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September 16, 2009
Clean Energy Clean Future
TSX-V: BSK
A Pioneer In Argentina
Legal Disclaimer
Clean Energy Clean Future
TSX-V: BSK
Statements in this release that are forward looking statements are subject to various risks and uncertainties concerning the specific factors identified above and in the Corporation’s periodic filings with the Ontario Securities Commission and the U.S. Securities Exchange Commission, such as estimates and statements that describe the Corporation’s future plans, objectives or goals, including words to the effect that the Corporation or Management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, they involve inherent risks and uncertainties.
Actual results in each case could differ materially from those currently anticipated in such statements by reason of factors such as the productivity of the Corporation’s mining properties, changes in general economic conditions and conditions in the financial markets, changes in demand and prices for the minerals the Corporation produces, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in areas in which the Corporation operates, technological and operational difficulties encountered in connection with the Corporation’s mining activities, and labor related matters and costs.
Key People
Sean D. Hurd President & CEO, DirectorOne of the founders of the Company with over 15 years of public market experience including raising venture capital and managing resource exploration companies with assets in Argentina, Peru, Columbia, USA and Canada. Experienced in initial IPOs, small cap start-ups, reorganization and marketing public resource companies. Strong network of contacts within the mineral resource and financial communities.
Ronald McMillan, PhD, PGeo Chief Technical Consultant, DirectorMore that 40 years of experience in uranium, gold and base metal exploration as well as mine evaluation. Authored numerous papers on uranium exploration and uranium deposits and has worked in 20 countries on 5 continents. Exploration manager or consulting geologist with several well known mining companies including; Westmin Resources, Cameco, Noranda, Teck and Falconbridge. Several important gold deposits were discovered by exploration under his direction.
Gerald Carlson, Ph.D, P.Geo. DirectorDr. Carlson has been involved in mineral exploration and exploration company management for over 30 years. He is President & C.E.O of Copper Ridge Exploration, past President and C.E.O. of La Teko Resources Ltd., a position he held until the acquisition of La Teko by Kinross. Dr. Carlson's educational background includes a B.A.Sc. from University of Toronto in Geological Engineering and graduate studies in Economic Geology including a M.Sc. from Michigan Technological University and Ph.D. from Dartmouth College.
Key People
TSX-V: BSK
Nikolaos Cacos, BSc, MIM DirectorMr. Cacos brings over 14 years of management expertise in the mineral exploration industry. His career includes administration and strategic planning for public companies in a diverse range of industries. Mr. Cacos currently serves as an officer and director of a number of TSX Venture Exchange listed companies. He holds a Master of International Management degree from Heidelberg, Germany and a Bachelor of Science degree from the University of British Columbia.
Bruce Smith, M.Sc. Exploration Manager, ArgentinaOver 20 years experience in mineral exploration in Australia, New Zealand, Philippines, West Africa, Central America and Mexico. Bruce holds a Bachelor of Science and Master of Science degree in geology from the University of Otago, New Zealand, a Master of Engineering in Water and Environmental Resource Management from the UNESCO Institute for Water Education, Delft, Netherlands and is a member of the Australian Institute of Mining and Metallurgy (AUSIMM).
David Terry, PhD, P. Geo. Advisory Board Member20 years experience in the mining sector focused on exploration for a wide spectrum of precious and base metal deposits throughout North and South America. He has held positions with a number of senior mining companies including Boliden Limited, Westmin Resources Limited, Hemlo Gold Mines Inc., Cominco Limited and Gold Fields Mining Corporation as well as spending several years with the British Columbia Ministry of Energy and Mines. Currently Dr. Terry is a director and officer of several public companies.
Global Uranium Reactor Demand / Supply
2009 Projections*Demand 180 million poundsMine Supply 115 million poundsAnnual Shortfall 65 million pounds
*Source: Reuters Cameco CEO Interview Mar. 11-09
"Somewhere between 24 and 12 million pounds of supply will drop out after 2013" Mr. Jerry Grandey, Cameco, C.E.O.
Argentina’s Shortfall Supply vs. Demand
• First reactor in Argentina built in 1974 (CANDU design)
• Nuclear power is 7% of Argentina’s electricity, 20% by 2025
• Uranium demand expected to double to 220 tonnes / year
• Canada primary supplier of uranium
• Zero domestic production
• Federal government encouraging exploration and exploitation
Argentina’s Nuclear Industry
• Provide engineering and development services abroad• Design, build and export research reactors• 2 nuclear plants in operation• 1 nuclear plant in construction stage• 1 nuclear plant in planning stage• 6 research reactors• 4 particle accelerators• 3 atomic centres• 1 nuclear technology centre• 1 heavy water plant• 2 irradiation facilities• 1 uranium purification plant
INVAP, located in Rio Negro, operates research
reactors in the province and exports reactors and
technology world wide.Skilled nuclear workforce.
