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29 properties, covering 587k hectares, in the Athabasca basin. The Athabasca basin hosts some of the world’s richest uranium deposits and mines
Seven projects with JV/ option agreements. Partners could commit up to $34M for exploration, and $47M in cash/share payments to SYH
SYH has completed a follow-up drill program totaling 2,864 m/nine holes, including seven at the Main Maverick zone, and two at the Grid 19 target.
Moore is located 15 km east of Denison’s (TSX: DML) Wheeler River project, and 39 km south of Cameco’s (TSX: CCO) McArthur River mine
The 4.7 km long Maverick corridor hosts numerous targets
All seven holes drilled at the Main Maverick zone encountered uranium mineralization, including a few high-grade intercepts such as 3 m of 7.3% U3O8, and 1 m of 10.19%.
Drilling intersected high-grade mineralization at shallow depths
While we are maintaining our speculative resource estimate on Moore, the recent drill results have enhanced our confidence in this estimate
Management is planning a follow-up drill program of 2,500 to 3,000 m, focused on the Main Maverick and Maverick East zones.
SYH has completed a two-phase drill program, totaling 5,152 m/10 holes, at the East Grayling zone, the MZE (M-Zone Extension), and the recently discovered Fork zone.
Russell Lake is strategically located between SYH’s Moore uranium project, and Denison’s Wheeler River project, and close to Cameco’s Key Lake mill, and MacArthur River mines
35+ km of untested targets
The Fork zone is a high-priority area with limited historical drilling. One of five holes drilled in this target encountered high-grade mineralization, with grades of up to 0.72% U3O8 over 2.5 m, starting at 338 m, including 0.5 m of 2.99%. This new discovery is relatively shallow and open in multiple directions.
Phase one drilling uncovered a shallow mineralized zone with high-grade intercepts at the Fork zone
The Fork zone is 1 km southwest of the central Grayling zone, and 4 km southeast of Denison Mine’s Phoenix deposit
Phase two drilling comprised 2,058 m across four holes, with results pending. Management is preparing for a follow-up drill program (4,500 to 5,000 m), following further groundwork and geological modeling. We should be able to calculate a preliminary speculative resource estimate after this drill program.
Awaiting drill results
North Shore aims to further evaluate the three targets
Strong balance sheet. In-the-money options can bring in $0.61M
Uranium juniors in North America are trading at $8.1/lb (previously $6.9/lb
Uranium juniors in North America are trading at 3.4x book value (previously 3.7x
Applying sector multiples to SYH’s flagship assets, we arrived at a revised fair value estimate of $1.21/share vs our previous estimate of $1.16/share
We are reiterating our BUY rating, and adjusting our fair value estimate from $1.16 to $1.21/share. Given the highly vulnerable uranium supply chain, we anticipate continued consolidation within the sector. Additionally, the rapidly growing demand for energy from the AI industry is likely to accelerate the adoption of nuclear power, which should in turn spotlight uranium juniors in the coming months.
We believe the company is exposed to the following key risks (not exhaustive):
