Canadian explorer Skyharbour Resources has entered into an option agreement with Rio Tinto Exploration Canada (RTEC) to acquire up to 100% of the Russell Lake uranium project, which is situated between the company’s Moore Uranium project and Denison Mines’ Wheeler River project in the Athabasca basin of Saskatchewan.

The project is a premier, advanced-stage exploration property given its large size, proximity to critical regional infrastructure, and the significant amount of historical exploration carried out on the property, which has identified numerous prospective target areas and several high-grade uranium showings, as well as drill hole intercepts.

Skyharbour points out that the property is centrally located between Cameco’s Key Lake mill to the south and McArthur River mine to the north.

“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,” says president and CEO Jordan Trimble.

“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.”

Skyharbour, as operator, can earn an initial 51% interest in the property by paying C$$508 200 in cash, issuing 3.58-million common shares to RTEC, and funding C$5.72-million in exploration on the project, inclusive of a 10% management fee to Skyharbour, over a period of three years.

Skyharbour has a second option to earn an additional 19% interest for a total of 70%, and a further possible option to obtain the remaining 30% interest in the project for an undivided 100% ownership interest.

The property has been the subject of significant historical exploration efforts including more than 95 000 m of drilling in over 220 drill holes. This 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 mineralisation.