The 100% owned Tierras Coloradas project includes 4 cateos totaling 40,000 hectares in the northeast of Chubut. The area is relatively flat, semi-arid, and road-accessible year round.
The property is situated at the eastern side of the Uranium District as the Argentina's National Commission of Atomic Energy ("CNEA") Cerro Solo uranium deposit, and east of Blue Sky’s Sierra Colonia property.
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 Tierras Coloradas project.
Surficial mineralization was discovered by Blue Sky in 2011 while prospecting and carrying out surface radiometric surveys in the area of the property. The superficial radiometric anomalies are located within a similar geological environment as observed at the CNEA's Mirasol and BSK´s Sierra Colonia uranium occurrences, both located to the west.
The property is in a similar geologic environment to the Sierra Colonia project. Cretaceous sedimentary sequences of the Chubut Group are unconformably overlain by a succession of transgressive marine sediments of Late Cretaceous to Early Tertiary age and late Tertiary continental sediments. Uranium mineralization has been found within a late Tertiary continental sequence named Puntudo Chico Formation. Uranium was observed as carnotite, a uranium vanadate, related to logs and superficial calcrete possibly indicating re-mobilization from blind sandstone-hosted uranium mineralization converted into surficial deposits, as expected due to the arid climate conditions in the area.
BSK ran a limited exploration program in 2012 that included prospective ground radiometric survey, mapping and sampling. Ground radiometric anomalies were defined. The area has never been drilled.