SECFilings.com, a leading financial news and information portal offering free real-time public company filing alerts, announces the publication of an article discussing Blue Sky Uranium Inc.'s recent progress in its Phase I drilling program.
Argentina may be a leading nuclear power in South America, but the country has no domestic supply of uranium to power its reactors. Fortunately, President Mauricio Macri has been liberalizing the country's mining laws in an effort to attract foreign investors. Junior mining companies already operating in the space could benefit from both of these developments and investors may want to keep a close eye on the space.
Blue Sky Uranium recently announced the results of its Phase I reverse circulation drilling program at Ivana -- the first of three targets on the Amarillo Grande project planned for this year. The drill program successfully outlined a large area of elevated uranium within 20 meters of surface, measuring approximately two square kilometers. Multiple higher-grade uranium-vanadium mineralization intervals were also observed within the area.
"We are pleased to be making progress in understanding the controls on uranium-vanadium mineralization at Amarillo Grande," said Blue Sky President & CEO Nikolaos Cacos. "We look forward to the balance of results from Phase I and to commencing Phase II."
The next step in the Phase I project will be delineating the dimensions and average grades of potential mineralized corridors, as well as testing for potential extensions along the northeastern flank and other areas. With drilling at the Anit project completed, the company is moving the drill rig to the Santa Barbara target at the northwest end of the Amarillo Grande project.
Blue Sky Uranium's projects are located in Argentina's Rio Negro province. While Argentina hasn't always been the most mining-friendly country, President Mauricio Macri has made tremendous progress in opening up the country's industry to foreign investment, which could unlock significant value for smaller companies in the space -- including Blue Sky Uranium's management team who has become one of the most experienced in-country operators.
In June, Argentina's national government and the governors of 20 provinces signed a mining deal to harmonize taxes and regulations in an effort to attract more investors. The country had fallen behind Chile and Peru in attracting mining investment despite its rich asset base, but the relatively new center-right government aims to change those dynamics. Macri also eliminated export taxes on metals and lifted a prohibition on companies sending profits overseas.
These reforms could draw more larger companies into Argentina's mining industry, which could help boost junior miners operating in the space. After all, many junior miners seek out mining majors as commercialization partners willing to shoulder the large capital expenditures in exchange for a majority stake in the claim. These deals often create significant long-term value for all parties and could provide a catalyst for juniors in the space.
With the country's existing nuclear reactors, there's existing demand for uranium as a fuel source, but no domestic supply. This creates a unique opportunity for a uranium mining company to step in with a 'guaranteed' first customer. The liberalization of mining laws should also help expedite and derisk development of such mines.