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Australian Rare Earths Limited (ASX: AR3) is pleased to announce highly encouraging results from its ongoing exploration drilling program at the Overland Uranium Project.
Highlights:
- New shallow Uranium occurrence identified: Drill hole OV047 encountered a 6 meter interval of carbonate-cemented sediments from 27 meters, with anomalous gamma and pXRF uranium readings.
- Potential for the presence of an additional uranium model: Hole OVO47 demonstrates potential for near-surface, calcrete-hosted mineralisation (see Figure 1) - similar to uranium deposits1 mined in Namibia2 - in addition to AR3’s initial palaeochannel hosted ISR amenable uranium deposit targets.
- Accelerated follow-up drilling: Drilling program will re-commence in the week beginning 10 March 2025 to follow up the shallow uranium occurrence intersected in hole OV047.
- Rapid assay and minerology analysis: Samples generated from hole OV047 are being prioritised for assay and mineralogical determinations.
- Palaeovalley extension confirmed with multiple Uranium targets: Drilling has successfully defined the southern extension of a key palaeovalley within the southern portion of EL7001 and extending into EL6678 (See Figure 2).
- Engage with this announcement at the AR3 investor hub.
AR3 Managing Director and CEO, Travis Beinke, said:
“The intersection of a shallow uranium occurrence in OV047 is a significant step forward in our exploration program at Overland. The identification of shallow mineralisation, coupled with the confirmation of the palaeovalley's southern extension, underscores and reinforces the - potential of this project.
Our systematic approach to exploration and targeted drilling, continues to deliver results. We are excited to accelerate our follow up drilling to further delineate the extent of this new uranium occurrence and test the numerous high-priority targets we have identified. We look forward to reporting further results as we continue our drilling program through to the end of April."
Figure 1: Strip log displaying drillhole OV047 lithology, natural gamma responses (cps) and pXRF uranium responses (ppm U). In relation to the disclosure of pXRF results, the Company cautions that estimates of uranium elemental abundance from pXRF results should not be considered a proxy for quantitative analysis of a laboratory assay result. Assay results are required to determine the actual widths and grade of the mineralisation. The company uses an Olympus Vanta M Series portable X-ray Fluorescence (pXRF) analyzer to screen Air Core drilling samples for mineralization prior to submitting samples to a commercial laboratory for assay. This provides an initial understanding of the mineralization distribution before sampling, ensuring submitted samples are representative of the targeted mineralization. While pXRF confirms the presence of mineralization, it does not accurately determine elemental concentrations due to limitations such as a small analysis window, uneven distribution, shallow penetration depth, and irregular surfaces. The pXRF results are indicative and the pXRF readings are subject to confirmation by chemical analysis from an independent laboratory.
The 2025 program, which began 30 January 2025, has focused on mapping the newly defined palaeovalley (refer ASX release 21 January 2025) further south within EL7001 and onto the Sheer Gold Farm-In tenure, EL66783. A total of 22 drillholes has been completed, totaling 3,010 meters, illustrated in Figure 2.
Target 1 of EL6678, drillhole OV047 has intersected a 6 meter interval containing anomalous gamma and pXRF Uranium (U) responses. Gamma responses peaked at 741 counts per second (cps), with maximum pXRF uranium response of 105ppm U. This surficial uranium occurrence is similar to uranium mineralisation found in Namibia’s surficial uranium deposits, like Paladin Energy’s Langer Heinrich Mine. Similar calcrete-hosted deposits are also found in Western Australia4 at Cameco Corporation’s Yeelirrie deposit and Toro Energy’s Wiluna project.
The identification of another potential uranium occurrence model at Overland highlights the region’s fertility, where uranium in solution enters the basin and is captured at various geochemical interfaces within the sedimentary sequences. Drillhole OV047 shows anomalous uranium responses over a 6 meter interval from 27 meters and displayed the highest gamma response yet seen at the base of oxidation interface with reduced sediments. These findings suggest potential for both deeper palaeochannel hosted, in-situ recoverable (ISR) deposits and shallow surficial deposits in this setting.
Click here for the full ASX Release
This article includes content from Australian Rare Earths, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Blue Sky Uranium
Investor Insight
Blue Sky Uranium offers investors an entry into the uranium market via its strategic position in Argentina's uranium sector, significant resource base, favorable project economics, and strong joint venture partnership providing a clear path to potential production without dilutive financing requirements.
Company Overview
Blue Sky Uranium (TSV:BSK,OTC:BKUCF) is emerging as a frontrunner in uranium exploration and development in Argentina. As a member of the Grosso Group, which has pioneered resource exploration in Argentina since 1993 and been involved in four major mineral discoveries, Blue Sky benefits from deep regional expertise and established relationships.
