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NEWS RELEASE

Wednesday, September 29, 2010
Blue Sky Extends Uranium Mineralization in Phase II drilling at ANIT



Blue Sky Uranium Corp. (TSX-V: BSK, WKN: AOMKXP) is pleased to announce complete results from Phase II aircore drilling at its ANIT project in Rio Negro Province, Argentina. The Phase II program, totaling 2,581m in 107 holes, was designed to test for extensions of the ANIT West and Central zones as well as to provide a preliminary evaluation of ANIT East, radon gas anomalies and buried targets (Map 1). This work, combined with the Phase I drilling (May 18th and June 16th 2010 News Releases) brings the total drilling to date on the ANIT area to 5,044m in 204 holes.

Results from the Phase II drilling on the ANIT West and Central zones are presented in Table 1 below. Highlights include ANIT West hole AN174 that averaged 4m at 0.078% U3O8 and 0.107% V2O5, and ANIT Central hole AN168 that averaged 7m at 0.037% U3O8 and 0.028% V2O5. This additional drilling in the main ANIT area provides further definition to strongly mineralized and thicker portions of the mineralized paleochannel at ANIT.

The advantage of the ANIT deposit style is the potential low cost of mining at surface and the potential to up-grade the deposit by simple physical separation of the carnotite uranium mineralization from the sand and gravel host. Since the mineralization is hosted by the fine sand component and non-mineralized gravel comprises a significant percentage by weight, removal of the coarse material by simple screening process could significantly increase the grade of the material prior to processing. This can have very positive effects on processing costs and also may significantly lower the economic cut off grade.

Blue Sky has recently commenced detailed sampling of the ANIT West and Central areas using a large excavator capable of reaching to 6m depth. The excavator pits will be hand sampled by Blue Sky technical staff, giving excellent geological control and accurate sample collection. At present the majority of mineralization discovered is in the 0-6m depth range. The Company has also retained Independent Metallurgical Operations PTY LTD of Australia (IMO) to carry out beneficiation testing and basic metallurgical testing of the ANIT uranium-vanadium deposit.

Table 1. Phase II Aircore Results from ANIT West and Central*

HOLE ID

FROM

TO

Meters

U3O8

V2O5

Target

AN_167

0

5

5

0.042

0.040

Anit Central

AN_168

0

7

7

0.037

0.028

Anit Central

AN_169

0

2

2

0.008

0.050

South Ext, Anit West

AN_170

0

2

2

0.024

0.056

South Ext, Anit West

AN_171

0

3

3

0.037

0.101

Anit West

AN_172

0

4

4

0.046

0.085

Anit West

AN_173

0

4

4

0.050

0.094

Anit West

AN_174

0

4

4

0.078

0.107

Anit West

AN_179

1

2

1

0.007

0.178

South Ext, Anit West

AN_180

1

2

1

0.006

0.079

South Ext, Anit West

AN_181

0

2

2

0.053

0.117

North Ext, Anit West

AN_182

0

4

4

0.039

0.195

North Ext, Anit West

AN_183

0

1

1

0.013

0.070

North Ext, Anit West

AN_184

0

2

2

0.017

0.131

Anit West

AN_185

0

4

4

0.064

0.189

Anit West

AN_186

0

3

3

0.071

0.153

Anit West

AN_187

0

2

2

0.028

0.146

Anit West

AN_189

0

4

4

0.036

0.258

Anit West

AN_190

0

2

2

0.013

0.092

Anit West

AN_191

1

2

1

0.006

0.170

Anit West

AN_198

1

2

1

0.012

0.047

South Ext, Anit West

*21 holes of 26 drilled in ANIT West and Central areas exceeded a cut off grade of 0.006 % U3O8 (50ppm U) over 1m.

Away from the main paleochannel large areas of lower grade, but potentially economic mineralization, have been discovered at ANIT East as well as 200m north and 400m south of the ANIT Central zone (See Table 2). Of 8 regional radon targets drilled 7 had no significant results, however, 1.65 km north of ANIT hole AN124 cut 1m at 0.017% U3O8 and 0.080% V2O5 at 8-9m below cover.

Table 2. Phase II Aircore Results from ANIT East and Regional Targets*

HOLE ID

FROM

TO

Meters

U3O8

V2O5

Target

AN_124

8

9

1

0.017

0.080

Anit North, radon.

AN_125

24

25

1

0.017

0.076

Anit North, radon.

