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29 properties, covering over 1.4M acres, in the Athabasca basin. The Athabasca basin hosts some of the world’s richest uranium deposits and mines
Ten projects with JV/ option agreements (previously seven). Partners could commit up to $41M for exploration, and over $52M in cash/share payments to SYH
SYH has commenced a follow-up drill program (comprised of seven to nine holes totaling 4,500 m) at the Fork and M-Zone Extension (MZE) zones.
Russell Lake is strategically located between SYH’s Moore uranium project, and Denison’s (TSX: DML) Wheeler River project, and close to Cameco’s (TSX: CCO) Key Lake mill, and MacArthur River mines
35+ km of untested targets
Geophysical surveys over the Grayling and Fork targets identified several new drill targets. A follow-up drill program is currently underway
Earlier this year, SYH completed a two-phase drill program, totaling 5,152 m/10 holes, at the East Grayling zone, the MZE, and the recently discovered Fork zone. Fork 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.
The Fork zone is 1 km southwest of the central Grayling zone, and 4 km southeast of Denison’s Phoenix deposit
Phase one drilling uncovered a shallow mineralized zone with high-grade intercepts at the Fork zone
In September 2024, SYH commenced a follow-up drill program (comprised of seven to nine holes totaling 2,500 m) to potentially expand the high-grade uranium mineralization at the Main Maverick, and Maverick East zones. All seven holes of a 2024 winter drill program 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%.
Previous drilling intersected high-grade mineralization at shallow depths, between 250-280 m from surface
Management aims to completed a resource estimate in 2025
Entered into multiple option agreement in the past few months
All holes encountered hydrothermal alteration, indicating potential uranium mineralization
Healthy balance sheet. In-the-money options can bring in $0.61M
Uranium juniors in North America are trading at $8.8/lb (previously $8.1/lb)
Uranium juniors in North America are trading at 3.0x book value (previously 3.4x)
Applying sector multiples to SYH’s flagship assets, we arrived at a revised fair value estimate of $1.21/share (unchanged)
We are reiterating our BUY rating, while maintaining our fair value estimate of $1.21/share. We believe SYH is poised to benefit from the resurgence of interest in the uranium sector. The company’s strategic land holdings in the Athabasca Basin, combined with key partnerships and ongoing exploration efforts, present promising opportunities. Upcoming drill results from key projects such as Russell Lake and Moore, along with potential M&A activity in the sector, are likely to serve as catalysts.
We believe the company is exposed to the following key risks (not exhaustive):
