Blue Sky Uranium (BSK.V) has released another batch of dril results from its Amarillo Grande uranium project in Argentina, and it looks like the company has now zeroed in on a thicker and higher grade zone compared to the previous drill results. When the assay results show 17 meters of 1713 ppm, 18 meters at 948 ppm and an additional 18 meters containing 2095 ppm U3O8, you know the company is on the right track.
As these intervals have a substantially higher grade over longer intersections compared to the previous results, Blue Sky Uranium is really building up tonnage and grade at Amarillo Grande. In our previous report, we were expecting the maiden resource estimate to come in around 10-15 million pounds of uranium but if the recent assay results will also be included in the maiden resource (which should be the case given the 269 hole drill program has now been completed), our estimate might be too conservative.
The Phase II drill program was focusing on a specific zone with a length of 5,000 meters, a width of 200-500 meters which now appears to be thicker than we originally thought it could/would be. Our back of the envelope calculation now indicates a total tonnage of 25 million tonnes could be within reach. If that’s indeed the case, an average grade of 1.5 pounds of uranium per tonne (700 ppm) would result in a total uranium content of 37.5 million pounds, and we would now consider this to be the optimistic scenario for Amarillo Grande’s maiden resource estimate.