Russell Lake

Highlights:

• Skyharbour and Rio Tinto have recently formed a joint venture partnership to further explore the Russell Lake property with Skyharbour, as operator, holding a 51% ownership interest and Rio Tinto holding the remaining 49% interest

• Russell Lake is strategically located in the central core of the Eastern Athabasca Basin of northern Saskatchewan
• Both Highway 914 servicing McArthur River and a high-voltage power line connected to the provincial power grid run through the Property’s western claims. There is a fully permitted exploration camp on the Project suitable for over forty people located on the highway and within 5 kilometres of Denison’s Phoenix deposit
• The Property has been the subject of significant historical exploration efforts including over 95,000 metres of drilling in over 220 drill holes; provides the Company with an excellent dataset to direct subsequent exploration on high-priority areas with the potential for near-term discovery of high-grade uranium mineralization

• Previous exploration work has identified numerous highly prospective target areas, some of which host high-grade uranium mineralization in historical drill holes; over 35 kilometres of untested conductors on the Property in magnetic lows, which are indicative of pelitic basement rocks conducive to uranium deposition in the Athabasca Basin

• Skyharbour completed an inaugural drilling campaign which consisted 9,595m in nineteen holes over three phases back in 2023
• A total of 5,152 metres of drilling in ten holes was drilled in two phases during the winter of 2024; planning to complete additional 5,000 metres of drilling this summer/fall which is fully funded
• High-grade, sandstone-hosted mineralization up to 2.99% U₃O₈ was intersected over 0.5 metres in hole RSL24-02 at the new Fork Zone, within an interval of 0.721% U₃O₈ over 2.5 metres from 338.1 to 340.6 metres downhole just above the unconformity

• Recently completed an Ambient Noise Tomography (ANT) survey to collect data over the highly prospective Grayling and Fork target areas, where previous drilling has intersected high-grade uranium mineralization

• Results from this survey will be used to further refine drill targets for the upcoming fully-funded and permitted follow up drilling planned for the fall, which will consist of 4,500 metres

Russell Lake Uranium Project:

The Russell Lake Project is a large, advanced-stage uranium exploration property totalling 73,294 hectares strategically located between Cameco’s Key Lake and McArthur River Projects and adjoining Denison’s Wheeler River Project to the west and Skyharbour’s Moore Uranium Project to the east. The northern extension of Highway 914 between Key Lake and McArthur River runs through the western extent of the Property and greatly enhances accessibility, while a high-voltage powerline is situated alongside this road and the western edge of the property south of Key Lake. Skyharbour’s acquisition of a majority interest in Russell Lake creates a large, nearly contiguous block of highly prospective uranium claims totalling 108,999 hectares between the Russell Lake and the Moore uranium projects. Skyharbour now has a 51% interest in Russell Lake having formed a joint venture partnership with Rio Tinto at the project, with Skyharbour remaining as the operator. 

There has been historical exploration carried out at Russell Lake, however most of it was conducted before 2010 prior to the discovery of several major deposits in/around the Athabasca Basin. In 2023, Skyharbour’s inaugural diamond drilling program tested several Fox Lake Trail targets and the Grayling Zone. Significant uranium mineralization was intersected in the majority of holes at the Grayling Zone over a strike length exceeding one kilometre. Drill hole RSL23-01 intersected one of the better drill results from the project, returning a 5.9 metre wide intercept of 0.151% U₃O₈ at a depth of 338.4 metres, which included 1.0 metres of 0.366% U₃O₈ at 343.3 metres depth within a thrust wedge.

More recently, Skyharbour completed 5,152 metres of drilling in a 2024 winter drill program earlier this year, making a new discovery at the newly identified Fork Target area. Hole RSL24-02 marks the best intercept of uranium mineralization historically at the project, returning a 2.5 metre wide intercept of 0.721% U₃O₈ at a relatively shallow depth of 338.1 metres, including 2.99% U₃O₈ over 0.5 metres at 339.6 metres just above the unconformity in the sandstone. Skyharbour is fully-funded for an upcoming fall drill program which will consist of approximately 4,000-5,000m at the project to follow up on the recent discovery.

Several notable exploration targets exist on the property including the Grayling Zone, the M-Zone Extension target, the Little Man Lake target, the Christie Lake target, the Fox Lake Trail target and the newly identified Fork Zone target. More than 35 kilometres of largely untested prospective conductors in areas of low magnetic intensity also exist on the Property.

There is a fully permitted exploration camp on the Project suitable for over thirty people located on the highway and within 5 kilometres of Denison’s Phoenix deposit. 

Jordan Trimble, President and CEO of Skyharbour Resources, stated:

“We are very pleased to have reached an agreement with Rio Tinto to acquire up to a 100% interest in Russell Lake. This is a significant transaction for Skyharbour and involves the acquisition of a premier exploration property adjacent to our Moore project. Uranium properties with the pedigree and prospectivity of Russell Lake are few and far between given the very strategic location, notable historical exploration and findings, as well as the numerous property-wide targets with the potential to generate new discoveries.”

