Drilling at Prospective Asset Shows High-Grade U3O8
Research Report

Skyharbour Resources Ltd.'s (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) 51%-owned Russell Lake project in Saskatchewan's Athabasca Basin showed high-grade uranium mineralization in the Fork zone upon drilling, reported Red Cloud Securities Head of Equity Research David Talbot in a July 9 research note.

"We view this discovery positively and believe that it represents a breakthrough for Russell Lake, as previous exploration in this area was limited by interference from nearby power lines," Talbot wrote.

76% Return Potential

Red Cloud maintained its target price of CA$0.65 per share on the Canadian uranium and thorium company, trading at the time of the report at about CA$0.37 per share. The difference between these prices implies a potential return for investors of 76%.

Skyharbour remains a Buy.

Best Hole, Ideal Location

Talbot reported that the U3O8 mineralization in the Fork zone was encountered during the phase one drill program at Russell Lake consisting of six holes over 3,094 meters (3,094m). Hole RSL24-02 returned the best intercept, 0.721% U3O8 over 2.5m, including 2.99% U3O8 over 0.5m, at a depth of 338.1m.

"This hole encountered mineralization just above the unconformity in the sandstone and represents the first multi-percent, high-grade intercept at Russell," the analyst wrote.

Geophysics only recently identified this target due to interference from power lines previously, he noted. Mineralization remains open in multiple directions, including along strike, and Skyharbour intends to explore the area further.

Talbot highlighted that the Fork zone is ideally located about 4 kilometers (4 km) southeast of two high-grade projects, Denison Mines Corp.'s (DML:TSX; DNN:NYSE.MKT) Phoenix and IsoEnergy Ltd.'s (ISO:TSX.V) Hurricane. Also, Fork is about 1 km southwest of the Grayling target and 3 km southwest of the East Grayling target, both at Russell Lake.

At East Grayling, during this same program, the drill bit encountered "graphitic host rocks below the unconformity in the basement," reported Talbot.

What To watch For

Because Skyharbour is currently working on two of its projects, catalysts at each are on the horizon. They include results from a set of phase two drill programs, 2,058m at Russell Lake targeting the M zone extension and 2,864m at Moore, the company's flagship uranium project, also in the Athabasca.

Further, Skyharbour plans to carry out follow-up drilling this summer at both projects, 4,000−5,000m at Russell Lake and 2,500−3,000m at Moore.

Important Disclosures:

1. Skyharbour Resources Ltd.is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
2.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for Red Cloud Securities, Skyharbour Resources Ltd., July 9, 2024

Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Canadian Investment Regulatory Organization (CIRO). Red Cloud Securities registration as an Investment Dealer is specific to the provinces of Alberta, British Columbia, Manitoba, Ontario, Quebec, and Saskatchewan. We are registered and authorized to conduct business solely within these jurisdictions. We do not operate in or hold registration in any other regions, territories, or countries outside of these provinces. Red Cloud Securities bears no liability for any consequences arising from the use or misuse of our services, products, or information outside the registered jurisdictions. 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. 

Company Specific Disclosure Details

1. The analyst has visited the head/principal office of the issuer or has viewed its material operations.
2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
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 for the issuer.
4. Red Cloud Securities Inc. is a market maker in the equity of the issuer

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.

Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password.

Analyst Certification The Red Cloud Securities Inc. Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report; or any companies mentioned in the report that are also covered by the named analyst. In addition, no part of the 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.