Acquisition and Property Highlights:
- Skyharbour owns 100% of Falcon Point totaling 74,309 hectares (177,964 acres) on the east side of the Athabasca Basin
- Previous drilling to date on Falcon Point Project totals over 22,000 metres in more than 110 holes with over $15 million having been invested in previous exploration across six, near-surface target areas on the extensive property
- Falcon Point property hosts shallow, NI 43-101 inferred mineral resource totaling 7.0 million pounds at an average grade of 0.03% U3O8 and 5.3 million pounds at an average grade of 0.023% ThO2 at JNR Fraser Lakes Zone B area at south end of property, which is open along strike and at depth
- Geological and geochemical features show distinct similarities to high grade, basement-hosted deposits in the Athabasca Basin such as Eagle Point, Millennium, P-Patch and Roughrider
- Exploration potential of the 6 by 7 kilometre Fraser Lakes target area is considered exceptional, including resource expansion potential along strike and at depth at the Zone B uranium deposit
- Falcon Point property also recently yielded high grade uranium grab samples of up to 68% U3O8 in a massive pitchblende vein exposed at surface at the Hook Lake target area at north end of property
- To date, operators have been unable to definitively explain and locate the source of the high grade uranium mineralization at Hook Lake target
- Previous exploration at Falcon Point has consisted of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area
Falcon Point Uranium Project Introduction:
The Falcon Point Uranium Project is comprised of 18 contiguous claims totaling 72,050 hectares located 55 kilometres east of the Key Lake mine in northern Saskatchewan. Uranium and thorium mineralization discovered to date at Falcon Point is shallow and is hosted in two geological settings with the northern half of the property characterized by structurally controlled uranium mineralization (Hook Lake, West Way and Nob Hill zones), whereas the southern half hosts classic Athabasca-style basement mineralization associated with well-developed EM conductors (EWA, Walker and Fraser Lakes zones). Drilling to date on the Falcon Point Project totals over 22,000 metres in more than 110 holes. Over $15 million has been invested in exploration consisting of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area.
JNR Fraser Lakes Target Area:
Uranium and thorium showings in the JNR Fraser Lakes area (Zone A, Zone B, North and T-Bone) were discovered by ground prospecting of airborne geophysical targets. The mineralized zones are contained within a 65 kilometre long, folded EM conductor system comprised of Wollaston Group graphitic pelitic gneisses and uraniferous granitic pegmatites. Drill testing at Fraser Lakes North intersected low-grade, basement-hosted uranium-thorium mineralization. The drill holes exhibit evidence of major structural reactivation, significant clay alteration, uranium remobilization and basinal brine fluid circulation, all of which are prominent characteristics of the most significant basement-hosted uranium deposits in the Athabasca Basin (e.g. Eagle Point, Millennium, P-Patch and Roughrider). In the T-Bone Lake area, uranium mineralization is accompanied by significant structural disruption and local clay alteration of the host rocks. A major clay-filled fault system intersected in drill holes yielded PIMA infrared spectroscopy results that indicate a preponderance of illite; an important clay mineral that accompanies many of the significant uranium deposits in the Athabasca Basin.
Fraser Lakes Zone B Uranium and Thorium Deposit:
Discovered in 2008, Zone B is located within the broader 6 kilometre by 7 kilometre Fraser Lakes target area where multiple mineralized zones have been discovered along a 65 kilometre long, folded EM conductor system comprised of Wollaston Group graphitic pelitic gneisses and uraniferous granitic pegmatites. Diamond drilling consisting of 25 holes totaling 4,603 metres has defined a zone of moderately dipping, multiple-stacked uranium and thorium mineralized horizons down to 175 metres that is open to the southwest and east-northeast as well as at depth. Uranium and thorium mineralization is accompanied by highly anomalous concentrations of base metals, rare earth elements and other pathfinder elements. The style of uranium mineralization associated with intrusive rocks is commonly referred to as “Rössing type” mineralization named after the largest, longest-running open pit uranium mine in the world, the Rössing Mine operated by Rio Tinto in Namibia.
JNR Resources Inc., a company acquired by Denison in 2013, announced an initial mineral resource estimate in 2012 (Refiled in March of 2015 by Skyharbour Resources) for the Fraser Lakes Zone B of 6,960,681 pounds U3O8 inferred at an average grade of 0.03% U3O8 and 5,339,219 pounds ThO2 inferred at an average grade of 0.023% ThO2 within 10,354,926 tonnes using a cutoff grade of 0.01% U3O8. The independent NI 43-101 technical report supporting this mineral resource estimate was filed on SEDAR on September 26, 2012 by JNR Resources. Independent qualified persons, Dr. Allan Armitage, P.Geo., and Alan Sexton, M.Sc., P.Geo., of GeoVector Management Inc., are responsible for the contents of the technical report and comments related to the resource estimate and its parameters.
The exploration potential of the Fraser Lakes target area is considered exceptional, including the resource expansion potential of the current deposit at Zone B. Geological and geochemical features show distinct similarities to high-grade, basement-hosted deposits in the Athabasca Basin such as Eagle Point, Millennium, P-Patch and Roughrider.
Inferred Mineral Resource Estimate – Fraser Lakes Zone B:
|Grade (%)||Lbs||Grade (%)||Lbs||Grade (%)||Lbs||Grade (%)||Lbs||Grade (%)||Lbs|
- The effective date of the inferred mineral resource estimate is August 10, 2012.