“Additionally, we welcome Rio Tinto as a new strategic shareholder and project partner.  We have a shared vision for the exploration of the various prospective target areas that remain to be fully tested on the Property using modern exploration methods and techniques. We look forward to working with Rio Tinto to generate a new meaningful discovery in the years to come.”

 

2024 Fall Diamond Drilling Program:

Skyharbour plans to complete approximately 4,500 metres of drilling at Russell to follow up on notable previous exploration and findings and to test new targets developed by the geological team. The drilling program will be focused on the road-accessible Fork target within the broader Grayling target area as well as the M-Zone Extension (“MZE”) target. A total of 4,500 metres in seven to nine holes is planned with five to six holes planned on the Fork target and two to three holes planned on the MZE target.

2024 Winter Diamond Drilling Program:

A total of 5,152 metres of drilling in ten holes was drilled in two phases during the winter of 2024 at the Russell Lake Project. The first phase of drilling consisted of a total of 3,094 metres in six holes, while the second phase of drilling consisted of 2,058 metres of drilling in four holes. 

For more details, see our News Release - July 9, 2024

Phase One Winter Drilling at Russell:

The first phase of drilling focused on drill testing the newly identified Fork Target area related to and south-southwest of the Grayling Zone. One hole during Phase One was drilled to test an East Grayling target, approximately 3 km to the southeast of the Fork Target area.

Grayling and Fork Target Areas - Drill Collar Map:

During Phase One, the best intercept of uranium mineralization historically on the property was discovered in hole RSL24-02, which returned a 2.5 metre wide intercept of 0.721% U₃O₈ at a relatively shallow depth of 338.1 metres, including 2.99% U₃O₈ over 0.5 metres at 339.6 metres just above the unconformity in the sandstone. This high-grade intercept is a new discovery at the recently identified Fork Target which has very limited historical exploration due to a lack of reliable geophysical data and drill targets resulting from nearby powerline interference. The mineralization is open in most directions including along strike, and will be a focus of upcoming drilling. The Fork Target area is approx. 1 km southwest of the central Grayling Target area and approx. 4 km southeast of Denison Mines’ Phoenix Deposit. It is a newly identified high-priority target hosting interpreted ENE and NNE-trending structures, with limited historical drilling as powerline interference affected the historical geophysical data, thereby hindering detection of EM conductors and selection of drill targets. Assays are pending for the second phase of the winter drill program at Russell.

Fork Target Area - Drill Collar Map:

 

Phase Two Winter Drilling at Russell:

During the second phase of drilling at Russell Lake, three holes totaling 1,649 metres (holes RSL24-07 to -09) were drilled at the regional MZE target area, approximately 10 km northeast of the Fork target. Holes RSL24-07 and -08 were drilled to completion, while hole RSL24-09 was abandoned approximately 70 metres above the unconformity due to faulted ground conditions. The final hole of the second phase of the 2024 winter/spring drilling program, RSL24-10, was drilled at the Fork target area but missed the primary target due to excessive deviation during drilling. The MZE target lies on trend from Denison’s Wheeler River Project M-Zone, where historical drilling intersected significant uranium mineralization. 

For more details, see our News Release - October 24, 2024

Skyharbour is fully funded and permitted for a follow-up summer drill campaign consisting of another 7,000 - 8,000 metres of drilling at its co-flagship Russell and Moore Projects.

2023 Diamond Drilling Program:

A total of 9,595 metres of drilling in nineteen holes was drilled in three phases during 2023. The first phase of drilling consisted of a total of 3,662 metres in eight completed holes at the Grayling Zone, while an additional four holes totaling 2,730 metres were drilled in the Fox Lake Trail Zone during the second phase. The recently completed third phase of drilling was comprised of 3,203 metres in seven holes on additional targets at the Grayling Zone.

For more details, see our News Release - January 10, 2024

Phase One – Grayling Zone Drilling:

The first phase of Skyharbour’s inaugural drill program at Russell consisted of a total of 3,662 metres in eight holes at the Grayling Zone. The majority of the holes drilled at the Grayling Zone during this phase that successfully reached their intended targets intersected uranium mineralization and the Grayling Zone will be a primary target area at the project moving forward.

Grayling Target Area Drill Hole Locations:

Phase Two – Fox Lake Trail Zone Drilling:

The second phase of drilling was focused in the Fox Lake Trail area at the north end of the project. Four holes were completed for a total of 2,730 metres. The exploratory holes in this area targeted previously drilled fertile conductors and other previously untested but prospective EM and resistivity features.

Fox Lake Trail Target Area Drill Hole Locations:

Phase Three – Grayling Zone Drilling:

The third phase and final phase of drilling took place within the Grayling Zone, with seven holes completed for a total of 3,203 metres. This phase of drilling was designed to follow up on previously identified mineralization and to better define the controls and geometry of the Grayling Thrust Block, which is the controlling structure hosting the Grayling mineralized zone.