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Following the recently completed placement to sophisticated and institutional shareholders, GTI Energy Ltd (GTI or Company) is pleased to provide an update on the upcoming resource expansion drilling program at the Lo Herma ISR uranium project in Wyoming’s Powder River Basin (PRB). In advance of further news related to progress of the planned drill program at Lo Herma, the following provides a summary of the resource expansion potential and objectives of the 2024 Phase II drilling.
HIGHLIGHTS
- Upcoming Q3 resource drilling is fully funded
- Drilling will target expansion and upgrade of the current Inferred Mineral Resource Estimate of 5.71 Mlbs U3O8 at average 630ppm
- Drilling to commence in the coming weeks - starting late July or early August
- Planned rights entitlement offer to all shareholders on the same terms as the recent placement - details to be provided in due course
As previously advised on 2nd of May 2024, the planned 2024 drilling permit at Lo Herma allows for up to 76 drill hole locations including construction of up to 5 groundwater monitoring wells. This next phase of drilling will focus on expanding the resource areas and where possible, upgrading the current mineral resource classification (Table 1). Collection of important data including, hydrogeologic parameters of the mineralised aquifers and collection of rock core samples for metallurgical testing will be also prioritised. GTI intends to mobilise drilling rigs to Lo Herma as soon as the activity is fully permitted which is anticipated to be during late July or early August 2024.
Following completion of the 2024 drill program at Lo Herma, GTI intends to publish an updated mineral resource estimate and exploration target range for the project. The Company expects that the updated mineral resource estimate will support near-term development of a Scoping Study to demonstrate the economic potential of the project.
GTI Executive Director Bruce Lane commented, “We are pleased and excited to have received investor support and funding to continue moving forward with our planned resource expansion drilling at Lo Herma. Matt and the team in Wyoming have put us in a great position to complete the drilling program this quarter, with a revised mineral resource estimate to be rapidly advanced post-drilling. This work prepares GTI for a potential Lo Herma scoping study which we hope to commence later this year on the basis that we can significantly grow the uranium resource estimate to a similar scale to ISR uranium mines currently being constructed or planned in Wyoming at Ur-Energy’s Shirley Basin project & Encore’s Energy’s Gas Hills project.”
FIGURE 1. GTI WYOMING PROJECT LOCATIONS
LO HERMA GEOLOGIC SUMMARY
The Lo Herma project is located on the southern end of the west flank of the Powder River Basin (PRB), a regional asymmetric synclinal basin hosting a sedimentary rock sequence of about 15,000 feet in the deeper portions of the basin. The basin is bounded by the Bighorn Mountains on the west, the Black Hills to the east, and the Casper Arch, Laramie Mountains, and Hartville Uplift along the southern margin. Along the edges of the basin, progressively older sedimentary units outcrop at the surface as you move away from the synclinal axis of the basin.
The target host geology for Lo Herma project is located in and around the contact of the Eocene Wasatch Formation (Wasatch) and the Paleocene Fort Union Formation (Fort Union).
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GTI Energy
Investor Insight
GTI Energy presents an intriguing opportunity for investors seeking exposure to the uranium sector, given its focus on ISR projects in the US aligning well with macro trends in the nuclear energy industry and geopolitical shifts favouring domestic uranium production.
Overview
GTI Energy (ASX:GTR,OTCQB:GTRIF) is an Australia-based uranium exploration and development company focused on uranium projects in Wyoming, USA, that are amenable for in-situ recovery (ISR). In uranium mining, ISR is the lowest cost and least environmentally damaging form of uranium recovery, especially when an alkaline leach and ion exchange processes are utilised.
The company's flagship Lo Herma project in the Powder River Basin is a sandstone-hosted roll front uranium deposit, which contains a recently updated mineral resource of 8.57 million pounds (Mlbs) of U3O8 at average grade of 630 parts per million (JORC code compliant) with a substantial additional exploration target in the range 6 to 11 Mlbs. GTI also holds projects in the Great Divide Basin (inferred resources of 1.66 Mlbs) and Green Mountain areas of Wyoming, as well as earlier-stage conventional uranium/vanadium assets in Utah. To date, GTI has delineated total combined uranium resources of 10.32 Mlbs (indicated and inferred) and substantial combined exploration targets in the range 12 to 20 Mlbs across its Wyoming projects.
