Blue Sky Drills 547 ppm U3O8 Over 6 Metres at Amarillo Grande Surficial Uranium Project, Argentina
Terminal City Club Tower, Suite 411 - 837 West Hastings Street TSX Venture Exchange: BSK
Vancouver, BC CANADA V6C 3N6 Frankfurt Stock Exchange: MAL2
Tel: 604-687-1828 • Fax: 604-687-1858 • Toll Free: 1-800-901-0058 OTCQB Venture Market (OTC): BKUCF
www.blueskyuranium.com • [email protected]
NEWS RELEASE – March 28, 2017
Blue Sky Drills 547 ppm U3O8 Over 6 Metres at Amarillo Grande Surficial
Uranium Project, Argentina
Vancouver, BC / Marketwired / March 28 , 2017 / Blue Sky Uranium Corp. (TSX -V: BSK, F SE: MAL 2; OTC:
BKUCF), "Blue Sky" or the "Company") is pleased to provide 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,
Argentina. The results from 31 holes received to date outline a broad area of near surfac e 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 m argin of the drill grid. A full geologic interpretation will be completed once results from the remaining
66 holes from the Ivana target are received. Blue Sky holds over 440,000 hectares of property located in two
provinces in the most prospective uranium regions of Argentina.
Drill hole highlights include:
743 ppm U3O8 over 3.0m in AGI-27
547 ppm U3O8 over 6.0m in AGI-05
"The initial results from the Ivana area provide important information on where to focus our follow -up drilling as we
delineate new zones of surficial uranium mineralization at Amarillo Grande” stated Nikolaos Cacos, Blue Sky
President & CEO. “These initial results confirm the broad occurrence of uranium mineralization at Ivana.”
The 250,000-hectare Amarillo Grande project includes three areas of known mineralization (Ivana, Anit and Santa
Barbara) within a 140 kilometre -long uranium trend discovered by Blue Sky . This 3,000 metre preliminary drill
program is designed to delineate the mineralized zones at all three areas, for follow -up infill drilling. The program is
testing areas prospective for discovery of near -surface uranium mineralization as identified by ground radiometric
surveys, trenching, manually excavated pits and geo-electrical surveys. This program is the first phase of the overall
10,000 metre program which is designed to prepare for potential resource estimation later this year .
Blue Sky believes the mineralization that has been discovered through the work to date at Amarillo Grande can be
classified as Surficial -type uranium. Examples of Surficial uranium deposits include Langer Heinrich in Namibia,
which has Proven and Probable ore reserves totalling 91.31 Mlb at an average grade of 560 ppm U 3O8 and
produces approximately 4 Mlb per year 1, and Toro Energy Limited’s development -stage Wiluna project, which has
Measured and Indicated resources totalling 66.6 Mlb within 10 metres of surface at an average grade of 525 ppm
U3O8.2 Wiluna consists of 5 separate deposits within a 100-kilometre district in western Australia.
Program Details
The preliminary drilling phase at the Ivana target area is now complete and included 97 holes totaling 1,390
metres with an average hole depth of 14 metres. Complete results have been received from the first 31 of the 97
holes completed at the Ivana target ; of these , 21 holes intersected near -surface zones of mineralization
exceeding 30 ppm U 3O8 over a minimum of 1.0 metre. Highlights of the exploratory drilling results to date are
provided in Table 1 below. All results reported herein are from vertical holes drilled at 100 -200 metre intervals
1 www.paladinenergy.com.au
2 www.toroenergy.com.au
News Release March 28, 2017
Blue Sky Uranium Corp. Page 2
along two northeast oriented lines spaced at 600 met res apart. A map of the drill hole locations is available here:
https://blueskyuranium.com/assets/img/news/6-2017MAR24-IVANA-DRILLING-Press.jpg. These holes
outline a broad area of near-surface uranium (>30 ppm U 3O8 over a minimum of 1.0 metre ) measuring
approximately 1,800 metres by 600 metres . W ithin this area, a higher-grade northwest oriented corridor is
interpreted to have been intersected by holes AGI -04, -05, -25 and -27, and a second potentially by AGI -25 and -
27 at the eastern margin of the drill grid . A full geologic interpretation will be completed once results from the
remaining 66 holes in the Ivana target are received.
Table 1: Highlights of Ivana RC drilling results from AGI-01to AGI-31
*insufficient drilling has been completed to determine whether the reported widths represent true thickness
The drill holes were laid out along northeast oriented lines or fences to transect approximately orthogonally paleo
channels overlying basement rocks . Holes were drilled at 100 metre intervals in areas delineated by ground
radiometric anomalies, and at 200 metre intervals in peripheral areas. A table with complete drill hole information
and results is available here: https://blueskyuranium.com/assets/img/news/6-2017MAR-BSK-AGI01-to-31.pdf.
