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 10 metres, including 20% eU3O8 over 1.4 metres starting at a depth of 265 metres in hole ML-61, as well as 5.14% U3O8 over 6.2 metres in hole ML-55
- Skyharbour has multiple diamond drill programs planned for Moore including winter (currently underway) and summer 2017 drill programs, as well as a winter 2018 drill program
- Skyharbour's recent hole ML-199 tested the Main Maverick Zone lens and intersected high grade uranium mineralization containing 6.0% U3O8 over 5.9 metres, from at 265 metres depth including 20.8% U3O8 over 1.5 metres
- Hole ML-202 also intersected high grade uranium mineralization including 5.6% eU3O8 over 1.8 metres from at 275 metres downhole within a 10.7 metre mineralized interval that returned 1.4% eU3O8; notably, this hole potentially represents the discovery of a new high grade mineralized lens on the property 100 metres from the Main Maverick Zone
- The preliminary results from early in the Company's first phase of drilling at Moore have far exceeded expectations and have prompted the expansion of the drill program from 3,500 metres to 5,500 metres
- The target areas in and around the 3.5 kilometre long Maverick structural corridor are relatively shallow and continue to provide strong discovery potential
- 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 2017 Drill Program:
Jordan Trimble, President and CEO of Skyharbour Resources, states: “The preliminary results from early in this first phase of drilling at Moore have far exceeded our expectations and I would like to congratulate our geological team on their work thus far. The presence of high grade uranium mineralization in the first hole ML-199 is highly encouraging as well as the notable mineralization in hole ML-202 which appears to be the discovery of a new, high grade mineralized lens along strike from the Main Maverick Zone. The target areas in and around the Maverick Zone are relatively shallow and continue to provide strong discovery potential as we look to value-add the project using a systematic and proven exploration methodology. The early success of the program has prompted Skyharbour to expand the planned drill program from 3,500m to 5,500m.”
“We are very pleased to have reached the agreement last year with Denison to acquire a 100% interest in Moore as this is 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. 20 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 Current and Planned Drill Programs:
In February 2017, Skyharbour announced the results of its first five drill holes of the 15-hole, 2017 winter exploration program on the Moore Uranium Project. The drilling intersected high grade uranium mineralization within the Main Maverick Zone lens. Hole ML-199 returned geochemical assays of 20.8% U3O8 over 1.5 metres from 264.0 to 265.5 metres downhole, with corresponding handheld spectrometer counts of 27,500 to 57,000 counts per second (“cps”). This high grade interval occurred within a broader zone of anomalous radioactivity as identified by downhole probing. A combined geochemical and grade equivalent for the hole returned 6.0% U3O8 over 5.9 metres from 261.6 to 267.5 metres.
Moore Uranium Project Maverick Zone Drilling:
Hole ML-202 intersected uranium mineralization straddling the unconformity and extending into the clay-replaced and altered, weakly graphitic pelitic and granitic basement rocks. Downhole probing identified a 10.7 metre mineralized interval from 266.6 to 277.3 metres that returned 1.4% eU3O8. This includes 2.1% eU3O8 over 6.5 metres, which includes a higher grade zone of 5.6% eU3O8 over 1.8 metres from 274.2 to 275.7 metres downhole. Core recovery within this mineralized zone was relatively good and geochemical assays are pending at this time. This hole potentially represents the discovery of a new high grade mineralized lens on the property known as the Maverick East Zone.
Moore Uranium Project Maverick and Goose Zones Drilling:
The early success of the current drill program has prompted the company to expand it from 3,500 metres to 5,500 metres consisting of 14 to 16 holes ranging in depth from 200 metres to 500 metres. The majority of this first phase of drilling will test and look to expand the Maverick Zone with targets both in the underlying basement rock as well as along strike of the known high grade Main Maverick mineralized lens. Additionally, drill holes will test the Goose Zone which is located along the Maverick structural corridor approx. 500 metres east of the main Maverick mineralized lens.
This phase of diamond drilling will also test drill targets along the extensions of the Maverick structural corridor and on extensive northeast trending graphitic structural zones located north of the main Maverick mineralized lens. These targets have been identified following a review of previous exploration and include drill targets identified by prior programs that have yet to be followed up on.
The Company is planning a summer 2017 drill program as well as a winter 2018 drill program with more news forthcoming.
Moore Uranium Project Regional Drill Targets:
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 $500,000 over the next five years (all dollar figures are Canadian dollars). Skyharbour has also agreed to fund $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
- $50,000 in cash and $500,000 in exploration expenditures on or before July 31st, 2018
- $100,000 in cash and $500,000 in exploration expenditures on or before July 31st, 2019
- $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.