Wyoming’s ISR uranium processing assets and GTI project locations
GTI is positioning itself to take advantage of the worsening uranium supply deficit and rapidly growing demand for uranium, particularly from the United States. The US is currently the world's largest consumer of uranium but currently imports more than 95 percent of its supply. The company's strategy centres on developing low-cost ISR uranium projects in Wyoming, a historically significant uranium producing region with existing infrastructure and a supportive regulatory environment.
The uranium market is experiencing a serious supply deficit and a simultaneous significant demand resurgence driven by several factors:
- Supply constraints due to years of underinvestment in new uranium projects and an overreliance on foreign nuclear fuel supply, particularly from Russia & Kazakhstan.
- Rapidly growing global demand for electricity and clean energy with increasing recognition of nuclear power's role in achieving climate goals.
- Geopolitical tensions leading to an east/west bifurcated uranium market leading to a need for secure domestic uranium supplies, particularly in the US which has banned Russian nuclear fuel imports.
- Technological advancements and significant policy support for nuclear power plant re-starts, gigawatt scale new builds and next-generation nuclear reactors including SMR’s.
In the United States specifically, there is strong bipartisan support for revitalizing the domestic uranium industry. Recent initiatives include the creation of a strategic uranium reserve, US$6 billion in grants for existing nuclear plants, and tax credits for new nuclear facilities under the Inflation Reduction Act. The Department of Energy has also advocated for tripling US nuclear capacity to 300 gigawatts by 2050, which would significantly increase uranium demand. Support for nuclear energy is now underpinned by COP28/29 DOE pledges, demand from data centre companies and 14 of the world’s largest banks.
In the longer term, GTI recognizes the potential benefits of consolidation within the fragmented US uranium sector. The company remains open to strategic partnerships, joint ventures, or even merger and acquisition opportunities that could create a more substantial production base. Such moves could potentially accelerate GTI's path to production, create operational synergies, or provide access to additional high-quality assets, enhancing the company's overall value proposition to investors.
Company Highlights
- GTI Energy is focused on ISR-amenable uranium projects in Wyoming, USA.
- The flagship Lo Herma project in the Powder River Basin contains a recently updated mineral resource of 8.57 Mlbs of U3O8 at average grade of 630 ppm.
- GTI also holds projects in the Great Divide Basin and Green Mountain areas in Wyoming, and earlier-stage uranium-vanadium assets in Utah.
- To date, GTI has delineated total combined uranium resources of 10.32 Mlbs (indicated and inferred) and substantial combined exploration targets in the range 12 to 20 Mlbs across its Wyoming projects.
- Wyoming is a historically significant uranium producing region with existing infrastructure and a supportive regulatory environment.
- GTI is well-placed to take advantage of the worsening uranium supply deficit and rapidly growing demand for uranium, particularly from the United States, the world’s largest consumer of uranium.
Key Projects
Wyoming Uranium Projects
GTI's focus on Wyoming ISR projects positions it well to capitalize on trends in the uranium sector. ISR mining is generally faster to build, lower cost and more environmentally friendly than conventional mining methods. Wyoming has a long history of uranium production and hosts current producers and several more additional permitted processing facilities, potentially allowing for rapid development of new projects.
The potential quantity and grade of Exploration Targets is conceptual in nature and there has been insufficient exploration to estimate a JORC-compliant MRE. It is uncertain if further exploration will result in the estimation of a MRE in the defined exploration target areas. In addition to drilling conducted in 2024, Exploration Targets have been estimated based on historical drill maps, drill hole data, aerial geophysics (as reported during 2023) and drilling by GTI conducted during 2023 to verify the historical drilling information. There are now 954 drill holes in the Lo Herma project area with the drill programs conducted by GTI during 2023 and 2024 designed, in part, to test the Lo Herma Exploration Target.
The Wyoming projects – comprising the Lo Herma, Great Divide Basin and Green Mountain projects – are located in the Powder River and Great Divide Basins.
Lo Herma
The company’s exploration work is currently prioritizing resource development at Lo Herma, where recent drilling has successfully verified the historical Lo Herma drill hole database.
The Lo Herma project, located just 10 miles from Cameco's Smith Ranch-Highland facility (the largest ISR uranium plant in the US), appears particularly promising. Recent drilling results have confirmed and expanded known mineralization, with the potential to significantly increase the resource base.