AN_126

0

1

1

0.008

0.021

Anit East

AN(HQ)_127

0

1

1

0.007

0.029

Anit East

AN_128

0

1

1

0.015

0.024

Anit East

AN_131

0

3

3

0.011

0.039

Anit East

AN_132

1

3

2

0.009

0.057

Anit East

AN_133

0

2

2

0.012

0.043

Anit East

AN_134

0

2

2

0.009

0.021

Anit East

AN_135

0

3

3

0.006

0.031

Anit East

AN_136

1

2

1

0.028

0.039

Anit East

AN_137

0

1

1

0.006

0.024

Anit East

AN(HQ)_140

0

1

1

0.008

0.091

Anit East

AN(N)_140

0

2

2

0.010

0.093

Anit East

AN(HQ)_141

0

1

1

0.006

0.080

Anit East

AN(HQ)_142

0

2

2

0.007

0.045

Anit East

AN_148

1

2

1

0.020

0.064

Anit East

AN_149

1

2

1

0.028

0.064

Anit East

AN_161

1

5

4

0.020

0.061

Anit East

AN_162

0

4

4

0.028

0.075

Anit East

AN_163

1

3

2

0.015

0.042

Anit East

AN_165

0

3

3

0.015

0.036

Anit East

*22holes of 81 drilled in ANIT East and other Target areas exceeded a cut off grade of 0.006 % U3O8 (50ppm U) over 1m.

In the Phase II aircore drilling the addition of a second cyclone and careful attention to dust suppression resulted in much improved recoveries compared with Phase I drilling. Blue Sky considers aircore drilling a cost effective and fast method of locating mineralization, but not an optimal sampling method as the quantitative measurement of very fine clay size carnotite uranium mineralization (hosted unbound in dry loose sands and gravels) with conventional drilling methods has proved difficult as experienced by Blue Sky's team and other companies working on similar deposits in Africa and Western Australia. However, the benefit of the mineralization being located in the fine lose material and not bound within sand and gravel pebbles is in the potential to upgrade the mineralization as described on page one of this news release.

Table 3 - Comparison chart for known paleochannel deposits

Project & Location

Grade U3O8

Rock Type

Thickness

Length
(approx.)

Width
(approx.)

Resource

*Trekkopje and Klien Trekkopje
(Namibia)

 

0.013 %

Mostly Hard Rock2

80% less than 15 meters below surface

 

14 km

 

3 km

139.2 M lbs.
(inferred)

Langer Heinrich
(Namibia)

 

0.06 %

Mostly Hard Rock3

 

1 to 30 meters

 

15 km

50 to 1,100 meters

160 M lbs
(inferred)

Lake Maitland
(Western Australia)

0.033 %

Sand and gravel4

1.7 meters
average

5 km

200 to 2,000 meters

23.7 M lbs (inferred)

* AREVA purchased "Trekkopje and Klein Trekkopje" by paying USD $2.5 Billion to acquire Uramin Inc. The project is expected to be in production in 2010, with full production in 2011.Trekkopje grades 0.013 % U3O8 and is hosted in mostly hard rock where 80% requires drilling and blasting. In contrast, Blue Sky's "ANIT" is hosted in sand and gravel.

Analyses of samples reported herein were performed by Alex Stewart Assayers, in Mendoza, Argentina, an internationally recognized analytical services provider, by means of Inductively Coupled Plasma Mass Spectrometry following a four acid digestion (ICP-AR). Blank, duplicate, and standard samples were inserted into the sample sequence sent to the lab for quality assurance/quality control (QA/QC) purposes. In total, 144 quality control samples (15 % of 969 total) were analyzed. Blue Sky detected no significant QA/QC issues during review of the data. Note that 10,000 ppm = 1% and 1% = 1.1792% U3O8, 1% = 1.785% V2O5. All holes were drilled using NQ size aircore, unless stated in table 1 above HQ size aircore.

The technical information contained in this release has been prepared by Bruce Smith, AusIMM, Blue Sky Uranium Exploration Manager and a Qualified Person as defined by National Instrument 43-101.

About Blue Sky Uranium Corp.

Blue Sky has, through its membership with Grosso Group Management, has signed and agreement in principle for a strategic alliance with the Government of Rio Negro for the purpose of jointly exploring the potential for commercial mining activity to develop mining projects that provide for the acquisition, exploration and exploitation of polymetallic and energy related mineral deposits. The Company is dedicated to actively exploring the Patagonia region of Argentina. Experienced management and technical members, who foster relationships with a vast amount of international industry contacts, lead the exploration team on the search for quality resource opportunities. Blue Sky is a member of the Grosso Group, a resource management group with over 15 years experience in exploring South America.


ON BEHALF OF THE BOARD

"Sean Hurd"

Mr. Sean Hurd, President & CEO


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

 

 

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05/01/2011Expands Technical Advisory Board
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