Uranium prices could push higher. For one, there’s a good deal of global demand, with some countries planning to build even more nuclear reactors. In fact, Demand for uranium in nuclear reactors is expected to increase by 28% by 2030, and nearly double by 2040, says the World Nuclear Association (WNA), as noted by Reuters. All as global governments ramp up their nuclear capacity to meet zero-carbon targets. Two, we have global leaders attempting to cut back on harmful emissions, which could increase dependency on uranium. All of which could make Skyharbour Resources Ltd. (TSXV: SYH) (OTCQX: SYHBF), Uranium Energy Corp. (NYSE: UEC), Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), Cameco Corp. (NYSE: CCJ) (TSX: CCO), and Denison Mines Corp. (NYSE: DNN) (TSX: DML) even more attractive.
We should also note, “Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market for uranium still in its ‘earliest days.’ The market is ‘definitely in a structural deficit as demand is growing at a 5% annual rate and the current (2023) gap between global production and consumption remains at over 50 million pounds’, said Scott Melbye, executive vice president at mining company Uranium Energy Corp.,” as quoted by MarketWatch.com.
Look at Skyharbour Resources Ltd. (TSXV: SYH) (OTCQX: SYHBF):
Skyharbour Resources Ltd. announced results for its inaugural drilling program at its recently optioned 73,294 hectare Russell Lake Uranium Project, strategically located in the central core of the Eastern Athabasca Basin of northern Saskatchewan. Three phases of drilling were completed on the property this year with eight holes totalling 3,661.5 metres drilled at the Grayling Zone in Phase One, followed by Phase Two consisting of 2,730 metres in four holes at the Fox Trail target area, and returning to the Grayling Zone for Phase Three where an additional 3,203 metres was drilled in seven holes. Uranium mineralization was intersected in the majority of holes at the Grayling Zone over a strike length exceeding one kilometre. Drill hole RSL23-01 intersected one of the best ever drill results from the project, returning a 5.9 metre wide intercept of 0.151% U3O8 at a depth of 338.4 metres, which includes 1.0 metres of 0.366% U3O8 at 343.3 metres depth within a thrust wedge.
Russell Lake Project Location Map:
http://www.skyharbourltd.com/_resources/images/SKY-RussellLake-20220325-Inset.jpg
Jordan Trimble, President and CEO of Skyharbour Resources, stated: “We are very pleased with the inaugural drilling program at the Russell Lake Uranium Project. Numerous holes at the Grayling target area intersected significant zones of uranium mineralization including hole RSL23-01 which represents one of the best drill results at the project. Skyharbour has also expanded the extent of the known mineralized zones to over a kilometre at Grayling. Most of the drilling at the project historically has been widespread exploratory drilling and we are even more confident in the discovery potential and exploration upside at Russell Lake given this program along with the many highly prospective target areas hosting the geological ingredients necessary for high-grade uranium deposition. Planning is well underway for an upcoming, fully-funded winter drilling program with the project accessible all year round with road access, powerlines and an exploration camp.”
“Skyharbour is also excited to have additional news flow and catalysts from its prospect generator business consisting of numerous partner companies advancing some of our other projects throughout the Athabasca Basin. Over the next year, the Company is anticipating continued drilling and exploration programs at its co-flagship projects of Russell and Moore, as well as at its partner-funded projects of Preston, East Preston, Mann Lake, Yurchison, South Falcon East, and South Falcon.”
Highlights:
- Hole RSL23-01 intersected a 5.9 metre intercept of 0.151% U3O8 beginning at 338.4 metres, including 1.0 metres of 0.366% U3O8 at 343.3 metres. The mineralization begins near the base of a basement thrust wedge, and extends into the strongly clay altered sandstone and uppermost basement, and is accompanied by anomalous pathfinder geochemistry including As (≤1960 ppm) Ni (≤2760 ppm), and V (≤381 ppm).
- Hole RSL23-02 intersected 1.0 metre of uranium mineralization grading 0.224% U3O8 at the unconformity, accompanied by major sandstone and basement faulting, significant clay alteration, and highly anomalous As (≤1110 ppm), Cu (≤427 ppm), Ni (≤2760 ppm), V (≤811 ppm) and Zn (≤602 ppm).
- Most of the holes drilled at the Grayling Zone that successfully reached their intended targets intersected uranium mineralization.
- The Grayling Zone and its attendant thrust wedge has now been confirmed over a strike length of 1,000 m. The uranium mineralization at the Grayling Zone is accompanied by significant faulting, strong clay alteration of the sandstone and basement graphitic pelitic gneisses, and highly anomalous pathfinder geochemistry, including anomalous B, Ni, Cu, Pb and As in addition to uranium.
