Blue Sky Uranium Corp. has announced a positive new Preliminary Economic Assessment (PEA) for the Ivana uranium-vanadium deposit within the Amarillo Grande Project in Argentina. The PEA highlights impressive figures, including an after-tax NPV of $227.7 million, an after-tax IRR of 38.9%, and an after-tax payback period of 1.9 years. The pre-production capital cost is estimated at $159.7 million, inclusive of a $35.4 million contingency.
The project, led by Blue Sky President & CEO Nikolaos Cacos, aims to capitalize on the resurgent uranium market by completing a prefeasibility study for Ivana and continuing exploration efforts within the Amarillo Grande project.
Key assumptions and inputs for the PEA include a uranium price of $75/lb U3O8 and a vanadium price of $7.5/lb V2O5. The project is expected to have a construction period of 2 years and a production period of 11 years, with an average annual production of 1.5 million pounds of U3O8.
Detailed processing studies are currently underway to further enhance the project’s economics and de-risk the development of the Ivana deposit. These technical advancements will support the commencement of a prefeasibility study in the near future.
The Mineral Resource estimate for the Ivana Project includes Indicated and Inferred resources, with plans for infill drilling to upgrade the mineral resource classification. Additionally, there is potential to expand mine feed at Ivana and discover new resources within the surrounding areas of the project.
The Amarillo Grande Project, controlled by Blue Sky, is a new uranium district in Argentina that holds significant potential for uranium-vanadium mineralization. With a focus on sustainable development and community engagement, Blue Sky aims to deliver exceptional returns to shareholders while respecting the environment and local communities.
