Blue Sky Uranium (TSX-V:BSK, StockForum), a mineral exploration company engaged in acquisition, evaluation and exploration of uranium properties in both Canada and Argentina, announced today that the company had commenced a ground-based geophysical program at their IVANA project located in the Rio Negro province.
Following a memorandum of understanding (MOU) regarding an exploration partnership with Blue Sky, AREVA Mines will fully fund all exploration costs for IVANA.
According to the company's news release, “Drilling at the IVANA project is targeting roll-front uranium mineralization at a depth up to 400 meters. The diamond drill program will target uranium mineralization associated with the "Bajo de Valcheta" Basin, an interpreted large fault-controlled "half-graben" filled with "red bed" type fluviatile sediments which are believed to be part of the Upper Cretaceous Neuquen Group."
It went on to explain, “The "Bajo de Valcheta" Basin is a large (60 x 12 km) interpreted enclosed half-graben structure filled with Cretaceous clastic fluviatile sediments. A small salar (playa lake) occupies the lower (eastern) end of the area. Carnotite mineralization was encountered in some of the hand pits within the basin.”
Due to recent amended terms in the aforementioned MOU, AREVA is obligated to complete Phase 2 work by December 31, 2013 and is to utilize a minimum of $2.0 million in the process.
Phase 3 work is to be completed by December 31, 2017 if AREVA chooses to move ahead. AREVA will be obligated to expend $3 or $4 million depending if they develop one or two properties.
Meeting these requirements, AREVA will be granted 51% of the selected projects.
Blue Sky also announced a private placement offering of $0.5 million in order to further their efforts in Argentina.
Blue Sky was in the news recently when the company announced the appointment of a new CFO in March.
Shares dropped 10% on the news to $0.04 per share.
Currently there are 24,577,010 outstanding shares with a market cap of $1.11 million.