PROJECTS

SIERRA COLONIA PROJECT

sc-loc Location Map

Location and Access

The Sierra Colorada project includes 100% ownership interest in eleven contiguous mining properties covering 39,903 hectares in the central part of Chubut Province. It is road accessible year round from major centres such as Trelew, 150 kilometres away. The property is at low elevation, with low relief, in an area of semi-arid climate.

The property is situated 96 kilometres from the Argentina's National Commission of Atomic Energy ("CNEA") Cerro Solo uranium deposit, in a similar geologic environment.

In 2014 CNEA reported an estimate of 4599 tonnes of Uranium as Reasonable Assured Conventional Resources (RAR) and 3,762 tonne of Uranium as Inferred Conventional Resources for < 130USD/kg U.

(Source: Uranium 2014: Resources, Production and Demand ) by the Organisation for Economic Co-Operation and Development Nuclear Energy Agency (OECD) and the International Atomic Energy Agency (IAEA) © OECD 2014 NEA No. 7209.)

Note: Investors are cautioned that resources for Cerro Solo are not reported in compliance with NI 43-101. Furthermore, the Company Qualified Person has not been able to verify the resources reported for Cerro Solo. There is no assurance that a mineral deposit of similar magnitude to Cerro Solo will be found at Sierra Colonia.

Discovery History

The Sierra Colonia project was selected following recommendations by Dr. Jorge Berizzo, Blue Sky's geological consultant, and was based on superficial radiometric anomalies within a similar geological environment as observed at the CNEA's Mirasol uranium occurrence which is located five kilometres to the south.

Property Geology

At Sierra Colonia, early Mesozoic and older basement formations are unconformably overlain by a succession of Cretaceous age continental clastic sediments that have been subdivided into a number of formations, all belonging to the Chubut Group. Transgressive marine sediments of Late Cretaceous to Early Tertiary age lie unconformably over the Chubut Group. Late Tertiary continental sediments overlie the entire sequence. Uranium mineralization has been found at Sierra Colonia in the Chubut Group and younger sediments.

Exploration programs started with a surface radiometric survey covering 130 square kilometres that delineated a 14 kilometre northwest trending corridor with radiometric anomalies. The follow-up exploration program was focused on this corridor and included sampling of hand pits, ranging in depth from surface to 2 metres and collection of grab samples from outcrops. Results ranged from below detection limit to 0.20% U3O8 and 1.32% V2O5 for pit samples and to 0.65% U3O8 and 1.55% V2O5 for grab samples. Anomalous molybdenum also occurs ranging from below detection limit to 671 ppm molybdenum. Molybdenum is also present in Cerro Solo deposit.

Uranium mineralization is mainly in the form of carnotite and is hosted predominately in Cretaceous age conglomerates, sandstone and mudstones. The uranium mineralization recognized to date represents a sandstone-hosted model. However, the presence of carnotite indicates probable re-mobilization and as a result surficial deposits could be expected due to the arid climate condition in the area.

For additional information on the Project, please refer to the NI 43-101 Technical Report by C.Verley, dated May 17th 2012, filed on SEDAR.