In a September 1 research note, David A. Talbot MD, Mining Analyst at Red Cloud Securities Inc. commented that Saskatchewan-focused uranium and thorium exploration company Skyharbour Resources Ltd.'s (SYH:TSX.V; SA:NYSE.MKT) partner Valor Resources Ltd.. (VAL:ASX) recently reported high-grade samples from its Athabasca Basin Hook Lake uranium project.
The analyst indicated that Valor owns 80% earn-interest option rights in the projects which Red Cloud Securities believes is quite positive due to the confirmed high-grade uranium and rare earth and high-grade base metals found at the site.
The Hook Lake property includes 18 different target areas which show potential for new high-grade discoveries. Red Cloud noted that it sees upside re-rating opportunities for Skyharbour as a result of both the completion of the earn-in agreement and as the company continues to register further successful exploration activities at its flagship Moore Lake project where it is presently conducting a 5,000 m of drill program.
The report listed that a total of 57 samples were gathered at Hook Lake. The samples were noted to contain high-grade uranium, rare earth element and base metals. The analyst mentioned that four of these samples not only returned high-grade uranium (>6% U3O8) but notably also returned elevated amounts of rare earth materials (>0.5% TREO) and some silver and lead.
The Red Cloud report listed that a particular float sample yielded 59.2% U3O8, 499 g/t Ag, 5.05% TREO and 14.4% Pb. The firm highlighted two other rock chip samples that returned very high grades. The first produced results of 57.4% U308, 507 g/t Ag, 3.68% TREO and 14.5% Pb and the second returned 46.1% U3O8, 435 g/t Ag, 2.88% TREO and 8.8% Pb.
The analyst cautioned that these specific selective results may not be repeatable across the entire property; however, it may be a good sign since uranium assays of 50% or greater often provide a strong indication of a nearby high-grade uranium zone.
The analyst commented that a lots of news flow is expected from Skyharbour during the rest of the year. Valor Resources is scheduled to proceed with its follow-up field program in October, before locking in drill targets and initiating its winter 2021/2022 drill program. Meanwhile, Skyharbour remains focused on diamond drilling work at its 100%-owned, flagship Moore Lake project.
Skyharbour Resources is focused on acquiring and exploring uranium and thorium projects in Saskatchewan, Canada. The company's primary asset is its advanced stage Moore uranium project. Moore is located on the eastern portion of the Athabasca Basin and covers about 35,705 ha. In addition, the firm owns a 100%-interest in the South Falcon uranium project which according to estimates from a NI-43-101 technical repot contains an Inferred resource of approximately 7.0 Mlb of U3O8 and 5.3 Mlb of ThO2. The company also holds a 15%-interest another Athabasca Basin uranium project called East Preston.
The analyst indicated that upcoming potentially positive catalysts for the company include further drill results from ongoing work at the Moore property, exploration results from Hook Lake and East Preston and positive findings from a potential Moore resource estimate in H2/21.
Red Cloud Securities Inc. rates Skyharbour Resources Ltd. as a "Speculative Buy" with a target price of CA$0.95/share. The analyst advised that the firm's target price was arrived at by taking 80% of the NAVPS estimate of CA$1.14 per share. The report mentioned that the NAVPS forecasts were based upon an inferred resource of 7 Mlb U3O8 at South Falcon Point and an additional 7 Mlb U3O8 in mineral inventory at Moore's Maverick and Maverick East zones.
The company's shares trade on the TSX Venture Exchange under the symbol "SYH" and last closed for trading at CA$0.84/share on September 16, 2021.
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1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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Disclosures from Red Cloud Securities Inc., Aug. 31, 2021
Company Specific Disclosures
3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services or has been retained under a service or advisory agreement by the issuer.
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