Summary of Recent Uranium Production Curtailment Globally
Apr 8, 2020
Vancouver, BC - Skyharbour Resources Ltd. (TSX-V:SYH) (OTCQB:SYHBF) (Frankfurt:SC1P) (the “Company”) reports that as of April 8th, 2020 the COVID-19 crisis has resulted in several major uranium mines being curtailed or shutdown due to the pandemic. These recent production suspensions now represent well over 30% of global mine supply and this is in addition to the other production curtailments over the last several years due to the low uranium price environment and mines coming to the end of their lives.
Summary:
Cigar Lake: press release here.
- Cameco had already been expected to purchase millions lbs of uranium in spot market in 2020 due to its other large mine, McArthur River, being offline; this new production suspension will increase Cameco’s open market purchase requirements
- Cigar Lake’s monthly production was ~1.3 million pounds and accounts for approx. 13% of global primary mine supply
Kazatomprom: press release here.
- Annual production to decrease by 4,000 tU in 2020, from the previous expectation of approx. 22,800 tU
Husab Mine: press release here.
Rossing Mine: press releasehere.
Supply / Demand Fundamentals:
- Global demand for electricity is expected to grow by 76% by 2030 and nuclear is the only reliable, low cost, clean source of base load power
- 442 current operable reactors, 54 reactors under construction, and 439 ordered/planned/proposed
- 2020 demand expected to be approx. 183 million lbs with analysts and industry experts pointing to a looming supply shortfall
- There was an estimated 142 million lbs of mine supply expected in 2020 prior to the pandemic and recent mine closures
About Skyharbour Resources Ltd.:
Skyharbour holds an extensive portfolio of uranium and thorium exploration projects in Canada's Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals with six drill-ready projects. In July 2016, Skyharbour acquired an option from Denison Mines, a large strategic shareholder of the Company, to acquire 100% of the Moore Uranium Project which is located approximately 15 kilometres east of Denison's Wheeler River project and 39 kilometres south of Cameco's McArthur River uranium mine. Moore is an advanced stage uranium exploration project with high grade uranium mineralization at the Maverick Zone. Drill results have returned up to 6.0% U3O8 over 5.9 metres, including 20.8% U3O8 over 1.5 metres at a vertical depth of 265 metres. Skyharbour has signed option agreements with Orano Canada Inc. and Azincourt Energy whereby Orano and Azincourt can earn in up to 70% of specific segments of the Preston Project through a combined $9,800,000 in total exploration expenditures, as well as $1,700,000 in total cash payments and Azincourt shares. Preston is a large, geologically prospective property proximal to Fission Uranium's Triple R deposit as well as NexGen Energy's Arrow deposit. The Company also owns a 100% interest in the Falcon Point Uranium Project on the eastern perimeter of the Basin which contains a NI 43-101 inferred resource totaling 7.0 million pounds of U3O8 at 0.03% and 5.3 million pounds of ThO2 at 0.023%. The project also hosts a high-grade surface showing with up to 68% U3O8 in grab samples from a massive pitchblende vein, the source of which has yet to be discovered. The Company's 100% owned Mann Lake Uranium project on the east side of the Basin is strategically located adjacent to the Mann Lake Joint Venture operated by Cameco, where high-grade uranium mineralization has been identified. Skyharbour's goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions.
Skyharbour’s Uranium Project Map in the Athabasca Basin:
http://skyharbourltd.com/_resources/SYH_Landpackage_2014.jpg
To find out more about Skyharbour Resources Ltd. (TSX-V: SYH) visit the Company’s website at www.skyharbourltd.com.
SKYHARBOUR RESOURCES LTD.
“Jordan Trimble”
______________________
Jordan Trimble
President and CEO
For further information contact myself or:
Simon Dyakowski
Corporate Development and Communications
Skyharbour Resources Ltd.
Telephone: 604-639-3850
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@skyharbourltd.com
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