High Grade Core Of Ivana Target Expanded/Resource Estimation At Amarillo Grande 

 

VANCOUVER, BC - Blue Sky Uranium Corp. reported that additional analytical results from the Phase II reverse circulation (RC) drilling program have expanded the higher-grade uranium mineralized corridor by a further 1 kilometer at the Ivana target on its 100% owned Amarillo Grande uranium-vanadium project, in Rio Negro Province, Argentina.  In addition to the lateral expansion, infill drilling results include areas of significant grade-times-thickness, and individual results as high as >1% (10,517 ppm) U3O8.  

“These new assays significantly expand our expectations for the uranium-rich system at Ivana, the southernmost target on the 140-kilometer-long Amarillo Grande uranium-vanadium project,” stated Nikolaos Cacos, Blue Sky President & CEO. “In just this one sector we believe that we will be able to delineate significant resources, and still have tremendous upside potential.”

The Phase II RC program was designed to include up to 3000 meters of step out and infill drilling of the higher-grade zone, with an ultimate goal of completing an initial mineral resource estimate.  The positive results received to date have led to an increase in the original program, to now include up to 4,500 meters.  

This new uranium district was first identified, staked and underwent preliminary exploration by Blue Sky from 2007 to 2012 as part of the Grosso Group’s strategy of adding alternative energy focus to its successful portfolio of metals exploration companies. The proximity of several major targets suggests that if resources are delineated a central processing facility would be envisioned. The area is flat-lying, semi-arid and accessible year-round, with nearby rail, power and port access.

Mineralization identified to date at Amarillo Grande has characteristics of sandstone-type and surficial-type uranium-vanadium deposits.  The sandstone-type deposit is related to a braided fluvial system comprising a potentially district-size “roll front” system. Uranium minerals are present in the porous of poorly-consolidated sandstones and conglomerates. In surficial-type uranium deposits, carnotite mineralization coats loosely consolidated pebbles of sandstone and conglomerates. Carnotite is amenable to leaching, and preliminary metallurgical work at the project indicates that the mineralized material can be upgraded using a very simple wet screening method. The near-surface mineralization, ability to locally upgrade, amenability to leaching and central processing possibility suggest a potentially low-cost development scenario for a future deposit.