The company is undertaking an accelerated program at Lo Herma with the primary objective of expanding its resource base. This ongoing initiative aims to grow the known mineralization both along trend and at depth. GTI is exploring in both the Wasatch formation and the deeper Fort Union formation, which both hold the potential to add significant additional mineralization to the project's resource inventory.
Concurrent with resource expansion, GTI is taking crucial steps to de-risk the Lo Herma project. The company is in the process of completing hydrogeologic and water monitoring wells, which are essential for understanding the project's hydrogeology and planning future production scenarios. Furthermore, GTI has collected core samples for metallurgical testing, a critical step in optimizing the ISR process and demonstrating the project's economic viability.
Looking ahead, GTI has set ambitious targets for advancing Lo Herma through key development milestones, including a potential scoping study in 2025. Positive results from these studies could serve as significant catalysts for the company, potentially leading to a material re-rating of the stock as the project's economic potential becomes clearer.
Great Divide Basin and Green Mountain
The company continues to advance its other Wyoming projects, including those in the Great Divide Basin and Green Mountain areas. Exploration at Green Mountain can commence in 2025 now that the necessary permits are in place, providing potential for additional resource growth and diversification of the company's asset base. Permits are also in place for future drilling at the company’s Great Divide Basin and Utah projects.
The Great Divide Basin project consists of the Thor, Logray, Loki, Odin, Teebo, Wicket and Green Mountain claims. The approximately 13,000-hectare group of projects is prospective for ISR-amenable sandstone-hosted roll-front uranium. The Wyoming projects are situated 5 to 30 kilometers from Ur-Energy’s Lost Creek ISR plant. The projects are also located near Rio Tinto’s Sweetwater/Kennecott Mill.
GTI Energy’s landholding in the Great Divide Basin was bolstered by the acquisition of the Green Mountain project comprising 5,585 hectares of contiguous ISR uranium exploration claims which abuts the Rio Tinto claims at Green Mountain. Historical drill data and geophysics confirm the presence of major uranium mineralisation at the projects.
Green Mountain lies immediately adjacent to the Great Divide Basin project and adjacent to Energy Fuel’s 30 Mlb Sheep Mountain, Ur-Energy’s Lost Soldier, Rio Tinto’s Jackpot & UEC’s Antelope deposits. Green Mountain contains a number of uranium mineralised roll fronts hosted in the fertile Battle Springs formation.
Utah
Henry Mountains Uranium Project
Exploration at Henry Mountains has focused on approximately 5 kms of mineralised trend that extends between the Rat Nest & Jeffrey claim groups and includes the Section 36 state lease block. Uranium and vanadium mineralisation in this location is generally shallow at 20 to 30 meters average depth. The region forms part of the prolific Colorado Plateau uranium province which historically provided the most important uranium resources in the USA. Sandstone-hosted ores have been mined in the region since 1904 and the mining region has historically produced in excess of 17.5 Mt @ 2,400 ppm U3O8 (92 Mlbs U3O8) and 12,500 ppm V2O5 (482 Mlbs V2O5).
Management Team
Bruce Lane - Executive Director
Bruce Lane has significant experience with ASX-listed and large industrial companies. Lane has held management positions in many global blue-chip companies as well as resource companies and startups in New Zealand, Europe and Australia. He holds a master’s degree from London Business School and is a graduate member of the Australian Institute of Company Directors. Lane has led a number of successful acquisitions, fund raising and exploration programs of uranium and other minerals projects during the last 20 years, most notably with ASX listed companies Atom Energy, Stonehenge Metals and Fenix Resources (FEX).
Matt Hartmann - Director
ISR uranium specialist Matt Hartmann is an executive and technical leader with more than 20 years of international experience and substantial uranium exploration and project development experience. He first entered the uranium mining space in 2005 and followed a career path that has included senior technical roles with Strathmore Minerals and Uranium Resources. He is also a former principal consultant at SRK Consulting where he provided advisory services to explorers, producers and prospective uranium investors. Hartmann’s ISR uranium experience has brought him through the entire cycle of the business, from exploration, project studies and development, to production and well field reclamation. He has provided technical and managerial expertise to a large number of uranium ISR projects across the US including, Smith Ranch – Highland ISR Uranium Mine (Cameco), Rosita ISR Uranium Central Processing Plant and Wellfield (currently held by enCore Energy), the Churchrock ISR Uranium project (currently held by Laramide Resources), and the Dewey-Burdock ISR Uranium project (currently held by enCore Energy).
