Blue Sky Uranium Begins Drilling at Anit Target
May 17, 2017 6:36 pm ET
Argentina may have growing nuclear ambitions, but the country has no domestic supply of uranium. Fortunately, there is one company that’s working to develop a uranium supply along a 140 kilometer stretch of mineralization in the Rio Negro area. Investors may want to take a closer look at the opportunity given the company’s progress in drilling and the potential to become the first domestic supplier in a growing market.
In this article, we will look at Blue Sky Uranium Corp.’s (TSX-V: BSK) (OTCQB: BKUCF) recent progress in Argentina and where the stock may be headed from here.
Significant Uranium Potential
Blue Sky Uranium’s Anit target within in Amarillo Grande project consists of 12 mining properties over 24,000 hectares. In 2007, a 2,385 kilometer airborne geophysical survey program identified a significant 15 kilometer long radiometric anomaly in the area that was interpreted as related to uranium-vanadium mineralization within outcropping ancient river sediments.
The company initiated an intensive exploration program, including radon gas and ground radiometric surveys, 123 hang-dug pits, 310 excavator-dug pits, 1,403 meters of trenching, and 5,044 meters of air-core drilling in 204 holes. These efforts delineated a main mineralization zone contained in two elongated bodies across a six kilometer corridor, from surface down to six meters depth and 40 to 480 meters wide, surrounded by a lower grade uranium halo.
The west and central zones of the Anit target showed more than 50 ppm uranium over one meter with a weighted average grade of 0.04% uranium and 0.1% vanadium over an average thickness of 1.97 meters. Preliminary metallurgical testwork done on samples from the project indicate that the carnotite mineralization can be concentrated by wet screening and is amenable to leaching, which makes the project a viable exploration target.
Current Drill Program
Blue Sky Uranium recently announced that its reverse-circulation drilling program at the Amarillo Grande uranium project has recommenced following unforeseen weather delays. The program is now drilling at the second target area, Anit, where it will include 75 short holes, up to 20 meters in depth, for a total of approximately 1,000 meters. The purpose of the program is to confirm and extend the previously identified mineralization zone.
“The Anit area has returned some of the best results in the past and we look forward to improving our prospects for resources with this drill program,” said Blue Sky President & CEO Nikolaos Cacos in a recent update on the program’s status. “The drill program has now re-started following an unusually heavy and prolonged rain event, and newly upgraded drill equipment should improve progress for the remainder of the program.
The 75 short holes will be drilled via a FlexiRoc D65 rig from Atlas Copco, adapted for fine-mineralization control with a triple cyclone for better recovery of fines, and an automatic splitter. The company will collect two to three kilogram samples for each meter - one for lab analysis and the other for a control sample. Each sample is weighed and measured using a hand portable scintillometer and rigorously tested in a lab setting.
Blue Sky Uranium aims to become a premier supplier of uranium to Argentina’s domestic nuclear industry. Currently, the country has three nuclear power plants, six research reactors, four particle accelerators, three atomic centers, one heavy water plant, and one uranium purification plant in operation. One additional nuclear power plant is under construction with two in planning and two more under proposal for the future.
Despite these growing nuclear resources, the country has no domestic uranium production and all of its uranium is imported from abroad. The country’s desire for a secure supply could provide a ‘guaranteed’ first customer for a domestic supplier, while a low-cost domestic operation could potentially have a cost advantage over imported uranium. The company aims to become that supplier by developing local uranium mines.
Anit is one of three targets within the broader Amarillo Grande project, which consists of about 250,000 hectares that includes uranium mineralization across a 140 kilometer stretch. This uranium is near-surface, leachable, and potentially upgradeable at a low cost. This could translate into a relatively near-term opportunity with a short-lead-time and low-budget to become a key supplier in Argentina with export potential abroad.
Blue Sky Uranium Corp. (TSX-V: BSK) (OTCQB: BKUCF) represents a compelling investment opportunity in Argentina’s uranium industry. With drilling at its Anit target, the company could better quantify existing resources and potentially identify new targets. Management believes this target is one of the most promising of the Amarillo Grande targets, which means that investors could see upcoming catalysts as the results are announced.