Blue Sky Uranium (BSK:CA)

Blue Sky Uranium (BSK:CA)

Blue Sky Uranium Corp. (TSX.V: BSK) is one of Argentina's best positioned uranium exploration companies with more than 5,000 km² (500,000 ha) of tenements. The Company's mission is to deliver exceptional returns to shareholders by acquiring, exploring and advancing a portfolio of uranium projects with an emphasis on surficial deposits, in Argentina and other jurisdictions.

The Company recently entered into a MOU with AREVA to jointly explore Argentina for uranium deposits. The partnership will take full advantage of AREVA's vast global experience, Blue Sky's technical team and the Company's well established presence throughout Argentina (see press release of January 4, 2012 for complete details).

The Company is a member of the Grosso Group, a resource management group with experience in South America since 1993. As a member company of the Grosso Group, Blue Sky benefits from the signing of an agreement in principle for a strategic alliance with the Government of the Rio Negro province, Argentina, for the purpose of jointly exploring the potential for commercial mining activity. Argentina has an advanced nuclear industry, centered in the Rio Negro Province.

Projects

Anit

Project Summary:

• 100% owned new surficial uranium discovery in Rio Negro, Argentina
• Property located in a new uranium district that has seen little or no exploration to date

Discovery History:

The 2007 airborne radiometric survey over the Anit project identified a 15km long uranium anomaly locally up to 1.5km wide. The Company's technical team ground-truthed the anomaly and immediately located several rock samples with visible uranium mineralization along a freshly graded gravel road that cuts across a portion of the anomaly. The Anit project has had no prior exploration history and represents a brand new grassroots uranium discovery.

Location and Access:
The Anit Property lies to the south of, and is contiguous with, the Santa Barbara Property in the Province of Rio Negro, Argentina. The property has year-round access through a well-maintained gravel road, and is in a semi-arid area with low rainfall and population density.

Regional Geology:

Regional geologic maps show early Cretaceous or Tertiary sandstone and conglomerate underlie the Anit anomaly. Late Tertiary and Quaternary gravel and sand deposits cover the older sedimentary rocks.

Exploration Results

Santa Barbara

Samples from the first six of thirty-five holes hand-augured to a depth of 2-3 m in the northwest sector of the Santa Barbara project area generally define a horizon of bright-yellow mineralization that occurs in a flat-lying "sheet" that averages approximately 0.5-1.0 m in thickness and lies at a depth of 0.5 to 1.5 m below the surface. Concentrations of uranium and vanadium in the mineralized "sheet" range from 0.01 to 0.06% U and from 0.05 to 0.06% V.

A radon gas survey consisting of 1,500 stations has been completed over the three anomalies that were identified through a radiometric survey that was completed in 2007. The radon gas survey returned high Rn222 concentrations closely correlate with the limits of the three radiometric anomalies. Limited hand auger sampling to a maximum depth of 7 metres in 6 holes has intersected uranium mineralization at a depth of 50 cm ranging in thickness from 10 cm to 2 metres. Further surface auguring on a 200m regular grid is now in progress to define the depth, thickness, continuity and grade of uranium mineralization in zones of high uranium concentrations

Throughout May of 2009 exploration work on the Santa Barbara Project continues to focus on further surface sampling, prospecting and geological mapping within and around known radiometric anomalies. The current Phase I sampling on the Santa Barbara target includes hand auger and surface sampling programs over specific targets within three previously identified parallel radiometric anomalies that extend 11 km, 6.5 km and 5 km in length. Approximately 250 samples have been collected from 60 auger holes between 1 and 4 meters deep. Assay results will be announced once they are received and compiled.

Ivana

Property and Ownership:

The Ivana property consists of five granted exploration licenses and three exploration licenses registered on behalf of the Company totaling 713 km² (71,300 ha) in Rio Negro. Five licenses have been granted and three are under application. It is located in the north-central part of Rio Negro near the municipality of Valcheta. The property is 100%owned by the Company.

