Blue Sky is focusing its uranium and vanadium exploration efforts on southern Argentina, with 100% control of more than 450,000 hectares of mining tenures. The Company believes that the region is underexplored, with excellent potential for near-surface uranium and vanadium resources with rapid, low-cost development potential. The Company’s Amarillo Grande Uranium-Vanadium Project in Rio Negro is a new district-scale uranium discovery and includes the country’s largest NI 43-101 resource estimate for uranium, with a significant vanadium credit.
The Argentine Federal Government has made public its support for the development of a domestic uranium supply to support the plans for expanding the nuclear energy capacity of the country, providing an excellent potential first customer for any new operation.
Blue Sky’s uranium projects were selected with the assistance of Dr. Jorge Berizzo for their potential to host economic uranium deposits. Dr. Berizzo has extensive experience in uranium exploration and production, obtained as a senior exploration geologist, and later as mine manager, for the Argentinean National Atomic Energy Commission ("CNEA"), as well as privately owned companies. Dr. Berizzo also played a leading role in the discovery of the Cerro Solo uranium deposit in Chubut province, Argentina.
The World Nuclear Association reports that:
In the province of Rio Negro, there is broad support and experience with the nuclear energy industry. The province has a research nuclear reactor and provides incentives to the mining industry for uranium.
The emphasis of the Company's exploration is at the district-scale Amarillo Grande Uranium-Vanadium Project. In 2019 Blue Sky reported its first Preliminary Economic Assessment, including the largest NI 43-101 uranium resource estimate in the country, for the Ivana deposit of the Amarillo Grande Project. The Company is continuing exploration throughout the very large project area to increase resources and further evaluate the economic potential.
Situated directly south of Rio Negro, Chubut hosts advanced uranium deposits, however none are currently in production and the provincial government has enacted restrictions against open-pit mining. The Company’s projects in this area, Sierra Colonia, Tierras Coloradas, and Cerro Parva are located in similar geologic environments to CNEA’s Cerro Solo uranium deposit. CNEA is developing feasibility studies for the planned mining of Cerro Solo starting in 2018. ( source: World Nuclear Association Jul 2016).