Simon Williamson - Non-executive Director
Simon Williamson was general manager and director of Cameco Australia until late 2023 and has significant uranium industry experience, networks and skills from his 13 years at Cameco. During his tenure with Cameco, Williamson managed relations with key government ministers and departments and community stakeholders. He managed project approvals processes, including negotiations with State and Federal agencies and reviewing the PFS for the Yeelirrie project.
Williamson was intimately involved in obtaining environmental approval for the Kintyre and Yeelirrie uranium projects, including developing and implementing a program of environmental baseline studies, government and community consultation and negotiating land access. Prior to his appointment as general manager, he led the government and regulatory affairs, environmental and radiation safety activities of Cameco in Australia.
James (Jim) Baughman - Executive Director
James Baughman is a highly experienced Wyoming uranium geologist and corporate executive who will help guide the company’s technical and commercial activities in the US. Baughman is the former president and CEO of High Plains Uranium (sold for US$55 million in 2006 to Uranium One) and Cyclone Uranium.
Baughman has more than 30 years of experience advancing minerals projects from grassroots to advanced stage. He has held senior positions (i.e., chief geologist, chairman, president, acting CFO, COO) in private and publicly traded mining & mineral exploration companies during his 30-year career.
He is a registered member of the Society of Mining, Metallurgy, Exploration and a member of the Society of Economic Geologists with a BSc in geology (1983 University of Wyoming) and is a registered professional geologist (P. Geo State of Wyoming). Baughman is a registered member of the Society of Mining, Metallurgy, and Exploration (SME) and a qualified person (QP) on the Toronto Stock Exchange (TSX) and Australian Stock Exchange (ASX).
Petar Tomasevic - Non-executive Director
Petar Tomasevic is the managing director of Vert Capital, a financial services company specializing in mineral acquisition and asset implementation. He has worked with several ASX-listed companies in marketing and investor relations roles. Tomasevic is fluent in five languages. He is currently appointed as a French and Balkans language specialist to assist in project evaluation for ASX-listed junior explorers. Most recently, he was a director at Fenix Resources (ASX:FEX), which is now moving into the production phase. He was involved in the company’s restructuring when it was known as Emergent Resources. Tomasevic was also involved in the company’s Iron Ridge asset acquisition, the RTO financing, and the development phase of Fenix’s Iron Ridge project.
Disrupting the uranium supply chain through highly prospective ISR projects in Wyoming
Greenvale Energy: Strategic Exploration of Prospective Uranium Assets in Queensland, Northern Territory
Greenvale Energy (ASX:GRV) provides investors with a compelling entry point into the high-growth nuclear energy sector through its highly prospective uranium exploration projects. These are complemented by strategic assets with significant bitumen and renewable geothermal energy potential—all backed by a seasoned management team with a strong track record of delivering shareholder value.
Greenvale is building a diversified portfolio of projects aimed at advancing a sustainable, low-carbon energy future. The company’s assets include early-stage uranium projects in the Northern Territory, the advanced-stage Oasis uranium project in Queensland, and the Alpha Torbanite and Millungera Basin geothermal projects, also in Queensland.
The Alpha Torbanite Project presents a strategic opportunity for Greenvale Energy to support Australia’s infrastructure sector by providing a domestic source of bitumen—a critical material currently supplied entirely through imports. The project hosts a significant Inferred Resource of 28 million tonnes of torbanite and cannel coal, positioning Greenvale to potentially secure a meaningful share of the national bitumen market, which is estimated at around 1 million tonnes annually.