The company's flagship Amarillo Grande Project represents an in-house discovery of Argentina's newest uranium-vanadium district. This district-scale project spans 145 kilometers and encompasses more than 300,000 hectares of mineral rights in Rio Negro Province. With the largest NI 43-101 compliant uranium resource in Argentina at its Ivana deposit, Blue Sky is strategically positioned to potentially become the first domestic supplier to Argentina's growing nuclear industry, which currently imports all its uranium fuel.
As global uranium markets experience their strongest fundamentals in over a decade, Blue Sky is positioned to leverage this growing trend. Global demand for uranium is projected to outpace supply, with a significant supply deficit forecast in the coming years. This supply-demand imbalance is being driven by the re-emergence of nuclear energy as a critical component in the global transition to cleaner energy sources. Concerns about energy security, particularly in Europe, combined with nuclear energy's ability to provide reliable baseload power with zero carbon emissions, have led to policy shifts favoring nuclear energy expansion in many countries. This renaissance is reflected in uranium prices, which have surged from lows of around $20/lb in recent years to more than $80/lb in 2024, with contracts and spot prices showing sustained strength.
Beyond Amarillo Grande, Blue Sky is expanding its portfolio with projects in the Neuquen Basin targeting uranium deposits amenable to in-situ recovery (ISR) methods, further diversifying its growth potential in line with these positive market trends.
Company Highlights
- Significant Uranium Resource: Controls the largest NI 43-101 compliant uranium resource in Argentina with 17 Mlbs U3O8 in indicated resources and 3.8 Mlbs in inferred resources, plus valuable vanadium credits.
- Positive Economics: 2024 PEA shows robust economics with after-tax NPV8 percent of US$227.7 million and 38.9 percent IRR at base case uranium price of US$75/lb.
- Low-cost Production Potential: Near-surface mineralization with no blasting required, hosted in loosely consolidated sediments, making for potentially low mining costs.
- Strategic JV Partnership: Secured an earn-in agreement with COAM to advance the Ivana deposit with no funding required by Blue Sky through development. COAM will spend up to US$35 million to earn up to a 49.9 percent interest, and can further earn up to 80 percent by funding development costs to production (up to US$160 million).
- Strong Uranium Market Fundamentals: Global uranium market faces supply deficits with increasing demand from nuclear power generation, with prices strengthening significantly since 2023.
- Domestic Market Opportunity: Argentina has three operational nuclear plants with others under construction or planned, yet imports all uranium for fuel. National legislation guarantees purchase of domestically produced uranium.
- ISR Project Pipeline: New projects in the Neuquen Basin provide future growth through potential in-situ recovery operations, a method that produces 57 percent of the world's uranium with minimal environmental impact.
Key Projects
Amarillo Grande Project (Flagship)
The Amarillo Grande project, located in Rio Negro Province, represents Blue Sky's cornerstone asset and a district-scale opportunity in Argentina's uranium sector. Spanning 145 kilometers and covering approximately 300,000 hectares, this project encompasses three main property areas: Ivana, Anit and Santa Barbara. Each area contributes to the project's significant potential as an emerging uranium-vanadium district.
Ivana
The Ivana property hosts the project's flagship Ivana deposit, the crown jewel of Blue Sky's portfolio and the largest NI 43-101-compliant uranium resource in Argentina. Located in the southern portion of the Amarillo Grande project, the deposit features a 5-kilometer-long arcuate mineralized corridor with a high-grade core that ranges from 200 to over 500 meters in width and reaches up to 23 meters in thickness.
The deposit's resource estimate, updated in February 2024, includes 19.7 million tons (Mt) of indicated resources grading 333 parts per million (ppm) uranium and 105 ppm vanadium, containing approximately 17 million pounds (Mlbs) of U3O8 and 8.1 Mlbs of V2O5. Additionally, the deposit hosts 5.6 Mt of inferred resources grading 262 ppm uranium and 109 ppm vanadium, containing approximately 3.8 Mlbs of U3O8 and 2.4 Mlbs of V2O5. Importantly, about 80 percent of the current resource is classified in the higher-confidence indicated category, providing a solid foundation for economic studies and development planning.
The Ivana deposit’s near-surface mineralization makes it ideal for low-cost mining, as no drilling, blasting or crushing would be required for resource extraction. The deposit's location in a semi-desert region with low population density, minimal environmental risks, and good accessibility further enhances its development potential.
The 2024 preliminary economic assessment (PEA) for the Ivana deposit demonstrates compelling returns, with an after-tax NPV (8 percent discount) of US$227.7 million and an IRR of 38.9 percent at a base case uranium price of US$75/lb. At a spot case price of US$105/lb, these figures improve dramatically to an NPV of US$418.3 million and an IRR of 57 percent. The initial capital cost of US$159.7 million (including contingency) is modest relative to the project's scale, with a payback period of just 1.9 years at the base case price. Operating costs are also favorable, with average life-of-mine all-in sustaining costs of US$24.95/lb U3O8 (net of vanadium credits), positioning Ivana in the lower half of the global cost curve.
