At the recentÂ Canadian Investor Conference, held in Vancouver on May 31 and June 1,Â the Investing News Network had a chance to chat with Jordan Trimble, president and CEO of Skyharbour Resources (TSXV:SYH), about the various projects his company is working on and what to expect in the coming months.
Speaking first about the companyâ€™s 100-percent-owned Falcon Point project onÂ the east side of the Athabasca Basin, Trimble said that assay results from theÂ first drill program there are expected back in just a few weeks and will determine what is done there moving forward.
â€śVisually, we were very happy with what we were seeing in the core. Saw some radioactivity, and that is very encouraging. Geologically, the project, and in particular the deposit area, is similar to what you see at Eagle Point, which is a producing mine that Cameco (TSX:CCO,NYSE:CCJ) has had in operation for many decades now,â€ť Trimble said. â€śOne opportunity we have is to go back into another target area on that project that has historical grab samples that returned up to 48 percent U3O8 â€” so very, very high uranium mineralization.â€ť
Skyharbour has also been busy at the Preston project, which it operates and owns with its three partner companies: Athabasca NuclearÂ (TSXV:ASC), Noka ResourcesÂ (TSXV:NX) and Rojo Resources (TSXV:RJ). They formed the Western Athabasca SyndicateÂ in the summer of 2013 and now hold one of the largest land packages in the Athabasca Basin.
â€śThe idea is to bring in multiple groups with their own geological, technical teams, so you have synergies there and to also mitigate the risk across a number of companies versus one company trying to raise $5 or $6 million in this market, which is near impossible right now,â€ť he explained.
Considering the size of the property, the current task at hand is determining which targets to focus on in the upcoming summer drill program â€”Â recent geophysical survey results have given the companies six high-priority targets to consider. As per the agreement between the four companies, the project will see $6 million put towards exploration, with the bulk coming from companies other than Skyharbour. To date, $4.2 million has been spent, meaning the remaining $1.8 million will be used to drill this summer.
Finally, TrimbleÂ told INN at VRIC in JanuaryÂ that he thought uranium was due for a good year and six months later, he remains bullish.
â€śThere are a combination of factors both good and bad that are moving it around right now, but going forward, needless to say, we are quite bullish. Itâ€™s not necessarily going to happen tomorrow, but over the next few years I think there is, fundamentally, a very bullish case for uranium,â€ť Trimble said. â€śYou have the restarts in Japan, but the biggest thing is, if you look at the primary mine supply out there and the cost of producing uranium globally, on average it is much, much higher than what the spot price is right now, so something has to change. So I do see the spot price moving up quite significantly over the next few years.â€ť
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure:Â The Investing News NetworkÂ does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts.Â The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do notÂ constituteÂ investment advice. All readers are encouraged to perform their own dueÂ diligence.