Welcome to 'Proven and Probable'
today we're going to highlight the other
yellow metal which is known as
uranium our featured company is a
successful exploration company
as well as a project generator with
multiple assets throughout canada's
athabasca basin
which is known for hosting the world's
highest grade uranium deposits in the
world
before we begin as always i would
appreciate if you click the subscribe
button
and click the bell now on to today's
interview
joining us for a conversation is the ceo
of sky harbor resources
jordan trimble welcome to the show sir
thanks for having me again pleasure to
have you back on the program and get
shareholders up to speed on a number of
creative moves that sky harbor has been
making since we last spoke in
april before we begin mr trimble provide
us with a brief overview of sky harbor
resources
and the opportunity the company presents
to the market yeah so just as a quick
recap
sky harbor resources is a high grade
uranium exploration and
early stage development company with a
number of projects scattered throughout
the athabasca basin the highest grade
depository of uranium in the world
we have projects on the infrastructure
rich east side of the basin including
our
flagship more project where we're about
to commence a summer drill program and
uh it's been the focus of most of our
exploration work over the last several
years
we've had high grade results including
uh 21 percent u308 over a meter and a
half in historical
uh drill holes and we're looking to add
uh to that
with the upcoming drill program uh which
will uh
predominantly be focused at the maverick
corridor
we'll talk a little bit more about that
later in the interview and then secondly
we
we do have a prospect generator
component of the business so we
with our large portfolio of properties
we look to
bring in option partners and strategic
partners to come in and advance our
other projects while we focus our
efforts
at our flagship project and we've
consummated two
deals and have two partner companies one
of which is france's largest
uranium mining company arano they're
currently working at our
preston project and another company as
in court which is actively exploring our
east
preston project and we should hopefully
have some news out
on additional partner companies coming
in on some of our other projects in the
coming months
you know i reference the accretive moves
that you've been making to increase
shareholder value
and we've also just referenced the
impressive property bank gets
loaded with potential you have projects
in the athabasca which hosts the highest
grade uranium in the world
take us to the east preston and get us
up to speed on the developments there
yeah so as i mentioned uh as in court
uh is our partner company at east
preston they've been advancing
that project over the last several years
as a part of a
70 earn in that they have and just to
recap that earn an option they're almost
complete
they have a summer program that they'll
carry out they'll start in the next
few weeks here uh to complete the
exploration expenditures of the project
uh we did extend uh the the earn in for
this
project by a year and in return we
receive
two and a half million shares and they
also have to make a 200
000 cash payment so we do generate some
uh revenue from that uh with option
payments coming in
so their plan is some geophysics and
some field work this summer and that
will help
uh define drill targets and and further
refine drill targets for
drilling later this year early next year
uh and then as a segway we
we have as i mentioned arano a strategic
partner working at our preston project
which is adjacent to east preston
this is over on the west side of the
athabasca basin near
fission and nextgen they earlier this
year finished a large geophysical
and field program just waiting to get
the final report there
with some guidance for upcoming work
programs later this year and
into the new year and that earn-in
option is an 80
earn in uh that they have and in order
to complete that
or 70 percent earn and then in order to
complete that they have to spend 8
million
over a six year period the bulk of which
is in exploration expenditures
i like the modest way that you just
conveyed the the success of your
business acumen there just think about
that for a moment uh
ladies and gentlemen so you were able to
get shares and capital without share
dilution
that is that's important for a
shareholder to note and you just skimmed
over like it was nothing
yeah no well i mean look it's important
given the size of the property
package that we have well over half a
million acres of ground in uh
six drill ready projects again uh
scattered throughout
the athabasca basin or one of the few
junior companies that has an ni 43 101
compliant resource but really our
efforts and focus
uh remain at our flagship more project
that's where we have
uh we believe the the best prospectivity
uh the best geology and
the best potential for additional high
grade discoveries to be made
and so it uh it serves us well having
partner companies come in
um it also allows us to leverage other
technical teams and geologists which is
which is always key to bring some new