Based on the results received to date, anomalous near -surface uranium has been intersected outside of the surface
radiometric anomalies and to depths of up to 19 metres below surface. Although it is believed that the widespread
uranium mineralization intersected in the drilling is generally flat -lying in nature, insufficient drilling has been carried
out to date to determine if the reported widths are representative of true thickness , and, the degree of continuity
between adjacent intercepts.
Uranium mineralization at Ivana is believed to be related primarily to carnotite mineralization, a secondary leach able
uranium mineral. Visible carnotite has been observed in a number of the drill holes completed to date. Uranium
values in the results reported herein ranged from below detection (<10ppm ) up to 1,838 ppm U3O8 (or 0.18% U3O8),
and Vanadium values ranged from 29 ppm up to 2,015 ppm V2O5.
The drilling program been carried out using an ROC L8 drill rig from Atlas Copco, an ore -control track-mounted rig
adapted to reverse circulation with double cyclone in order to reduce the dust loss during sampling. Every hole was
surveyed by a senior geophysicist from Geopehuen SRL Service Company using a natural gamma probe from
Geovista Ltd. The probe was previously calibrated at the Comisión Nacional de Energía Atómica facility (Atomic
Energy National Commission, CNEA).
Analyses of samples reported herein were performed by Alex Stewart Assayers of Mendoza, Argentina, an
internationally recognized analytical services provider . Samples were prepared by drying, crushing to 80% passing
10mesh and then pulverizing a 600g split to 95% passing 106 microns. Pulps were analyzed for 42 elements by
means of Inductively Coupled Plasma Mass Spectrometry following a four -acid digestion ( ICP MA-42).
Approximately every 10 th sample a blank, duplicate, or standard sample was inserted into the sample sequence for
quality assurance/quality control (QA/QC) purposes. Review of the QAQC results for the samples reported herein
identified two of five BSK inserted with analyses below the acceptable range. All lab inserted standards were within
the acceptable range, as were all blanks. The Company is investigating this and will report any material
developments in the future. Note that 10,000 ppm = 1% and 1% = 1.1792% U3O8, 1% = 1.785% V2O5.
About the Amarillo Grande Project
This new uranium district was first identified, staked and underwent preliminary exploration by Blue Sky from 2007 to
2012 as part of the Grosso Group’s strategy of adding alternative energy focus to its successful portfolio of metals
exploration companies. The close proximity of several major targets suggest that if resources are delineated a
central processing facility would be envisioned. The area is flat -lying, semi -arid and accessible year round, with
nearby rail, power and port access.
Drill Hole # From (m) To (m) Interval* (m) U3O8
ppm
V2O5
ppm
AGI-04 1.0 4.0 3.0 245 395
AGI-05 0.0 6.0 6.0 547 716
AGI-14 16.0 18.0 2.0 152 563
AGI-16 0.0 3.0 3.0 370 251
AGI-21 4.0 7.0 3.0 184 321
AGI-25 3.0 5.0 2.0 321 387
AGI-27 0.0 3.0 3.0 743 600
News Release March 28, 2017
Blue Sky Uranium Corp. Page 3
Mineralization identified to date represents a Surficial Uranium style of deposit, where carnotite mineralization coats
loosely consolidated pebbles of sandstone and conglomerates. Carno tite is amenable to leaching, and preliminary
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 cent ral 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 str ategic objective "To ensure the
supply of domestic uranium for nuclear power plants in operation, under construction and planned."
For additional details on the project and properties, please see the Company’s website: www.blueskyuranium.com.
Qualified Person
The results of the Company's drilling program have been reviewed, verified (including sampling, analytical and
test data) and compiled by the Company's geological staff under the supervision of David Terry, Ph.D., P.Geo.
Dr. Terry is a Director of the Company and a Qualified Person as defined in National Instrument 43-101. The
contents of this news release have been reviewed and approved by Dr. Terry.
About Blue Sky Uranium Corp.
Blue Sky Ura nium Corp. is a leader in uranium discovery in Argentina. The Company's objective is to deliver
exceptional returns to shareholders by rapidly advancing a portfolio of surficial uranium deposits into low -cost
producers. Blue Sky holds has the exclusive rig ht to over 428,000 hectares of property in two provinces in
Argentina. The Company’s flagship Amarillo Grande Project was an in -house discovery of a new district that has the
potential to be among the first domestic suppliers of uranium to the growing Arge ntine market. The Company is a
member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since
1993.
ON BEHALF OF THE BOARD
“Nikolaos Cacos”
______________________________________
Nikolaos Cacos, President, CEO and Director
For further information please contact:
Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exc hange) accepts
responsibility for the adequacy or accuracy of this release.
This news release may contain forward -looking statements including but not limited to comments regarding the timing and content of upcoming work
programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events
and co nditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently an ticipated in such
statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed disc ussion of factors that may impact
expected future results. The Company undertakes no obligation to publicly update or revise any forward -looking statements. We advise U.S. investors
that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits
on adjacent properties are not indicative of mineral deposits on our properties.