Blue Sky Uranium (TSX-V: BSK)(OTC: BKUCF) CEO Niko Cacos on Exploring an Emerging Uranium District in Argentina

Niko Cacos: I'm doing very well, Gerardo. Always a pleasure to be on the program here with you.

Niko Cacos: Yeah, it was an important hole. I mean, just to step back a little bit, we initiated a drill program at the Ivana deposit, where we already have a PEA just under 23 million pounds of uranium and 11-and-a-half million pounds of vanadium. The purpose of this drill program was twofold. One was to see if we could infill some drilling, so that we could increase the quality of the deposit. So that was one objective. And the second objective was: Can we step out a little bit and see if there's a potential for this deposit to grow? And on both accounts, I can say we exceeded our expectations.

On the infill portion, as we moved out towards the margins of the deposit, we saw mineralization continuing to come in, so it gives us a lot of confidence that this deposit is going to hold nicely together. It'll be very, very useful when it comes to doing our engineering studies.

And then comes a surprise. We step out one-and-a-half kilometers southwest of the deposit, and lo and behold, we come back with a hole that's 0.15% uranium. And that, to put it into context, is five times higher than the average grade of the PEA of the whole deposit. So it was very exciting to hit such a high-grade result at that distance. So it brings into focus that there's more drilling that needs to be done outside here, but it also highlights that this deposit has excellent potential to grow and become much larger than the 23 million pounds that it is right now.

Niko Cacos: Absolutely. The vanadium is a very, very important contributor. It adds anywhere between 5 to 10% value to the PEA that we did, the economic study. But what was interesting is that the average vanadium that we're finding now is significantly higher than the average grade that was reported and done in the preliminary economic study. So it looks like there's even more value there, so as we begin to push ahead towards pre-feasibility study in a few months with this project, there's potential here that this could be worth more than what it's worth now, or was thought of, rather.

Niko Cacos: That's right.

Niko Cacos: That's right. We're waiting for our final batch of just over 300 assays to come back from the lab. The turnaround in the labs is improving. The pandemic has caused a few delays, as the samples need to be shipped to Canada, in order to have them assayed. But things are beginning to pick up, and in the meantime, we're taking the drill rig, and we're moving it up 10 kilometers to the north, to start drilling another exciting area called the Ivana Central target. And this is a target that we've drilled before, and we got some very, very good results, and we're excited to get back to there and see if we can uncover another Ivana, so to speak.

Niko Cacos: That is correct. The Amarillo Grande Project represents an entire new district in Southern Argentina. It spans a length of 145 kilometers by 50 kilometers wide. It is enormous. And these things are not unique just to Argentina. We see the same kind of districts that occur in Kazakhstan, and in fact, geologically, there's a lot of similarities between the two. And this is what's exciting, because in Kazakhstan, they've been developing these districts for the last 50 years, and some of the world's biggest deposits are there. And in fact, that country supplies nearly half of the uranium around the world today, because of its low-cost nature. And we're just at the beginning of all of this, and we seem to be on a very, very similar path. Very exciting.

Niko Cacos: Well, I think you're right. I think the uranium price is going to continue to go up very quickly. The market for uranium, it's not that big. The supply, rather. But the demand for uranium is continuously going up, especially now in this time where climate change is important, and we're seeking to generate carbon-free electricity. Sure, wind power and solar power are good options, but they don't have that base load reliability that nuclear has.

And there's a big, wider acceptance right now that nuclear power is actually playing a much, much more significant and larger role in generating carbon-free electricity. And this is really what's driving the demand around the world right now. So this is a demand that's not going to go away any time soon, and $200 a pound, I don't see that that's dreaming. I think that that's a real possibility.

Niko Cacos: No, I think you hit it right on the button. Argentina is one of the best places to be exploring, doing mining. Through the Grosso Group, in our last 30 years of involvement there, has yielded a lot of successes for us, but especially with uranium, because Argentina is a nuclear country with a very well-developed nuclear industry, and they understand it. And we're seeing a lot of support for all the work that we're doing there. I think this is a very exciting time for Blue Sky's shareholders right now, because as we continue to drill, and as we get additional results, this is reevaluating the company. And then with the price of uranium continuing to go up, there couldn't be a better time to consider Blue Sky as an investment.

Niko Cacos: There's lots of interest being generated, and they're not just tire-kickers.

Niko Cacos: My pleasure.