Featured Companies: Blue Sky Uranium
Blue Sky Uranium (TSX-V: BSK)(OTC: BKUCF) CEO Niko Cacos on Advancing a 145-km-long Argentinian Uranium Trend towards Production in a Rising Uranium Market
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of Blue Sky Uranium — Mr. Niko Cacos. Niko, how in the heck are you? It's been a bit!
Niko Cacos: Well, it's been a bit. But every day goes by, I feel better. Every time I think things can't get better, they get better. And when you've got a rising price in uranium and you have a company that's got a big deposit that's working to make it bigger — it makes me very happy!
Gerardo Del Real: Well, listen, let's talk about it. There's a lot to like. I have to get your take on the uranium sector; a completely different market than the last time you and I spoke back in April.
In April, when we chatted, we laid out the fundamentals and we talked about how it wasn't a matter of ‘if’ it was a matter of ‘when’ the uranium bull would really kick off. And now, clearly, we are in the early stages of what I think is going to be a historic uranium bull market. You've seen a cycle or two… give me your thoughts.
Niko Cacos: Oh, I completely agree. And when we spoke last, that wasn't just a guess. That was knowing and seeing that the demand for electricity being generated by using nuclear power — which is a carbon-free way and sustainable and reliable and secure way of generating electricity — that type of demand is increasingly being accepted throughout the world.
And in fact, we're seeing that demand continuously increasing. Now on the supply side, as the demand for uranium goes up, it's not like you can turn a switch on, and there you go, have a mine that's producing uranium, especially when a lot of the uranium miners require prices north of $50 a pound in order to be profitable.
So those fundamentals are still in-place. But what's happened recently is we're starting to see financial players enter the market. And, for example, the most recent player to step up is the Sprott Uranium Fund. They’ve come into the market. They’ve bought between 15 and 20 million pounds of uranium off the spot market.
And with the uranium market being a relatively small market, it's having a big effect. And we've seen the price — just in the last couple of months — go from just under $30 a pound and it hit over $50 a pound just in the last week.
So this is going to continue to exacerbate. And it's interesting… a decade ago, when there was a big push in the uranium price that reached $140, I think the potential here is to go even further because, back then, you didn't have these financial players dabbling in their market.
Gerardo Del Real: I absolutely agree with you. You and I were on a webinar a few months back, I believe, that's aged very well. So we might want to put a link to that. But it's amazing to me how many uranium experts there are now out there, right? Look, it's a phenomenal time to own a project with a 145-km-long trend.
Can we talk about the drill program that you launched to expand and upgrade the Ivana deposit at the Amarillo Grande uranium-vanadium project in Argentina?
Niko Cacos: Absolutely! This trend is the first of its kind discovered in Argentina. And as far as my understanding, there's not been any new uranium trends discovered around the world recently.
So what makes this trend really unique is, while it has a lot of geological similarities to the deposits and the trends that we see in Kazakhstan — which, by the way, is the world's largest supplier of uranium, low-cost uranium — this trend has the potential to rank amongst the largest but it also has the potential to be amongst the lowest operating costs.
So this is a very good environment to be in. We've already identified just under 23 million pounds of uranium. And back in the spring, we had launched a 4,500 meter drill program, which is ongoing, drilling away, trying to uncover additional deposits at different targets.
Currently, just a couple of days ago, we announced a 3,500 meter drill program to, basically, work and expand and upgrade the 23 million pound deposit that we have at Ivana.
Gerardo Del Real: I have to believe that with a project as prospective as — I mean, when we talk 145-km-long project trend… every company doesn't have that, Niko — I have to believe that the phone is ringing a whole lot more than it was a year ago.
Niko Cacos: Oh, absolutely it is. We're getting interest on the phone. We're getting interest from larger companies wanting to have a look at our project and getting interest for financing. So it's a great space to be.
Quite frankly, Gerardo, I think we're really at the beginning of this. Not just the beginning of the uranium market, a rising uranium market, we're also at a point where, as we begin to make announcements of drill results, and if we find what we expect to find — I think you're going to see this C$50 million market cap company get revalued very quickly.
Gerardo Del Real: I absolutely agree. How's the balance sheet look, Niko?
Niko Cacos: Balance sheet looks good. We’ve got a couple million bucks. We've got enough funds to carry out our exploration program. It should last us until the beginning of the first quarter of 2022.
If the market continues to go up, I think it'll be fair enough to take a dip and do a subsequent raise at some point because, after this drill program, we're looking to take the project towards prefeasibility study. We'd like to see us beginning to fast-track towards production.
Gerardo Del Real: You answered my next two questions. Well done as always, Niko. I suspect you and I will be chatting more often here in the coming months. Great work! Great catching up. Thank you so much for the update. Anything else to add, Niko?
Niko Cacos: Nope, I can't wait to talk next time. Who knows where the price of uranium will be. And maybe we won't be just a 23 million pound deposit. Maybe we'll be double, triple, quadruple that next time we chat.
Gerardo Del Real: Looking forward to it! Thanks again.
Niko Cacos: Great! Thanks, Gerardo.Click here to see more from Blue Sky Uranium