Rio Negro Province Nuclear Industry
See www.invap.net
Rio Negro’s Alliance with The Grosso Group
The agreement between the Province of Rio Negro, Argentina, and the Grosso Group, is to jointly explore for mining and
energy related mineral deposits.
This is the first agreement of its kind in Rio Negro, highlighting Blue Sky’s and the Grosso Group’s relationship with the
Province of Rio Negro.
From left to right:
Joseph GrossoPresident, Grosso Group
Gabriel Alejandro SaviniSecretary of State for Public Companies
Fransisco GonzalezGoverning Secretary
Experienced Exploration Professionals
TSX-V: BSK
Jorge Berizzo, PhD• Senior Uranium Geologist for the Argentine Government (CNEA) for over 14 years
• Discovered 10 million lb. Cerro Solo deposit
• Formulated detailed regional exploration plan in 1979 – project was put on hold by the Argentine Government
• Identified all of Blue Sky Uranium’s projects
Exploration Activities Argentina
TSX-V: BSK
Santa Barbara and Anit
Projects
Other BSK uranium project
locations
Santa Barbara
&
Anit
Projects
• 5,000 km2 of projects (100% owned)
• Focus is on unexplored regions
• First two discoveries made in Rio Negro
• Blue Sky is one of the largest uranium land holders in Argentina
TSX-V: BSK
Deposit Type Comparison
Langer Heinrich Deposit(Paladin Energy Ltd)ANIT and Santa Barbara
(Blue Sky Uranium Corp.)
BSK’s Rio Negro (Argentina) Projects
• Geologically similar the 160,000,000 lbs* Langer Heinrich in Namibia, Africa
• Hosted in channel-facies quartz rich sandstone pebble conglomerate
• Dominate uranium mineral carnotite (a uranium vanadium phosphate)
* See appendix 1
Generally 1 to 30 metres thick
Deposits can be several kilometres in length
Target Deposit Type Calcrete Paleochannel
Advantages of Paleochannel Deposits
• Located at or within a few metres from surface• Very low cost to explore• Very low cost to mine and develop• Large low grade deposits are economically attractive
Surface level
Shallow deposit
Blue Sky’s Discoveries Have District wide potential
TSX-V: BSK
Santa Barbara11 km mineralized trend
ANIT15 km mineralized trend
BSK’s airborne radiometric surveys discovered two very large uranium channel targets with district wide importance.
ANIT Radiometrics
15 km strike length
ANIT West Zone Results
Note 1 - 10,000 ppm = 1% and 1% U = 1.1792% U3O8
3 metres @ 0.14% U3O8 3 metres @
0.22% U3O8
2 metres @ 0.14% U3O8
3 metres @ 0.84% U3O8
2 metres @ 0.07% U3O8
3 metres @ 0.14% U3O8
2.8 metres @ 0.085% U3O8
ANIT Central Zone Results
Note 1 - 10,000 ppm = 1% and
1% U = 1.1792% U3O8
3.5 metres @ 0.05% U3O8
2.1 metres @ 0.2 % U3O8
1.5 metres @ 0.12% U3O8 2 metres @
0.06% U3O8
2.5 metres @ 0.19% U3O8
2.5 metres @ 0.06% U3O8
2 metres @ 0.11% U3O8
2.5 metres @ 0.07% U3O8
1.5 metres @ 0.09% U3O8
ANIT Depth Potential
ANIT Project Patagonia
The average grade of from 83 pits covering over a strike length of 6km is 0.045% U3O8 within a 15 km long radiometric anomaly.
The target remains open along strike and to depth. A trenching and drilling program is expected to begin in the fall of 2009.
Blue Sky Uranium Corp. Mega Uranium Ltd.
Project: ANIT Project: Lake MaitlandLocation: Rio Negro, Argentina Location: Western AustraliaSize: ?? Size: 23 million poundsGrade: 0.045% U3O8 Grade: 0.033% U308
Forsys Metals Corp Paladin Energy Ltd.
Project: Valencia Project: Langer HeinrichLocation: Namibia, Africa Location: Namibia, AfricaSize: 82 million pounds Size: 160 million poundsGrade: 0.013% U3O8 Grade: 0.06% U3O8
Uranium Grade Comparisons
Deposit Lake Maitland Langer HeinrichSize 23.7 million pounds 160 million poundsGrade 0.033% (0.01% cutoff) 0.06% (0.025% cutoff)
Location Western Australia NamibiaCapital Cost $125 million $92 millionOperating Costs $21.04 per pound $14.18 per poundEst. Annual Production 1.65 million pounds 2.6 million poundsNPV @ 10% Discount US $143 million US $830 million
*See appendix 1 **See appendix 2
Paleochannel DepositsFinancially Attractive
Mega Uranium** Paladin Energy*(Development Stage) (In Production)
Based on $75 long term uranium price (Most utilities purchases uranium in long term contracts, not on the spot market).