- The estimate was prepared by independent qualified person, Dr. Allan Armitage, P.Geol., of GeoVector Management Inc.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
In July 2015, Skyharbour reported diamond drill assay results from its Falcon Point uranium and thorium property. The drill program consisted of five diamond drill holes totaling 1,278 metres with four of the five holes intersecting uranium and thorium mineralization. Drill hole FP-15-05 intersected a 14.0 metre wide mineralized zone starting at 134.5 metres down-hole depth consisting of the highest grade mineralization found to date in the deposit area. These intersections include 0.172% U3O8 and 0.112% ThO2 over 2.5 metres as well as 0.165% U3O8 and 0.112% ThO2 over 2.0 metres within a broader interval containing 0.103% U3O8 and 0.062% ThO2 over 6.0 metres. This fifth and last hole of the program was lost in the mineralized horizon due to technical issues with the drill rig.
The drill program tested high-priority targets in and around the current uranium and thorium resource at the JNR Fraser Lakes Zone B deposit. It was successful in discovering additional mineralization at higher grades than the deposit average and was the Company's first work program at Falcon Point since acquiring the property from Denison Mines in the summer of 2014.
Hook Lake Target Area:
In October 2015, on the northern side of the Falcon Point property at the Hook Lake target, Skyharbour reported that it had confirmed the presence of high grade uranium mineralization with up to 68.0% U3O8 in a grab sample from a trench. The trench is referred to as the Hook Lake U-Mo showing and was the focus of the Company’s Summer 2015 field program which consisted of detailed prospecting and vegetation sampling. The Company randomly selected three grab samples from the Hook Lake showing to verify historic results and these grab samples returned 68.0% U3O8, 35.7% U3O8 and 29.8% U3O8. Previous operators were unable to definitively explain and locate the source of the high grade outcropping uranium mineralization. The Hook Lake area is located near the northern end of the property approximately 35 kilometres northeast of Skyharbour’s JNR Fraser Lakes Zone B deposit.
In 2006, while carrying out work on the Falcon Point Project, previous operator JNR Resources rediscovered the mineralized trench which they referred to as the Hook Lake U-Mo showing. The mineralization occupies a 1.0 metre wide by 10.0 metre long diagonal jog within a south-southwest trending ductile-brittle shear zone that cuts felsic to mafic intrusive host rocks. This showing consists of a 0.5 to 1.0 metre wide pitchblende vein exposed over a short strike length. Two grab samples taken by JNR returned 48.0% U3O8and 40.1% U3O8, while a soil sample taken over the vein returned 27.8% U3O8. The uranium mineralization is associated with up to 8.8% Pb, enriched rare earth element (REE) values, and anomalous Bo, Co and V values. A narrow radioactive shear located 5 metres south of the pitchblende vein also returned 460 ppm U as well as elevated Pb and REE values. The mineralization has similarities to the Eagle Point uranium deposit being structurally-controlled, vein-type, high grade, and likely part of the feeder system to more typical high grade, unconformity uranium deposits.
Other High-Priority Target Areas:
At the EWA target located on the southern portion of the Falcon Point property, up to 0.492% U3O8 and 1,300 ppm lead were obtained from grab samples. Eight holes drilled in 2008 intersected variably radioactive granitic pegmatite dykes including an intercept of 0.082% U3O8 over 6.5 metres. The Nob Hill target in the central part of the property hosts vein-type uranium mineralization and includes a drill intercept of 0.018% U3O8 over 5.0 metres. The Walker Lake, Walker South and Walker River showings occur along a conductive trend that covers some 60 kilometres of structurally displaced EM conductors in the southwest portion of the property. Historic reconnaissance drilling has intersected strongly clay and/or chlorite altered, sheared and faulted graphitic pelites containing anomalous uranium, copper, nickel, zinc and molybdenum. The West Way target at the northern end of the property consists of vein-hosted uranium mineralization and includes grab samples that returned up to 0.492% U3O8.
Potential Future Work Programs:
A focused exploration program is recommended for the Falcon Point property. The primary objectives are to discover the source of the high grade mineralization at the Hook Lake target as well as to define additional resources at the Fraser Lakes Zone B by establishing the potential for extension of the mineralized zone to the east and west of the currently defined deposit. In addition, further interpretation of geochemical and assay data in conjunction with geological and structural analysis will improve the effectiveness of targeting for future drill programs.
Statement from the President:
Jordan Trimble, President and CEO of Skyharbour, stated: “The acquisition of 100% interests in the sizeable Falcon Point and Yurchison Lake Projects is a milestone for the Company as it significantly enhances Skyharbour’s portfolio of Athabasca uranium projects. The current uranium market has presented excellent opportunities for Skyharbour to increase its ownership, at attractive valuations, in high-quality uranium projects in the Basin with the objective of optimizing discovery potential and capitalizing on a future uranium market turnaround. The more advanced-stage Falcon Point Uranium Project boasts a near surface, inferred resource of 7 million pounds U3O8 open along strike and at depth. Elsewhere on the property, the Hook Lake target area hosts high grade uranium mineralization with historic grab samples returning up to 68% U3O8 in a massive pitchblende vein, the origin of which has yet to be discovered. The project brings an NI 43-101 compliant resource to the asset portfolio, bolsters our exposure to the east side of the Basin, and adds a project with robust exploration upside potential to complement our other exploration projects.”