Blue Sky Uranium Corp. expands its portfolio with strategic acquisitions in Argentina

The Company now controls over 480,000 hectares with the potential for uranium resources across multiple provinces.

Blue Sky Uranium Corp. has announced the acquisition of two new projects totaling nearly 80,000 hectares in the Neuquén Basin of Argentina, aimed at discovering uranium deposits suitable for In Situ Recovery (ISR). These acquisitions are part of the Company's strategic initiative to expand its medium to long-term uranium resource potential.

Highlights of the New Acquisitions:

Corcovo Project:

• Location: Eastern part of the Neuquén basin, Mendoza province.
• Size: Approximately 20,000 hectares.
• Strategic Benefits:
  • Leverages new mining promotion initiatives by the provincial government.
  • Identified as a potential uranium exploration site by the National Atomic Energy Commission (CNEA).
  • Uranium radiometric anomalies detected at depth in oil and gas wells, with geologic conditions conducive to ISR uranium deposits.

Chihuidos Project:

• Location: Central part of the Neuquén basin, Neuquén province.
• Size: Approximately 60,000 hectares.
• Strategic Benefits:
  • Recognized by CNEA in the 1960s and 70s, and explored by Cameco Corp. and Calypso Uranium Corp. in the early 2000s.
  • Situated on a topographic high surrounded by airborne radiometric anomalies and surface uranium occurrences, indicating potential for a preserved uranium mineralized system at depth.

Blue Sky has commenced the permitting process for field programs while simultaneously identifying and prioritizing prospective targets for future exploration and drill testing. The company is updating and verifying the database for both projects, utilizing publicly available bore-hole surveys and 2D/3D seismic surveys from historic oil and gas exploration.

Comments from Leadership

Nikolaos Cacos, Blue Sky President & CEO, stated, “With our flagship Amarillo Grande Project (AGP) advancing towards the prefeasibility stage and multiple exploration targets ready for further development, it is an opportune time to expand our project pipeline. The strong support for the uranium market makes ISR-amenable uranium deposits attractive due to their potential for low-cost, low-impact production and shorter development timelines. Both Corcovo and Chihuidos offer excellent prospects for ISR-amenable uranium resources, and we look forward to replicating our exploration success at AGP.”

In-Situ Recovery Uranium Deposits

The World Nuclear Association describes in situ recovery mining (also known as solution mining or in situ leaching) as a process where ore is left in the ground, and minerals are recovered by dissolving them and pumping the solution to the surface. This method results in minimal surface disturbance and no generation of tailings or waste rock.

To employ ISR techniques, the mineralization must be hosted within a confined aquifer formed by permeable sediments like sandstones, sealed above and below by impermeable layers such as claystone. These layers confine the groundwater, which naturally elevates in uranium and other metals, allowing precipitation of minerals. The mining process involves injecting an oxidant and using the same groundwater to oxidize and dissolve the uranium, which is then pumped to the surface and recovered in a resin/polymer ion exchange or liquid ion exchange system. The final product is a uranium precipitate known as yellowcake.

The Neuquén Basin

The Neuquén Basin, formed from the Upper Triassic to Middle Tertiary periods, is known for its significant oil and gas resources. Uranium occurrences are present at various stratigraphic levels throughout the basin, including historical uranium-copper-vanadium mines and recent discoveries such as the Amarillo Grande district by Blue Sky. The Corcovo project is located at the northeastern edge of the basin in Mendoza province, an area identified as suitable for mining development due to its geological potential and low competition for land or water use.

Details of the Corcovo Project and Option Agreement

The Corcovo Project comprises two adjacent exploration properties totaling approximately 20,000 hectares in the Western Malargüe Mining District (MDMO) of Mendoza province. The government of Mendoza has launched initiatives to support mining development, focusing on the clean energy transition and local economic growth.

The option agreement for Corcovo includes:

• Payment of US$400,000 in five installments over three years.
• A 1% NSR payable to the vendor, with the right to buy back for US$500,000.
• A payment of US$500,000 to the vendor if the project achieves commercial production.

Geologically, the Corcovo project area creates a natural trap for hydrocarbons, potentially forming economic uranium deposits. This model was initially recognized by CNEA and later explored using radiometric data from boreholes.

The Chihuidos Project

The Chihuidos project, comprising six exploration properties totaling nearly 60,000 hectares, is located in the core zone of the Neuquén basin. This area includes topographic highs surrounded by radiometric anomalies, indicating potential uranium mineralization at depth. The project covers a sequence of asymmetrical folded sediments, with uranium occurrences expected to be found as preserved systems within permeable sandstones, ideal for ISR mining techniques.