ideas to the table
and as i mentioned we've been working on
bringing in
additional partner companies uh on some
of our other 100
owned properties in the basin we're
going to get to the more in just a
second but sticking with the east
preston there's some geophysical target
work being conducted
do we have any updates and when will
results be released
uh yeah so we're expecting the program
to commence as i mentioned
uh fairly soon uh they'll get into the
field that probably shouldn't take too
long
i believe the budget's about 150 to 200
000 dollars
and what we're looking for what as in
courts looking for there
are uh additional drill targets on some
of the conductive corridors
uh that they can go and they can drill
test uh once the ground's frozen later
this year and early next year
all right let's visit the flagship more
project you've had some activity
recently in particular on the maverick
east zone recently
what can you share with us sir yeah so
since we last spoke we announced our
results from
our winter drill program uh earlier this
year and
we were successful in doubling the
uh strike and extent of our east
maverick zone in the basement rocks uh
you'll
recall from previous interviews that's
been a focus for us
uh we we have a high-grade pods or
lenses at the unconformity in the
sandstone
uh and a little bit of mineralization
that's been discovered previously in the
basement rocks but
uh below the unconformity but there
really hasn't been a lot of exploration
and drilling
into the underlying basement rocks at
this project and that's intriguing to us
is that's where a lot of the recent
notable high grade discoveries in the
athabasca basin have been found and so
we know that there's high grade
mineralization at the unconformity or
just above
we will continue to look for additional
high grade pods in the sandstone and at
the unconformity but
we believe within the feeder zones in
the basement rock there's
a lot more mineralization that's yet to
be discovered and so that's where we've
been focusing our efforts we announced
the results uh a couple months ago now
and we have plans uh for a 2500 meter
drill program which will start up
towards the end of august here
and the focus there will be will
continue to be on this
main maverick corridor it's about a four
and a half kilometer long
conductive corridor we have several high
grade zones
along it but really only about half of
it's been systematically drilled so
we're going to go back in we're going to
continue drilling a depth into the
basement rocks
at the maverick and east maverick zones
but we're also planning to test a zone
about a kilometer and a half
along strike up to the northeast called
the viper zone and there's been some
historical drilling there
some good high grade results but not a
lot of follow-up work so we're excited
to get back
in drill test that target as well as
several others it's a big property about
35 just over 35 000 hectares there's
lots of regional targets and it's great
because
it's proximal to infrastructure uh we're
about 15 kilometers
east due east of denison
denison mines flagship project the
wheeler project they're our largest
strategic shareholder
so it's ideally located on the side of
the athabasca basin
and we think they're as i mentioned a
lot more mineralization that we can
discover with
with more drilling we've done a fair bit
of work
geophysics and and some more groundwork
uh in geological modeling over the last
couple of years to refine these basement
hosted targets
and we are working towards a maiden
resource
estimate which we're hoping to have out
towards the end of the year
you know you reference unconformity how
does that fit into the narrative of the
value proposition before us
yeah so not to get into too much
technical or geological lingo
but in the athabasca basin it's a
sedimentary base and you have the
sandstone
above it it's like a big bowl and then
you have the contact with the underlying
basement rocks and that's called the
unconformity
you find a lot of high grade
mineralization in uranium
at the unconformity you can have it in
the sandstone above
which is interesting because there's
some new mining methods um
that are being proposed for deposits in
the basin
uh that would take advantage of this
like isr
and sabre but there's uh higher grade
mineralization that can also be
discovered in the underlying basement
rocks and a couple of notable deposits
include next gens as well as fissions
and the griffin deposit
at denison's wheeler project these are
basement hosted
deposits that have been recently
discovered so you you have
a couple of different deposit models and
on our project as i mentioned
a lot of the historical drilling and
work a lot of the drilling that we've
done
over the last three years has been
focused uh mineralization
at or above the unconformity so we're
now just uh taking
a look a little bit deeper uh at about
three to four hundred meters vertical
depth
and looking for higher grade
mineralization
in structures in the basement rocks
sorry for an eruption folks but i do
want to remind you everything we're
covering today with mr trimble
you can find in the description box
below and if you like our content i
