Blue Sky Uranium Initiates New Joint-Venture Exploration Program at Amarillo Grande

Blue Sky Uranium Corp. (BSK) and its joint-venture operating company, Ivana Minerales S.A., have announced a new exploration program at the Amarillo Grande project. The initiative includes work at the Cuatro target, where 23 priority reverse circulation (RC) holes are planned for approximately 500 meters with an average depth of 21 meters. A second phase involving roughly 30 holes for another 500 meters is also possible.

The program also covers the Ivana Corridor, featuring a 5-kilometer surface effort that includes 10 line-kilometers of induced polarization (IP) surveys, a radon gas pilot survey, and lead-isotope sampling. Additionally, the company will conduct mapping, radiometrics, trenching, geochemistry, emanometry, and shallow auger drilling at the Western greenfield targets of Don Javier, Toro, Bajo de Valcheta West, and Ivana West. The program is funded by joint-venture partner Abatare Spain S.L.U. / COAM through IMSA.

Regarding the Ivana Gateway Phase 2 drilling, results were disclosed for five holes. AGIG-013 returned 1.6 meters at 36 ppm U3O8 and 31 ppm vanadium from 19.5 meters, and 2 meters at 33 ppm U3O8 and 44 ppm vanadium from 45.0 meters. Holes AGIG-014 through AGIG-018 reported no significant intervals. The Phase 2 program consisted of a total of 6 holes for 392 meters.

An update on the Ivana East program noted that 6 diamond holes totaling 431 meters were completed. The drilling did not confirm the original geological and geophysical model. Intersections included thick clay-rich Gran Bajo del Gualicho Formation, while the favorable lower Chichinales sandstone facies was not identified. Uranium-vanadium mineralization was found to be discontinuous, with assays falling below the reporting threshold.

Blue Sky Uranium Corp. (BSK) reported that its Ivana deposit resource and Preliminary Economic Assessment remain unaffected, as these exploration targets fall outside the current resource definition. The release did not result in any resource upgrade, downgrade, or changes to economic studies.

The news presents a negative outlook for exploration optionality, as the Ivana Gateway Phase 2 failed to extend mineralization and Ivana East did not validate its model. Despite this, the market has not re-rated on these targets; the stock is trading at the low end of its range, around C$0.05, following a 52-week range of C$0.04 to C$0.08. With no embedded high expectations to disappoint on a large scale, the event is considered a modest negative rather than a material thesis-breaking event.

Blue Sky Uranium Corp. (TSXV: BSK, OTCQB: BKUCF, FSE: MAL2) holds the Amarillo Grande Uranium-Vanadium Project in Argentina’s Río Negro Province as its flagship asset. The company’s Ivana deposit contains an indicated resource of 19.7 million tonnes at 0.039% U3O8 and 0.019% V2O5, alongside an inferred resource of 5.6 million tonnes at 0.031% U3O8 and 0.019% V2O5.

A preliminary economic assessment outlines an 11-year mine life producing 1.5 million pounds of U3O8 annually. The project requires US$159.7 million in capital expenditure, with a life-of-mine all-in sustaining cost of US$24.95 per pound of U3O8 net of credits. Financial metrics include an after-tax NPV8 of US$227.7 million, an internal rate of return of 38.9%, and a payback period of 1.9 years.

Under the joint venture structure, COAM can fund up to US$35 million for a 49.9% interest, with the option to invest up to US$160 million to earn up to an 80% stake. Beyond the core deposit, Blue Sky is evaluating other targets including Ivana Gateway, Ivana East, Cuatro, western greenfield areas, and the optioned Corcovo ISR project.

As-reported third-quarter 2025 financials showed no revenue, negative equity, and low cash balances. These statements do not reflect a subsequent C$3.5 million placement completed in November 2025.