Uranium prices could see higher highs. In fact, according to Ur-Energy CEO, John Cash, as quoted by InvestingNews.com, “All systems right now look like go. It looks like the price is going to be moving higher," he said. "I think consistently that's what the producers are predicting, (and) I think pretty reliably that's what the utilities are expecting as well. Certainly, if you look at the major trade press as well, like UxC, they're looking at fairly significantly higher pricing going forward as well." That’s also a strong catalyst for uranium stocks, such as Skyharbour Resources (TSXV: SYH) (OTCQX: SYHBF), Cameco Corporation (TSX: CCO) (NYSE: CCJ), Uranium Energy Corporation (NYSE: UEC), Denison Mines Corp (TSX: DML) (NYSE: DNN), and Energy Fuels (NYSE: UUUU) (TSX: EFR).
In addition, according to News Direct, “A secure supply of energy is essential and so uranium will remain a hot topic in 2023 due to its role in the world's power supply. While renewable energy remains the end goal for most countries, uranium’s place in the clean energy revolution can no longer be ignored. Nuclear restarts are already in the works, meaning more uranium will be needed soon. Right now, 437 nuclear reactors provide 10% of the world's electrical needs. Over the next decade, this figure is projected to increase dramatically when around 60 more reactors enter service.”
Look at Skyharbour Resources Ltd. (TSXV: SYH) (OTCQX: SYHBF), For Example
Skyharbour Resources Ltd. announced that it has acquired 100% of the South Dufferin Uranium Project from Denison Mines Corp. The South Dufferin Project comprises 12,282 hectares (30,349 acres) over nine claims in the Athabasca Basin, which is host to the highest-grade uranium deposits in the world and is consistently ranked as a top mining jurisdiction by the Fraser Institute.
South Dufferin Property Map:
https://skyharbourltd.com/_resources/images/South-Dufferin-Property-Map.jpg
The new properties recently staked along with South Dufferin bring Skyharbour’s total land package that it has ownership interest in to 504,356 hectares (1,246,290 acres), across twenty-four properties, representing one of the largest project portfolios in the region. As the Company remains focused at its ongoing 10,000m drill program at the Russell Lake project, South Dufferin will become a part of Skyharbour’s prospect generator business as the Company will seek strategic partners to advance this asset.
Skyharbour’s New Uranium Project Portfolio Map:
https://www.skyharbourltd.com/_resources/maps/SKY_SaskProject_Locator_V2C.jpg
Jordan Trimble, President and CEO of Skyharbour Resources, states: “We are very pleased to have reached an agreement with Denison to acquire a 100% interest in South Dufferin, adding to our recently staked properties and to our dominant uranium project portfolio in the Athabasca Basin. South Dufferin complements our more advanced-stage exploration assets including Russell Lake, Moore and South Falcon Point, and provides additional ground to option or joint-venture out to new partner companies as a part of our prospect generator business. Furthermore, Denison Mines has been a valuable strategic partner for a number of years and we welcome them as an even larger shareholder now.
David Cates, President and CEO of Denison Mines and a Director of Skyharbour, states: “Skyharbour has a large exploration project portfolio, with a unique mix of partner-optioned and funded projects as well as the dual-flagship and Skyharbour-operated Russell Lake and Moore Lake properties. With this transaction, Denison increases its ownership in Skyharbour in exchange for a prospective exploration property that became non-core in the Denison portfolio given our development and exploration focus in areas proximal to our flagship Wheeler River and McClean Lake properties. We are pleased to increase our shareholdings in Skyharbour and look forward to the continued collaboration between our companies.”
Summary of South Dufferin Project:
The South Dufferin project totals 12,282 hectares in eight claims and is located immediately south of the southern margin of the Athabasca Basin in northern Saskatchewan. The property covers the southern extension of the Virgin River Shear Zone, which hosts known high-grade uranium mineralization at Cameco Corp.'s Dufferin Lake zone approximately 13 kilometres to the north (highlight drill results of 1.73% U3O8 over 6.5 metres) and Cameco Corp.'s Centennial deposit approximately 25 kilometres to the north (includes drill intersections up to 8.78% U3O8 over 33.9 metres).
South Dufferin Property Map:
https://skyharbourltd.com/_resources/images/South-Dufferin-Property-Map.jpg
Historical exploration work on the Project consists of airborne EM, magnetic, and radiometric surveys, lake water and sediment sampling, prospecting and ground-truthing of airborne anomalies, geological mapping, and diamond drilling. Some of the historical drill holes intersected elevated uranium with locally anomalous base metal and boron concentrations as well as significant clay alteration.
Exploration potential exists for basement-hosted uranium mineralization associated with the Dufferin Lake fault and parallel faults within the Virgin Lake Shear zone. With numerous mineralized showings to the north of the Project, exploration efforts at South Dufferin have advanced the project to a discovery-ready state. Significant exploration potential exists for basement-hosted uranium mineralization associated with the Dufferin Lake fault, which has an apparent offset of >200 m, and numerous other parallel faults within the Virgin River Shear zone. The project is drill ready with numerous prospective targets warranting follow up work.
