- Favorable relationship with Argentinian government
- Member of the Grosso Group
- Diversified resource potential
What Blue Sky Uranium does:
Blue Sky Uranium is on the verge of becoming a South American leader in uranium production. The energy metal discovery firm has exclusive rights to properties in two provinces in Argentina, and is a member of the Grosso Group, a resource management collective that has pioneered Argentinian exploration since 1993.
In the Rio Negro province, the company is focused on the development of its Amarillo Grande uranium-vanadium project, which is comprised of three properties: Ivana, Anit and Santa Barbara.
To the South of Rio Negro lies the Chubut province where Blue Sky has three projects - Sierra Colonia, Tierras Coloradas and Cerro Parva.
Combined, the company’s assets in both provinces comprise 450,000 hectares of mining tenures.
Blue Sky’s Amarillo Grande project is considered a new district-scale uranium discovery and includes the country’s largest NI (National Instrument) 43-101 resource estimate for uranium, with a significant vanadium credit located within the Ivana zone.
According to a 2019 preliminary economic assessment (PEA) Amarillo Grande hosts 22.7 million pounds of uranium and 11.5 million pounds of vanadium with room for potential expansion. Economically, the project boosts average life of mine (LOM) all-in sustaining costs of $18.27 per pound, giving Blue Sky’s project the lowest quartile operating costs among global producers.
Additionally, the company is positioned to be a key supplier for the Argentinian nuclear fuel market. The country currently has three operational nuclear reactors that require U3O8 to operate, however the South American nation produces no uranium domestically.
How is it doing:
On September 28, 2021, Blue Sky Uranium launched a 3,500-meter (m) reverse circulation (RC) exploration drilling program to expand and upgrade the Ivana Deposit at Amarillo Grande. The recently commenced drill program is in addition to a 4,500-meter regional exploration drilling campaign which was initiated by Blue Sky earlier in the year.
The targeted drill at Ivana will include 260 shallow holes designed to test for the potential expansion to the west where a 2018 pit channel sampling program returned encouraging results, including up to 5,032 parts per million (ppm) U3O8 & 323 ppm V2O5 over 1.7m at AGI-CAL26.
On the corporate level, in early August the company increased the final tranche of previously announced non-brokered private placement financing to 13,316,089 units at a price of $0.16 each. Gross proceeds from the offering totaled $2,130,574.24. Each unit consists of one common share and one transferrable common share purchase warrant, entitling the holder to purchase one additional share priced at $0.25/each for up to two years.
Separately, Blue Sky applied to extend the term of 5,793,333 outstanding warrants set to expire on October 23, 2021. The company is seeking to extend the term until October 23, 2024, while maintaining the exercise price of $0.25/each.
Inflection points:
- Rising uranium prices
- Nuclear fuel supply crunch
- Growing demand from new reactors
What the broker says:
On September 24, 2021, Globe Small Cap Research issued a report on Blue Sky Uranium noting the company is “worthy of active consideration.”
Analysts cited the project’s location, diversified resource potential, as well as a rising uranium price as catalysts for the continued growth of the energy metal firm.
“[Blue Sky] operates in a hot space with stellar growth opportunities and deserves consideration by risk adverse micro and small cap-oriented investors,” the report stated.
As prices for U308 (ASX:UTO) hold at a 12-year high, the overview explained that continued growth in nuclear capacity globally would fuel a supply deficit.
“We feel many others are now agreeing with us,” the analysts wrote. “This realization puts the uranium market into further play over the next few years, creating opportunities for companies such as Blue Sky.”
What the boss says:
In the company's September 28, 2021, statement acknowledging the start of the 3,500m targeted drill at Ivana, Nikolaos Cacos, Blue Sky’s president and CEO said: “Our goal to advance the Amarillo Grande Project into a multi-deposit uranium district requires a two-pronged approach to both identify new deposits through exploration along the 145-kilometre-long project trend and advance our cornerstone Ivana deposit.
"We believe that this additional drilling at Ivana has potential to expand and upgrade the current mineral resources.”
Contact the writer at georgia@proactiveinvestors.com
Follow her on Twitter @MissInformd