Company Highlights
- Uranium exploration portfolio across the Northern Territory and Queensland
- Advanced-exploration, high-grade Oasis project with intercepts up to 0.72 percent U3O8 (15.8 lbs/ton)
- Strategic coverage of the Northern Territory, with four uranium projects targeting sandstone hosted and unconformity style deposits
- Alpha Torbanite project with 28 Mt inferred resource, positioned to be the only local producer that can supply Australia’s bitumen market (consuming ~1 Mt annually through 100% imported material)
- Millungera Basin geothermal project with potential for 3.4 GW continuous power generation
- Experienced board and management team, Chaired by Neil Biddle, founding director of Pilbara Minerals
- Substantial R&D grant support for the Alpha Torbanite project, having successfully secured over $3 million in non-dilutive grant funding
- Projects aligned to the long-term zero-carbon energy transition
This Greenvale Energy's profile is part of a paid investor education campaign.*
Click here to connect with Greenvale Energy (ASX:GRV) to receive an Investor Presentation
Greenvale Energy
Investor Insight
Greenvale Energy offers investors exposure to the high-growth nuclear energy sector through its highly prospective uranium projects, complemented by strategic assets with high-value bitumen and renewable geothermal energy potential, all managed by an experienced team with a proven track record of shareholder value creation.
Company Highlights
- Uranium exploration portfolio across the Northern Territory and Queensland
- Advanced-exploration, high-grade Oasis project with intercepts up to 0.72 percent U3O8 (15.8 lbs/ton)
- Strategic coverage of the Northern Territory, with four uranium projects targeting sandstone hosted and unconformity style deposits
- Alpha Torbanite project with 28 Mt inferred resource, positioned to be the only local producer that can supply Australia’s bitumen market (consuming ~1 Mt annually through 100 percent imported material)
- Millungera Basin geothermal project with potential for 3.4 GW continuous power generation
- Experienced board and management team, Chaired by Neil Biddle, founding director of Pilbara Minerals
- Substantial R&D grant support for the Alpha Torbanite project, having successfully secured over $3 million in non-dilutive grant funding
- Projects aligned to the long-term zero-carbon energy transition
Overview
Greenvale Energy (ASX:GRV) is an ASX-listed exploration company with a portfolio of projects that will support a sustainable, low-carbon future. The Company has early-stage uranium exploration projects in the Northern Territory, the Oasis advanced-exploration project in Queensland and the Alpha Torbanite and Millungera Basin geothermal projects in Queensland. The Company believes the best way to create long-term shareholder value is by investing in exploration, to make discoveries and grow its resource-base.
The company's uranium projects in Queensland and the Northern Territory are particularly significant as global nuclear energy demand accelerates. With nuclear power projected to grow 300 percent by 2050, with nuclear power forecast to supply 30 percent of global power demand, Greenvale is positioned perfectly to leverage the expanding and globally-significant market opportunity. Major technology companies including Amazon, Google and Meta have committed to supporting the goal of tripling global nuclear capacity by 2050, further validating the sector's growth trajectory.Greenvale's portfolio includes the promising Oasis uranium project with high-grade intercepts up to 0.72 percent U3O8, four uranium projects across the Northern Territory, the Alpha Torbanite project, and the Millungera geothermal project in Queensland.
Key Projects
Uranium Projects
Oasis Project (Queensland)
The Oasis project is an advanced-exploration Project, featuring exceptional high-grade intercepts up to 0.72 percent U3O8 (15.8 lbs/ton). Originally discovered in 1973, the deposit has seen sporadic exploration including significant work by Esso in 1978/79. The project area contains extensive radiometric anomalies with multiple faults and fractures controlling the distribution of uranium mineralization.
Greenvale has developed a comprehensive work program for Oasis, beginning with regional geological field prospecting and reconnaissance, followed geophysical and geochemical surveys across the Oasis prospect and regional areas. These preliminary works are key to develop and refine targets for Greenvale’s planned maiden drill program at Oasis.
Northern Territory Uranium Projects
Greenvale has four strategic uranium projects in the Northern Territory: Jindare project in Douglas River, Henbury, Elkedra and Tobermorey. These projects target sandstone hosted and unconformity style uranium mineralization, with particular focus on areas where uranium-bearing waters may interact with hydrocarbons, creating optimal conditions for uranium deposition. The geology of these assets is similar to uranium deposits in Kazakhstan, the world’s leading producer of uranium.
The Henbury project is particularly noteworthy, located on the edge of the Amadeus Basin, a major hydrocarbon basin in the Northern Territory. Following research from Geoscience Australia, Greenvale is targeting areas at the margins of hydrocarbon cap-rocks near active structures, which represent prime locations for uranium mineralization.
Alpha Torbanite Project
The Alpha Torbanite Project represents a unique opportunity to supply Australia's infrastructure sector with domestically-produced bitumen. The project features a substantial 28 Mt inferred resource of torbanite and cannel coal, positioning Greenvale to potentially capture a significant share of Australia's annual bitumen consumption (currently assessed as approximately 1 Mt all serviced through material imported from overseas).
