With a global push for alternative energy, nuclear power has been brought back to the forefront in recent years.
Powertech Uranium Corp. is poised to profit from that demand through significant resources in the Rocky Mountain region. Powertech Uranium was founded four years ago as a public shell to acquire the Dewey Burdock properties of Denver Uranium, which was a private company organized by Wallace Mays and Richard Clement. Clement was installed as president and CEO and Mays is COO of Powertech. The company has since acquired additional properties, including Centennial in Colorado, extensions to Dewey Burdock in South Dakota, and Aladdin and Dewey Terrace in Wyoming.The company develops low-cost uranium properties that are amenable to in situ recovery methods. Powertech Uranium then minimizes its risk by developing the known deposits within these properties through 1) short lead times to production and 2) drill-indicated resources discovered during the peak years of U.S. uranium exploration in the 1970s and ’80s.
According to Clement, Dewey Burdock – Powertech’s first property – has inferred resources of 10.8 million pounds of uranium and has 4,000 drill holes already in place. Centennial has inferred resources of 11.5 million pounds and 3,000 holes.
Although Powertech has yet to calculate the resources of Aladdin and Dewey Terrace, Clement expects similar development opportunities at those properties. “There are no resources calculated, but from the geology and geochemistry we’ve encountered, the uranium in these projects should be quite extensive,” Clement says. “They have the potential of being in the same order of magnitude as Dewey Burdock and Centennial.”
While the resources and untapped potential are impressive, Clement says Powertech’s most valuable assets are the leadership and industry expertise it houses. Clement has worked in the uranium market since 1969 and holds a master’s degree in geology.
The staff combines for more than 200 years of experience in the American uranium industry. The group’s expertise spans all aspects of in situ recovery technology, and it has brought more than 12 operations to both mining and closure stages.
“We have a team of experts that includes a head of exploration and chief geologist that have many years of experience between them,” he adds. “We’re quite capable of evaluating all the original geophysical data when we acquire properties.”
Price Dependent
Although uranium is highly sought around the world, profit margins are highly dependent on the price of petroleum, according to Clement. This is because the equipment involved with the in situ extraction process requires a great quantity of plastic and petroleum derivatives.
“One of the things in situ uranium is dependent upon is the price of petroleum,” Clement says. “The cost of a lot of capital equipment to utilize in the development of our vessels will be based on the price of oil.”
With oil prices hovering between $70 and $80 a barrel these days, Clement says this is a great time to develop Powertech’s capabilities to go after these resources. “This is a very good price for our acquisition of materials for the development of our wells,” Clement adds. “The economic spread will be very good.”
The company has entered a partnership with Société Belge de Combustibles Nucléaires Synatom SA, a utility in Belgium with seven reactors that serves a large portion of Europe. Synatom currently owns 19.6 percent of Powertech, and Powertech now manages the fuel cycle for the Belgian nuclear power plants.
“They recognized that we had superior uranium deposits,” Clement says. “That has been our source of investment and, consequently, they continue to have a strong working relationship with our company.”
Future Considerations
Clement says he has no doubt that through the push for a worldwide reduction in carbon emissions, uranium will be a profitable resource as nuclear plants continue to sprout. He adds that the most reactors are being developed in the United States, China and India, and Powertech is in position to supply uranium to those developments.
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