Issue link: http://resourceworld.uberflip.com/i/261649
32 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 4 MINING company to go through the environmental permitting process for intensive explora- tion drilling of uranium," O'Connor said. "The government at that time didn't have a framework, so an effort was made to assist the government and they came to adopt regulations that aligned the country with international standards such as the IAEA's [International Atomic Energy Agency]." "Peru is a great mining country," he added. "The investment going on there for at least the past three years has surpassed every other country in Latin America. [And] the Peruvian royalty regime [for uranium] is likely to be similar to base metal mining." The geographic advantages of Peru are also worth noting. "Asia is just across the pond so to speak from Peru and there's Brazil and Argentina next door," O'Connor said. In addition, the Macusani Plateau already has a volume of uranium that piques the market's interest. "We're work - ing in relatively small region, we're talking about a 10 km radius that encompasses Macusani Yellowcake and Azincourt ground, and there's already 100 million lbs uranium already known." Finally, Peru also has the advantage of being another market from which the utilities can buy. "The utilities like diverse supply," O'Connor said. "Take Kazakhstan; it has political risk issues, plus they're not expanding anymore. Indeed, they've even been shuttering projects that have proven too costly. Canada and Australia are stable but it's worth noting that certain prov - inces within both nations are experiencing increased political opposition against ura- nium. In addition, many of the deposits are not potentially low-cost like other deposits elsewhere in the world," he added. Both O'Connor and Stalker are bullish about uranium's future and reiterated that the demand dynamic for uranium is about to shift gears. "We're on the cusp of a market shift where it goes from being a supply-driven market to a demand-driven market. Even if Germany shutters all of its reactors by 2022 as planned, it will still mean that 90-93 net new reactors coming online during this timeframe," O'Connor said. Azincourt believes it is now well posi - tioned to catch the potential wave of opportunity. "As we near the turnaround, the timing is essential. We've got the skills to move Azincourt through the critical steps needed, taking it from exploration into development etc.," Stalker said. "Not only do we have the necessary market background, but we have the experi - ence to understand the way in which a project like Macusani will develop going forward." "We've deliberately set ourselves up to try and catch that new wave once it starts to gather force," he added. "And we've done it at a low entry point and we've done it in a South American country that affords superb first-mover advantage." n The Macusani Plateau in southeast Peru. Photo courtesy Azincourt Uranium Inc.