- Drilling on the Fox Lake Trail conductors confirmed the presence of highly prospective graphitic pelitic gneiss packages in conjunction with prospective quartzite ridges and other favourable host lithologies. Both the sandstone and basement rocks in the Fox Trail area are frequently enriched in uranium and pathfinder elements including B, V, Ni, Co, Cu and As.
- Substantial portions of the Grayling and Fox Lake Trail target areas have yet to be systematically drill tested leaving robust discovery potential. There is also more than 35 kilometres of largely untested prospective conductors in areas of low magnetic intensity on the Property.
- Given the success of the inaugural drill program carried out by the Company at Russell Lake, a follow-up program is being planned. The program will consist of 4,000 m - 5,000 m of drilling and is slated to commence this upcoming winter.
2023 Diamond Drilling Program and Plans for Upcoming Drilling Program:
A total of 9,595 metres of drilling in nineteen holes was drilled in three phases during 2023. The first phase of drilling consisted of a total of 3,662 metres in eight completed holes at the Grayling Zone, while an additional four holes totaling 2,730 metres were drilled in the Fox Lake Trail Zone during the second phase. The recently completed third phase of drilling was comprised of 3,203 metres in seven holes on additional targets at the Grayling Zone.
Given the success of the inaugural drill program carried out by the Company at Russell Lake, a follow-up program is being planned. The fully-funded program will consist of 4,000 m - 5,000 m of drilling and is slated to commence this winter with additional details on the program forthcoming.
Russell Lake Uranium Project Overview:
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. The northern extension of Highway 914 between the Key Lake Mill and the McArthur River Mine runs through the western extent of the Property and greatly enhances accessibility, with a high-voltage powerline also situated alongside the road. There is a fully permitted exploration camp on the Project suitable for over thirty people located on the highway, within 5 kilometres of Denison’s Phoenix deposit. 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, however most of it was conducted before 2010 prior to the discovery of several major deposits in and around the Athabasca Basin. The Property has been the subject to greater than 95,000 m of drilling in over 230 drill holes prior to Skyharbour’s maiden drill program, with most of this drilling comprising of widely spaced exploratory and reconnaissance drilling. The Property’s claims are in good standing for 2-22 years, with significant assessment credits built-up from previous exploration 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 also exist on the Property.
Other related developments from around the markets include:
Uranium Energy Corp.’s. Amir Adnani, CEO and President stated: "Fiscal 2023 proved to be a year of significant achievements in executing on our strategy and building the premier North American focused uranium company. We continued to make accretive acquisitions and advance our projects with resource expansions and extraction/production restart programs. Our strategy is aimed at a robust uranium supply from the stable and secure jurisdictions of the U.S. and Canada, with near term U.S. ISR production and a pipeline of high-grade Canadian projects with exceptional growth potential. UEC remains 100% un-hedged, at a time when the need for new production is becoming acute in the global market and particularly for Western utilities seeking supply assurance. Our balance sheet is debt free with $192.3 million in cash and liquid assets, providing the financial strength to advance projects towards production and support further accretive acquisitions."
Energy Fuels Inc.’s Mark S. Chalmers, President and CEO, recently stated, "Energy Fuels continued to make excellent progress on all aspects of our core uranium and rare earth businesses during Q2-2023. We completed the sale of 80,000 pounds of uranium to one of our utility customers under one of our long-term contracts. We expect to make another sale of 180,000 pounds of uranium under another long-term contract later this year. Depending on inflation and spot price activity, we expect that sale to be at a price of $54 - $58 per pound. We also continued preparing four (4) of our conventional uranium mines for production, and we expect at least one to be ready to commercially produce uranium ore later this year.
Cameco Corp. provided a market update regarding challenges at the Cigar Lake mine and Key Lake mill that are expected to impact its 2023 production forecast. At the Cigar Lake mine, it now expects to produce up to 16.3 million pounds of uranium concentrate (U3O8) (100% basis) this year, a reduction from the previous forecast of 18 million pounds U3O8 (100% basis). Production from the McArthur River/Key Lake operations for 2023 is anticipated to be 14 million pounds U3O8 (100% basis), down from the previous forecast of 15 million pounds U3O8 (100% basis). As previously reported, mining activities at the Cigar Lake operation were initiated from a new zone in the orebody (west pod) in the second quarter of this year, which impacted productivity. As mining activities continued in the west pod during the third quarter, equipment reliability issues emerged which further affected performance. The mine is scheduled to enter its planned annual maintenance shutdown that will run through most of September. At the Key Lake mill, ramp up activities remain ongoing. However, as noted in our second quarter MD&A, there is continued uncertainty regarding planned production in 2023 at Key Lake due to the length of time the facility was in care and maintenance, the operational changes that were implemented, availability of personnel with the necessary skills and experience, and the impact of supply chain challenges on the availability of materials and reagents.
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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