52 Week Hi Lo
MD&A ending 30.09.2017
Consolidated Financial Statements
Blue Sky Uranium Corp. (TSX.V: BSK; FSE: MAL2.F; OTC: BKUCF) is one of Argentina’s best-positioned uranium exploration companies with more than 3,500 km2 (350,000 ha) of tenements. The Company’s mission is to deliver exceptional returns to shareholders by acquiring, exploring and advancing towards production a portfolio of uranium projects, with an emphasis on near-surface uranium deposits with the potential for near-term low-cost production, in anticipation of the return of a strong uranium market.
Argentina is the largest generator of electricity from nuclear energy in South America. The country is working to further expand their nuclear energy sector with additional power plants, but lacks a ready internal supply of uranium. Argentina’s desire for security of supply could provide a “guaranteed” first customer for a domestic supplier.
Blue Sky’s exploration work between 2007 and 2012 led to the discovery of a new uranium district in Rio Negro Province. The Company’s Amarillo Grande Project covers the district, including three properties with significant near-surface uranium mineralization. The close proximity of these three properties provides the potential for an integrated low-cost operation to supply the domestic nuclear energy sector.
The Company is a member of the Grosso Group, a resource management group that pioneered the mineral exploration industry in Argentina and has operated there since 1993. The group has three exceptional discovery credits, and a positive track-record for fostering strong relationships with the communities and governments where it works. The Grosso Group leverages its vast network of local, regional and international industry contacts to support the exploration team on their search for quality resource opportunities.
- Excellent candidate to be the first low-cost, near-term domestic uranium supplier in Argentina
- Three main properties with zones of near-surface mineralization within a 140km trend discovered by Blue Sky
- Open for expansion – mineralized sequences believed to be preserved along the trend
- Leachable mineralization; upgradeable through a simple low-cost wet screening technique
- Exclusive rights to over 287,000 hectares
The Amarillo Grande Project is located in central Rio Negro province, in the Patagonia region of southern Argentina. The properties are all road accessible from major centres, such as Valcheta or Neuquen, via the gravel Provincial Road 66, approximately 65 kilometres south of the town of Villa Regina. Villa Regina has the fifth largest population in the province of Rio Negro with approximately 28,000 inhabitants.
- 25km anomaly with near-surface uranium mineralization within unconsolidated sediments
- 4,500m x 1,500m corridor with high-grade mineralization corresponding to ground radiometric anomalies
- Exploration included a radiometric probe survey, 59 sampling pits, 235 short drill-holes totaling 760 metres, and 11 diamond drill holes totaling 2,024 metres
- Results include 1.81% U3O8 over 0.75 m, within 2 metres of surface, in pit samples
- Mineralization open at depth and along the +4.5 km corridor
Location and Access
The Ivana group of properties covers over 118,000 hectares. It is the southernmost property along the 140 kilometre NW-SE trend that contains a series of airborne radiometric anomalies. 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.
- 15 kilometre trend of near-surface Sandstone-hosted uranium mineralization discovered by Blue Sky
- 1000m x 200m strongly mineralized corridor within a paleo-channel
- Mineralization open at depth in some areas and along paleo-channel strike
- Exploration potential along +5km
- Exploration work to date includes 123 sampling pits, 1,404 metres of trenching and 204 shallow drill-holes totaling 5,044 metres, including
- 4 m averaging 0.078% U3O8 and 0.107% V2O5,
- 3 m averaging 0.071% U3O8 and 0.153% V2O5.
- Metallurgical testwork indicates amenability to upgrading
Location and Access
The 24,000 hectare Anit Property lies between the Santa Barbara and Ivana properties within the 140 kilometre NW-SE Amarillo Grande uranium trend discovered by Blue Sky in the centre of Rio Negro province. The property has year-round access through a well-maintained gravel road, and is in a semi-arid area with low rainfall and population density.
- Surficial uranium mineralization discovered by Blue Sky
- Mineralization related NE-SW structures affecting Late Cretaceous to Tertiary sedimentary sequences indicating probable remobilization
- A high-chargeability IP anomaly indicates potential for near-surface sandstone-hosted uranium mineralization related to Tertiary fluvial units
- Exploration work includes 1,672 stations of radon gas soil & ground radiometric surveys, hand-auger and sampling pits.
Location and Access
The Santa Barbara Property covers an area of over 44,700 hectares. The property represents the northernmost uranium-mineralized area identified along a NW-SE trend of airborne radiometric anomalies that continues into the Anit and Ivana properties to the south, in central Rio Negro Province. The property has year-round access through a well-maintained gravel road, and is in a semi-arid area with low rainfall and population density.