Blue Sky Uranium posts positive final infill drilling while advancing to prefeasibility-feasibility at Ivana Deposit, Amarillo Grande Project, Argentina
Blue Sky Uranium Corp. [TSXV: BSK; FSE: MAL2; OTCQB: BKUCF] and Ivana Minerales S.A. (IMSA, the operating company for the joint-venture between Blue Sky and a subsidiary of Corporacion America Group, COAM) reported the complete results of the infill drilling program at the Ivana Deposit, Amarillo Grande Project in Rio Negro Province, Argentina. Completing the infill drill program was a key step identified in the recent Gap Analysis for moving the project forward towards prefeasibility.
Nikolaos Cacos, Blue Sky President & CEO, commented, “The infill drilling program represents an important technical milestone for Ivana and it was completed on time for us to maintain the schedule established in our recent Gap Analysis. By tightening drill spacing in mineralized areas, the program provides increased geological confidence and valuable data to support ongoing and future technical studies.”
The program included 328 holes totaling 4,959 metres of reverse circulation (RC) drilling, with holes averaging 15 metres in depth. The objectives of the program were to confirm the continuity of the mineralization within the deposit; refine mineralization/deposit limits; and support upgrading the classification of some of the current inferred resources in a future mineral resource estimate update. To date, a total of 1,166 drill holes comprising 15,828 metres of RC drilling have been completed at the Ivana Deposit.
Assays results indicate that approximately 15% of the holes (51 holes) intercepted at least 1 metre at 0.1% or 1,000 ppm U3O8; with values up to 1 metre at 0.7% or 7,000 ppm U3O8 (in hole AGI-884). The program also includes drilling in an area of the deposit not previously tested due to access, including zones proximal to where the high-grade intervals were returned. These results confirm the continuity of the high-grade horizons previously defined for the deposit in this area.
Highlights for the entire infill program include: 4 metres averaging 4,368 ppm U3O8 in AGI-884, starting at 9 metres depth, including 1 metres at 7,003 ppm U3O8 and 1 metre at 6,237 ppm U3O8; 2m averaging 4,433 ppm U3O8 at AGI-873, starting at 9m depth, including 1m at 5,918ppm U3O8, and 1m @ 2,947ppm U3O8; 3m averaging 2,923 ppm U3O8 at AGI-880, starting at 11m depth, including 1m at 5,671 ppm U3O8, and 1m at 2,069 ppm U3O8; 1m averaging 4,162 ppm U3O8 at AGI-883, starting at 10m depth; 3m averaging 3,109 ppm U3O8 at AGI-1157, starting at 9m depth and 2m averaging 3,065ppm U3O8 at AGI-957, starting at 10m depth. All holes were vertical, and the reported intervals are believed to represent true thickness.
Ivana Minerales S.A. is the operating company for the joint-venture between Blue Sky and its partner Abatare Spain, S.L.U. to advance the Ivana Uranium-Vanadium deposit in Rio Negro Province of Argentina. The activities of JVCO are subject to the earn-in transaction in which COAM will fund cumulative expenditures of US$35 million to acquire a 49.9% indirect equity interest in the Ivana deposit, and then has the further right to earn up to an 80% equity interest in JVCO by completion of a feasibility study and funding the costs and expenditures up to US$160,000,000 to develop and construct the project to commercial production, subject to the terms and conditions in the Agreement.
JVCO also has a Call Option to acquire a 100% interest in all or part of certain exploration targets owned by Blue Sky’s 100%-held subsidiary, subject to certain conditions.
Blue Sky Uranium is a leader in uranium discovery in Argentina. The company’s objective is to deliver exceptional returns to shareholders by rapidly advancing a portfolio of uranium deposits into low-cost producers, while respecting the environment, the communities, and the cultures in all the areas where it works.
Blue Sky’s flagship Amarillo Grande Project was an in-house discovery of a new district that has the potential to be both a leading domestic supplier of uranium to the growing Argentine market and a new international market supplier.
The company’s recently optioned Corcovo project has potential to host an in-situ recovery (ISR) uranium deposit. The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
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