Blue Sky Uranium Corp. (BSK.V)

Click banner to go directly to official company website

Company description

Blue Sky Uranium is an exploration and development company, focusing on its uranium and vanadium exploration efforts on southern Argentina, with 100% control of more than 450,000 hectares of mining tenures in the Rio Negro and Chubut provinces. The company is a member of the Grosso Group, a resource management group that has successfully pioneered exploration in Argentina since 1993. In the province of Rio Negro, broad support and experience with the nuclear energy industry can be found. The province has a research nuclear reactor and a heavy water fuel plant and provides plenty of incentives to the mining industry for uranium.

The company believes that the region is underexplored, with excellent exploration potential for discovery of near-surface uranium and vanadium resources with rapid, low-cost development potential. The company’s Amarillo Grande Uranium-Vanadium Project in Rio Negro includes the Ivana deposit, a sandstone hosted uranium deposit, with the same geological model as for example the very large deposits currently mined in Kazakhstan. These type of deposits account for over 60% of current worldwide uranium production. Amarillo Grande is a district-scale uranium project and includes the flagship Ivana deposit, containing the country’s largest NI 43-101 resource estimate for uranium, with a significant vanadium credit.

The Ivana group of properties covers over 118,000 hectares north of Valcheta City in Rio Negro Province. It is the southernmost property along the 145 kilometre NW-SE trend that contains the Ivana deposit, a series of airborne radiometric anomalies and surface uranium showings, which represent future exploration targets. The project has year-round access through a well-maintained gravel road network, in an area of very low population density.The project is in a semi-arid topographical depression, close to 100m below the elevation of Valcheta City, with low rainfall, and within a closed hydrologic system.

The Ivana deposit has the following highlights:

  • It hosts the largest NI 43-101 compliant uranium resource in Argentina: near surface deposit with a current Inferred mineral resource of 22.7 M lbs of U3O8 and 11.5 M lbs V2O5 (28.0 Mt averaging 0.037% U3O8 & 0.019% V2O5 at a 0.01% uranium cut-off)
  • Hosted by loosely consolidated sediments from surface to 24 metres depth; cost effective to explore, suitable for mining via open-pit methods
  • Oxidized uranium-vanadium mineralization amenable to upgrading by simple wet scrubbing and screening and alkaline leach processing
  • The initial Preliminary Economic Assessment (PEA) dated February 27, 2019 showed positive economics, at base case US$50/lbs U3O8 and US$15/lb V2O5 the post-tax NPV8 is US$135.2M, IRR is 29.3% and capex is US$128.05M
  • The Ivana deposit remains open for expansion & additional near deposit (or brownfield) exploration resource potential exists in the Ivana area

Blue Sky Uranium also has numerous projects in the Chubut province. Situated directly south of Rio Negro, Chubut hosts several known uranium deposits, however, none are currently in production and the provincial government has enacted restrictions against open-pit mining. The company’s projects in this area, Sierra Colonia, Tierras Coloradas, Regalo and Cerro Parva, comprising more than 150,000 hectares of 100% controlled mining properties, are located in similar geologic environments to CNEA’s (National Commission of Atomic Energy of Argentina) Cerro Solo uranium deposit, hosting 15.4M lbs U3O8 @ 0.30% (which should be considered a historic or non 43-101 compliant resource).

The company is in the process of raising C$5,46M in an oversubscribed financing, which is expected to close in January 2021. The common share price is C$0.13, the full warrant is exercisable at C$0.25 3 years from the date of issue. The full treasury will be used for exploration programs on their projects in the Rio Negro Province, advance most of the current deposit to Measured and Indicated but also expand it, the potential initiation of a Preliminary Feasibility Study (PFS), and for general working capital.   

Share price Blue Sky Uranium Corp: