B.C. junior exploration companies are jumping on the uranium-mining bandwagon as high commodity prices and more positive attitudes toward nuclear energy spur activity.

"This is a 25-year cycle, a rebirth of (uranium) exploration, which in the 1970s was very buoyant," says Rick Mazur, president and CEO of Forum Development Corp. "This is exactly an identical situation 25 years later."

The radioactive mineral is a key component in nuclear power systems that produce electricity. A few years ago, Mazur says, there was only one B.C. uranium-exploration company listed on the TSX Venture Exchange, but now there are about 100.

"(The number of uranium-exploration companies) is growing every day," he says, adding it is still small compared to the number of companies looking for other minerals.

Bayne Stanley, Business Edge
Forum Development Corp. president Rick Mazur uses a magnifier to check out a rock sample at his Vancouver office.

Heightened uranium-mining activity stems from increased demand for energy from China, interest in forms of energy other than fossil fuels, a worldwide supply shortage, a spate of reactors under construction and high commodity prices.

"I think people are starting to recognize that (nuclear power) is a clean source of energy, as opposed to other forms of electricity," says Mazur.

Forum is developing two potential open-pit sites on 100-per-cent-owned properties in the Athabasca Basin area of northern Saskatchewan, at Key Lake Road and Maurice Point.

The Vancouver firm hopes to exploit the same geological trends that have helped Saskatoon-based Cameco Corp., the world's largest uranium producer, exploit zones containing 200 million pounds of U3O8 (uranium oxide, used for nuclear power) at nearby Key Lake and another 1.3 million pounds at Maurice Bay.

Some of the most active B.C. juniors include Vancouver-based Energy Metals Corp., International Uranium Corp., Fronteer Development Group, Triex Minerals Corp., International Uranium Corp., and Uranium Power Corp.

According to a recent Cannacord Capital report, Energy Metals controls an estimated 113.3 million pounds of U3O8, based mostly in the Powder River Basin of Wyoming.

Energy Metals is concentrating its activities in the U.S., hoping to become a dominant player after acquiring land much earlier than its competition.

International Uranium controls an estimated 49.3 millions pounds of uranium ore at sites in Saskatchewan's Athabasca Basin, Utah, Colorado and Mongolia.

Mazur says the activity has been building for the past year. Companies that begin projects now will have to pay more for land than those who started within the last 12 to 24 months, or joint venture on properties where companies arrived earlier.

Most B.C. firms are developing projects in other parts of Canada, the U.S., and overseas countries as questions remain about the commercial quality of B.C. uranium deposits and provincial government support for nuclear power.

"The deposits in B.C. are not large deposits," says Mazur. "So if I'm putting my shareholders' money at risk, personally, I would rather do it in Saskatchewan, where the geological potential is vast."

Mazur is also wary that the provincial government may ban uranium mining, as several environmental groups have requested. Former Social Credit premier Bill Bennett invoked a moratorium on uranium mining in B.C. in the early 1980s, but his successor, former Socred premier Bill Vander Zalm, lifted it in 1987. However, low commodity prices have since lured exploration companies toward other minerals, notably gold.

Firms have shown strong interest in reviving one project near Kelowna, known as Blizzard, which was scuttled by the moratorium. Vancouver-based Santoy Resources Ltd., the site's would-be operator, and Toronto-based partner Sparton Resources Inc. have begun efforts to develop the project.

But their mineral claim is in dispute because of an alleged malfunction of the provincial government's online staking system.

Anthony Beruschi, a Vancouver lawyer and mining investor, is attempting to regain the stake that he had previously claimed. Santoy president and CEO Ron Netolitzky says his firm is negotiating with Beruschi to resolve the dispute. Netolitzky was hopeful a resolution would be achieved this week and activities would resume shortly thereafter.

Blizzard contains an estimated 12 million pounds of uranium and Santoy hopes to extract the mineral using in-situ-leaching methods, as opposed to an underground mine shaft or open-pit operation. Netolitzky says the site could be developed into a mine within three or four years - which would be much earlier than other proposed projects.

"It is the most advanced uranium project in British Columbia," says Netolitzky.

If the dispute with Beruschi is resolved to Santoy's satisfaction, the company will re-evaluate the site according to modern resource-reporting standards. Santoy would be the site's operator while Sparton would receive a share of royalties.

"I'm not sure what (the provincial government's) position is," says Netolitzky. "I hope that they would treat it like any other industry in the province and deal with it within their guidelines."

He says the moratorium was not fair to the companies who explored the Blizzard site, invested the money and had a project ready to develop - but received nothing for their assets.

On the other hand, Netolitzky says, when the province converts a property to parkland, it usually compensates the previous owner.

Environmental groups have voiced strong opposition to Blizzard, along with both the Green Party of Canada and its provincial counterpart.

Green Party of Canada leader Jim Harris says the Greens are opposed to uranium mining because the mineral can damage communities, groundwater and the rest of the environment.

"Secondly, when we export uranium from Canada, we can not guarantee it won't be used for nuclear weapons," says Harris. "It's (also) the most expensive form of energy production for utilities."

He contends uranium produces radioactive waste, and every dollar that is spent on uranium mining takes away from energy conservation, which reduces fossil fuel consumption at a much greater rate than nuclear energy and produces five times as many jobs.

"Whichever side you look at, (nuclear power) is not economic and it's dangerous," says Harris. "It's been dangerous for a quarter of a million years."

But Forum's Mazur says critics of uranium mining have not done their homework.

"The safety record in the nuclear industry is actually quite stellar," he says. "The only real issue that concerns people is what to do with the radioactive waste."

Netolitzky says he does not have a problem with opposition to uranium mining when the complaint is based on scientific facts, but he does have a problem with groups who are opposed because of fear and a lack of understanding of radioactivity.

If uranium mining was unsafe, he suggests, it would not be allowed in Saskatchewan, one of the world's largest uranium-producing areas. Companies must also meet stringent standards before gaining approvals, he adds.

Netolitzky also contends nuclear power will be "a lot safer" than other fuels that produce greenhouse gases. B.C., which has most of its uranium in the Interior, will never become a major source of the ore compared to Saskatchewan and other locations, he adds.

"The only project that I know of (in B.C.) that makes economic sense is the Blizzard project," says Netolitzky.

Other potential B.C. uranium-mine sites include Haynes Lake and Hydraulic Lake near Kelowna, and Prairie Flats near Summerland.

Netolitzky says the fact many companies are based in B.C. but operate elsewhere stems from the evolution of the Vancouver Stock Exchange, which was merged into the TSX Venture Exchange, and the province's history of aggressive exploration companies.

Firms are also migrating back to uranium after concentrating on gold and other resources in the 1980s and 1990s.

"In our case, the exploration people, we tend to go where (customers) want us to go," says Netolitzky.

(Monte Stewart can be reached at monte@businessedge.ca)