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When Contact Uranium joined the ASX in 2005, it listed under the name of Contact Resources. However, the company re-branded itself earlier this year to reflect the strength of its current uranium projects, and its confidence in the long-term viability of the element.
The company’s Executive Chairman Dr Richard Napier explains the company's recent developments.
“We renamed the company to Contact Uranium in 2007 in June," he says. "The reason for that was because our best projects are uranium projects.
"We’ve also been driven by a strong uranium boom market over the last two to three years. At the moment there are about 450 nuclear reactors operating in the world. And planned or proposed nuclear reactors; there are another 300 coming mainly from China, US, India and Russia. So we think there’s a long-term, strong, fundamental, price demand for uranium.”
The Perth-based explorers have a portfolio of exploration licenses in Western Australia. However Dr Napier says that it is the company's overseas projects that have really been driving its success.
“Our main projects are in Peru, and in Kyrgyzstan in central Asia, and we’ve got just over 2500sq km of licensed ground for uranium," he says.
"The largest project is the Corachapi Project in Peru, and the project with the nearest term production potential is in Kamushanovskoe in northern Kyrgyzstan. In Peru we have 9.2 million pounds of JORC compliant inferred resources, and in Kyrgyzstan we’ve got 1.71 million pounds of JORC compliant indicated and inferred resources.
“We’re still an exploration company and our main priority is to maximise the size of our resources and constrain the size of our resources. Having said that, I think we’re probably about two to three years away from production.”
Contact Uranium has made full use of local expertise in both Kyrgyzstan and Peru, where it has retained the services of resident consultants and geologists. Dr Napier believes that in both countries Contact Uranium’s main projects are strengthened by the presence of good local infrastructure.
“In Peru, the new Inter Oceanica Highway that runs from Brazil down to Chile, through Peru, goes within a few kilometres of our projects," Dr Napier says.
"Electricity grids go also within a few kilometres of our projects. Water is in good supply there. And in Kyrgyzstan – our main project Kamushanovskoe is next to a town, so it has all the advantages of roads, electricity, water supply there.
"We’re also just down the road from the Kara Balta uranium processing facility and that will make things a lot more cost effective for us when we start to produce uranium there.”
Dr Napier, an exploration geologist with 15 years of target generation and exploration experience, is supported by a world-class team of geologists, whose expertise dates back to the 1960s.
“My CTO, Geoff Blackburn, has got 30 years of experience in exploration," Dr Napier says. "He also has the Australian Medal of Order (AO) for services to the mining industry.
"Jeff Aucott, our exploration manager in Peru, has got 40 years of experience also in uranium and other metals. And Phil Jones, our geological consultant in Kyrgyzstan, has got 30 years of experience, so there’s a lot of man-time there which is related to exactly what we’re doing.”
The team at Contact Uranium will be looking to further expand the company's uranium resources in 2008. Dr Napier’s confidence in the long-term uranium market is bolstered by his belief that nuclear power will become an increasingly viable energy source.
“My view is that uranium is becoming a more viable alternative to fossil fuels with more technological developments and safer handling, and of course there’s more demand for an alternative to oil as it becomes shorter in supply," he says.
“At the moment we are spending about $2 million on exploration programmes and drilling programmes in Peru and Kyrgyzstan. Next year we are going to increase that to around $5 million, and I think we’d be disappointed if we didn’t at least double the size of our resources after that next phase of exploration, and we’re aiming for much higher than that.”
The company’s Executive Chairman Dr Richard Napier explains the company's recent developments.
“We renamed the company to Contact Uranium in 2007 in June," he says. "The reason for that was because our best projects are uranium projects.
"We’ve also been driven by a strong uranium boom market over the last two to three years. At the moment there are about 450 nuclear reactors operating in the world. And planned or proposed nuclear reactors; there are another 300 coming mainly from China, US, India and Russia. So we think there’s a long-term, strong, fundamental, price demand for uranium.”
The Perth-based explorers have a portfolio of exploration licenses in Western Australia. However Dr Napier says that it is the company's overseas projects that have really been driving its success.
“Our main projects are in Peru, and in Kyrgyzstan in central Asia, and we’ve got just over 2500sq km of licensed ground for uranium," he says.
"The largest project is the Corachapi Project in Peru, and the project with the nearest term production potential is in Kamushanovskoe in northern Kyrgyzstan. In Peru we have 9.2 million pounds of JORC compliant inferred resources, and in Kyrgyzstan we’ve got 1.71 million pounds of JORC compliant indicated and inferred resources.
“We’re still an exploration company and our main priority is to maximise the size of our resources and constrain the size of our resources. Having said that, I think we’re probably about two to three years away from production.”
Contact Uranium has made full use of local expertise in both Kyrgyzstan and Peru, where it has retained the services of resident consultants and geologists. Dr Napier believes that in both countries Contact Uranium’s main projects are strengthened by the presence of good local infrastructure.
“In Peru, the new Inter Oceanica Highway that runs from Brazil down to Chile, through Peru, goes within a few kilometres of our projects," Dr Napier says.
"Electricity grids go also within a few kilometres of our projects. Water is in good supply there. And in Kyrgyzstan – our main project Kamushanovskoe is next to a town, so it has all the advantages of roads, electricity, water supply there.
"We’re also just down the road from the Kara Balta uranium processing facility and that will make things a lot more cost effective for us when we start to produce uranium there.”
Dr Napier, an exploration geologist with 15 years of target generation and exploration experience, is supported by a world-class team of geologists, whose expertise dates back to the 1960s.
“My CTO, Geoff Blackburn, has got 30 years of experience in exploration," Dr Napier says. "He also has the Australian Medal of Order (AO) for services to the mining industry.
"Jeff Aucott, our exploration manager in Peru, has got 40 years of experience also in uranium and other metals. And Phil Jones, our geological consultant in Kyrgyzstan, has got 30 years of experience, so there’s a lot of man-time there which is related to exactly what we’re doing.”
The team at Contact Uranium will be looking to further expand the company's uranium resources in 2008. Dr Napier’s confidence in the long-term uranium market is bolstered by his belief that nuclear power will become an increasingly viable energy source.
“My view is that uranium is becoming a more viable alternative to fossil fuels with more technological developments and safer handling, and of course there’s more demand for an alternative to oil as it becomes shorter in supply," he says.
“At the moment we are spending about $2 million on exploration programmes and drilling programmes in Peru and Kyrgyzstan. Next year we are going to increase that to around $5 million, and I think we’d be disappointed if we didn’t at least double the size of our resources after that next phase of exploration, and we’re aiming for much higher than that.”
