Skyharbour Resources (SYH.V) has now completed the 100% acquisition of the Moore uranium project in Canada’s Athabasca basin ahead of schedule after incurring the required amount of exploration expenditures. The company will ‘celebrate’ this by completing a new drill program consisting of approximately 3,000 meters in 8-10 drill holes. The majority of these holes will be focusing on testing the basement rocks in the known Maverick corridor.
Prior drill holes at the basement rocks have intersected structural disruption and alteration combined with the pathfinder elements to discover uranium zones. This strengthens Skyharbour’s exploration theory there may be basement-hosted feeder zones on top of the uranium mineralization in the unconformity. Skyharbour thinks this (known) unconformity-hosted mineralization was deposited through feeder zones in the basement rock, and it will try to prove this in the upcoming drill program.
This drill program will help Skyharbour to complete the next C$3M in exploration expenditures which will be needed to trigger the potential second buyback clause for Denison Mines (DNN.TO, DML). As a reminder, if Skyharbour completes the additional C$3M expenditure requirement within a five year period, Denison Mines gets a final option to repurchase 51% of the project by paying C$500,000 in cash and incurring an additional C$16.5M in exploration expenditures.
Skyharbour’s hybrid model will deliver news on several fronts this fall, as Azincourt Energy (AAZ.V) has confirmed it will initiate a 2,000-2,500 meter drill program (in 10 holes) to drill-test some previously identified high-priority targets. New targets were generated during the geophysical survey in the first quarter of this year which wanted to confirm the conductive trends and get the project drill-ready.
Skyharbour also funded the final C$300,000 payment to Denison Mines by using the proceeds of the warrant exercises. Approximately 1.16 million warrants have been exercised for a total cash inflow of C$450,000. This means Skyharbour’s cash position is still comfortably over C$3M, and the company remains fully funded for the 3,000 meter drill program.