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 Resources Ltd.. (VAL:ASX) 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.
[NLINSERT]
Disclosure:
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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: ?????. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with ?????. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of ?????, a company mentioned in this article.
Disclosures from Red Cloud Securities Inc., Initiating Coverage, Aug. 31, 2021
- The analyst has visited the head office of the issuer or has viewed its material operations.
- The issuer paid for or reimbursed the analyst for a portion or all of the travel expense associated with a visit.
- 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.
- In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or the analyst involved in the preparation of the research report has received compensation for investment banking services from the issuer.
- The analyst who prepared this research report has a long position, in the issuer’s securities.
- The analyst who prepared this research report has a short position, in the issuer’s securities.
- Red Cloud Securities Inc. and its affiliates collectively beneficially owned 1% or more of any class of issuer’s equity securities as of the end of the month preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month.
- A partner, director or officer of Red Cloud Securities Inc. serves as a Director or Officer or Advisory Board Member of the issuer.
- A partner, director or officer of Red Cloud Securities Inc. or any analyst involved in the preparation of a report has, during the 12 preceding months, provided services to the issuer for remuneration other than normal course investment advisory or trade execution services.
- The analyst who prepared this research report was compensated from revenues generated solely by the Red Cloud Securities Inc.’s Investment Banking Department.
- Red Cloud Securities Inc. is a market maker in the equity of the issuer.
- There are material conflicts of interest with Red Cloud Securities Inc. or the analyst who prepared the report and the issuer.
Analyst Certification
Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
Red Cloud Securities Inc. is registered as an Investment Dealer in all Canadian provinces and territories, and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document.
Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.
