Moore - Flagship Project
Moore Uranium Property Highlights:
- Skyharbour has acquired a 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 and David Cates, President and CEO on Denison, is on Skyharbour's Board of Directors
- Moore hosts high grade uranium mineralization at 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
- Skyharbour has carried out several drill programs in the last few years with multiple drill holes intersecting high grade uranium mineralization at the 4 kilometre long Maverick structural corridor
- Drill intercepts 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 2 kilometres of the total 4 kilometre long Maverick corridor has 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
- 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
- Skyharbour has multiple diamond drill programs planned for Moore providing near term catalysts for the Company
- The property has been the subject of extensive exploration with over $40 million in expenditures and over 140,000 metres of diamond drilling in more than 380 drill holes
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 $40 million in expenditures, and over 140,000 metres of diamond drilling completed in over 380 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.”
Skyharbour's 2017 Drill Programs:
In 2017, Skyharbour completed two drill programs totalling 9,485m in 26 drill holes. Multiple drill holes intersected high grade uranium mineralization at the 4 kilometre long Maverick structural corridor. High grade results included 20.8% U3O8 over 1.5 metres within an interval returning 6.0% U3O8 over 5.9 metres in hole ML-199; 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; and 2.25% U3O8 over 3.0 metres in hole ML-208. 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:
These programs were 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.
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.
Only 2 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.
Skyharbour's 2018 Winter 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.
Terms of the Denison-Skyharbour Option Agreement:
Under the terms of the Option Agreement with Denison, Skyharbour has acquired a 100% interest in the Moore Project having issued 4,500,000 shares and having made a cash payment of CDN $500,000 as well as funding CDN $3,500,000 in exploration expenditures. Skyharbour now has an additional five year period to incur an additional $3,000,000 in exploration expenditures on the project (“Additional Expenditures”) and at this point Denison can elect to exercise its 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 or elects not exercise it, Skyharbour would retain 100% ownership in the property.
If 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.