Sierra Colonia Project
Property and Ownership:The Sierra Colonia property is located in the central part of the Chubut province. It is situated 96 km east-northeast of the Cerro Solo project where the National Commission of Atomic Energy ("CNEA") identified a historical resource of 15 million pounds of contained U308 in the same geological environment (CNEA web site with information dated June 5, 2009. The resource statement is not compliant with National Instrument 43-101).
The property is 100% owned by the Company. Blue Sky has applied for three exploration licenses totalling 300 km2. One exploration license has been fully granted with an environmental impact study approved for prospecting. The approval of the two remaining exploration licenses is pending.
Property Geology and Mineralization:
Uranium mineralization is hosted in sandstones, conglomerates and tuffs of Lower to Upper Cretaceous age of the Chubut Group located in an erosional window at the Mirasol Chico Creek. Petrified wood is commonly associated with uranium mineralization.
Highlights from the prospecting work performed to date are summarized below.
| Zone | Width (m) | Grade % U3O8 | Grade % V2O5 |
| Fluo | 2 | 0.14 | 0.07 |
| 1 | 0.09 | 1.12 | |
| 1.5 | 0.07 | 0.01 | |
| Zone 1 | 1 | 0.13 | 0.5 |
| Zone Caņadon Lillo | 0.5 | 0.53 | 1.32 |
| Zone 5 | 1 | 0.03 | 0.27 |
Grab samples from outcrops and hand pits
- 16 samples were higher than 0.10%, highlights include, 0.65 % U3O8 and 1.55 % V2O5, 0.61 % U3O8 and 0.80 % V2O5, 0.53 % U3O8 and 1.32 % V2O5, 0.25 % U3O8 and 0.65 % V2O5, and 0.20 % U3O8, 0.09 % V2O5;
- 90 samples were higher than 0.01% U3O8; and
- 177 samples were lower than 0.01% U3O8.
Property History:
The Sierra Colonia project was selected following recommendations by Dr. Jorge Berizzo, Blue Sky's geological consultant, and was based on the proximity of the CNEA's Mirasol uranium occurrence and similar geological setting. The property's history is summarized as follows:
- surface radiometric survey covering 124 km2;
- sampling of 54 hand pits and chip samples ranging in depth from surface to 2 meters; and
- collection of 283 grab samples from outcrops and hand pits.
Blue Sky is confident that the exploration potential of the Sierra Colonia justifies drilling. Prior to drilling, Blue Sky will complete detailed geological mapping to better define the mineralized horizons and a geophysical survey to establish the depth of the Cretaceous sedimentary rocks.