Blue Sky Expands High Grade Core of Ivana Target; and, Commences Resource Estimation at Amarillo Grande Uranium-Vanadium Project, Argentina

2018-01-15 / @nasdaq

VANCOUVER, British Columbia, Jan. 15, 2018 (GLOBE NEWSWIRE) -- Blue Sky Uranium Corp. (TSX-V:BSK) (FSE:MAL2) (OTC:BKUCF), ("Blue Sky" or the "Company") is pleased to report that additional analytical results from the Phase II reverse circulation (RC) drilling program have expanded the higher-grade uranium mineralized corridor by a further 1 kilometre at the Ivana target on its 100% owned Amarillo Grande uranium-vanadium project, in Rio Negro Province, Argentina. In addition to the lateral expansion, infill drilling results include areas of significant grade-times-thickness (i.e. 15 holes averaging 13 metres @ 522 ppm U₃O₈), and individual results as high as >1% (10,517 ppm) U₃O_8.The Company has engaged a team of independent qualified people (Bruce Davis Ph.D., F.AusIMM, of BD Resource Consulting Inc., Susan Lomas P.Geo of Lions Gate Geological Consulting Inc., and Jon Thorson, Ph.D., CPG) to complete a maiden resource estimate, and associated NI 43-101 Technical Report, for the Amarillo Grande project.

Highlights of drill intercepts with significant uranium mineralization include:

10,517 ppm U₃O₈over 1 m

within 2,296 ppm U₃O₈ over 8 m, within 1,271 ppm U₃O₈ over 15 m in AGI-0247

8,618 ppm U₃O₈ over 2 m

within 2,867 ppm U₃O₈ over 8 m in AGI-0194

3,216 ppm U₃O₈ over 1 m

within 1,838 ppm U₃O₈ over 5 m in AGI-0249

2,480 ppm U₃O₈ over 1 m

within 1,423 ppm U₃O₈ over 6 m in AGI-0196

1,981 ppm U₃O₈ over 1 m

within 777 ppm U₃O₈ over 5 m in AGI-0195

1,143 ppm U₃O₈ over 1 m

within 376 ppm U₃O₈ over 6 m in AGI-0208

1,079 ppm U₃O₈ over 3 m

within 468 ppm U₃O₈ over 10 m in AGI-0209

1,037 ppm U₃O₈ over 1 m

within 773 ppm U₃O₈ over 4 m in AGI-0243

1,021 ppm U₃O₈ over 1 m

within 822 ppm U₃O₈ over 6 m in AGI-0246

1,002 ppm U₃O₈ over 1 m

within 481 ppm U₃O₈ over 4 m in AGI-0202

All holes were vertical and the intervals are believed to represent true thickness.

“These new assays significantly expand our expectations for the uranium-rich system at Ivana, the southernmost target on the 140-kilometre-long Amarillo Grande uranium-vanadium project,” stated Nikolaos Cacos, Blue Sky President & CEO. “In just this one sector we believe that we will be able to delineate significant resources, and still have tremendous upside potential.”

The Phase II RC program was designed to include up to 3000 metres of step out and infill drilling of the higher-grade zone, with an ultimate goal of completing an initial mineral resource estimate. The positive results received to date have led to an increase in the original program, to now include up to 4,500 metres. The remaining infill program is expected to be completed by the end of January.

Program Details:

The Phase II RC drill results reported in this release are from holes 194 through 251, which total 924 metres. The results from the first 35 holes of the Phase II program were reported on October 30^th. All hole locations are shown on Map 1 here: https://blueskyuranium.com/assets/docs/2018-01-10-amarillo-ivana-pii-rcdp.pdf and grade thickness contours of all results to date are shown on Map 2 here: https://blueskyuranium.com/assets/docs/2018-01-10-amarillo-ivana-pii-rcdp-txg.pdf .

The Phase I program defined a two-kilometre corridor of strong surface mineralization at the Ivana target. This was expanded by an additional two kilometres by the first results from Phase II program, as reported on October 30^th. The results reported herein further expand this corridor by over one kilometre to the southwest. The mineralized corridor is now between 200 and >400 metres wide and up to 23 metres thick.

Grades reported range from the lower cut-off of 30ppm to 10,517ppm U₃O₈ (AGI-0247) at depths ranging from surface to 26 metres. A higher-grade sector within the corridor is defined surrounding hole AGI-0247, including 15 holes averaging 13 metres in thickness and 522 ppm U₃O₈ (AGI-0185, 186, 187, 194, 195, 196 197, 243, 244, 246, 247, 248, 249, 250 & 251). The area is open to expansion, and it is currently being drilled as part of the infill program. A summary of hole locations and significant intervals received for these most recent Phase II holes can be viewed here: https://blueskyuranium.com/assets/docs/2018-01-10-amarillo-ivana-pii-rcdpr.pdf .

The infill program is planned to cover the higher-grade uranium-rich mineralization front with a 100 by 100 metre grid, in preparation for resource estimation.

The near-surface uranium mineralization in the core of the mineralized corridor is associated with fine-grained dark coloured mineral(s) initially identified as coffinite (+ uraninite) by Scanning Electronic Microscope and X-Ray Diffraction at the University of Rio Negro. Uranium mineralization is hosted by medium-grained sandstones to fine conglomerates with pyrite and organic matter. Carnotite mineralization is observed in areas peripheral to the strongly mineralized corridor core.

Methodology and QA/QC

The drilling program is being carried out using an FlexiROC D65 drill rig from Atlas Copco, an ore-control track-mounted rig adapted to reverse circulation with triple cyclone to reduce the dust loss during sampling and automatic sampling. The difficulties in casing every hole due to the presence of no or very poor consolidated sediments has resulted in limited natural gamma probe surveying to check holes. Those selected for survey will be surveyed at the end of the program by a senior geophysicist from Geopehuen SRL Service Company using a natural gamma probe previously calibrated at the Comisión Nacional de Energía Atómica facility (Atomic Energy National Commission, CNEA). Samples are being sent to Bureau Veritas Minerals of Mendoza, Argentina for preparation by drying, crushing to 80% passing 10 mesh and then pulverizing a 250g split to 95% passing 150 mesh. Pulps are being sent to Bureau Veritas Commodities Canada Ltd. for analysis of 45 elements by means of Inductively Coupled Plasma Mass Spectrometry (ICP-MS) following a four-acid digestion (MA-200). Samples over 4,000ppm uranium are re-assayed after phosphoric acid leach by Inductively Coupled Plasma Electron Spectrometry (ICP-ES). Approximately every 10th sample a blank, duplicate, or standard sample is inserted into the sample sequence for quality assurance/quality control (QA/QC) purposes.

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 proximity of several major targets suggests 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.

Mineralization identified to date at Amarillo Grande has characteristics of sandstone-type and surficial-type uranium-vanadium deposits. The sandstone-type deposit is related to a braided fluvial system comprising a potentially district-size “roll front” system. Uranium minerals are present in the porous of poorly-consolidated sandstones and conglomerates. In surficial-type uranium deposits, carnotite mineralization coats loosely consolidated pebbles of sandstone and conglomerates. Carnotite is amenable to leaching, and preliminary metallurgical work at the project 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 central processing possibility suggest a potentially low-cost development scenario for a future deposit.

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 Uranium 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 the exclusive right to over 434,000 hectares (equiv. to 1,072,437 acres) 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 both a leading domestic supplier of uranium to the growing Argentine market and a new international market supplier. 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: info@blueskyuranium.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) 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 conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion 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.