The Green Energy Boom Underway…

Meet the Exploration Company with Key Projects in the Athabasca Basin of Saskatchewan in Canada – Home to the Highest Grade Uranium Deposits in the World

Here’s Why Skyharbour Resources Could Generate Healthy Returns in a Potential $2.7 Trillion Global Nuclear Energy Market

SYH-Athabasca-MapAt the moment, uranium is still trading at relatively low prices.

But that may not be the case much longer.

In fact, with demand quickly outweighing supply, prices are just beginning to push higher, creating opportunity for companies like Skyharbour Resources Ltd. (TSXV:SYH)(OTCQB:SYHBF), which operates in one of the world’s richest uranium jurisdictions – the Athabasca Basin. 

“The basin hosts the world's most significant uranium mines and has historically produced almost 20 percent of annual global uranium production, all within a safe and favorable mining jurisdiction. It is the highest-grade depository of uranium, hosting deposits 10 to 100 times the global average.”

Bloomberg

Even Better, There are Multiple, Massive Catalysts for Uranium at Play.

For one, China, India, Russia, and the United States are making big nuclear investments.

In fact, according to Bloomberg, “The world’s biggest emitter, China’s planning at least 150 new reactors in the next 15 years, more than the rest of the world has built in the past 35. The effort could cost as much as $440 billion; as early as the middle of this decade, the country will surpass the U.S. as the world’s largest generator of nuclear power.” (3)

 

 

Two, Global Leaders are Fighting to Cut Emissions.

The U.S. just pledged to reduce emissions by up to 52% over the next several years. (Source 5) Europe wants to cut CO2 emissions by up to 55% by 2030. (Source 6) China says it’ll stop releasing CO2 in the next 40 years, for example.  (7)

It’s why many are turning to nuclear energy. 

Not only is nuclear energy the second largest source of low carbon electricity in the world behind hydropower, according to Energy.gov, it’s a zero-emission clean energy sources. Plus, nuclear energy’s land footprint is small.(8)

“A typical 1,000-megawatt nuclear facility in the United States needs a little more than 1 square mile to operate. NEI says wind farms require 360 times more land area to produce the same amount of electricity and solar photovoltaic plants require 75 times more space,”

as reported by Energy.gov. (8)

Three, the World is Running into a Severe Supply-Demand Issue.

Current uranium demand is approx. 196 million lbs with mine supply at approx. 138 million lbs; estimated supply gap of 100 million lbs of uranium by 2030 and the current spot price will not incentivize new mine builds. (4).

Even  Cameco President and CEO Tim Gitzel has said, “Uranium supply is becoming less certain due to years of persistently low prices,” as quoted by S&P Global Platts. (9)

Four, Nuclear Energy Can Help Mitigate Climate Change.

Four, according to the United Nations: (10)

“Twenty countries currently operate nuclear power plants, and fifteen countries have new reactors under construction or under development. Seven UNECE member States are in the process of developing nuclear power programs for the first time. A number of countries - such as Canada, Czech Republic, Finland, France, Hungary, Poland, Romania, Slovakia, Slovenia, Russia, Ukraine, the United Kingdom and the United States - have explicitly stated that nuclear power will play an important role in reducing their national emissions in the future.”

All could help fuel significant upside in uranium prices – with Skyharbour Resources Ltd. (TSXV:SYH)(OTCQB:SYHBF) – a potential beneficiary.

Just Who is Skyharbour Resources Ltd.?

sky harbourSkyharbour is a preeminent uranium exploration and early-stage development company with projects in the prolific Athabasca Basin of Saskatchewan in Canada – home to the world’s largest and highest grade uranium mining and milling operations.

At the moment, it has seven uranium projects with over 617,000 acres strategically located throughout the Basin.

All of which could offer significant discovery potential, and could help the company duplicate the massive success of other Basin discoveries, including IsoEnergy’s Larocque East Project, which generated significant returns for shareholders. 

One of those is Skyharbour’s Moore Uranium Project, which could provide ample news flow and catalysts for the company, near-term.

