Moore - Flagship Project
Moore Uranium Property Highlights:
- Skyharbour has option to acquire 100% interest in the 35,705 hectare (88,191 acre) Moore Uranium Project from Denison Mines, a mature uranium exploration property in the eastern Athabasca Basin near existing infrastructure with known high grade uranium mineralization and significant discovery potential
- Denison Mines (TSX: DML) (NYSE MKT: DNN) is a large, strategic shareholder of Skyharbour, holding approximately 11% of the shares outstanding and David Cates, President and CEO on Denison, is on Skyharbour's Board of Directors
- Moore hosts a high grade uranium lens called the Main Maverick Zone, which was discovered by JNR Resources in the early 2000's; historical drill results include 4.03% eU3O8 over 10m, including 20% eU3O8 over 1.4m at a depth of 265m in hole ML-61
- Drilling during the winter/spring of 2018 consisted of a discovery of new high grade uranium mineralization at the Maverick Zone, including 5.39% U3O8 over 1.0m within 2.07% U3O8 over 3.5m
- Hole ML 18-08 drilled on the Main Maverick Zone returned an unconformity-hosted intercept of 2.07% U3O8 over 3.5 metres from 265.8 to 269.3 metres downhole, including 5.39% U3O8 over 1.0 metre.
- Hole ML18-09 drilled at the Maverick East Zone returned a grade equivalent of 1.01% U3O8 over 6.3 metres from 275.4 to 281.7 metres downhole at the unconformity, including an interval of 3.07% U3O8 over 1.8 metres.
- Three of the four holes drilled at the Maverick corridor in this program returned high grade uranium mineralization and successfully expanded the known high grade zones.
- Drilling during the winter/spring of 2017 consisting of 5,450 metres with multiple drill holes intersecting high grade uranium mineralization at the 4 kilometre long Maverick structural corridor
- Intersections of high grade, shallow uranium including 20.8% U3O8 over 1.5m at 264m, 9.12% U3O8 over 1.4m at 278m and 5.29% over 2.5m U3O8 at 279m
- Skyharbour's hole ML-199 tested the Main Maverick Zone lens and intersected high grade uranium mineralization containing 6.0% U3O8 over 5.9m at 265 metres depth including 20.8% U3O8 over 1.5m
- Hole ML-202 from the Maverick East Zone intersected high grade uranium of 1.79% U3O8 over 11.5m at 270m including 4.17% U3O8 over 4.5m and 9.12% U3O8 over 1.4m
- This is a newly discovered high grade mineralized lens on the Maverick corridor 100 metres from the Main Maverick Zone, and illustrates the strong discovery potential of additional high grade lenses along strike
- Only 1.5 kilometres of the total 4 kilometre long Maverick corridor have been systematically drill tested leaving robust discovery potential along strike as well as at depth in the underlying basement rocks which have seen limited drill testing historically
- Skyharbour has multiple diamond drill programs planned for Moore including the upcoming summer 2017 drill program, as well as a winter 2018 drill program
- In addition to the Maverick Zone, diamond drilling in several other target areas has intersected multiple conductors associated with significant structural disruption, strong alteration and anomalous uranium and pathfinder element concentrations
- The property has been the subject of extensive exploration with over $35 million in expenditures and over 135,000 metres of diamond drilling in more than 370 drill holes
Moore Uranium Project Winter 2018 Drill Program:
The recently completed winter/spring diamond drilling program totaled 3,399 metres in 9 holes which were drilled to a depth of between 330 and 525 metres. Five of the nine holes were drilled on regional grids testing geophysical targets and as a follow up to previous drilling, while the remaining four holes were drilled on the high grade Maverick structural corridor.
Moore Uranium Project Regional Grid Targets Map:
Skyharbour is planning for a minimum 3,000 metre 2018 summer diamond drilling program slated to commence in August. The majority of this drilling will test the high grade Maverick corridor both above the unconformity and below it in the basement rocks. Skyharbour’s technical team has recently reinterpreted historical drill results and has identified new high-priority drill targets in the basement rock at the Maverick corridor below the known high grade mineralization. The underlying basement feeder zones for the unconformity-hosted high grade uranium at the Maverick corridor have yet to be discovered and have seen limited drill testing.
Moore Uranium Project Maverick Corridor Drilling Map:
Drilling at the Maverick Corridor and the Venice Zone:
Four holes in this program tested the high grade Maverick Main Zone and Maverick East Zone. The best results were from ML18-08 which tested the Maverick Main Zone and ML 18-09 which tested the Maverick East Zone. Hole ML18-08 intersected 2.07% U3O8 over 3.5 metres at the unconformity.