would appreciate
if you give us a thumbs up now back to
the interview
leaving the property bank and turning
our focus to the uranium sector jordan
what has your attention
and why well a lot's happened uh in the
last four or five months and we've
covered uh we covered a little bit of it
in april when we spoke
um there's been a major major
supply-side response that's played out
and a rebalancing
of the market where we now see a pretty
significant supply deficit forming uh
you have about 180 to
190 million pounds of annual demand
which is
has been relatively unaffected by
the pandemic uh nuclear
power is one of the last sources of
electricity generation
that will have be impacted because of
the pandemic it's not easy shutting down
a
large nuclear reactor intermittent
sources of electricity would be the
first to go so
the demand side i think will continue to
be relatively stable you may see a
a small decrease just due to lower
economic
activity and output but on the supply
side we've seen a major supply
disruption with the pandemic
we're now looking at a potential primary
mine supply
of about 110 to 120 million pounds now
this will all depend on
additional news coming out of kazakhstan
that's something to keep an eye out for
uh kazakhstan being the largest producer
of uranium globally
usually account for about 40 percent of
primary mine supply
unfortunately the country's been hit
quite hard by the virus
we've seen uh an initial an announcement
uh back in april uh
supply curtailment from kazakhstan uh
we're gonna probably get some more
guidance from them in the coming weeks
here
but i've been hearing that it hasn't
been good
they likely won't be able to ramp up um
to their pre-pandemic production levels
for a while
uh and it's not just the the production
curtailment
uh that they've uh that they've
announced and and that we've seen but
it's also
going forward because these are isr
operations
their wellhead development their
drilling uh has been basically
incapacitated over the last several
months so that will affect their ability
to wrap production back up so i think
you're going to see
an extended timeline you're going to see
lower production profile out of
kazakhstan for
for a long period of time and i think
that that has yet to work its way into
the market
we've already seen or we've already
heard from kaz adam prom that they may
and i've heard the more recently they
are buying
material in the spot market to make up
for the lost production
we know that a number of producers have
had to do that over the last several
years including camaco
been a major uh source of spot market
demand over the last several years and
we will continue to see that
and i think there's a couple of key
points uh just to just to summarize all
this
um and chemical mentioned this in their
recent quarterly call that uh the
industry is
is heavily reliant on supply that's
highly concentrated
both geographically and geologically and
that the risks to supply
are far greater than the risks to demand
and that's something to keep in mind
for this industry and for this commodity
going forward that
any supply disruption you do see it work
its way into the market relatively
quickly and it can have a major impact
and obviously with the uh the pandemic
we've seen that in this space and
back in april when we last spoke was one
of the busiest
months in the spot market the the spot
market volume uh i think amounted to
about 25 million pounds which is
it's one of the the largest uh in in in
history and uh cleaned out the market we
saw the price
uh jump up from the mid-20s to the uh
uh briefly the mid 30s it settled in
back around uh
33 dollars a pound and it's built a nice
base here um
seasonally the summer is a bit slower so
not surprising to see
the price kind of settle in there but i
do expect
that come the fall we we could see
another month much like we saw
in april and we could see the next leg
up there's a mismatch between deliveries
and production and supply uh towards the
end of the year so you could see
producers that are having to buy in the
market
to meet their deliveries like camaco and
like others that have been
that have had to curtail production you
could see them be buying more
aggressively
towards the end of the year to make sure
that they don't default on any contract
deliveries uh which they can't do so
keep an eye out for that
um one of the other things more focused
in the us
is the rsa the russian suspension
agreement extension
uh we could see again this 20
cap uranium imports from russia to the
us extended out that would be
quite positive for canadian and american
and
australian companies uh the us which
again is still the largest consumer of
uranium globally
with its nuclear fleet uh having to uh
source material uh
continue to source material from allies
like can
then australia and domestically uh so
keep an eye out for that so
there's bottom line is there's there's a
number of kind of key upcoming catalysts
and this major supply deficit that we've
now seen formed
because of the supply disruption due to
the pandemic and due to low prices i
mean you got to remember there was a lot
of
production that went offline over the
