Blue Sky Uranium Corp. (TSX: V.BSK, OTCQB: BKUCF, Forum) is a junior uranium exploration company and a part of the Grosso Group of companies. The Company’s operations are based in Argentina, a nation with a large, mature nuclear industry, but with no domestic source of yellowcake to fuel its reactors. BSK saw an opportunity here, and the Company chose Argentina as its base for exploration activities. Blue Sky’s operations are currently focused on three prospective uranium properties located in Rio Negro province: Anit, Santa Barbara, and Ivana. Together, the three properties constitute the Company’s Amarillo Grande Uranium Project.
Mineralization on the Project is near-surface, and BSK is seeking to rapidly advance exploration at Amarillo Grande. With the uranium market heating up, Stockhouse asked Senior Executive and Geologist, David Terry to expand upon the Company’s current operations and discuss the improving prospects in the uranium sector. Further information can be found here.
- For newer investors, please introduce your company.
Blue Sky has more than 3,500 km2 (350,000 ha) of tenements and is focused on advancing the properties that are most prospective for near-surface uranium deposits with the potential for near-term low-cost production, in anticipation of the return of a strong uranium market.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.
- Blue Sky Uranium is a part of the Grosso Group of companies. Who is the Grosso Group, and what is their footprint in the mining 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.
- Analysts are now forecasting a significant increase in uranium prices over the next two years. Does the Company do any internal forecasting on uranium prices, and if so, what prices are BSK looking for in 2017?
Blue Sky has reviewed various external price forecasts for uranium, which in October of last year returned averaged projected prices of about $35/lb in 2017, with long term price forecasts averaging about $62.
- How will higher uranium prices positively impact Blue Sky’s operations?
As an exploration company we are most concerned with the long term prices.Our focus at the Amarillo Grande project is on near-surface deposits that may be explored and advanced towards production at relatively low costs.Therefore, higher long term prices will provide an environment in which we can finance our activities to rapidly advance our project portfolio through exploration, resource delineation and, potentially, economic evaluation.
- Argentina is without any domestic source of uranium to fuel its three current reactors, and it has more new reactors either planned or already approved. What opportunity does this create for you?
Argentina’s need for security of supply could provide a “guaranteed” first customer for a domestic supplier.Furthermore, a low-cost operation could potentially compete with imported uranium on sale price.
- Because of the need for a domestic uranium supply, the government of Argentina has voiced its public support for the development of a domestic uranium industry. How will this facilitate development of Amarillo Grande?
By working in an area that supports mine development and the nuclear industry we hope to minimize development risk for our shareholders.
- What are the geological highlights of the Amarillo Grande Project?
Amarillo Grande covers a 140 kilometre long trend of near or at surface uranium mineralization.So far we have mostly found carnotite, which is a leachable form of uranium that coats pebbles and other grains in ancient river channels (paleo-channels).We have identified areas with good grades and done work that indicates the material could be significantly upgraded or concentrated with minimal processing, which would improve the overall recovery process.The mineralization is open to expansion along the trend and there is additional potential for discovery of larger sandstone-hosted deposits at depth.
- The Company recently announced the completion of a geophysical survey of Amarillo Grande. Please explain the significance of that exploration work.
The 15 line kilometre geophysical survey covered the three main exploration areas of the Amarillo Grande Project. Every line was successful in identifying conductive anomalies interpreted to represent paleo-channels and the results indicate that they are wider and thicker than expected. The results helped us to refine targets for the ongoing reverse circulation drilling program.
- Following its geophysical survey, Blue Sky has announced a major drilling program. Could you provide further details on this new exploration?
In late January we launched the first phase of a 10,000 metre RC drill program.The goal of this first 3,000 metres, or about 166 holes, is to refine the geological model and further evaluate the potential at the Ivana, Anit and Santa Barbara targets for near-surface uranium deposits.
- What are the Company’s near-term plans once this current drill program is completed?
The overall 10,000 metre program is designed to identify and delineate mineral resources and to prepare for potential mineral resource estimation in 2017.
- What is BSK’s current cash position?
Approximately $1 million.
- Over the longer term, please map out Blue Sky’s strategy as it moves to bring this Project forward.
We are focused on advancing our projects with the potential for low-cost, shorter timeline development and future upside.We will follow a methodical strategy of identifying and building resources, evaluating their economic potential, and where necessary expanding property holdings.At all times we will maintain our social license with the communities in which we work, which is a backbone of the Grosso Group’s approach to exploration and development in Argentina.
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FULL DISCLOSURE: Blue Sky Uranium Corp. is a paid client of Stockhouse Publishing.