Blue Sky’s Ivana deposit continues to show great test results in Argentina
Uranium prices are up over 40% in the past 9 months reaching USD $28.95/lb. Are we about to see the much awaited uranium boom?
Global uranium demand looks promising
Globally there are 71 nuclear reactors under construction covering 12 countries, with another 165 planned, and 315 proposed. China is already planning to spend USD $2.4 trillion to expand its nuclear power generation by 6,600%. With the green revolution on the way with electric vehicles and mass battery storage, the energy has to come from somewhere to charge all these batteries let alone supply the world’s growing middle class.
It is expected global demand will rise by 40% by 2025 with low secondary supplies causing shortfalls. This is estimated to effect price negotiations throughout 2019. It is said that to encourage new supply the expected price should rise to around $65 per pound (currently at ~$29/lb).
Nuclear Energy in Argentina
Currently Argentina has 3 nuclear reactors generating 10% of the country’s electricity needs. There is now plans for the construction of two new reactors in an industry that started in 1974 to meet the projected demand by 2025 of 2.5 times greater than current use. This represents a potential use per year of approximately 1.25 million pounds of U308. All uranium currently used in Argentina is sourced from outside the country. The Argentine Federal Government has made public its support for the development of a domestic uranium supply to support the plans for expanding the nuclear energy capacity of the country, providing an excellent potential first customer for any new operation.
Blue Sky Uranium Corp. (TSXV: BSK | OTCQB: BKUCF) is a leader in uranium discovery in Argentina. The Company’s mission is to deliver exceptional returns to shareholders by rapidly advancing a portfolio of surface uranium-vanadium projects in an effort to meet the growing demand for uranium in Argentina. Focusing its efforts in what they believe is a very under-explored area of southern Argentina, the company has 100% control of over 450,000 hectares of mining tenures.
The Amarillo Grande Uranium-Vanadium Project (exclusive rights to own 100%)
Blue Sky’s flagship project, the Amarillo Grande Uranium-Vanadium Project, hosts the Ivana deposit which has an inferred near-surface deposit containing 19.1 million pounds of U308 and 10.2 million pounds of V2O5 (23.9 million tonnes averaging 363 ppm U308 & 194 ppm V2O5 at a 100 ppm uranium cut-off). The 140 kilometre uranium trend Ivana deposit is open for expansion on a prospective land package covering 300,000 hectares making it an excellent candidate to be Argentina’s first low cost, near term, uranium producer with additional potential in vanadium.
Test work so far shows both uranium and vanadium mineralization to be amenable to low cost alkaline leach processing. Further test results were announced in November of last year showing high grades of uranium and vanadium in initial pit samples having over 1% U3O8 and 0.1% V205, all located a kilometre west of the Ivana Uranium-Vanadium deposit. The Company is currently working on their PEA.
Nikolaos Cacos, Blue Sky President & CEO, stated: “These results further demonstrate the expansion potential of the Ivana deposit, this time to the west, and the ongoing pitting and auger drilling program has the possibility of significantly expanding the footprint of this new mineralized area.”
With such a huge pending demand in energy use from uranium, Blue Sky could find themselves in an enviable position as the key supplier for Argentina’s and/or the world’s nuclear reactor needs. Blue Sky continues to be a member company of the Grosso Group, which provides strong management and technical experience, with a focus on Argentina.