Blue Sky Uranium Announces a Positive Preliminary Economic Assessment for the Ivana Uranium-Vanadium Deposit, Amarillo Grande Project, Argentina

TSX Venture Exchange: BSK
Frankfurt Stock Exchange: MAL2
OTCQB Venture Market (OTC): BKUCF

VANCOUVER, Feb. 27, 2019 /CNW/ - Blue Sky Uranium Corp. (TSX-V: BSK, FSE: MAL2; OTC: BKUCF), ("Blue Sky" or the "Company") is pleased to announce the results of the first Preliminary Economic Assessment ("PEA") for the Ivana Uranium-Vanadium deposit at the Company's 100% owned Amarillo Grande Project in Rio Negro Province, Argentina.  The PEA demonstrates robust economics for a surficial mining operation of the Ivana deposit, with 13 years of uranium and vanadium production.    

PEA Highlights (All figures in US dollars)

• After-tax NPV8%: $135.2 million
• After-tax IRR: 29.3%
• After-tax Payback period: 2.4 years
• Pre-production Capital Cost: $128.05 million, includes $28.28 million contingency
• Life of mine ("LOM") Sustaining Capital Cost: $35.46 million, includes $7.21 million contingency
• Average LOM Total Cash Cost net of credits: $16.24/lb U₃O₈
• Average LOM All-In Sustaining Costs ("AISC") net of credits: $18.27/lb U₃O₈

PEA Key Assumptions & Inputs

• Uranium price: $50/lb U₃O₈
• Vanadium Price $15/lb V₂O₅
• Years of Construction: 2
• Years of Production: 13
• Strip Ratio: 1.1:1 (waste/ore)
• Dilution: 3%
• Peak Mining rate (waste + mill feed): 13,500 tonnes per day ("tpd")
• Processing throughput: 6,400 tpd
• Process Plant Recoveries, Uranium: 84.6%
• Process Plant Recoveries, Vanadium: 52.5%
• Average Annual Production (LOM): 1.35 Mlbs/y U₃O₈
• LOM uranium production: 17.5 Mlbs U₃O₈

"This PEA demonstrates that the Ivana deposit is a leading new low-cost uranium-vanadium development project," stated Nikolaos Cacos, Blue Sky President & CEO. "With the expansion upside at Ivana and the discovery potential for new uranium and vanadium resources throughout the district-scale property, we expect Amarillo Grande to continue to improve its value proposition."

Additional exploration work and detailed engineering studies are expected to expand and upgrade mineral resources, and further optimize and enhance the economics of the Ivana uranium-vanadium deposit.