Blue Sky Uranium Commences Drilling in Rio Negro Province, Argentina
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Blue Sky Uranium Corp. (TSX-V: BSK, FRA: MAL (WKN: A0MKXP), "Blue Sky" or the "Company") is pleased to announce that drilling is underway on the Company's IVANA project in Rio Negro Province, Argentina. A ground based geophysical program is also underway along with a Phase I, 9 drill hole 2,000 meter program. These exploration programs are fully funded by AREVA Mines as part their exploration partnership with Blue Sky Uranium.
Drilling at the IVANA project is targeting roll-front uranium mineralization at a depth up to 400 meters. The diamond drill program will target uranium mineralization associated with the "Bajo de Valcheta" Basin, an interpreted large fault-controlled "half-graben" filled with "red bed" type fluviatile sediments which are believed to be part of the Upper Cretaceous Neuquen Group. The "Bajo de Valcheta" Basin is a large (60 x 12 km) interpreted enclosed half-graben structure filled with Cretaceous clastic fluviatile sediments. A small salar (playa lake) occupies the lower (eastern) end of the area. Carnotite mineralization was encountered in some of the hand pits within the basin.
The Company and AREVA Mines have recently amended the terms of the MOU dated December 20, 2011. To maintain the Option in good standing AREVA must complete Phase 2 work by December 31, 2013, with a minimum expenditure of CDN $2 million. Upon the completion of Phase 2 work AREVA should elect to proceed with one or two properties. If two projects are selected AREVA must incur a minimum Phase 3 expenditure of CDN $4 million and if only one project is selected a minimum Phase 3 expenditure of CDN $3 million. Phase 3 work must be completed no later than December 31, 2017. Upon the completion of the Phase 3 program AREVA will have earned a 51% interest in the selected project(s).
Blue Sky is pleased to announce a non-brokered private placement financing of 10,000,000 units at a price of $0.05 per unit for gross proceeds of $500,000. Each unit will consist of one common share and one transferable common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company at a price of $0.10 per share for two years from the date of issue. This financing is subject to regulatory approval and all securities to be issued pursuant to the financing are subject to a four-month hold period under applicable Canadian securities laws. Directors, officers and employees of the Company may participate in a portion of the financing. A commission may be paid on a portion of the financing. The proceeds from this financing will be used for further exploration and development of the Company's property portfolio in Argentina and for general working capital.
About Blue Sky Uranium Corp.
Blue Sky is one of Argentina's best positioned uranium exploration companies with more than 5,000 km2 of tenements. The Company's mission is to acquire, explore and advance a portfolio of uranium projects with an emphasis on surficial deposits, in Argentina and other jurisdictions.
The Company is a member of the Grosso Group, a resource management group with experience in South America since 1993. As a member company of the Grosso Group, Blue Sky benefits from the signing of an agreement in principle for a strategic alliance with the Government of the Rio Negro province, Argentina, for the purpose of jointly exploring the potential for commercial mining activity. Argentina has an advanced nuclear industry, centered in the Rio Negro Province.
ON BEHALF OF THE BOARD
Mr. Sean Hurd, President and CEO
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This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.
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