Property Geology and Mineralization:

Uranium mineralization is hosted mainly in the Gran Bajo del Gualicho Formation, consisting of Oligocene-Miocene shallow marine mollusk shells, fine grained sandstones and white tuff and to a lesser extent in the Arroyo Barbudo Formation consisting of sandstone, claystones and gypsum of Upper Cretaceous-Paleocene age. The mineralized district is located where the basement volcanics outcrop at the basin margin. Near shoremarine and continental sediments are interbedded, providing a favourable geological environment to host large surficial type uranium deposits.

In addition, high grade uranium mineralization was recently found in the form of carnotite hosted in unconsolidated and well sorted reddish and yellowish sands covered by calcrete accompanied by lower grade mineralization hosted in green clays with carnotite occurring along parting planes. This mineralized material was encountered less than 500 m from Upper Proterozoic shales and schists of the Nahuel Niyeu Formation and Carboniferous to Permian granites of the Navarrete Plutonic Complex. The mineralized sands appear to be part of fluvial paleochannels eroded in the basement metamorphic and granitic rocks.

Significant results obtained to date are:

• a uranium discovery area within a 40 km by 10 km enclosed basin identified from the airborne radiometric survey. This area includes a major 20-km long northwest-southeast mineralized trend. The highlight is a hand excavated pit that returned 0.068% U₃O₈ over a width of 3 m in unconsolidated sediments beginning at surface and open to depth; and
• a new uranium discovery area along a 3.3 km long northwest-southeast mineralized trend situated 20 km south from the above trend. The highlight from the new discovery is an interval of 1.81% U₃O₈ over 0.75 m including 6.67% U₃O₈ over 0.15 m and open at depth.

• 2010 - 23,000 km² airborne radiometric survey; and
• 2011 - sampling of 58 auger holes and hand pits performed as well as follow-up ground radiometric surveys, prospecting and geological mapping.

Planned Exploration:

Blue Sky considers the results to be very encouraging and exploration work will continue to evaluate anomalies using ground radiometrics, pit sampling and augering.

Sierra Colonia

The Sierra Colonia property is located in the central part of the Chubut province. It is situated 96 km east-northeast of the Cerro Solo project where the National Commission of Atomic Energy ("CNEA") identified a historical resource of 15 million pounds of contained U308 in the same geological environment (CNEA web site with information dated June 5, 2009. The resource statement is not compliant with National Instrument 43-101).

The property is 100% owned by the Company. Blue Sky has applied for three exploration licenses totalling 300 km². One exploration license has been fully granted with an environmental impact study approved for prospecting. The approval of the two remaining exploration licenses is pending.

Property Geology and Mineralization:

Uranium mineralization is hosted in sandstones, conglomerates and tuffs of Lower to Upper Cretaceous age of the Chubut Group located in an erosional window at the Mirasol Chico Creek. Petrified wood is commonly associated with uranium mineralization.

Highlights from the prospecting work performed to date are summarized below.

• 16 samples were higher than 0.10%, highlights include, 0.65 % U₃O₈ and 1.55 % V₂O₅, 0.61 % U₃O₈ and 0.80 % V₂O₅, 0.53 % U₃O₈ and 1.32 % V₂O₅, 0.25 % U₃O₈ and 0.65 % V₂O₅, and 0.20 % U₃O₈, 0.09 % V₂O₅;
• 90 samples were higher than 0.01% U₃O₈; and
• 177 samples were lower than 0.01% U₃O₈.

• surface radiometric survey covering 124 km²;
• sampling of 54 hand pits and chip samples ranging in depth from surface to 2 meters; and
• collection of 283 grab samples from outcrops and hand pits.

Planned Exploration:

Blue Sky is confident that the exploration potential of the Sierra Colonia justifies drilling. Prior to drilling, Blue Sky will complete detailed geological mapping to better define the mineralized horizons and a geophysical survey to establish the depth of the Cretaceous sedimentary rocks.

Links

• Fact Sheet
• Corporate Presentation