Location and Access
The Sierra Colorada project includes 100% ownership of more than 27,000 hectares in the central-eastern part of Chubut Province. It is road accessible year round, at low elevation, with low relief, in an area of semi-arid climate.
The property is situated within the same District and geologic environment as the Cerro Solo uranium deposit, owned by Argentina's National Commission of Atomic Energy ("CNEA").
In 2016 CNEA reported an estimate of 2,890 tonnes of Uranium (equivalent to 7.51 million pounds U3O8) as Reasonable Assured Conventional Resources (RAR) and 2,201 tonne of Uranium (equivalent to 5.71 million pounds U3O8) as Inferred Conventional Resources for < 80USD/kg U (equivalent to 42USD/lb U3O8).
(Source: Uranium 2016: Resources, Production and Demand by the Organization for Economic Co-Operation and Development Nuclear Energy Agency (OECD) and the International Atomic Energy Agency (IAEA) © OECD 2016 NEA No. 7301.)
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.
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.
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 within Cretaceous to Tertiary units. 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. The area has never been drilled.
Uranium mineralization is mainly in the form of carnotite, a uranium vanadate, 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.