Resource World Magazine

30 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 4 Ted O'Connor, President and CEO, looks out over Tantamaco, the main uranium prospect at the Macusani Project in Peru. Photo courtesy Azincourt Uranium Inc. W ith uranium oxide standing at US $34.50 per lb effective December 30, according to Infomine.com, and with retrenchment at several major projects, uranium still appears to be adrift in the market doldrums. Yet its underlying fundamentals are comparatively robust and likely to be bolstered by growth in the global reactor fleet. China is the prime mover here, with 18 operational nuclear reactors; 29 under construction; 59 in the planning stages; and 118 proposed, according to the World Nuclear Association (WNA). In addition, the sale of low-enriched uranium sourced from Russian nuclear warheads and sold through the Megatons to Megawatts Program came to an end in 2013. This represented about 13% of the global uranium requirement. Meanwhile, debate still revolves around Japan and the restarting of its reac - tors, with some commentators suggesting the bulk of its 50 reactors could be brought back on stream over the next two to three years. But often overlooked by analysts is a potential uranium upside slowly developing in South America, one that could have major implications over the next 10 years. As the region develops and grows, the demands placed on the energy infrastructure are stretching current capacity. And because of its scale, the problem can only be relieved in part by renewable energy, which makes the case for non-polluting nuclear power that much stronger. Argentina and Brazil lead the way in South America, operating the region's only reactors, with both nations keen to boost their fleets. Brazil currently has two reactors online, one under con - struction and four proposed; Argentina has two reactors online, one under construction, one planned and two proposed, accord- ing to the WNA. Brazil is the only country in South America currently produc- ing uranium, with an output of 231 tonnes reported by the WNA for 2012. However, uranium's potential in the region is vast, with the continent's prospects mirroring those found in Africa. "There's a huge similarity between parts of South America and Africa; there are large swathes that remain unexplored [in South America] and have the right geological background," chairman and director of Azincourt Uranium Inc. [AAZ-TSXV] "Ian Stalker" told Resource World. "Plus there's the ability to have open pit opportunities." NEW KID ON THE BLOCK South America's main uranium regions identified so far are found within Argentina, Brazil, Colombia, Guyana, and Peru. The lat- ter contains the Macusani Plateau in the south-eastern Puno Department where Macusani Yellowcake Inc. [YEL-TSXV] already holds deposits. It is now being joined by Azincourt, which announced on November 22 that it had acquired Minergia SAC AZINCOURT URANIUM prepares for South American upside with Peruvian purchase By Simon Rees

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