Argentina Excellent Infrastructure
TSX-V: BSK
• Region has very low population density
• Elevation of 200 metres
• Rainfall of 300 mm (12 inches) per year
• Year-round exploration
• 3 hr drive to city with 70,000 population
• 200 km to deep sea port
• Power nearby, rail access within 100 km
Exploration Plans 2009- 2010
TSX-V: BSK
Rio Negro Province
• Permitting underway for fall trenching and drilling at ANIT
• Metallurgy testing at ANIT
• Conduct a 20,000 square kilometre airborne radiometric survey
• Acquire new ground prospective for uranium discoveries
• Expand regional surface exploration
Country Wide
• Review projects held in Chubut, Neuquen and Santa Cruz
• Review province by province for new acquisitions
• Pursue additional exploration alliances with Provincial governments
Share Structure
TSX-V: BSK
Issued and Outstanding 44,820,000
Total Warrants 16,822,425
Total Options 3,740,000
Fully Diluted 65,382,425
Sept. 10, 2009
Corporate Head Office
Clean Energy Clean Future
TSX-V: BSK
Suite 709 – 837 West Hastings StreetVancouver, B.C., V6C 3N6
(604) 687-1828 T(604) 687-1858 F
www.blueskyuranium.cominfo@blueskyuranium.com
Appendix 1
Bankable Feasibility Study
A US$3 million BFS was conducted by GRD Minproc, a project engineer of international repute. Completed in April 2005 and approved by the Paladin Board in May, the BFS has confirmed that a large body of uranium mineralisation exists at Langer Heinrich. The defined ore reserves generated from the study showed Indicated and Measured Resources supporting a minimum mine life of 11 years and a process plant life of 15 years. These resources occur mainly in the Detail 1 and 2 areas, with a small portion coming from the Detail 3 and 5 areas. The additional identified resources strongly increase the possibility that both mine life and annual production could be extended by many years.
Based on the mill throughput design of 1.5Mtpa of ore, the BFS showed 1,180tpa U3O8 could be produced for the first 11 years at a head feed grade of 0.0875% U3O8 and 401tpa U3O8 over the last 4 years, using the accumulated low grade stockpile grading 0.032% U3O8.
The operating cost for the reserve defined BFS averaged US$14.18/lb U3O8 over the life of the project and, for the first six years, costs averaged US$12.20/lb U3O8. Projected capital costs totalled US$92M, including a 10% contingency plus an “accuracy provision” totalling US$10M. This is higher than previously reported, but the potential longer project life of from 15 to 24 years has made minimisation of operating costs a very credible objective. Increasing capital expenditure to facilitate this exhibited, on an incremental basis, a comparatively small impact on project economics compared to operational cost increases and long term project performance.
The BFS clearly indicated that the Langer Heinrich Uranium Project could be developed into a profitable mining operation. The BFS incorporated a uranium pricing schedule for U3O8 ranging from US$26/lb to US$35/lb over the 15 year period. The BFS financial modeling shows highly attractive returns could be achieved based on using defined reserves only. Due to restrictions under Canadian securities laws respecting disclosure of results of economic evaluations using Inferred Resources, Paladin is currently unable to release the more complete economic analysis resulting from the BFS work. Nevertheless, the robust nature for the Project was clearly illustrated by its ability to pay back initial capital and working capital 3.5 years after commencement of operations, which were scheduled for start up in September 2006.A revision of the resource model in November 2005 allowed the estimation of new resources, which with an increase in the base uranium price used for mining studies to $30/lb allowed for the calculation of a new mining reserve and also saw an extension of the project life to 27 years.
Measured and Indicated Resources of 56.4Mt grading 0.06% containing 72.4 million pounds lbs of U3O8 and Inferred Resources of 70.7Mt grading 0.06% containing 91.6 million lbs of U3O82
TSX-V: BSK
Appendix 2
Mega Uranium Lake Maitland scoping study
See Mega 2008-10-21 News Release
MEGA URANIUM ANNOUNCES RESULTS OF SCOPING STUDY OF LAKE MAITLAND URANIUM RESOURCE, WESTERN AUSTRALIA
•Based on an annual throughput of 1.67 million tonnes of ore at a cut-off grade of 200 ppm U3O8, production is estimated at 1.65 million pounds U3O8 per year over a mine life of 10 years.
•Total capital cost US$85.1million.
•Average operating cost US$16.6 per pound U3O8.
•At a US$75 per pound U3O8 sale price, the project has a NPV of US$181.4 million and Investment Rate of Return of 43.4%.
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