Moore Uranium Project Main and East Maverick Zones Drilling Map:
The most encouraging results from the drilling on the regional grids were obtained from ML18-03 which tested targets on the Venice grid. This hole intersected a strongly altered and structurally disrupted basal sandstone column and basement rocks. This hole returned anomalous pathfinder elements as well as a 0.5 metre interval containing 0.154% U3O8 in graphitic pelites just below the unconformity in the basement rock. The Venice target is a high-priority regional target going forward given this recent discovery.
Moore Uranium Project Winter 2017 Drill Program:
Jordan Trimble, President and CEO of Skyharbour Resources, stated: "The first phase of drilling at Moore has far exceeded our expectations and we will be commencing a summer drill program in the coming months to follow up on these results. The presence of shallow, high grade uranium mineralization in seven of the fifteen holes is very encouraging not to mention that all of the holes drilled to target intersected uranium mineralization in this program. We are discovering new, high grade mineralized lenses along strike from the Main Maverick Zone which clearly illustrates the robust, underlying geological potential of the Moore Project. The Maverick corridor is over 4 kilometres long yet only 1.5 kilometres have been systematically drilled with most of this drilling and known high grade uranium hosted at or near the unconformity leaving strong discovery potential along strike but also at depth in the basement rocks. The Company is fully funded to complete multiple future drill programs, including the upcoming summer program, which will provide ample news flow for the remainder of the year as we continue to value-add the project using a systematic and proven exploration methodology augmented by innovative field techniques and new geological analyses."
“We are very pleased to have reached the agreement last year with Denison to acquire a 100% interest in Moore as this has become a transformational deal for Skyharbour. Uranium properties with the pedigree and potential of Moore are few and far between. The project has extensive historical exploration, high grade mineralized results, and several shallow exploration targets that remain with the potential to generate further discoveries. With a recovery in the uranium market on the horizon, Skyharbour views this transaction as a unique opportunity to acquire a prime exploration property before the next uranium bull cycle begins. Having Denison onboard as a strategic shareholder and David Cates join our Board of Directors serves to bolster Skyharbour’s profile and access to capital markets moving forward. We believe this is a highly accretive deal for the Company’s shareholders as we add a high grade uranium property with strong exploration upside potential to our portfolio to complement our other uranium projects in the Basin.”
Moore Uranium Project History and Overview:
The Moore Uranium Project consists of 12 contiguous claims totaling 35,705 hectares located 42 kilometres northeast of the Key Lake mill, approx. 15 kilometres east of Denison’s Wheeler River project, and 39 kilometres south of Cameco’s McArthur River mine. Unconformity-hosted uranium mineralization was discovered on the property at the Maverick Zone in the early 2000’s and several high grade intercepts have been drilled since. Drill hole ML-61 contained the best historical result drilled on the property to date, which returned 4.03% eU3O8 over 10 metres, including 20% eU3O8 over 1.4 metres, starting at a depth of 265 metres. Drill holes ML-55 and ML-47 also encountered high-grade mineralization, returning 5.14% U3O8 over 6.2 metres, and 4.01% U3O8 over 4.7 metres, respectively. The depth to the unconformity on the property is relatively shallow, with the thickness of the sandstone cover varying from less than 125 metres on the property's eastern side to over 325 metres on the property's northwestern side. Basement rocks are predominantly paragneisses belonging to the Wollaston Domain. A large mafic sill known as the “Moore Lake complex” partially overlies a portion of the eastern side of the property. The property has been the subject of extensive historical exploration with over $35 million in expenditures, and over 135,000 metres of diamond drilling completed in over 370 drill holes. The project is accessible via ice roads from the McArthur River mine haul road and float or ski equipped aircraft.
