Disclosure: Skyharbour Resources Ltd. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Price and Volume (1-year)
Portfolio Summary
36 properties, covering 614,353 hectares, in the Athabasca basin. The Athabasca basin hosts some of the world’s richest uranium deposits and mines
Nine projects with JV/ option agreements. Partners could commit up to $36M for exploration, and $34M in cash/share payments to SYH
Moore Lake Uranium Project (100% interest)
Late last year, SYH completed a nine-hole drill program (totaling 2,759 m), including four at the Main Maverick zone, and five at the Maverick East zone.
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
Eight of nine holes intersected uranium mineralization, including high-grade, near-surface intercepts such as 6.4 m of 1.50% U₃O₈, with 1.5 m of 4.74% U₃O₈, from a hole located 42 m northeast of the known high-grade footprint at the Maverick East zone. We believe these results highlight the shallow, high-grade nature of the mineralization, and underscore strong potential for follow-up drilling. (Qualified Person: Serdar Donmez, P.Geo., VP of Exploration for Skyharbour)
A step-out hole intersected high-grade mineralization at shallow depths. We believe the company could complete a maiden resource estimate next year
Management is set to launch a 4,500 to 5,000 m follow-up drill program targeting the Main Maverick and Maverick East zones, along with high-priority regional targets.
Russell Lake Uranium Project (SYH 57.7%: Rio Tinto 42.3%)
In February 2025, SYH commenced its 2025 drill program totaling 10,000 to 11,000 m (18-20 holes).
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
Phase one drilling (5,000 m/ 10-12 holes) will focus on the Fork and Sphinx targets within the Grayling zone, the M-Zone Extension (MZE), and the Fox Lake zone
Last fall, SYH completed an eight-hole (4,500 m) drill program focused on expanding a high-grade zone at the Fork target and testing regional targets. One of five holes at Fork intersected high-grade mineralization, including 2.5 m grading 0.72% U₃O₈ from 338 m depth, with a higher-grade interval of 0.5 m at 2.99%. We believe this intercept marked a new discovery at the Fork target, an area with limited historical exploration. (Qualified Person: Serdar Donmez, P.Geo., VP of Exploration for Skyharbour)
Management is awaiting assay results from the 2024 fall drill program. We believe the company could complete a maiden resource estimate next year
Updates on Other Projects
Follow-up drilling underway
Financials
Strong balance sheet. In-the-money options can bring in $0.62M
FRC Projections and Valuation
North American uranium juniors are trading at $8.07/lb (previously $8.12/lb North American uranium juniors are trading at 2.4x book value (previously 2.5x)
Applying sector multiples to SYH’s flagship assets, we arrived at a revised fair value estimate of $1.01/share (previously $1.02/share). Our valuation decreased due to lower sector multiples
We are reiterating our BUY rating, while adjusting our fair value estimate from $1.02 to $1.01/share. Uranium sector sentiment is improving, driven by rising prices, strong institutional investment, and commitments from major tech players securing nuclear power for future growth. We believe SYH is well-positioned to capitalize on this momentum with its largest-ever drill campaign and promising exploration results at Russell Lake and Moore.
Risks
We believe the company is exposed to the following key risks:
