Skyharbour’s Partner Company Azincourt Energy Provides Update on 2021 Winter Drill Program at The East Preston Uranium Project

Rhea-AI Summary

Skyharbour Resources Ltd. (TSX-V: SYH, OTCQB: SYHBF) announced updates on its 2021 winter exploration program at the East Preston uranium project, Saskatchewan. The exploration will cost approximately $1M to $1.4M, consisting of a 10-12 hole, 2000-2500 meter diamond drill program commencing in late February. The project area has identified multiple conductive corridors, suggesting a favorable environment for uranium deposition. Azincourt Energy Corp. is managing the drilling, which aims to leverage data from previous exploration to enhance discovery potential. The completion of obligations under an option agreement is extended to March 31, 2021.

Positive

• The 2021 exploration program has a budget of $1M to $1.4M, indicating financial commitment to potential discovery.
• Identified multiple prospective conductive corridors in previous drilling suggests a promising environment for uranium deposition.
• Contracted experienced teams (TerraLogic Exploration and Bryson Drilling) for execution of the drill program.

Negative

• The completion deadline for obligations under the option agreement has been extended, which may indicate challenges in meeting initial timelines.

VANCOUVER, British Columbia, Feb. 10, 2021 (GLOBE NEWSWIRE) -- Skyharbour Resources Ltd. (TSX-V: SYH) (OTCQB: SYHBF) (Frankfurt: SC1P) (the “Company”) partner company Azincourt Energy Corp. (“Azincourt”) is pleased to provide an update on preparations for the 2021 winter exploration program at the East Preston uranium project, located in the western Athabasca Basin, Saskatchewan, Canada.

Project Location – Western Athabasca Basin, Saskatchewan, Canada:
https://skyharbourltd.com/_resources/maps/SYH-Patterson-Lake.pdf

Road preparation and placement of bridges to allow access to the primary drill sites at the Company’s East Preston property is underway. The 2021 exploration program is anticipated to cost approximately $1M to 1.4M and consist of a 10 - 12 hole, 2000-to-2500 meter diamond drill program. Drilling is anticipated to commence the third week of February.

Based on the compilation of results from the 2019 and 2020 drill programs, 2018 through 2020 ground-based EM and gravity surveys, and property wide VTEM and magnetic surveys, the conductive corridor from the A-Zone through to the G-Zone (Figures 1 and 2) has been identified as the focus for the 2021 drilling program.

The 2020 HLEM survey completed in December indicates multiple prospective conductors and structural complexity along the eastern edge of this corridor. Drilling in the A zone suggests this structural corridor hosts significant graphitic packages within strongly sheared and faulted host lithologies, indicating an environment conducive to fluid movement and uranium deposition.   Drilling will start in the AB-Zone and continue southwest along the G-Zone.

TerraLogic Exploration and Bryson Drilling have been contracted to execute the drill program, which is being conducted under the guidance and supervision of Azincourt’s Exploration Manager, Trevor Perkins, P.Geo, and Jarrod Brown, M.Sc., P.Geo, Chief Geologist and Project Manager with TerraLogic Exploration.    

“There is no shortage of drill ready targets on the East Preston Project. It will be exciting to continue to drill these targets and focus in on the most responsive areas within the identified structural corridors,” said Exploration Manager, Trevor Perkins.

Target corridors at East Preston Uranium Project, Western Athabasca Basin Saskatchewan:
https://skyharbourltd.com/_resources/maps/nr-20210118-figure1.png

“We are pleased to continue our exploration drilling at East Preston,” said Alex Klenman, President and CEO of Azincourt. “There have only been a dozen holes drilled so far, it’s still early on in the exploration drill phase. The project contains dozens of high quality, priority targets, and we believe the data generated so far suggests each round of drilling we conduct is getting us closer to discovery. We are on the right path, at a large enough, suitably located land package, situated among large cap uranium companies. There are no doubts that East Preston presents a compelling exploration proposition,” continued Mr. Klenman.

2021 Drill Target areas at the East Preston Uranium Project:
https://www.skyharbourltd.com/_resources/maps/nr-20210209-figure1.png

About East Preston:

Skyharbour and Dixie Gold Inc. (“Dixie Gold”) entered into an Option Agreement (the “Agreement”) with Azincourt whereby Azincourt has an earn-in option to acquire a 70% working interest in a portion of the Preston Uranium Project known as the East Preston Property. Under the Agreement, Azincourt has issued common shares and will contribute cash and exploration expenditure consideration totaling up to CAD $3,500,000 in exchange for up to 70% of the applicable property area over three years. Of the $3,500,000 in project consideration, $1,000,000 will be in cash payments to Skyharbour and Dixie Gold, as well as $2,500,000 in exploration expenditures over the three-year period. Skyharbour and Dixie Gold agreed to extend the deadline for the remaining obligations owing to complete the acquisition of a 70% interest in the Project, which include incurring a small portion of the exploration expenditures remaining on the Project and completion of a final cash payment of CAD $400,000 (see News Release dated April 16, 2020). The deadline for these obligations has been extended through until March 31^st, 2021 and in consideration for the extension, Azincourt issued common shares to Skyharbour and Dixie Gold.