Moore Uranium Project Claims Map:
Since 1969, the property has undergone episodic exploration by several companies including Noranda, AGIP, BRINEX, Cogema, Kennecott/JNR Resources and IUC/Denison. In April of 2000 the Maverick Zone was discovered and in the fall of 2003, International Uranium Corporation, who then merged with Denison, optioned 75% of the property from JNR and took over operatorship. Subsequently Denison acquired the remaining 25% interest from JNR for an undivided 100% in February of 2013, when it acquired all of the outstanding shares of JNR. Skyharbour's head geologist and director Rick Kusmirski was the President and CEO of JNR Resources during that time. Exploration programs carried out on the project lands include an assortment of airborne and ground electromagnetic and magnetic surveys, ground gravity, seismic, IP/resisitivity and geochemical surveys, mapping, prospecting, lake sediment sampling programs and the drilling of more than 370 diamond drill holes. From mid-2000 onwards, the primary focus of exploration has been the 3.5 kilometre long Maverick structural corridor where pods of high grade unconformity-type uranium mineralization have been intersected. The best intercepts to date were obtained from drill holes testing the southwestern portion of this corridor. The potential of intersecting additional mineralization along this corridor is very good and as such it will continue to be a high priority target area. Also of note is that both basement and unconformity-type uranium mineralization have been intersected in a number of underexplored target areas on the property.
In addition to the Maverick Zone, diamond drilling in several other geophysical target areas, has intersected multiple conductors associated with significant structural disruption, strong alteration and anomalous uranium and pathfinder element concentrations. This bodes well for the possibility of discovering additional high grade uranium zones in these areas.
Under the Option Agreement, Skyharbour will be the operator of the Moore project and is planning to complete additional infill and exploratory drilling on the Maverick Zone as well as on other high priority target areas on the property. The initial drill program is currently underway with input from both the Skyharbour and Denison technical teams and summer 2017 and winter 2018 drill programs are planned as well.
Moore Uranium Project Geophysics Map:
Skyharbour’s Head Technical Advisor and a Director, Rick Kusmirski commented: “I’ve always considered the Moore Uranium Project to be one of the most geologically prospective exploration projects in the Basin, with the potential to host a sizeable high grade uranium deposit. JNR made the initial high grade discovery at the Maverick Zone and after a number of years we sold the project and company to Denison. I am very excited to get back to work on this project with the Skyharbour team. In addition to the Maverick structural corridor, which still has a number of targets that are untested and require follow-up, there are at least nine other target areas throughout the property that contain well defined and extensive conductive systems. The nominal amount of drilling that was carried out in these areas intersected well defined structures associated with multiple graphitic lithologies. Analysis of the drill core returned highly anomalous geochemistry, including uranium mineralization in seven of the target areas.”
Moore Uranium Project and Skyharbour's Initial Winter 2017 Drill Program and Upcoming Drilling Programs:
In May 2017, Skyharbour announced the results of its fifteen hole, 2017 winter exploration program on the Moore Uranium Project. Multiple drill holes intersected high grade uranium mineralization at the 4 kilometre long Maverick structural corridor. High grade results included 9.12% U3O8 over 1.4 metres within an interval returning 4.17% U3O8 over 4.5 metres in hole ML-202; 5.29% U3O8 over 2.5 metres within an interval returning 2.99% U3O8 over 5.0 metres in hole ML-200; 2.25% U3O8 over 3.0 metres in hole ML-208, and previously reported 20.8% U3O8 over 1.5 metres within an interval returning 6.0% U3O8 over 5.9 metres in hole ML-199. This high grade mineralization within the Maverick corridor is relatively shallow ranging from 250 metres to 275 metres vertical depth. Also of note is that hole ML-202 represents the discovery of a new high grade mineralized lens on the corridor.
Moore Uranium Project Maverick Zone Drilling:
This recently completed drill program totaled 5,450 metres in fifteen holes with most holes drilled to between 200 metres and 350 metres depth except for one hole drilled deeper to 468 metres. The program was focused on the Maverick structural corridor and tested gaps as well as the margins of the Main Maverick Zone lens. Other targets tested included the Maverick East Zone, the Goose Zone, the Maverick West Zone and the Maverick South Zone. Of the fifteen holes drilled, seven had high grade mineralization over 1.0% U3O8, thirteen were mineralized and two had no significant mineralization but only due to drill hole deviation.
Moore Uranium Project Maverick and Goose Zones Drilling:
The highest grade intercept was from hole ML-199 which returned 6.0% U3O8 over 5.9 metres from 261.6 to 267.5 metres downhole including 20.8% U3O8 over 1.5 metres. Hole ML-200 returned 1.62% U3O8 over 9.5 metres from 269.0 to 278.5 metres downhole including 2.99% U3O8 over 5.0 metres and including 5.29% U3O8 over 2.5 metres. Hole ML-208 located on the western portion of the Main Maverick Zone returned 2.25% U3O8 over 3.0 metres from 266.8 to 269.8 metres downhole. Hole ML-202, drilled at the newly discovered Maverick East Zone, returned 1.79% U3O8 over 11.5 metres from 266.0 to 277.5 metres downhole including 4.17% U3O8 over 4.5 metres and including 9.12% U3O8 over 1.4 metres. This new high grade lens exemplifies the potential for high grade uranium mineralization to be discovered between widely spaced previous drill holes on the 4 kilometre long Maverick corridor.