South Dufferin Target Map:
https://skyharbourltd.com/_resources/images/South-Dufferin-Target-Map.png
The claims are in good standing for several years and there are no underlying royalties on the property except for a 2% NSR on one of the claims. Skyharbour also owns a 922 hectare claim adjacent to South Dufferin bringing the cumulative total to 13,204 hectares (32,628 acres) over ten claims.
Terms of the Agreement:
Under the terms of the Purchase Agreement, which is subject to TSX Venture Exchange approval, Skyharbour may acquire a 100% interest in the South Dufferin project in consideration for the issuance of 6,000,000 shares, 1,000,000 non-transferable share purchase warrants (the "Warrant"), and a cash payment totaling CAD $125,000. Each Warrant will entitle Denison to purchase one common share of Skyharbour for a period of two years at a price of $0.60 per share. No finders’ fees were paid in relation to the acquisition of the South Dufferin Property.
Furthermore, at Skyharbour’s 100% owned Moore Lake Uranium Project, Denison has agreed to not exercise a second buyback option to repurchase a 51% interest in the property by making a cash payment of CAD $500,000 and spending CAD $16,500,000 in exploration expenditures on the property over a four-year period. Skyharbour continues to own the project 100% without any buyback encumbrance on the project.
Other related developments from around the markets include:
Cameco Corporation and Bruce Power celebrate the extension of their long-term exclusive nuclear fuel supply arrangements for an additional 10 years through to 2040. This inter-provincial collaboration secures decades of Canadian-made nuclear energy that is essential to building a path to net-zero, while creating good jobs and benefitting ratepayers. The new deal extends the exclusive fuel supply arrangements between Cameco and Bruce Power that were announced in 2017 and include provisions for Cameco to supply 100 per cent of Bruce Power’s uranium, conversion services and fuel fabrication requirements. The extension represents an estimated $2.8 billion in additional business between the companies from 2031 to 2040. The extension is consistent with Cameco’s balanced and disciplined contracting, which allows the company to align its production decisions with its contract portfolio and customer needs. The volumes under these new arrangements were included in the long-term contracting volumes disclosed by Cameco in February 2022.
Uranium Energy announced uranium mineralization in drill hole CB-183-1 that grades 7.90% eU3O8 over 14.3 metres, including a subinterval that grades 26.16% eU3O8 over 3.8 metres. This result expands the footprint of high-grade uranium mineralization at the Sakura Zone at the Christie Lake Project to the northeast approximately 14 metres from CB-178-1. Chris Hamel, Vice President Exploration, Canada stated: “The continued success at the Sakura Zone demonstrates the potential of the Yalowega Trend at Christie Lake to host high-grade uranium mineralization. We are eager to continue with exploration along this trend in the 2023 program. The Yalowega Trend is the northerly extension of the McArthur River fault system onto the Christie Lake Project and gives UEC the opportunity to explore along this uniquely well-endowed mineralized trend that only Cameco and Orano otherwise have access to.”
Denison Mines Corporation announced the successful completion of an internal conceptual mining study examining the potential application of the In-Situ Recovery mining method at the Company's 25.17% owned Midwest project. The Concept Study was prepared by Denison during 2022 and was formally issued to the Midwest Joint Venture in early 2023. Based on the positive results of the Concept Study, the MWJV has now provided Denison with approval to complete additional ISR-related evaluation work for Midwest in 2023. View PDF version. Midwest is located approximately 25 kilometres, by existing roads, from the 22.5% Denison owned McClean Lake uranium mill, and is a joint venture owned by Denison (25.17%) and Orano Canada Inc. (74.83%). Orano Canada is part of the Orano Group, which is recognized as a leading international operator in the field of nuclear materials, with activities including uranium mining, conversion, enrichment, and other fuel services.
Energy Fuels Inc, reported its financial results for the year ended December 31, 2022. At December 31, 2022, the Company had a robust balance sheet with $116.97 million of working capital, including $62.80 million of cash and cash equivalents, $12.19 million of marketable securities, $38.16 million of inventory, and no debt. At current commodity prices, the Company's product inventory has a value of $62.48 million; During the year ended December 31, 2022, the Company incurred a net loss of $59.85 million or $0.38 per share, due in large part to: i) a non-cash mark-to-market loss on investments accounted for at fair value of $16.90 million; ii) increased expenses associated with preparing four(4) of our uranium mines for production; iii) development expenses associated with developing commercial rare earth element separation capabilities in addition to our existing mixed REE carbonate commercial production capabilities; (iv) expenses associated with advancing our medical isotope initiatives;(v) increased selling, general and administrative expenses arising from costs associated with acquiring the South Bahia monazite sand project in Brazil and costs associated with the sale of the Company's Alta Mesa in situ recovery project in Texas; and (vi) increased other selling, general and administrative expenses associated with significant additions to personnel, enhanced business processes, and other general and administrative expenses required to support all these increased levels of activity.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Skyharbour Resources Ltd. by Skyharbour Resources Ltd. We own ZERO shares of Skyharbour Resources Ltd. Please click here for disclaimer.
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