Athabasca Basin focused uranium explorer Skyharbour Resources (TSX-V:SYH) announced results of its winter/spring diamond drilling program at its 100% owned Moore Uranium Project in Canada’s prolific Athabasca Basin. The key takeaway from this morning’s news is that Skyharbour drilled a high-grade uranium intercept in the basement rock. Drillhole ML19-06 intercepted 0.62% U3O8 over 12.0 meters with a basal high grade basement-hosted intercept returning 2.5 meters of 2.31% U3O8.
Drillhole ML19-06 represents one of the broadest zones of uranium mineralization intersected on the property to date and includes a significant basement component illustrating the strong discovery potential below the unconformity. In addition, only 2 kilometers of the Maverick Corridor have been drill tested which leaves tremendous potential for a new discovery both at depth and along strike.
Skyharbour also managed to expand the mineralized zone at Maverick with drillhole ML19-05 which extended the mineralization at Maverick to the west:
Skyharbour now plans to proceed with a follow-up summer/fall drill program with a focus on testing the strong potential for significant down-dip mineralized structures in the Maverick Zone.
Skyharbour Resources CEO Jordan Trimble stated:
“We are very pleased with the results from this most recent drill program at our flagship Moore Project as we continue to discover new high grade uranium mineralization in the underlying basement rock at the Maverick corridor as well as making new regional discoveries at the project. We will be commencing a summer drill program to follow up on these results and test more extensively highly prospective potential feeder zones in the basement rock at the Maverick corridor as well as following up on the early success at the newly discovered Otter Zone.”
Another key point is that much of the uranium mineralization that Skyharbour intersected in this latest program is associated with basement lithologies, a characteristic common to recent discoveries like NexGen’s Arrow Deposit, Fission’s Triple R Deposit and Denison’s Gryphon Deposit.
The uranium sector has recently begun to turn higher and the URA (Global X Uranium ETF) is up nearly 10% since the end of May:
Meanwhile, if we look at the bigger picture the uranium sector as a whole is still extremely depressed with most stocks still sitting at, or near, multi-year lows:
URA (Daily – Six Years)
In my estimation the uranium sector has been in a bottoming process for the last four years and this sector might be right at the cusp of turning higher.
Producers typically move first in the early stages of a cyclical bull market, then the explorers start to see some money flow in. Skyharbour shares have just completed what could be a double-bottom near long term support at C$.32:
I am long SYH shares and I added to my position after this morning’s NR. A decision on the Section 232 petition is expected in mid-July once the review period ends. I expect a positive decision for the uranium industry in the U.S. which will help get U.S. nuclear utilities back to buying uranium in the market and contracting. This could also turn out to be a significant positive for Canadian uranium explorers.
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