| Vancouver-based Blue Sky Uranium Corp. (TSX.V: | | | | and the spot price of uranium has approached |
| BSK), barely out of the starting gate, makes no | | | | US$100/lb. |
| bones about its international ambitions. | | | | Argentina, with two Canadian-built nuclear reactors in |
| "We would like to end 2008 as the largest uranium | | | | operation, is now building a third, hoping to supply |
| land holder in Argentina and the dominant uranium | | | | 20% of the country's energy demand from that |
| explorer," says Blue Sky president Sean Hurd. | | | | source by 2025, up from seven per cent today. |
| So far, 18-month-old Blue Sky is more than 4,000 | | | | That means annual domestic demand for uranium will |
| km2 along that road, with its Santa Barbara property | | | | nearly double, from a current 110 tonnes, to 210 |
| in Rio Negro province of northern Patagonia staked | | | | tonnes. |
| by the man who may be Argentina's leading uranium | | | | Blue Sky found its Argentinean niche in the first place |
| exploration geologist. | | | | through its stake in Grosso Group Management Ltd. - |
| As Hurd tells it, Dr. Jorge Berrizzo, after 14 years at | | | | headed by Argentina native Joe Grosso - which has |
| the Argentinean National Atomic Energy Commission, | | | | been exploring for minerals and for oil and gas in |
| is finding new freedom in the private sector, just as | | | | South America since 1990. |
| the Argentinean uranium market is starting to buzz. | | | | Blue Sky director Hernan Celorrio is on the ground in |
| While Berrizzo played a large role in the discovery of | | | | Argentina, dealing with the daily red tape of both |
| the Cerro Solo uranium deposit in Chubut province, to | | | | federal and provincial governments. "It's very difficult |
| the south of Rio Negro, "the problem with working | | | | to do that from Canada," Hurd said. The Buenos |
| for the government is that your focus is narrow and | | | | Aires professor of law was president of Barrick |
| your funding is limited," Hurd said in an interview. | | | | Explorations Argentina from 1999 to 2006. |
| So Berrizzo has teamed up with a number of private | | | | And Dr. Clifton Farrell, with 25 years in the uranium |
| businessmen in the Argentina Uranium Corp. to | | | | and alternate energy fields, has just joined Blue Sky |
| explore interesting, but untouched, regions. And Blue | | | | as chief operating officer. Along with a PhD in |
| Sky, bringing to the table its ability as a public | | | | geochemistry from Harvard University, Farrell comes |
| company to raise capital, now has a deal with | | | | fresh from 12 years at the Nuclear Energy Institute in |
| Argentina Uranium to earn a 75% interest in the | | | | Washington, where he looked after licensing and |
| Santa Barbara property. | | | | regulatory affairs. |
| Surface sampling has turned up grades of up to 1.5% | | | | Argentina may be looking fairly stable politically these |
| U3O8, along an 11-kilometre trend. That compares to | | | | days, but Blue Sky also has a couple of small |
| 0.3-0.5% U3O8 at the Cerro Solo deposit. | | | | properties in Columbia. Hurd admits that, even five |
| "There is obvious uranium mineralization at the | | | | years ago, any foray into that country would have all |
| surface, which is rare and exciting," Hurd said. "And | | | | but unthinkable. |
| we've completed an airborne radiometric and | | | | However, "there's been a vast improvement in |
| magnetic survey over 3,000 square kilometers. It's | | | | Columbia in the climate for exploration," he insisted. |
| the first survey of its kind conducted in that | | | | "We have option agreements on two uranium |
| province." | | | | properties and we're not operating in the country on |
| "At Santa Barbara, our objective is to follow up the | | | | our own. We're going through the Grosso Group." |
| air survey with detailed sampling, leading to a drill | | | | "It's a chance to get in before other companies |
| program." | | | | recognize the opportunity." |
| Hurd expects Santa Barbara to be just the beginning. | | | | Blue Sky doesn't have all its eggs in a South |
| "The geological environment in the western United | | | | American basket, though. A joint venture with Eagle |
| States where the bulk of the U.S. uranium production | | | | Plains Resources at Eagle Lake, on the outside edge |
| comes from (also) exists in Argentina," he said. | | | | of Canada's Athabasca Basin, was Blue Sky's first |
| While the Argentinean government focused on | | | | property. |
| exploring in Chubut, regions to both the north and | | | | "It's had good historical sampling," Hurd said. "We've |
| the south look geologically promising, he said. | | | | completed several surface programs and we are |
| And, after years of slumber, the uranium rush | | | | waiting to drill the property as soon as the winter |
| appears to be underway. Argentina has seen uranium | | | | freeze-up comes." |
| exploration since the 1950s, but the country only | | | | This article is intended for information purposes only, |
| opened to foreign mineral exploration in 1993 and to | | | | and is not a recommendation to buy or sell the |
| uranium exploration, in particular, in 2000. | | | | equities of any company mentioned herein. It is |
| Meanwhile, the country's mines all closed and | | | | based on sources believed to be reliable, but no |
| exploration tapered off to nothing as the price of | | | | warranty as to accuracy is expressed or implied. The |
| uranium bottomed out at US$7/lb, thanks to the | | | | opinions expressed in the article are those of the |
| recycling of military stockpiles. | | | | author except where statements are attributed to |
| But those stockpiles are petering out, the demand | | | | individuals other than the author, in which case the |
| for energy keep growing, the price of oil keeps going | | | | opinions are those of the individual to whom they are |
| up, new nuclear reactors are on the drawing boards, | | | | attributed. |