An In-Depth Look at Blue Sky Uranium's Current Projects

Argentina has the potential to become a leader in nuclear power following the Paris Accord where it committed to reducing carbon dioxide emissions by 15% by 2030. Meeting these goals will require the country to more than double its nuclear power capabilities from 4% to 10% of its energy mix by 2025. There is one new power plant under construction, two additional ones in planning, and two more under proposal, but no domestic supply of uranium to supply them.

Blue Sky Uranium Corp.(TSXV:BSK; OTC Grey:BKUCF) aims to help the country develop a domestic supply of low-cost uranium to power its nuclear ambitions.

Amarillo Grande Project

Blue Sky Uranium’s initial focus is the 250,000-hectare Amarillo Grande Uranium project located in the Rio Negro Province of Argentina. With a 140-kilometer long mineralization trend, the project offers near-surface uranium mineralization with very good grades and the potential to be upgraded at a low cost. Management believes that the project could be developed into a 15+ million pound uranium resource with a low cost, short lead time, and natural end market.

The project consists of three nearby properties:

• Anit Discovery – A 15-kilometer long and 1.5-kilometer wide new surficial uranium discovery identified by airborne radiometric surveys in 2007. A trenching program found an average of 0.019 to 0.066 percent uranium and 0.057 to 0.105 percent vanadium.

• Santa Barbara Discovery – A discovery made by hand-auger sampling in the area that includes a horizon of bright yellow mineralization with concentrations of 0.01 to 0.06 percent uranium and 0.05 to 0.06 percent vanadium.

• Ivana Discovery – A seven meter by four meter enclosed basin within a 40-kilometer by 10-kilometer basin. Pit sampling found strong near-surface mineralization including 0.75 meters at 1.8 percent uranium.

“We believe that a domestic source of uranium with a low-cost production model has the opportunity to supply Argentina’s growing nuclear industry at highly competitive pricing compared to imported material,” says Blue Sky President & CEO Nikolaos Cacos. “Our Amarillo Grande project, with its near surface mineralization, access to infrastructure, and supportive federal and provincial policies, is an excellent candidate to fulfill that model.”

Currently, the company is delineating mineralization and moving towards a resource estimation with a 3,000 meter RC drill program underway and an additional 7,000 meters planned to prepare for the resource estimation. Intensive metallurgical studies will be conducted on each mineralized rock type to define an optimal leaching process and recovery grades. The company hopes to begin the NI 43-101 resource estimation process by June (see Figure 1).

Figure 1 – 2017 Timeline – Source: Investor Presentation
When it comes time to develop the project, Amarillo Grande has well-maintained gravel roads for year-round access with regional infrastructure for shallow groundwater, power, and rail access, as well as a deep sea port within 200 kilometers of the property. The three properties that comprise the project are also located close enough for an integrated mine and centralized processing plant that could pave the way for a low-cost in-situ mining operation.
Chubut Project
Blue Sky Uranium’s 150,000-hectare Chubut project is a secondary focus with the potential for the discovery of sandstone-hosted uranium deposits located south of Rio Negro in Argentina. The project is located in close proximity to the Argentine National Atomic Energy Commission’s advanced Cerro Solo uranium deposit with similar geological features – including easy-to-mine sandstone deposits and near-surface deposits.
The team took grub samples from outcrops and hand pits at the projects two properties – Sierra Colonia and Tierras Coloradas – and found six samples higher than 0.10 percent uranium or vanadium, including 0.65, 1.55, 0.61, 0.80, 0.53, and 1.32 percent samples. A total of 90 samples were higher than 0.01 percent uranium and 177 samples were lower than 0.01 percent uranium, which suggests strong potential at the site.
Management is currently focused on keeping the property in good standing in anticipation of legislative changes that will open the region for mining development.
Looking Ahead
Blue Sky Uranium Corp. (TSXV:BSK; OTC Grey:BKUCF) is uniquely positioned to capitalize on Argentina’s nuclear ambitions by developing a domestic supply of uranium. With its Amarillo Grande project headed towards a NI 43-101 resource estimate by the second half of 2017, the company has several upcoming catalysts for its business and stock. Investors may want to keep a closer eye on the company as these catalysts approach.
Click here to connect with Blue Sky Uranium (TSXV:BSK) to receive an Investor Presentation.

Source: analysis.secfilings.com