More on the Moore Uranium Project

Not only is the Moore Uranium Project 15 kilometers east of Denison’s Wheeler River project and 39 kilometers south of Cameco’s McArthur River uranium mine, it’s an advanced stage uranium property that already returned drill results of up to 6.0% U3O8 over 5.9 meters including 20.8% U3O8 over 1.5 meters at a vertical depth of 265 meters. (12)

In addition to offering high-grade uranium discovery potential at its 100% owned Moore Lake and South Falcon Point Projects, Skyharbour also boasts five partner companies advancing its other projects. The option agreements with these companies combine for $19.8 million in exploration expenditures and $10.2 million in cash payments funded by the partner companies, in addition to large equity positions in most of the partners.

Skyharbour has a joint-venture with industry-leader Orano (France’s largest uranium mining and nuclear fuel cycle company) at the Preston Project whereby Orano has earned a 51% interest in the project through exploration expenditures and cash payments. Skyharbour now owns a 24.5% interest in the Project.

Skyharbour also has a joint-venture with Azincourt Energy at the East Preston Project whereby Azincourt has earned a 70% interest in the project through exploration expenditures, cash payments and share issuance. Skyharbour now owns a 15% interest in the Project. Preston and East Preston are large, geologically prospective properties proximal to Fission Uranium’s Triple R deposit as well as NexGen Energy’s Arrow deposit. 

In addition, Skyharbour also has several active option partners including: 

– ASX-listed Valor Resources on the Hook Lake Uranium Project whereby Valor can earn-in 80% of the project through CAD $3,500,000 in exploration expenditures, $475,000 in cash payments over three years and an initial share issuance; 

– CSE-listed Basin Uranium Corp. on the Mann Lake Uranium Project whereby Basin Uranium can earn-in 75% of the project through $4,000,000 in exploration expenditures, $850,000 in cash payments as well as share issuances over three years; 

– and CSE-listed Medaro Mining Corp. on the Yurchison Project whereby Medaro can earn-in an initial 70% of the project through $5,000,000 in exploration expenditures, $800,000 in cash payments as well as share issuances over three years followed by the option to acquire the remaining 30% of the project through a payment of $7,500,000 in cash and $7,500,000 worth of shares.

Skyharbour’s goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions.

Skyharbour’s Projects in the Region Include:

Moore Uranium Project (100%)

Skyharbour owns 100% of the 35,705 hectare Moore Uranium Project located 42 kilometers northeast of the Key Lake mill, approx. 15 kilometers east of Denison’s Wheeler River project, and 39 kilometers south of Cameco’s McArthur River mine. Unconformity-hosted uranium mineralization was discovered on the property at the Maverick Zone in the early 2000s at relatively shallow depths. Skyharbour has carried out several drill programs with multiple holes intersecting high-grade uranium mineralization over the 4km long Maverick corridor. Drill results include 20.8% U3O8 over 1.5m at 264m depth in hole ML-199, 9.12% U3O8 over 1.4m at 278m in hole ML-202 and 5.29% over 2.5m U3O8 at 279m depth in hole ML-200. Hole ML-202 represents a new high-grade discovery and illustrates the strong discovery potential of additional high-grade lenses along strike. The Company is planning additional drill programs to expand the known high-grade Maverick Zone and to test basement-hosted targets as well as regional targets.

South Falcon Point (100%)

The 44,470 hectare Falcon Point property hosts a shallow NI 43-101 inferred mineral resource of 7.0 million pounds U3O8 at an average grade of 0.03% U3O8 and 5.3 million pounds ThO2 inferred at an average grade of 0.023% ThO2 within 10.4 million tonnes. Uranium and thorium mineralization discovered to date at Falcon Point is shallow and is hosted in two geological settings, with the southern half hosting classic Athabasca-style basement mineralization associated with well-developed EM conductors which include EWA, Walker and Fraser Lakes zones. Drilling to date on the Falcon Point Project totals over 22,000 meters in more than 110 holes. Over $15 million has been invested in exploration consisting of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area.