Drill hole ML-207 was drilled to a depth of 468 metres in the Maverick South Zone to test for deeper basement hosted mineralization. As one of the few exploratory holes drilled to test the basement potential at the Moore Project, this hole intersected anomalous uranium mineralization with coincident boron enrichment several metres beneath the unconformity. This is highly encouraging and demonstrates the strong discovery potential at depth in the underlying basement rocks throughout the Moore Project.
Also of note, Hole ML-205 was drilled in a separate high grade mineralized lens known as the Goose Zone located approx. 500 metres E-NE of the Main Maverick Zone and returned 1.80% U3O8 over 1.6 metres within 0.47% U3O8 over 10.4 metres from 275.1 to 285.5 metres downhole. The Goose Zone is still open along strike and at depth in the basement rock. Further along strike one kilometre to the E-NE (approx. 1.5 kilometres from the Main Maverick Zone), the Viper Zone represents a high priority target going forward with limited historical drilling having discovered shallow uranium mineralization. The Company is planning to drill test this area in the upcoming summer drill program along with the Maverick Zone and other regional targets. Details on this drill program are forthcoming. The Company is planning a summer 2017 drill program as well as a winter 2018.
Only 1.5 kilometres of the total 4 kilometre long Maverick corridor has been systematically drill tested leaving strong discovery potential along strike as well as at depth in the underlying basement rocks which have seen limited drill testing historically. Furthermore, there are ten other regional drill targets on the Moore Project in which historical drilling has discovered uranium mineralization including the Pukapuka, Nutana, Otter Grid, Avalon, Venice and Rarotonga Zones. All of these zones remain open along strike and at depth with only limited and widely spaced exploratory drill testing having been conducted historically.
Terms of the Denison-Skyharbour Option Agreement:
Under the terms of the Option Agreement with Denison, Skyharbour may acquire a 100% interest in the Moore Project for the issuance of 4,500,000 (issued) and staged cash payments totaling CDN $500,000 (CDN $200,000 has been paid) over the next four years Skyharbour has also agreed to fund CDN $3,500,000 in exploration expenditures on the Moore Project over the same five year period and will act as project operator. Skyharbour must make cash payments and incur expenditures on the property on or before July 31st, 2021 in accordance with the following schedule:
- $50,000 in cash and $500,000 in exploration expenditures on or before July 31st, 2017 (complete)
- $50,000 in cash and $500,000 in exploration expenditures on or before July 31st, 2018 (complete)
- $100,000 in cash and $500,000 in exploration expenditures on or before July 31st, 2019 (complete)
- $100,000 in cash and $1,000,000 in exploration expenditures on or before July 31st, 2020
- $200,000 in cash and $1,000,000 in exploration expenditures on or before July 31st, 2021
Once Skyharbour acquires a 100% interest in the property, Denison may exercise a buyback option (“Buyback Option”) to repurchase a 51% interest in the property by making a cash payment of $200,000 and spending $6,750,000 in exploration expenditures on the property over the following three year period. The parties would then form a joint venture. If Denison fails to complete the Buyback Option, Skyharbour would retain 100% ownership in the property.
Provided this first Buyback Option is not exercised by Denison, Skyharbour would own 100% of the property and would have an additional five year period to incur an additional $3,000,000 in exploration expenditures on the project (“Additional Expenditures”). At this point, Denison may elect to exercise a second and final buyback option to repurchase a 51% interest in the property by making a cash payment of $500,000 and spending $16,500,000 in exploration expenditures on the property over the following four year period. The parties would then form a joint venture. If Denison fails to complete this second buyback option, Skyharbour would retain 100% ownership in the property.
Provided the first Buyback Option was not exercised by Denison and Skyharbour does not complete the Additional Expenditures within the allotted five year period, Denison may elect to exercise a buyback option at any time to repurchase a 51% interest in the property by making a cash payment of $500,000 and spending at least 2.5 times the expenditures incurred by Skyharbour since the beginning of the Option Agreement. The parties would then form a joint venture.