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 within the Uranium District as the Argentina's National Commission of Atomic Energy ("CNEA") Cerro Solo uranium deposit, east of Blue Sky’s Sierra Colonia property.
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.
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 uranium occurrence which is located at <100km to the east.
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 Punto Chico Formation. Uranium was observed related to logs and superficial calcrete. Therefore, two types of uranium deposit model are expected: sandstone and surficial types.
BSK run a short exploration program in 2012 that included prospective ground radiometric survey, mapping and sampling. Ground radiometric anomalies ranged from background to 1,650 cps.