Preston (24.5%)

The Preston Project is a large land position totaling 49,635 hectares strategically located proximal to NexGen Energy's high-grade Arrow uranium deposit and Fission Uranium's Patterson Lake South Triple R deposit. Preston Uranium Project is a strategic, district-scale property with robust exploration upside potential and Skyharbour is utilizing the prospect generator model to advance this project with strategic partners.

East Preston (15%)

The East Preston Uranium Project is a large land position totalling 25,329 hectares, representing the eastern region of the larger Preston Project strategically located near NexGen Energy Ltd’s high-grade Arrow deposit on its Rook-1 property and Fission Uranium Corp Triple R deposit located within their PLS Project area.

Hook Lake (100% with Valor Resources earning in 80%)

The Hook Lake Project (formerly North Falcon Point) consists of 16 contiguous mining claims covering 25,846 hectares, located 60 km east of the Key Lake Uranium Mine in northern Saskatchewan. The Project is host to several prospective areas of uranium mineralization including the Hook Lake / Zone S High-grade surface outcrop with reported grades in grab samples up to 68% U3O8. A bio-geochemical survey carried out over the trenches in 2015 responded positively with along-strike anomalies 2 km to the northeast.

Mann Lake (100% with Basin Uranium Corp earning in 75%)

The 3,473 hectare Mann Lake Uranium Project is strategically located in the eastern Athabasca Basin 25 km southwest of the McArthur River Mine and adjacent to the Mann Lake Joint Venture operated by Cameco (52.5%) with partners Denison Mines (30%) and Orano (formerly AREVA) (17.5%). Denison acquired International Enexco and its 30% interest on this adjacent project after a 2014 winter drill program discovered high-grade, basement-hosted uranium mineralization. In 2014, Skyharbour completed an EM survey on its Mann Lake Project that was successful in confirming the presence of a broad, NE-SW trending corridor of conductive basement rocks. In October 2021, an option agreement was signed with Basin Uranium Corp providing them with an earn-in option to acquire up to a 75% interest in the Mann Lake Uranium Project.

Yurchison Lake (100% with Medaro earning in up to 100%)

The Yurchison Project consists of 11 claims totaling 55,934 ha in the Wollaston Domain of northern Saskatchewan, Canada. This contiguous set of claims covers an extensive package of Wollaston Supergroup metasediments in an area known for its uranium and base metal potential. Prospecting near old trenches returned significant uranium (0.09% to 0.30% U3O8) and molybdenum (2,500 ppm to 6,400 ppm) mineralization in both outcrop and float samples. Two holes drilled beneath the historic trenches returned highly anomalous molybdenum values up to 3,750 ppm and anomalous uranium values up to 240 ppm. In November 2021, Skyharbour signed an option agreement with Medaro Mining Corp, which provides Medaro an earn-in option to acquire an initial 70% interest and up to a 100% interest in the Yurchison Uranium Property.

Oversold Skyharbour Resources Ltd. Well Positioned to Benefit

After running from about 15 cents in October 2020 to a September 2021 high of about 84 cents good for a return of approx. 460%, the stock pulled back to about 44 cents on profit taking. However, given the uranium supply-demand story, and nuclear energy regaining its glow, the SYH stock could see higher highs again, near-term. (14)

The stock is also technically oversold at its 200-day moving average, with over-extensions on relative strength (RSI), MACD, and Williams’ %R.  Even more impressive, its short-, medium-, and long-term indicators are positive, including its 20-100 day MACD oscillator, 20-200 day MACD oscillator, and its 100-200 day MACD oscillator. (15)

Oversold Skyharbour Resources Ltd. Well Positioned to Benefit

Skyharbour Resources Ltd. is led by a strong management and geological team with a solid track record of success. The team includes:

Jordan Trimble, B.Sc., CFA

President, CEO, Director

Jordan Trimble is an entrepreneur and has worked in the resource industry in various roles with numerous companies specializing in management, corporate finance and strategy, shareholder communications, business development and capital raising. Previous to Skyharbour, he was the Corporate Development Manager for Bayfield Ventures, a gold company with projects in Ontario which was successfully acquired by New Gold in 2014.
Through his career Mr. Trimble has founded and helped manage several public and private companies and has been instrumental in raising substantial amounts of capital for mining companies with his extensive network of institutional and retail investors. He is a frequent speaker at resource and mining conferences globally and has appeared on various media outlets including BNN and the Financial Post. Mr. Trimble holds a Bachelor of Science Degree with a Minor in Commerce from the University of British Columbia and he is a CFA® Charterholder currently serving as a Director of the CFA Society Vancouver.