Torbanite is a rare type of oil shale containing exceptionally high concentrations of algal-derived hydrocarbons that can be processed to produce high-quality bitumen products. This natural conversion capability makes torbanite deposits like Alpha particularly valuable for infrastructure applications as they can yield bitumen substitutes with properties comparable to petroleum-derived products.
To date, the company has been able to secure over $3 million in non-dilutive R&D grant funding to support project development.. The Company's test program continues to show improved results, with test program 7 planned to produce a bulk sample for certification. Certification will underpin the progression of feasibility studies that will define the full economic potential of the project.
Queensland Geothermal Project
Greenvale's Millungera Basin geothermal project targets one of Australia's most prospective areas for geothermal energy. The basin contains the hottest rock formations in Queensland, with a total identified stored thermal energy potential exceeding 611,000 PJ (at 90 percent probability). Technical reports indicate the potential for an estimated annual electricity generation of 29,621 GWh from inferred resource areas, with capacity to produce 3.4 GW continuously.
Management Team
Neil Biddle - Executive Chairman
A geologist with over 40 years' experience in exploration and mining, Neil Biddle was a founding director of Pilbara Minerals, where he oversaw the acquisition, exploration and development of the world-class Pilgangoora lithium project. His extensive industry experience provides Greenvale with strong leadership and strategic direction.
Alex Cheeseman - Chief Executive Officer
A highly experienced Australian resources executive, Alex Cheeseman has over 20 years’ experience in operational leadership and project development across a range of industries. He has held general manager and CEO-level roles in a number of ASX-listed exploration and mining companies with experience in a range of commodities including iron ore, lithium and base metals. He has a demonstrated track record of success in resource project development, capital markets, corporate development and commodity marketing.
Elias Khouri - Non-executive Director
Bringing extensive experience in equity capital markets, Elias Khouri offers expertise in corporate finance, advisory, capital raisings and joint venture negotiations, enhancing the company's financial and strategic capabilities.
John Barr - Non-executive Director
John Barr is a chartered accountant with more than 25 years of experience as a company director. He was a founding director of Mosman Oil and Gas. His extensive Australian and international experience spans manufacturing, mining and oil and gas industries.
Peter Harding-Smith - Chief Financial Officer & Company Secretary
Peter Harding-Smith brings extensive experience in company financial reporting, corporate regulatory and governance areas, business acquisition and disposal due diligence, capital raising, and company secretarial responsibilities.
Zoe Stackhouse - Exploration Manager
Zoe Stackhouse is a geologist with 20 years' experience in unconventional gas exploration and production. Stackhouse also serves as secretary of the Australian Geothermal Association, bringing specialized expertise to Greenvale's geothermal initiatives.
Mark Turner - Technical Consultant (Alpha Project)
An engineer with over 25 years' experience in the energy sector, Mark Turner has a proven track record of major project delivery across oil & gas, water, power, renewables and nuclear projects.
Blue Sky Uranium: Argentina’s Emerging Uranium Resource Developer
Blue Sky Uranium (TSXV:BSK,OTC:BKUCF)provides investors with a compelling opportunity to gain exposure to the uranium market through its strategic foothold in Argentina’s emerging uranium sector. Backed by a substantial resource base, robust project economics, and a strong joint venture partnership, the company has a clear pathway to potential production.
Blue Sky Uranium is positioning itself as a leading force in uranium exploration and development in Argentina. As part of the renowned Grosso Group—pioneers in Argentine mineral exploration since 1993 and contributors to four major mineral discoveries—Blue Sky leverages decades of in-country expertise and well-established local partnerships.
The company’s flagship Amarillo Grande Project is a unique, company-led discovery marking Argentina’s newest uranium-vanadium district. Spanning over 145 kilometers and covering more than 300,000 hectares in Rio Negro Province, this district-scale project hosts the largest NI 43-101-compliant uranium resource in Argentina at its Ivana deposit. With this strategic asset, Blue Sky is well-positioned to become the country’s first domestic uranium supplier, supporting a growing nuclear energy program that currently relies entirely on imported fuel.
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.
This Blue Sky Uranium profile is part of a paid investor education campaign.*
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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.
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