Mineral Resource Development For Ivana Deposit

 

VANCOUVER - Blue Sky Uranium Corp. reported the initial independent mineral resource estimate for the Ivana Deposit at the Company’s 100% owned Amarillo Grande uranium-vanadium project, in Rio Negro Province, Argentina.

“This first resource estimate represents the biggest uranium discovery in Argentina in the last 40 years and it represents for Blue Sky a major step towards our goal of defining a low-cost regional-size uranium producing district,” commented Nikolaos Cacos, Blue Sky President & CEO. “We are excited to move forward with a preliminary economic assessment this year, particularly as the project remains open for expansion.”

A NI 43-101 Technical Report supporting disclosure of this mineral resource and containing additional details will be filed within 45 days.

Results from ongoing metallurgical studies and preliminary benefaction studies are expected by the end of the first quarter.This data will contribute to a Preliminary Economic Assessment (PEA) for the Ivana deposit, which is expected to be completed before the end of the year.

The arcuate (“C”) shape of the Ivana deposit is believed to represent a preserved sector of a regional mineralized redox-front, which often include more than one deposit. Therefore, follow-up drilling programs will test for lateral extensions to the currently defined deposit, as well as previously recognized local targets identified by airborne and hand-held radiometric surveys and geological modeling.

The Ivana deposit is located in the southernmost of three target areas that comprise the Amarillo Grande Uranium-Vanadium project.The project has year-round access through a well-maintained gravel road, and is in a semi-arid area with low rainfall and population density.Mineralization was first identified at Ivana after field follow-up of a 2010 regional high-resolution airborne radiometric and magnetic survey.

The Ivana deposit displays characteristics of surficial-type and sandstone-type “roll front” uranium-vanadium deposits. Mineralization at Ivana includes primary coffinite and uraninite, in pore spaces of poorly-consolidated sandstones and conglomerates, in addition to peripheral secondary carnotite, which occurs interstitially to and coats pebbles and clasts in loosely consolidated sandstones and conglomerates.The Amarillo Grande project is believed to have district-scale potential for discovery of similar styles of mineralization.

The deposit is characterized by two stacked zones of uranium mineralization, the upper zone and the lower zone. The two zones occur together through most of the deposit but there are localized areas where only one zone is present. The upper zone averages 2.7 meters in thickness, with a maximum of 10 meters, while the lower zone has a maximum of 20 meters and has an average thickness of 6.2 meters.

The resource estimation was based on 427 RC drill holes, representing 6,577 meters of drilling with one meter samples. The drilling was completed in two phases starting in January 2017 and finishing in January 2018. Only 2 holes were inclined, and 425 holes were vertical. Bedding and mineralized horizons are approximately horizontal so vertical samples are believed to represent true thickness. The resource area is typically covered by drill holes on a 100 x 100 meter spacing, however holes on the periphery of the deposit were spaced as much as 400 meters apart.