After a tremendous rebound from the March lows the uranium sector has stabilized and begun to consolidate some of its recent large gains. Even after Cameco’s decision to restart the Cigar Lake Mine the global uranium market remains in a fundamental supply deficit and a further pullback to the golden shaded area in the URA daily chart might offer an attractive entry point in uranium exploration & production equities:
Moreover, several producers like Cameco have remained active buyers in the spot market and we can expect that to continue through 2021. We could see this trend accelerate with the recent supply disruption caused by the pandemic which would help drive an even higher spot uranium price.
Skyharbour Resources (TSX-V:SYH), a uranium focused project generator, is busy moving ahead to a 2,500 meter summer diamond drilling program at its flagship Moore Uranium Project in Saskatchewan (7-9 drill holes). Drill targets will include both unconformity and basement-hosted mineralization targets along the Maverick structural corridor. Skyharbour specifically plans to expand the high grade mineralization recently discovered at the Maverick East Zone and to test the Viper target area along strike, with a focus on basement-hosted mineralization. Only about ½ of the 4.7 kilometer long Maverick structural corridor has been systematically drill tested, leaving robust discovery potential along strike, both at the unconformity, as well as at depth in the underlying basement rocks which have seen limited drill testing to date.
Another zone of particular interest for Skyharbour at Moore is the Viper Zone. Historical drilling encountered basement-hosted mineralization in hole ML-161 and was accompanied by significant pathfinder element enrichment, clay alteration and structural disruption approximately 100 meters below the unconformity. Two follow-up holes, ML17-08 and ML20-02 drilled by Skyharbour also encountered significant clay alteration and structural disruption in the basement with localized silicification and pathfinder element enrichment. In addition to the drilling results, a previously conducted UAV-MAGTM survey indicates a prominent magnetic low associated with this target. The mineralization in hole ML-161 has never been followed-up along strike, and thus represents a high-priority target for further drilling.