David Cates, CPA, MAcc.

Director

David Cates is the President and CEO of Denison Mines. Prior to being appointed the President and CEO position Mr. Cates served as Denison's Vice President Finance, Tax and Chief Financial Officer. As Chief Financial Officer, Mr. Cates played a key role in the Company's mergers and acquisitions activities - leading the acquisition of Rockgate Capital Corp. and International Enexco Ltd. Mr. Cates joined Denison in 2008 and held the position of Director, Taxation prior to his appointment as Chief Financial Officer. Prior to joining the Company, Mr. Cates held positions at Kinross Gold Corp. and PwC LLP with a focus on the resource industry.

Paul Matysek, M.Sc., P.Geo.

Strategic Advisor

Paul Matysek is a Strategic Advisor for Skyharbour and is a mining entrepreneur, professional geochemist and geologist with over 35 years of experience in the mining industry. He was the Founder, President and CEO of Energy Metals Corporation, a premier uranium company that traded on the New York and Toronto Stock Exchanges. Mr. Matysek led EMC as one of the fastest growing Canadian companies in recent years, increasing its market capitalization from $10 million in 2004 to approximately $1.8 billion when it was acquired by a larger uranium producer, Uranium One Inc., in 2007.

In addition to serving as Chairman of Lithium X before its recent sale, Mr. Matysek was President and CEO of Goldrock Mines Corp. which on June 7th, 2016 announced it had entered into a definitive agreement to be acquired by Fortuna Silver Mines (NYSE:FSM) (TSX:FVI) for $129 million on a fully-diluted in-the-money basis. Previously, He was also the President and CEO of Lithium One Inc., which developed a high quality lithium project in northern Argentina. In July 2012, Lithium One and Galaxy Resources merged with a $112 million plan to create a fully integrated lithium company. Prior to Lithium One, Mr. Matysek was the President and CEO of Potash One Inc. where he was the architect of the $434 million friendly takeover of Potash One by K+S Ag, which closed in early 2011.

Jim Pettit

Chairman and Director

Jim Pettit brings over 30 years of experience in the resource industry specializing in finance, corporate governance, management, and compliance and was previously Chairman and CEO of Bayfield Ventures Corp. which was sold to New Gold in 2014.

Dave Billard, P.GEO.

Consulting Geologist

Dave Billard is a geologist with over 35 years of exploration and development experience, searching for uranium, gold and base metals in western Canada and the western US. He is a graduate of the University of Saskatchewan (1984) and Professional Geoscientist registered in Saskatchewan. He was Chief Operating Officer, Vice President Exploration and Director for JNR Resources Inc, prior to their acquisition by Denison Mines in 2013. Dave was instrumental in the discovery of JNR’s Maverick and Fraser Lakes B zones and, earlier in his career, participated in the discovery and development of several significant gold deposits in northern Saskatchewan. Before joining JNR Dave was a geological consultant specializing in uranium exploration in the Athabasca Basin of Saskatchewan and prior to that, was employed by Cameco Corporation for over 12 years. Mr. Billard is currently a geological consultant based in Saskatoon and is a Director of Troymet Exploration Corp.

Christine McKechnie, M.SC.