Three prospective conductive, low magnetic signature corridors have been discovered on the property. The three distinct corridors have a total strike length of over 25 km, each with multiple EM conductor trends identified. Ground prospecting and sampling work completed to date has identified outcrop, soil, biogeochemical and radon anomalies, which are key pathfinder elements for unconformity uranium deposit discovery.

The East Preston Project has multiple long linear conductors with flexural changes in orientation and offset breaks in the vicinity of interpreted fault lineaments – classic targets for basement-hosted unconformity uranium deposits. These are not just simple basement conductors; they are clearly upgraded/enhanced prospectivity targets because of the structural complexity. The targets are basement-hosted unconformity related uranium deposits similar to NexGen’s Arrow deposit and Cameco’s Eagle Point mine. East Preston is near the southern edge of the western Athabasca Basin, where targets are in a near surface environment without Athabasca sandstone cover; therefore, they are relatively shallow targets but can have great depth extent when discovered.  The project ground is located along a parallel conductive trend between the PLS-Arrow trend and Cameco’s Centennial deposit (Virgin River-Dufferin Lake trend).

Qualified Person:

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Richard Kusmirski, P.Geo., M.Sc., Skyharbour’s Head Technical Advisor and a Director, as well as a Qualified Person.

About Skyharbour Resources Ltd.:

Skyharbour holds an extensive portfolio of uranium and thorium exploration projects in Canada's Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals with six drill-ready projects. Skyharbour has acquired from Denison Mines, a large strategic shareholder of the Company, a 100% interest in the Moore Uranium Project which is located 15 kilometres east of Denison's Wheeler River project and 39 kilometres south of Cameco's McArthur River uranium mine. Moore is an advanced stage uranium exploration property with high grade uranium mineralization at the Maverick Zone that returned drill results of up to 6.0% U₃O₈ over 5.9 metres including 20.8% U₃O₈ over 1.5 metres at a vertical depth of 265 metres.

Skyharbour has option agreements with Orano Canada Inc. and Azincourt Energy whereby Orano and Azincourt can earn in up to 70% of the Preston and East Preston Projects, respectively, through a combined $9,800,000 in total exploration expenditures, as well as $1,700,000 in total cash payments and Azincourt shares. Preston and Preston East are large, geologically prospective properties proximal to Fission Uranium's Triple R deposit as well as NexGen Energy's Arrow deposit.

The Company owns a 100% interest in the South Falcon Uranium Project on the eastern perimeter of the Basin which contains a NI 43-101 inferred resource totaling 7.0 million pounds of U₃O₈ at 0.03% and 5.3 million pounds of ThO₂ at 0.023%. Skyharbour has signed a Definitive Agreement with Australian company Pitchblende Energy, which is being acquired by ASX-listed Valor Resources, on the North Falcon Uranium Project whereby Pitchblende can earn-in 80% of the project through $3,500,000 in total exploration expenditures, $475,000 in total cash payments over three years and an initial share issuance.

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 Uranium Project Map in the Athabasca Basin:
http://skyharbourltd.com/_resources/maps/SYH-Athabasca-Map.pdf

To find out more about Skyharbour Resources Ltd. (TSX-V: SYH) visit the Company’s website at www.skyharbourltd.com.

SKYHARBOUR RESOURCES LTD.

“Jordan Trimble”
                                        
Jordan Trimble
President and CEO

For further information contact myself or:
Spencer Coulter
Corporate Development and Communications
Skyharbour Resources Ltd.
Telephone: 604-687-3376
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@skyharbourltd.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

 

FAQ

What are the details of Skyharbour Resources' 2021 uranium exploration program at SYHBF?

The program is budgeted at $1M to $1.4M, involving a 10-12 hole drill plan of 2000 to 2500 meters starting in late February.

What company is managing the drilling at the East Preston project for Skyharbour Resources?

The drilling is managed by Azincourt Energy Corp.

What is the purpose of the East Preston uranium project for Skyharbour Resources?

The project aims to explore and potentially discover uranium deposits through ongoing drilling and exploration efforts.

What is the deadline extension for Skyharbour's option agreement obligations?

The deadline has been extended to March 31, 2021, for completing obligations under the agreement.

How many holes will be drilled in the 2021 exploration program at the East Preston project?

The program plans to drill 10 to 12 holes.