South Falcon Point

South Falcon Map

Project Summary:

Uranium and thorium mineralization discovered to date at Falcon Point is shallow and is hosted in two geological settings, with the southern half hosting classic Athabasca-style basement mineralization associated with well-developed EM conductors which include EWA, Walker and Fraser Lakes zones. Drilling to date on the Falcon Point Project totals over 22,000 metres in more than 110 holes. Over $15 million has been invested in exploration consisting of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area.

South Falcon Mineral Dispositions

Highlights:

  • 100% interest in Falcon Point (previously Way Lake) Uranium Project
    • 21 claims totaling 44,470 hectares
    • 55 km east of the Key Lake mine
  • In March of 2015, Skyharbour released updated NI 43-101 mineral resource estimate for the Fraser Lakes Zone B deposit at south end of the property
    • 6,960,681 pounds U3O8 inferred at average grade of 0.03% U3O8 and 5,339,219 pounds ThO2 inferred at average grade of 0.023% ThO2 within 10,354,926 tonnes (cutoff grade of 0.01% U3O8)
  • Geological and geochemical features show distinct similarities to high grade, basement-hosted deposits in the Athabasca Basin such as Eagle Point, Millennium, P-Patch and Roughrider
  • Exploration potential of the 6 by 7 kilometre Fraser Lakes target area is considered exceptional, including resource expansion potential along strike and at depth at the Zone B uranium deposit
  • Winter/spring 2015 drill program consisted of 1,278 metres in five holes
    • Intersected highest grade mineralization found to date in deposit area: 0.172% U3O8 and 0.112% ThO2 over 2.5 metres
    • Breakthrough towards finding more and higher grade uranium mineralization at shallow depths
  • Character of mineralization changing at depth
    • Grade increasing which illustrates strong discovery potential going forward
  • At the EWA target located on the southern portion of the Falcon Point property, up to 0.492% U3Oand 1,300 ppm lead were obtained from grab samples; eight holes drilled in 2008 intersected variably radioactive granitic pegmatite dykes including an intercept of 0.082% U3Oover 6.5 metres
  • The Walker Lake, Walker South and Walker River showings occur along a conductive trend that covers some 60 kilometres of structurally displaced EM conductors in the southwest portion of the property; historic reconnaissance drilling has intersected strongly clay and/or chlorite altered, sheared and faulted graphitic pelites containing anomalous uranium, copper, nickel, zinc and molybdenum.

JNR Fraser Lakes Target Area:

Uranium and thorium showings in the JNR Fraser Lakes area (Zone A, Zone B, North and T-Bone) were discovered by ground prospecting of airborne geophysical targets. The mineralized zones are contained within a 65 kilometre long, folded EM conductor system comprised of Wollaston Group graphitic pelitic gneisses and uraniferous granitic pegmatites. Drill testing at Fraser Lakes North intersected low-grade, basement-hosted uranium-thorium mineralization. The drill holes exhibit evidence of major structural reactivation, significant clay alteration, uranium remobilization and basinal brine fluid circulation, all of which are prominent characteristics of the most significant basement-hosted uranium deposits in the Athabasca Basin (e.g. Eagle Point, Millennium, P-Patch and Roughrider). In the T-Bone Lake area, uranium mineralization is accompanied by significant structural disruption and local clay alteration of the host rocks. A major clay-filled fault system intersected in drill holes yielded PIMA infrared spectroscopy results that indicate a preponderance of illite; an important clay mineral that accompanies many of the significant uranium deposits in the Athabasca Basin.

Fraser Lakes Zone B Uranium and Thorium Deposit:

NI 43-101 Compliant Resource Estimate on the Fraser Lakes Zone B

Discovered in 2008, Zone B is located within the broader 6 kilometre by 7 kilometre Fraser Lakes target area where multiple mineralized zones have been discovered along a 65 kilometre long, folded EM conductor system comprised of Wollaston Group graphitic pelitic gneisses and uraniferous granitic pegmatites. Diamond drilling consisting of 25 holes totaling 4,603 metres has defined a zone of moderately dipping, multiple-stacked uranium and thorium mineralized horizons down to 175 metres that is open to the southwest and east-northeast as well as at depth. Uranium and thorium mineralization is accompanied by highly anomalous concentrations of base metals, rare earth elements and other pathfinder elements. The style of uranium mineralization associated with intrusive rocks is commonly referred to as “Rössing type” mineralization named after the largest, longest-running open pit uranium mine in the world, the Rössing Mine operated by Rio Tinto in Namibia.