Senior Project Geologist

Christine McKechnie is a geologist specializing in uranium deposits, in particular basement-hosted unconformity-related deposits in the Athabasca Basin and surrounding area. Since starting her career, she has worked for several companies (Claude Resources Inc., JNR Resources Inc., CanAlaska Uranium Ltd., and Cameco Corp.) carrying out gold and uranium exploration and working underground at the Eagle Point Mine; in addition to a summer mapping with the Saskatchewan Geological Survey. She completed her B.Sc. (High Honors) in 2008 from the University of Saskatchewan (U of S), and in early 2013, she completed a M.Sc. thesis at the U of S on the geology and origin of the Fraser Lakes Zone B pegmatite-/leucogranite-hosted U-Th-REE deposit in northern Saskatchewan. As part of her thesis, she co-authored four peer-reviewed journal papers on the Fraser Lakes Zone B deposit and other basement-hosted uranium prospects in northern Saskatchewan. Her paper (co-authored with Dr. Irvine Annesley and Dr. Kevin Ansdell) entitled “Geological Setting, Petrology, and Geochemistry of Granitic Pegmatites and Leucogranites Hosting U-Th-REE Mineralization at Fraser Lakes Zone B, Wollaston Domain, Northern Saskatchewan, Canada” received the 2015 CIM Barlow Medal for Best Geological Paper.

To Recap:

uraniumIt’s time to get bullish on uranium again.  All as nuclear energy regains its healthy glow. 

Sure, right now, uranium is trading below the price needed to incentivize new mine builds but the trend is now moving upwards and there is still a lot of runway for this metal and for companies like Skyharbour Resources Ltd. (TSXV:SYH)(OTCQB:SYHBF).

As an exploration and prospect generator company, investors get exposure to potentially new high-grade uranium discoveries made by the company or it’s strategic partners which can reward investors handsomely.

And as a smaller cap company, Skyharbour offers more torque to a rising uranium price.

Helping, there are multiple, massive catalysts for uranium at play.

•      For one, nuclear energy can help mitigate climate change as the only source of baseload, clean, scalable and affordable electricity generation

•       Two, nuclear is at the crossroads of two global macro-trends investors are focussed on: electrification and decarbonization.

•      Three, there is a major uranium supply deficit looming in the backdrop of growing demand

•      Four, nuclear utilities are entering a new long-term contracting and purchasing cycle as the have to shore up secure supplies of uranium

All could help fuel significant upside in uranium prices – with Skyharbour Resources Ltd. (TSXV:SYH)(OTCQB:SYHBF) a potential beneficiary.

Source 1: https://tradingeconomics.com/commodity/uranium

Source 2: https://www.bnnbloomberg.ca/skyharbour-resources-has-positioned-itself-to-capitalize-on-the-bullish-uranium-market-1.1600720

Source 3: https://www.bloomberg.com/news/features/2021-11-02/china-climate-goals-hinge-on-440-billion-nuclear-power-plan-to-rival-u-s

Source 4: https://skyharbourltd.com/_resources/presentations/corporate-presentation.pdf

Source 5: https://www.cnbc.com/2021/04/22/biden-pledges-to-slash-greenhouse-gas-emissions-in-half-by-2030.html

Source 6: https://www.bbc.com/news/world-europe-56828383

Source 7: https://www.scientificamerican.com/article/china-says-it-will-stop-releasing-co2-within-40-years/

Source 8: https://www.energy.gov/ne/articles/3-reasons-why-nuclear-clean-and-sustainable

Source 9: https://www.spglobal.com/platts/en/market-insights/latest-news/metals/072921-uranium-demand-rising-while-supply-remains-uncertain-cameco

Source 10: https://news.un.org/en/story/2021/08/1097572

Source 11: https://investorintel.com/markets/uranium-energy/uranium-energy-intel/canadas-athabasca-basin-the-worlds-richest-uranium-play/

Source 12: https://www.globenewswire.com/news-release/2021/09/14/2296344/36591/en/Skyharbour-Intersects-High-Grade-Uranium-Mineralization-at-Maverick-East-Zone-with-Drill-Results-of-2-54-U3O8-over-6-0m-including-6-80-U3O8-over-2-0m-Additional-Assays-Pending-and-.html

Source 13: https://skyharbourltd.com/projects/projects-overview/

Source 14: https://stockcharts.com/h-sc/ui?s=SYH.V

Source 15: https://www.barchart.com/stocks/quotes/SYH.VN/overview

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