*Alert* “Blue Sky Uranium CEO talks ‘very unique’ PEA for Ivana deposit in Argentina” – Proactive
Published: 16:39 26 Feb 2024 EST
Blue Sky Uranium Corp. (TSX-V:BSK, OTCQB:BKUCF) said its recent preliminary economic assessment (PEA) underscores the significant resource potential of the Ivana deposit.
A high proportion of resources are now categorized as Indicated, enhancing project confidence and reducing risk.
Overall, the Ivana deposit represents a compelling opportunity for Blue Sky Uranium.
Blue Sky CEO Nikolaos Cacos said the PEA is “very unique.”
“Most people, when they hear uranium, don’t think of Argentina, but Argentina is a nuclear country,” Cacos told Proactive. “What we have discovered in southern Argentina, the Ivana deposit, forms part of a brand new uranium vanadium district that has potential to rank among some of the largest world class districts in the world.”
The proposed surficial mining operation and processing plan aim to capitalize on the deposit’s favorable characteristics, further contributing to its economic attractiveness.
The PEA outlines a robust surficial mining operation, projecting an impressive 11 years of uranium and vanadium production. Key highlights include an after-tax net present value (NPV) of $227.7 million, an after-tax internal rate of return (IRR) of 38.9%, and a brief payback period of 1.9 years.
Initial capital costs for the project are estimated at $159.7 million, with additional sustaining capital costs expected throughout the mine’s lifespan.
The assumptions underlying the assessment include uranium and vanadium prices of $75/lb and $7.5/lb respectively, along with a two-year construction period and an 11-year production phase.
The PEA also accounts for a strip ratio of 1.5:1 and anticipates an average annual uranium production of 1.5 million pounds (Mlbs) over the life of the mine.
Furthermore, Blue Sky’s plans to leverage local resources and infrastructure, coupled with ongoing exploration efforts within the broader Amarillo Grande project, signal a strategic focus on sustainable growth and development within Argentina’s nuclear sector.
As global electrification efforts grow, Blue Sky’s uranium deposit in Argentina presents a unique opportunity for carbon-free energy production and domestic supply.
“We’re looking to decrease our carbon footprint (with) safe, secure, reliable, carbon free baseload energy. Uranium is right now the only way we can really achieve that,” Cacos said.
“Argentina, a country which imports all its uranium, and pays a premium for it. Having a deposit there creates a unique opportunity for Blue Sky to potentially become Argentina’s first domestic supplier.”
Quotes have been edited for style and clarity
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