Advancement of the Ivana deposit has accelerated through a strategic joint venture. Strategic partner Abatare Spain SLU (COAM) is part of the Corporación América Group which has major stakes in the energy, airport, agribusiness, services, infrastructure, transportation, and technology sectors, with assets and operations in Argentina and 10 other countries. The partners have established a new operating company, Ivana Minerales S.A. (JVCO). Under the agreement COAM will spend up to US$35 million within 36 months to earn up to 49.9 percent indirect interest in Ivana. Furthermore, following the completion of a feasibility study, COAM can earn up to 80 percent by funding the costs and expenditures to develop and construct the project to commercial production. In addition, JVCO has the option to explore and acquire several exploration targets neighbouring Ivana.
Anit
The Anit property located north of Ivana, features a remarkable 15-kilometer airborne radiometric anomaly with extensive surface uranium and vanadium mineralization. Historical drilling along a 5.5-kilometer stretch averaged 2.6 meters at 0.03 percent U3O8 and 0.075 percent V2O5, indicating significant mineralization potential throughout the property. Blue Sky retains 100 percent control of this area, providing substantial upside beyond the Ivana deposit that is currently the focus of the COAM joint venture.
Santa Barbara
The Santa Barbara property represents the company's initial uranium discovery in the Rio Negro basin, made in 2006. This property exhibits widespread uranium and vanadium mineralization along an 11-kilometer surface trend. While exploration here is less advanced than at Ivana, the geological similarities and surface indicators suggest potential for both near-surface mineralization and deeper blind deposits that could be identified through future exploration campaigns.
ISR Projects
Blue Sky has strategically expanded its uranium project portfolio beyond Amarillo Grande with two new projects in the Neuquen Basin that target uranium deposits potentially amenable to in-situ recovery (ISR) methods. This approach to uranium extraction involves dissolving minerals in place using fluids that are then pumped to surface for processing, resulting in minimal surface disturbance and no tailings or waste rock generation. Globally, ISR methods account for approximately 57 percent of world uranium production.
Chihuidos Project
The 100 percent-controlled Chihuidos project encompasses 60,000 hectares with geological characteristics similar to productive ISR uranium operations elsewhere in the world. Blue Sky benefits from access to historical borehole and seismic data collected during previous oil and gas exploration in the region, allowing for more efficient target identification.
Corcovo Project
The Corcovo project adds another 20,000 hectares of prospective ground under option to Blue Sky. Like Chihuidos, the company is leveraging existing geological data to identify high-priority targets while advancing the permitting process for field exploration. These ISR projects represent significant growth opportunities for Blue Sky beyond its flagship Amarillo Grande Project.
San Jorge Basin Projects
Blue Sky has also secured strategic positions in the San Jorge Basin: the Sierra Colonia and Tierras Coloradas projects. While less advanced than the Amarillo Grande project, these properties have been selected based on favorable geological characteristics and historical indicators of uranium mineralization. The company is applying the exploration model and expertise developed at Amarillo Grande to efficiently evaluate and advance these new prospects. These projects represent Blue Sky's commitment to building a diverse portfolio of uranium assets across Argentina while maintaining focus on near-term development priorities at Ivana.
Management Team
Joseph Grosso – Chairman and Director
Founder of Grosso Group Management, Joseph Grosso has been a pioneer in Argentina's exploration and mining sector since 1993. He was involved in multiple major discoveries in Argentina, including the Gualcamayo gold mine, Navidad silver project, and Chinchillas silver-lead-zinc mine.
Nikolaos Cacos – President and CEO, Director
Nikolaos Cacos is one of the company's founders with over 30 years of management experience in mineral exploration. He has extensive expertise in strategic planning and administration of public resource companies.
David Terry – Technical Advisor and Director
David Terry is a professional economic geologist with over 30 years in the resource sector. He has extensive experience in exploration, development and project management in the mining industry.
Pompeyo Gallardo – VP Corporate Development
Pompeyo Gallardo brings 29 years of experience in corporate finance, with strengths in budgeting and control, project structuring, project financing, and financial modeling and analysis.
Martin Burian – Director
With over 30 years in investment banking to the mining sector, Martin Burian currently serves as managing director at RCI Capital Group.
Darren Urquhart – CFO
A chartered professional accountant, Darren Urquhart has 20 years of experience in public practice and industry.
Connie Norman – Corporate Secretary
Connie Norman has extensive experience in corporate secretarial and regulatory compliance services for public companies.
Guillermo Pensado – Technical Consultant
Guillermo Pensado is a geologist with extensive experience in the mining sector. He is now focused on the Ivana JV operations.
Luis Leandro Rivera – General Manager (JVCO)
Recently appointed to lead the Ivana joint venture company, Luis Leandro Rivera brings 30 years of experience in all facets of mining from exploration to operations, including most recently serving as senior vice-president of the Latin American region for AngloGold Ashanti, where he oversaw management of four mines in two countries.
