Update From Blue Sky's Ongoing Exploration Programs in Patagonia, Argentina
Tue Jun 3, 11:51 AM
ca.news.finance.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 3, 2008) - Blue Sky Uranium Corp. (TSX VENTURE: BSK.V)(FRANKFURT: MAL.F)(WKN A0MKXP)is pleased to provide an update from the Company's ongoing surface exploration program on the Santa Barbara and ANIT uranium projects in Rio Negro province, Argentina. Work carried out to date includes augur and conventional soil and rock sampling, scintilometer surveys, radon gas surveys and geological mapping. Exploration crews are expected to move to the ANIT uranium project after the initial surface program on Santa Barbara has been completed. The aim of the surface exploration program has been to delineate drill targets for testing in Q4 2008.
"The initial results from our surface exploration program are very encouraging. We have confirmed the presence of uranium in each of the airborne radiometric survey anomalies and observed excellent correlation of radon anomalies with postulated major geological structures that appear related to zones of uranium mineralization. Both the Santa Barbara and ANIT projects are clearly excellent uranium exploration targets and represent a tremendous opportunity for Blue Sky and its shareholders," said Dr. Clifton W. Farrell, Executive VP and COO.
The Santa Barbara project contains three NE-trending parallel anomalies, 11 km, 6.5 km and 5 km in length respectively and up to 1.5 km in width. Outside of the anomalies identified by the airborne survey at Santa Barbara, a brand new zone of visible yellow uranium mineralization has been identified in semi-consolidated cretaceous sands. The size of this new zone of mineralization has not been determined, but it appears to be oriented parallel to, but offset by at least 2 km, from the known NE-trending airborne survey radiometric anomalies.
The ANIT project is located 60 km from Santa Barbara and contains a mineralized radiometric anomaly that extends for more than 15 km in length and varies up to 2 km in width. The strength of the radiometric anomaly at ANIT closely resembles that of the Cerro Solo uranium deposit in neighboring Chubut Province that contains approximately 10 million pounds U3O8. The footprint of the anomaly at ANIT is an order of magnitude larger than that of Cerro Solo. Both the ANIT and Santa Barbara projects are in a "sandstone-hosted" environment, similar to the important Grants Uranium District in New Mexico, where, according to reports, more than 340 million pounds of uranium have been produced.
Summary of Surface Exploration Completed
As a result of a 3,000 square kilometre airborne radiometric survey that Blue Sky completed in 2007, two large mineralized systems were discovered on the ANIT and Santa Barbara properties. Uranium-bearing petrified wood and visible, yellow uranium mineralization has been identified on surface at both projects and these anomalies have been the primary focus of the Company's exploration activities to date.
Soil Radon Gas Survey: Radon is a useful exploration technique for detecting buried uranium ore bodies (up to several hundred metres in depth) and to identify buried uranium mineralization that may not be detectable by traditional surface (or airborne) radiometric surveys. Radon gas has been measured at approximately 1,500 stations to date over a total length of 80 km of grid lines covering an area of approximately 3,200 ha. Analysis and interpretation of the preliminary data is currently underway. Initial review of the data demonstrates that high radon values are associated with each radiometric anomaly with the highest values corresponding to the location of mapped or interpreted regional faults. High background levels of radiation, which on occasion did overwhelm the radon measurement detectors, characterize the Santa Barbara area.
Auger Sampling: Forty-two sediment samples have been collected to date from depths up to 4 metres with a hand auger. These samples were collected from areas believed to host anomalous uranium mineralization including salt lakes, or salars, within the Santa Barbara property. Salt lakes are known to concentrate uranium to potentially economic levels elsewhere in Argentina, including in the neighboring province of Chubut, and this model is being evaluated for the salars that lie within the Santa Barbara and ANIT properties. Results of these chemical analyses will be released as they become available.
Spectrometer Survey: Radiometric anomalies along the 24-radon survey grid lines were surveyed with a handheld RS-125 Super-Spec spectrometer to measure uranium, potassium and thorium abundances. The surveys, covering approximately 34 km of survey line, confirmed the presence of uranium. The areas of high surface readings in both the Santa Barbara and ANIT properties will be the focus for the company's ongoing detailed ground sampling and assessment.
Forecast 2008 Exploration Activities: Blue Sky's Q2 / Q3 2008 exploration programs will include more extensive sampling of surface strata to develop geological models and to delineate drilling targets for the anticipated Q4 2008 drilling program(s). Exploration efforts will continue to focus on the Santa Barbara property and then and crews are anticipated move to the ANIT property to commence a detailed surface program. Surface exploration will include detailed auger sampling to a depth of 2 to 3 metres, detailed surface sampling of known anomalies, stream sediment sampling and trenching as well as radiometric and radon gas surveys.
Financing
The Company has cancelled the financing announced on March 5, 2008, and entered into a new agreement with Canaccord Capital Corporation ("Canaccord") whereby Canaccord will use its commercially reasonable efforts to complete a Short Form Offering (the "offering") issuing 6,666,667 Units to raise up to $2,000,000 at $0.30 per Unit. Each Unit consists of one common share in the capital of the Company (a "Share") and one-half of a transferable common share purchase warrant of the Company ("Warrant") exercisable for a period of 18 months from closing. Each whole Warrant will entitle the holder to acquire one additional Share at a price of $0.40 per share for a period of 18 months following the date of the closing of the offering. The Warrants will be transferable and, subject to evidence of satisfactory distribution in accordance with the rules of the TSX Venture Exchange, will be listed and posted for trading on the Exchange.
Canaccord will receive a cash commission equal to eight percent (8%) of the gross proceeds of the sale of Units under the Offering and a corporate finance fee consisting of $12,500 in cash and 41,667 units. In addition, Canaccord will receive Agent's Options equal to eight percent (8%) of the Units sold under the offering. Each Agent's Option shall be exercisable for one Agent's Unit for a period of 18 months from closing at $0.30 per agents unit. Each Agent's Unit will consist of one Share and one half of a warrant (an "Agents Warrant"). These securities will be subject to a four-month hold period. Each whole Agent's Warrant shall be exercisable for one additional share for a period of 18 months from closing at $0.40 per share. The net proceeds received by the Company will be used to fund on-going work programs on the Company's properties and for general working capital purposes.
The contents of this news release have been reviewed by Dr. Ron McMillan, P.Geo., a consultant to and director of the Company, and a Qualified Person as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD
Mr. Sean Hurd, President & CEO
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. 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. 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Contacts
Ms. Jada Soomer
Blue Sky Uranium Corp.
Manager Corporate Communications
1-800-901-0058 or (604) 687-1828 extension 255
(604) 687-1858 (FAX)
Email: info@blueskyuranium.com
Website: www.blueskyuranium.com |
