Blue Sky Uranium Commences Field Programs to Test New Discovery Potential at Amarillo Grande Argentina

Blue Sky launches a funded, multi-phase uranium exploration program in Argentina with major JV backing.

What the company is saying

Blue Sky Uranium Corp. (TSXV:BSK, FSE:MAL2, OTCQB:BKUCF) is announcing the start of a twelve-month exploration campaign at its Amarillo Grande Uranium-Vanadium Project in Argentina, emphasizing the systematic and phased approach of the program. The company highlights that the initial six-month phase is both approved and funded, with activities beginning at the Bajo de Valcheta area and advancing through a series of technical surveys and drilling at the Cuatro target. Nikolaos Cacos, President & CEO, frames the program as an opportunity to unlock further discovery potential, stressing both the methodical nature and the district-scale ambitions. The release foregrounds the joint venture structure with COAM (Abatare Spain, S.L.U.), who is providing exploration funding through IMSA, and details the Call Option Agreement that governs future project ownership and royalties. The company is explicit about the scale of potential investment, referencing up to US$35 million for a 49.9% interest and a further US$160 million for up to 80% interest in the Ivana deposit, subject to feasibility and development milestones. The tone is confident but measured, with clear differentiation between committed actions and conditional, forward-looking steps. Technical oversight is underscored by the approval of Mr. Ariel Testi, CPG, as Qualified Person.

What the data suggests

The announcement confirms that field activities have commenced at Amarillo Grande, with greenfield exploration underway at Bajo de Valcheta and a pilot radon survey planned for the Ivana Deposit. The initial six-month program is both approved and funded, with a broader twelve-month schedule outlined. The program includes approximately 500 metres of RC drilling at the Cuatro target, though final drill locations and timing depend on permitting and operational planning. Funding for the initial phase is committed by COAM through IMSA, under a Call Option Agreement that allows IMSA to acquire a 100% interest in certain targets, subject to minimum annual expenditures, exercise price, and a 2% royalty to MCA. For the Ivana deposit itself, COAM will fund up to US$35 million to earn a 49.9% indirect equity interest, with the option to increase to 80% by completing a feasibility study and funding up to US$160 million for project development. No drilling metres or start date are committed for the Ivana Corridor at this stage. The structure ensures Blue Sky retains ownership until the option is exercised, and all technical work is reviewed by a Qualified Person. The data is specific on program structure, funding, and JV terms, but does not include new technical results or resource updates.

Analysis

The announcement is positive in tone and provides a detailed operational and funding roadmap for Blue Sky Uranium Corp.'s Amarillo Grande project. The commencement of field activities and the approval and funding of an initial six-month exploration program are realised facts, lending credibility to the update. However, a significant portion of the release is forward-looking, including plans for drilling at Cuatro (pending permitting), potential follow-up work, and the possibility of COAM earning up to an 80% interest by funding up to US$160 million for project development. These are contingent on future results, permitting, and technical reviews, with no immediate production or revenue impact. The capital intensity is high, with large future expenditures disclosed but no near-term earnings or resource upgrades. The language is generally measured, but the scale of future funding and project ambitions is highlighted before any new technical results are available, creating a moderate gap between narrative and current evidence.

Risk flags

• ●Permitting and access for drilling at the Cuatro target are not yet finalized, introducing uncertainty about the timing and scope of the initial drilling campaign. Delays or complications in obtaining permits could push back exploration milestones and affect the overall program schedule.
• ●The earn-in and option structure is heavily contingent on future technical success and completion of feasibility studies. While US$35 million is committed for a 49.9% stake, the larger US$160 million commitment for up to 80% interest is conditional and may not materialize if technical or economic hurdles arise.
• ●No drilling metres or start date are committed for the Ivana Corridor, and follow-up work at Cuatro and the Corridor depends on initial results and joint technical review with COAM. This introduces execution risk, as future exploration and development are not yet guaranteed or scheduled.
• ●The project's capital intensity is high, with up to US$160 million required for full development and commercial production. Securing and deploying this level of funding will require sustained technical success and continued partner alignment, both of which are subject to change.