last several years simply due to
uh the the low uranium price and we're
still uh
nowhere near the the average all-in
global cost of production
uh so i do see there being more room to
move for this commodity
you know if audience members want to
take a look at mr tremble's pedigree
take a look at our interview back in
october you referenced that there was
going to move there's going to be a move
in the spot price it was 24 at the time
it's gone to mid 30s here you were spot
on
i got to commend you on that that's more
than a 25 move there
and uh you made that call right here on
proven improbable
yeah and i i think it's it's just the
first leg up i uh
i think you could see a much higher
price
come to fruition over the next uh call
it six to twelve months especially as we
see
uh this this supply side response
work its way into the market uh and
again like i said we'll see what happens
in kazakhstan
i think that's key to watch what uh what
happens there what unfolds there
um if they can't ramp back up quickly
much like camaco has had to do in the
last few years there'll be a buyer
in the spot market and then last but not
least uh utility interest we've seen
uh a number of rfps recently uh and
utility interest
uh peaking are poking its head up a bit
and that's key because
uh utility contracting typically uh and
historically
is what really drives the price and we
we haven't seen much of that over the
several years i think uh in the next six
to twelve months you'll see these
utilities enter into new long-term
contracts at much higher prices we know
that the mining companies
uh aren't willing to budge on uh price
given uh that there's been a low spot
price we've had a bit of a stalemate
over the last uh several years with
purchasing managers at utility companies
and
the uranium mining companies but i think
the miners are
are holding the hammer here and
eventually we will see a number
of uh major contracts announced and and
at
much higher prices which will be
positive for the uh
for the sector going forward and what
kind of contract prices are you seeing
right now
well the a number of uh recent contracts
and uh
i mean you do have the long-term
contract price uh it's it's in the
low-to-mid 30s but there are a number of
contracts as
well that they don't disclose the price
on and so uh
there's been a handful of those uh that
uh we can only speculate on what the
price is but
my my guess is you're gonna start seeing
number of contracts signed
at a pretty significant
premium to where the current spot and
term price
is uh we we know that the mining
companies have been reluctant
uh to sign anything less than at less
than forty dollars a pound so
i would expect over the coming months
especially as these utilities need to
shore up supply they need to restock
inventories
you'll see them pay higher prices those
are some
very encouraging numbers in particular
if you're a shareholder of scott harbor
resources
sir in closing multi-layered question
what is the next unanswered question for
sky harbor resources
when can we expect a response and what
determines success
yeah so the big thing for us over the
next three to four months
is the drill program at our flagship
more project
results which will likely be coming out
um
in october and november
and our partner companies as in court
arano
and potentially new partners coming in
their exploration programs over the next
several months and
the resulting news flow from from those
programs and uh
and then as we just covered off uh we'll
see what the uranium price does but
uh as we've talked about previously
there's not many uranium companies left
here play uranium companies laugh so
sky harbor does offer investors exposure
to
a commodity that i think is in the early
innings of a bull market
i'm on record for sharing this with a
number of my subscribers
you know there there's a change
occurring in the natural resource space
as a number of uh the ceos
here are in their last portion of their
tenure and their careers
and we now have to look to the future
and the future is
who is going to be the new young ceo
that has the promise that has the
potential and
i believe we're listening to one right
here in mr jordan trimble
i've shared that with a number of my
subscribers sir i think your
uh you know your outlook here in in this
industry is going to be
a very rewarding one and in particular
for those that have the courage and
conviction
to move forward with you and we
certainly are we're proud shareholders
uh mr tremble if investors want to get
more information about sky harbor
resources
please share the contact details yeah
well i
appreciate that and uh the best way to
get some more information on the company
is to go to the website
www.skyharbourltd.com
i'm very accessible all of our contact
info is on the website so happy to chat
with anyone on the company
mr trimble it's always a pleasure to
have you in sky harbor resources on our
program
wishing you the absolute best sir sky
harbor resources trades on the tsxv
symbol s-y-h and on the otcqb symbol
s-y-h-b-f sky-bird resources is a
sponsor proven
and probable and we are proud
shareholders for the virtues conveyed in
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