5% graphite). Both intervals are sandwiched
between granitic to granodioritic orthogneiss. Lithology variations and graphite content are
significant enough to explain the geophysical conductor targets at this location. Overall alteration
intensity is considered low to moderate. Radiometric anomalies are limited to biotite-rich fractures
+-blue quartz or pods within pegmatitic granite subunits. The targeted hole successfully
intersected graphite-laden structures/lithologies that are similar in character to host lithologies
along the Patterson Lake trend.
EP19002 (Pad E, 105/ -45°): PAD E on L1200 targeted a flexure in the HLEM conductor trend
and two down hole northwest dipping Maxwell Planes. This site is located 1.5km southwest and
on-strike of hole EP19002. Near identical sequence of lithologies as in hole EP19001 with
intercepts averaging 40m higher in the hole. R adiometric anomalies are limited to biotite -rich
fractures +-blue quartz or pods within pegmatitic granite subunits. Overall more carbonate and
less garnet than EP19001. Two graphite rich bands correlate well with projected geophysical
conductor traces.
Hole EP19003 (Pad KB, 120/ -45°): PAD KB on M600 targeted a flexure in a strong VTEM
conductor trend. This site i s located 1.0 km north of hole EP19001 along a second parallel
conductor feature. This hole intersected graphitic conductive litholog ies significantly earlier than
the predicted Maxwell -plate predicted depth of 155m, but in league with VTEM predicted
conductor traces. Overall lithologic sequence is similar to holes 1 and 2, but overall graphitic
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content is higher in this hole. The g arnet metamorphic overprint is high with low
carbonate alteration. The pyrite content is also significantly elevated in the 54-61.5m interval. The
highest count of 368 cps occurs at 50.5m depth in a pegmatitic granite immediately adjacent to
the first graphitic fault gouge.
Option Agreement:
Skyharbour and Clean Commodities 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 know n as the East Preston Property. Under the Agreement,
Azincourt 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 ye ars. Of the $3,500,000 in project consideration, $1,000,000 will be in cash
payments to Skyharbour and Clean Commodities, as well as $2,500,000 in exploration
expenditures over the three-year period.
About East Preston:
Extensive regional exploration work at East Preston was completed in 2013-14, including airborne
electromagnetic (VTEM), magnetic and radiometric surveys. Three prospective conductive, low
magnetic signature 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 unconf ormity uranium deposit
discovery.
Azincourt completed a winter geophysical exploration program in January -February 2018 that
generated a significant amount of new drill targets within the previously untested corridors while
refining additional targets near previous drilling along the Swoosh corridor. Ground-truthing work
confirmed the airborne conductive trends and more accurately located the conductor axes for
future drill testing. The gravity survey identified areas along the conductors with a gravity lo w
signature, which is often associated with alteration, fault/structural disruption and potentially,
uranium mineralization. The combination/stacking of positive features has assisted in prioritizing
targets.
The Main Grid shows multiple long linear condu ctors 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 basement -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 tren d between the
PLS-Arrow trend and Cameco’s Centennial deposit (Virgin River-Dufferin Lake trend).
Quality Assurance, Quality Control and Data Verification:
Drill core samples were interval grab samples of interes ting lithologies from 0.7m to 2.0 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. Azincourt’s Qualified Person for the drill program, Mr. Ted
O’Connor, has verified th e data disclosed, including drilling, sampling and analytical data. The
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program is designed to include analytical quality assurance and control routines comprising the
systematic use of standards, blanks and duplicate samples.
Qualified Person:
The techn ical 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
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 project also hosts a high -grade surface showing with up to 68% U 3O8 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: 604-639-3850
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: [email protected]
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