Blue Sky Uranium Corp. provided initial results from the ongoing Phase 1 reverse circulation (RC) drilling program at the Ivana target on the Amarillo Grande uranium project, in Rio Negro Province. The results from 31 holes received to date outline a broad area of near surface uranium measuring approximately 1,800 metres by 600 metres. Within this area, a higher-grade northwest oriented corridor is interpreted to have been intersected by four holes and a second area with higher grades is indicated by two holes at the eastern margin of the drill grid. A full geologic interpretation will be completed once results from the remaining 66 holes from the Ivana target are received.
Drill hole highlights include:
- 743 ppm U3O8 over 3.0m in AGI-27
- 547 ppm U3O8 over 6.0m in AGI-05
The company is progressing on the 3,000 metre reverse circulation drilling program at the Amarillo Grande uranium project. Drilling has finished at the Ivana target area, with 94 holes totaling 1,276 metres completed. The crew is now moving to the Anit area, approximately 50 kilometres to the northwest along the 140-kilometre long uranium trend that comprises the Amarillo Grande Project.
This new uranium district was first identified and underwent preliminary exploration by the Company from 2007 to 2012. The close proximity of several major targets and the near surface mineralization suggest that if resources are delineated, a central processing facility would be envisioned.
“We are excited to be active in the Province of Rio Negro where a thriving nuclear converter industry exists since the 1970s, but no uranium production,” stated Nikolaos Cacos, President and CEO. “Blue Sky’s 420,000 hectares of property situated in two distinct regions has the potential to become the first domestic source of uranium for Argentina. The current program at Amarillo Grande is testing the mineralization occurrence at surface, and, depending on results, would be expanded to test at depth.”
Mineralization identified at Amarillo Grande to date represents a Surficial Uranium style of deposit, where carnotite mineralization coats loosely consolidated pebbles of sandstone and conglomerates. Carnotite is amenable to leaching, and early metallurgical work indicates that the mineralized material can be upgraded using a very simple wet screening method. The near-surface mineralization, ability to locally upgrade, amenability to leaching and central processing possibility suggest a potentially low-cost development scenario for a future deposit.
Rio Negro is host to several facilities related to the nuclear industry. Furthermore, the Provincial government is amenable to mining as a means of socio-economical development. In addition, the Federal government has expressed support for building domestic resources of uranium. In particular, the Argentina Atomic Energy National Commission (CNEA) published its Strategic Plan 2015-2025, which includes a strategic objective “To ensure the supply of domestic uranium for nuclear power plants in operation, under construction and planned.”