South Falcon Map
Fraser Lakes Zone B Diamond Drill Hole Location Map

JNR Resources Inc., a company acquired by Denison in 2013, announced an initial mineral resource estimate in 2012 (Refiled in March of 2015 by Skyharbour Resources) for the Fraser Lakes Zone B of 6,960,681 pounds U3O8 inferred at an average grade of 0.03% U3O8 and 5,339,219 pounds ThO2 inferred at an average grade of 0.023% ThO2 within 10,354,926 tonnes using a cutoff grade of 0.01% U3O8. The independent NI 43-101 technical report supporting this mineral resource estimate was filed on SEDAR on September 26, 2012 by JNR Resources. Independent qualified persons, Dr. Allan Armitage, P.Geo., and Alan Sexton, M.Sc., P.Geo., of GeoVector Management Inc., are responsible for the contents of the technical report and comments related to the resource estimate and its parameters.

The exploration potential of the Fraser Lakes target area is considered exceptional, including the resource expansion potential of the current deposit at Zone B. Geological and geochemical features show distinct similarities to high-grade, basement-hosted deposits in the Athabasca Basin such as Eagle Point, Millennium, P-Patch and Roughrider.

Inferred Mineral Resource Estimate – Fraser Lakes Zone B:

Cut-off Grade
% U3O8
Tonnes U3O8 La2O3 Ce2O3 Yb2O3 Y2O3
Grade (%) Lbs Grade (%) Lbs Grade (%) Lbs Grade (%) Lbs Grade (%) Lbs
0.01% 10,354,926 0.030 6,960,681 0.003 681,325 0.006 895,077 0.001 304,762 0.007 1,619,017
0.02% 7,247,689 0.037 5,948,018 0.003 478,275 0.006 749,829 0.002 248,278 0.008 1,295,283
0.03% 4,248,266 0.046 4,275,145 0.003 281,423 0.006 535,677 0.002 165,658 0.009 824,093
0.04% 2,212,182 0.056 2,744,506 0.003 147,628 0.006 323,996 0.002 107,082 0.011 512,639

Notes:

  1. The effective date of the inferred mineral resource estimate is August 10, 2012.
  2. The estimate was prepared by independent qualified person, Dr. Allan Armitage, P.Geol., of GeoVector Management Inc.

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

In July 2015, Skyharbour reported diamond drill assay results from its Falcon Point uranium and thorium property. The drill program consisted of five diamond drill holes totaling 1,278 metres with four of the five holes intersecting uranium and thorium mineralization. Drill hole FP-15-05 intersected a 14.0 metre wide mineralized zone starting at 134.5 metres down-hole depth consisting of the highest grade mineralization found to date in the deposit area. These intersections include 0.172% U3O8 and 0.112% ThO2 over 2.5 metres as well as 0.165% U3O8 and 0.112% ThO2 over 2.0 metres within a broader interval containing 0.103% U3O8 and 0.062% ThO2 over 6.0 metres. This fifth and last hole of the program was lost in the mineralized horizon due to technical issues with the drill rig.

The drill program tested high-priority targets in and around the current uranium and thorium resource at the JNR Fraser Lakes Zone B deposit. It was successful in discovering additional mineralization at higher grades than the deposit average and was the Company's first work program at Falcon Point since acquiring the property from Denison Mines in the summer of 2014.

Other High-Priority Target Areas:

At the EWA target located on the southern portion of the Falcon Point property, up to 0.492% U3Oand 1,300 ppm lead were obtained from grab samples. Eight holes drilled in 2008 intersected variably radioactive granitic pegmatite dykes including an intercept of 0.082% U3Oover 6.5 metres. The Walker Lake, Walker South and Walker River showings occur along a conductive trend that covers some 60 kilometres of structurally displaced EM conductors in the southwest portion of the property. Historic reconnaissance drilling has intersected strongly clay and/or chlorite altered, sheared and faulted graphitic pelites containing anomalous uranium, copper, nickel, zinc and molybdenum.

South Falcon Exploration Map

Potential Future Work Programs:

A focused exploration program is recommended for the Falcon Point property. The primary objective is to define additional resources at the Fraser Lakes Zone B by establishing the potential for extension of the mineralized zone to the east and west of the currently defined deposit. In addition, further interpretation of geochemical and assay data in conjunction with geological and structural analysis will improve the effectiveness of targeting for future drill programs.

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