MercoPress. South Atlantic News Agency

Canadians investing heavily in Argentine uranium exploration

Canada's Blue Sky Uranium Corp. announced that it has entered into a Letter of Agreement to acquire 100% of the shares of Argentina Uranium Corp., thereby gaining control of over 500,000 hectare uranium land package in Argentina.

"The acquisition is a major step toward Blue Sky Uranium's objective of becoming the leading uranium explorer in mineral-rich Argentina - a country that has historically been under-explored for uranium" said Dr. Clifton Farrell, Executive VP and COO of Blue Sky Uranium Corp. in Vancouver. "The Blue Sky team recently completed an airborne radiometric and magnetic survey over much of Argentina Uranium's property and we are very encouraged by the results we have seen so far". Blue Sky said that the projects staked by Argentina Uranium were completed under the direction of Dr. Jorge Berizzo, one of the foremost authorities on uranium in Argentina and with 22 years of experience in uranium exploration, including 14 years as senior exploration geologist for the Argentinean National Atomic Energy Commission (CNEA). He also played a leading role in the discovery of the Cerro Solo uranium deposit (10.14 million pounds U at 0.3% to 0.5% U) in Chubut province. Most recently, Blue Sky has completed more than 3,000 square kilometers of radiometric and magnetic surveys. Based on the preliminary evaluation of the survey results that have been received to date from surface exploration in Rio Negro province, Blue Sky's management and technical teams have recommended the acquisition of Argentina Uranium. To date there are two new mineralized systems that are associated with the airborne radiometric anomalies on the ground currently held by Argentina Uranium Corp., these are on the ANIT and Santa Barbara properties in Rio Negro province. Uranium-bearing petrified wood and visible, yellow uranium mineralization have been identified on surface at both the ANIT and Santa Barbara projects. The ANIT anomaly extends for more than 15 km in length and varies up to 2 km in width. The strength of the radiometric anomaly at ANIT closely resembles that of the Cerro Solo deposit in neighboring Chubut Province that contains approximately 10 million pounds U3O8. The footprint of the anomaly at ANIT is an order of magnitude larger than that of Cerro Solo. The Santa Barbara project contains three parallel anomalies, 11 km, 6.5 km and 5 km in length respectively and up to 1.5 km in width. Both the ANIT and Santa Barbara projects are in a "sandstone-hosted" environment, similar to the important Grants Uranium District in New Mexico, where, according to reports, more than 340 million pounds of uranium have been produced. Systematic exploration has not been conducted on either project. Argentina Uranium Corp., through its Argentine subsidiary holds more than 500,000 hectares property in the Argentine provinces of Rio Negro, Chubut, Santa Cruz and La Rioja.