Bottom line

Blue Sky Uranium Corp. has launched a funded, multi-phase exploration program at its Amarillo Grande project in Argentina, backed by a joint venture with COAM that includes a committed US$35 million for initial earn-in and a potential US$160 million for full project development. The operational plan is detailed, with initial activities already underway and a clear structure for advancing through technical milestones. However, key steps such as drilling at Cuatro are still pending permitting, and further progress along the Ivana Corridor is not yet committed. The scale of future investment is significant, but much of it is conditional on technical and economic success. Investors should focus on the delivery of technical results from the initial exploration phase, progress on permitting, and any movement toward feasibility study completion or binding development commitments. The most important takeaway is that while the program is well-structured and funded for the near term, realization of full project value depends on successful execution across multiple stages and continued partner engagement.

Announcement summary

(TSXV:BSK) (FSE:MAL2) (OTCQB:BKUCF) Blue Sky Uranium Corp. announced that exploration field activities have commenced at its Amarillo Grande Uranium-Vanadium Project in Río Negro Province, Argentina. The program starts with greenfield exploration at the Bajo de Valcheta area, followed by a pilot radon survey at the Ivana Deposit and radon and lead-isotope surveys along the Ivana Corridor. The exploration is designed to generate new uranium targets and prepare priority areas for geophysical surveys and subsequent drilling, building on the district potential established by the discovery of the Ivana Deposit. The company plans to complete the first drilling at the Cuatro target during this phase and is working to finalize permitting and access for this drilling. Nikolaos Cacos, President & CEO, stated that the initial six-month program provides an opportunity to test for additional discovery potential at Amarillo Grande and is systematic in assessing both new areas and methods. Exploration activities are scheduled over a twelve-month period, with an approved and funded initial six-month program, consistent with the plan announced on August 18, 2026. Following completion and interpretation of the initial work, subsequent IP surveys and additional RC and dual RC/diamond drilling will be considered based on results and joint technical review with COAM. The program is being carried out by Minera Cielo Azul S.A. (MCA), Blue Sky's wholly owned Argentine subsidiary. Exploration funding is committed by Abatare Spain, S.L.U. (COAM) through IMSA, the joint venture company (JVCO) established to advance the Ivana Uranium-Vanadium Project pursuant to the call option agreement reported on February 27, 2025. Initial field activities focus on the Bajo de Valcheta area, with the broader western program covering Don Javier, Toro, and Bajo de Valcheta West, where historical radiometric anomalies and prospective sedimentary units are present. Geological mapping, ground radiometric surveys, and surface geochemical sampling will prioritize areas for shallow auger drilling and more detailed exploration. MCA plans to test passive alpha-track radon detectors over a covered portion of the Ivana Deposit, with results compared to known mineralization to assess the method's effectiveness. Subject to satisfactory pilot results, radon and lead-isotope surveys are planned along selected portions of the Ivana Corridor, extending from the Ivana Deposit through Ivana Gateway towards Ivana Central. Previous drilling at Ivana Gateway identified reduced sandstone horizons, pyrite, organic matter, and anomalous uranium geochemistry. The agreed program includes an initial campaign of approximately 500 metres of RC drilling at the Cuatro target, with final drill locations and timing subject to operational planning, access, and permitting. Follow-up work at Cuatro and additional drilling at Cuatro and Ivana Corridor may be considered within the twelve-month schedule, depending on initial results and joint technical review with COAM. No drilling metres or start date are committed for the Ivana Corridor at this stage. COAM has committed to fund the agreed six-month exploration program through MCA under the Call Option Agreement framework. As disclosed on February 27, 2025, the Call Option Agreement between MCA and IMSA grants IMSA the exclusive option to acquire a 100% interest in all or part of certain exploration targets owned by MCA, subject to minimum annual exploration expenditures, payment of the applicable exercise price, and a 2% royalty to MCA on acquired targets. The agreement provides a framework to fund exploration on MCA's properties while preserving Blue Sky's ownership until an option is exercised. Ivana Minerales S.A. is the operating company for the joint venture between Blue Sky and COAM to advance the Ivana Uranium-Vanadium deposit. Under the earn-in transaction, COAM will fund cumulative expenditures of US$35 million to acquire a 49.9% indirect equity interest in the Ivana deposit, and then has the further right to earn up to an 80% equity interest in JVCO by completing a feasibility study and funding costs and expenditures up to US$160,000,000 to develop and construct the project to commercial production, subject to the terms and conditions in the Agreement. JVCO also has a Call Option to acquire a 100% interest in all or part of certain exploration targets owned by Blue Sky's 100% held subsidiary, subject to certain conditions. The technical contents of the news release have been reviewed and approved by Mr. Ariel Testi, CPG, who works for the Company and is a Qualified Person as defined in National Instrument 43-101.

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