Explorer Launches Massive Uranium Drilling in Saskatchewan

Source: Streetwise Reports 01/21/2025

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) announced plans for upcoming 2025 drill programs at its co-flagship projects in the Athabasca Basin. Find out why one analyst thinks uranium juniors are close to finding the spotlight.

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) announced plans for upcoming 2025 drill programs totaling about 16,000 to 18,000 meters in 35 to 45 holes at its co-flagship Russell Lake and Moore uranium projects.

The fully funded program is the “largest annual drill campaign ever carried out by the company,” Skyharbour said in a release.

“The upcoming commencement of drilling at Russell and Moore marks the start of our most ambitious annual drilling campaign we have ever carried out,” President and Chief Executive Officer Jordan Trimble said. “The . . . multi-phased program will provide steady news flow throughout the year as we advance the projects using systematic and proven exploration methodologies to follow up on the success of the 2024 drilling.”

Trimble said the company was “confident in the exploration upside at both projects given the high-grade mineralization in recent drilling along with the many highly prospective target areas hosting the geology necessary for high-grade uranium deposition.”

He also said the company would have “plenty of additional news flow” from its prospect generator business using other companies to advance projects throughout the Athabasca Basin.

Earlier in January, the company announced it had staked 40 new prospective uranium exploration claims across eight projects in northern Saskatchewan, increasing its total ownership interest to more than 614,000 hectares (ha) across 36 projects.

Analyst Sid Rajeev of Fundamental Research Corp. wrote recently before the announcement of the new claims that Skyharbour already owned “one of the largest portfolios among uranium juniors in the Athabasca Basin.”

The company has 9 partner companies advancing 13 projects in its portfolio, with project considerations totaling CA$70 million, assuming that these partner companies complete their full earn-ins at their respective projects.

Analyst Sid Rajeev of Fundamental Research Corp. wrote recently before the announcement of the new claims that Skyharbour already owned “one of the largest portfolios among uranium juniors in the Athabasca Basin.”

“Given the highly vulnerable uranium supply chain, we anticipate continued consolidation within the sector,” he wrote, confirming the firm’s Buy rating and adjusting its fair value estimate from CA$1.16 to CA$1.21 per share.

“Additionally, the rapidly growing demand for energy from the AI industry is likely to accelerate the adoption of nuclear power, which should, in turn, spotlight uranium juniors in the coming months.”

Drilling Details

Russell Lake is majority-owned by Skyharbour as operator with minority joint-venture partner Rio Tinto Exploration Canada Inc. Skyharbour is planning 10,000 to 11,000 meters of diamond drilling in 18 to 20 holes at the more than 73,000-ha project.

“This drilling will take place in multiple phases through the year, with mobilization and commencement planned within the next few weeks,” the company said.

Following completion of those holes, Skyharbour plans to move the drill rig over to its adjacent 100%-owned, high-grade Moore project — which is more than 35,000 ha — to complete 5,000 to 7,000 meters of drilling in 18 to 24 holes.

The combined 2025 drill campaign across Skyharbour’s core projects is fully funded with the geologists and drilling crews working out of the exploration camp at Russell Lake located along the road servicing Cameco Corp.’s (CCO:TSX; CCJ:NYSE) McArthur River Uranium Mine.

Among its partner companies, Skyharbour also said it anticipates drilling and exploration at the South Falcon East project by Terra Clean Energy Corp. (TCEC:CSE; TCEFF:OTC; T1KC:FSE), as well as drilling at the Preston, Falcon, South Dufferin, Highway, and 914W projects.

Following Up on Successes, Testing New Targets

At Russell Lake, the company plans to follow up on recent exploration successes and test new targets. It will focus on the Fork and Sphinx targets within the broader Grayling target area, as well as the M-Zone Extension target and the Fox Lake Trail target.

“This initial winter program will consist of 10 to 12 drill holes, with most of the targets being road accessible and near the exploration camp, bringing the drill costs down,” the company said.

The company noted that further details on the drilling are forthcoming, and geochemical assay results are pending from the drilling recently carried out in late 2024 at Russell.

After the work at Russell Lake, Skyharbour plans to drill 3,000 to 3,500 meters in nine to 12 holes at Moore.

“Drilling at the Maverick Corridor will focus on identifying new trends and extensions within untested portions of its 4.7-kilometre strike length,” Skyharbour noted.

Additional drilling is planned within the Maverick Main and East Zones. The Maverick Main Zone is characterized by a previous highlight drill interval of 6% U3O8 over 5.9 meters at 265 meters depth, including 20.8% U3O8 over 1.5 meters in hole ML-199. More recently, Skyharbour announced a drill result grading 4.61% U3O8 over 5 meters starting at 265.5 meters downhole, including 3 meters of 7.30% U3O8.

The company said it is planning to drill test other regional targets at the project as well, with further details forthcoming. Additionally, geochemical assay results are pending from drilling recently carried out in late 2024 at Moore.

The Catalyst: AI Pushing Uranium Higher

Artificial intelligence (AI) and a surging number of data centers helped push the price for uranium, the main fuel for nuclear reactors, to a record high, according to a Yolowire release posted on Barchart.

Prices for enriched uranium rose to US$190 per separative work unit, the commodity’s standard measure, which is up 239% from US$56 three years ago,” according to the report.

“A resurgence of interest in nuclear power has come as governments and companies source carbon-free power to service major industrial facilities and communities,” the release said.

In an indicator of nuclear power’s resurgence, Microsoft Corp. (MSFT:NASDAQ) last year announced a deal with Constellation Energy Group (CEG:NYSE) to restart and buy all of the power from one of the shut-down reactors at its infamous Three Mile Island plant.

AI requires “bucket loads of power,” wrote Dominic Frisby for his newsletter, The Flying Frisby, in October. [OWNERSHIP_CHART-6026]

“That’s why Microsoft recently agreed to pay Constellation Energy, the new owner of America’s infamous nuclear power station, Three Mile Island, a sizeable premium for its energy,” he wrote. “There is cheaper wind and solar power to be had in Pennsylvania, but it isn’t as reliable as nuclear 24 hours a day. It’s not just AI. The widespread political desire to rid ourselves of fossil fuels means the world needs electricity, and fast.”

Ownership and Share Structure

Management, insiders, and close business associates own approximately 5% of Skyharbour.

According to Reuters, President and CEO Jordan Trimble owns 1.48%, and Director David Cates owns 0.65%. Institutional, corporate, and strategic investors own approximately 55% of the company.

Denison Mines owns 6.3%, Rio Tinto owns 2%, Extract Advisors LLC owns 9.87%, Alps Advisors Inc. owns 9.65%, Mirae Asset Global Investments (U.S.A) L.L.C. owns 6.25%, and Incrementum AG owns 1.05%, Reuters reported.

There are 204.46 million shares outstanding with 199.72 million free float traded shares, while the company has a market cap of CA$71.56 million and trades in a 52-week range of CA$0.31 and CA$0.60.

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Important Disclosures:

1. Skyharbour Resources Ltd. and Terra Clean Energy Corp. billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Terra Clean Energy Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Terra Clean Energy Corp. and Cameco Corp.
3. Stee Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE, )

Source: https://www.streetwisereports.com/article/2025/01/21/explorer-launches-massive-uranium-drilling-in-saskatchewan.html