Blue Sky Uranium Advances Towards Production at its Promising Argentinian Uranium Assets

• Blue Sky Uranium is focused on developing a large, low-cost uranium deposit in Argentina that could rival the size and economics of deposits in Kazakhstan. They have discovered a new uranium district with world-class potential.
• The Ivana deposit currently has 22.7 million lbs of uranium and 11.5 million lbs of vanadium. Metallurgy indicates costs of just over $16/lb U3O8, which would be amongst the world's lowest.
• Drilling in 2022 focused on upgrading and expanding resources at Ivana, as well as exploring 4 new targets within 30km. An updated PEA is planned for 2023.
• Argentina is supportive of nuclear power and uranium mining. There is no domestic production currently, so Blue Sky's project could supply local demand first.
• The company is currently raising $1.8 million to fund ongoing exploration and studies. The goal is to advance towards a pre-feasibility study and potential production decision.

About Blue Sky Uranium

Blue Sky Uranium Corp is a Canadian-based junior resource company focused on exploring and developing its wholly owned Amarillo Grande Uranium-Vanadium project in Rio Negro Province, Argentina. The project covers a 145 km prospective trend, with multiple target areas identified along it. Blue Sky’s flagship asset is the Ivana deposit, which contains an inferred resource of 22.7 million pounds of U3O8 and 11.5 million pounds of V2O5. Metallurgical tests have shown the deposit’s mineralization can be efficiently processed via simple and low-cost heap leaching to extract the uranium. The company aims to advance the project towards production to supply Argentina’s growing nuclear power industry.

Interview with Nikolaos Cacos, President & CEO of Blue Sky Uranium Corp

Recent Drilling Results Show Growth Potential

An extensive drill program was recently completed at Ivana, with approximately 3,000 meters drilled. The program had two main objectives - to infill drill the deposit to upgrade resource categories, and to step-out and test for extensions. Results have been positive on both fronts, with high-grade intercepts encountered outside the current resource area. This points to excellent potential to expand the resource base. In addition, four new targets have been identified close to Ivana through surface sampling and geophysics. These exhibit similar characteristics and are also now being drill tested.

Advancing Towards Updated PEA in 2023

The drill results will feed into an updated Preliminary Economic Assessment expected in 2023, which will look to build on the robust economics shown in the 2019 study. With uranium prices now 50% higher, the project’s potential value has increased substantially. The PEA will incorporate an updated resource estimate, with a significant portion likely converted from Inferred to Indicated. Ongoing metallurgical optimizations are also expected to further improve process recoveries and costs. The study will provide a pathway for Blue Sky to then undertake a Pre-Feasibility Study.

Strong Local Support for Domestic Uranium Production

As a nuclear power nation, Argentina is highly supportive of developing a domestic uranium mining industry. The country currently imports all its uranium, paying premium prices linked to long-term contracts. There is legislation in place that requires local nuclear power plants to source domestic uranium once available. This provides Blue Sky with a clear path to offtake within Argentina initially, and the potential to later become a net uranium exporter. Located in a province with existing nuclear facilities and jurisdiction, the project is well placed.

Conclusion

With advanced assets and robust project economics already demonstrated, Blue Sky Uranium provides exposure to a potential near-term uranium producer in a pro-mining jurisdiction. The current drill program and planned updated study in 2023 provide several catalysts for growth in resource size and project value. As uranium market tightness continues over the coming years, assets with clear low-cost production potential will become increasingly sought after by utilities. Blue Sky is well positioned to capitalize on this growing demand.