Uranium Boom Echoes in Atomic Minerals’ Colorado Exploration

With energy demand predicted to increase andfolding can create gaps – known as traps
continued serious concern about the– where oil, natural gas and uranium tend to
consequences of burning fossil fuels, experts aregather.
predicting nuclear will remain an important worldUtilizing existing literature on the area, geological
energy source for the foreseeable future.analysis and a radon survey, Cady Johnson, PhD
Increasing nuclear energy demand prompted aauthor of a Feb. 2007 NI 43-101 technical report
uranium spot price high of $138.00/lb this summer,on the Dolores Anticline project, concluded, “It
which then dropped back to the $80 mark andis clear that there is good potential for
has since regained to about $92.00/lb. Many areundiscovered uranium deposits to exist beneath
speculating that the price could remain flat at $90the properties considered here. Fractures known
pound. Cognizant of the profits available at pricesto have been conduits for mineralizing solutions,
like these – the price has tripled in about threecarbon-facies rocks that host all known uranium
years – uranium juniors like Atomic Mineralsdeposits in the Slick Rock and Lisbon Valley
are returning to known uranium zones like UtahDistricts, and paleochannels in the Moss Back
and Colorado.Member of the Chinle Formation are all present or
Statistics from the US government’s Energyjudged to be present beneath the subject
Information Association’s (EIA) 2007 Worldclaims.”
Energy and Economic Outlook noted that worldFollowing recommendations from the 43-101
electricity generation from nuclear power isreport, Atomic Minerals began drilling on the first
forecasted to increase dramatically from 2,619transect of the Dolores Anticline in mid-November
billion kilowatt hours in 2004 to 2,972 billion2007. Atomic plans a 30,000-foot program at the
kilowatt hours in 2030. And the EIA expectsSummit Point and Box Canyon Exploration
nuclear power generation to increase throughProjects
2030 around the world, except OECD Europe,To add to great properties, Atomic Minerals has
with the Asian market creating the biggestattracted some of the best people in the business
growth.to join its team. On December 19, Atomic
In addition worldwide nuclear power generationannounced it has appointed John J. Sutherland as a
outside of the OECD is expected to increase 4%director of Atomic Minerals. Sutherland is best
year on year, between 2004 and 2030. Thisknown for his advisory role with growth
increased demand, driven by environmentalcompanies – with particular emphasis on
concerns, higher fossil fuel prices and energymineral exploration companies – and appears
security concerns could send the uranium priceto have a Midas touch.
back upward in coming years.Sutherland serves as a director with Aquiline
On the supply side, there is Cameco’s CigarResources (TSX:AQI), the sole owner of the
Lake, which was to come online right about nowNavidad Silver-lead deposit, which contains an
with an estimated 113 million pounds of the yellowastounding 453 million ounces silver and 3 billion
stuff – until the underground workings flooded.pounds lead, making it the largest resource of its
This major supply of uranium is showing no signskind in the world. Aquiline’s recent court
of coming back online until at least 2011.success in procuring sole rights to that property is
Some analysts suggest that even that date isa major coup for both the company and
optimistic. Cameron French writing for Reuters onSutherland.
December 12, 2007 said, “With [the CigarNotably, Sutherland was CFO of Arequipa
Lake] mine expected one day to supply over 10Resources leading up to its acquisition in 1996 by
percent of the world's mined uranium, any furtherBarrick Gold for $1.1 billion. He also co-founded and
[beyond 2011] delays starting production wouldacted as Vice President and CFO of Tekion Inc.,
put upward pressure on uranium spot prices thatwhich he grew from 4 to 75 employees in the
have already hit a record high earlier thisspace of less than three years while raising $18
year.”million in capital.
Buoyed by high uranium prices and priceAt present, Sutherland is Vice President and Chief
predictions, Atomic Minerals (TSX.V: ATL) isFinancial Officer of Goldgroup Resources,
putting its experienced team together withCorporate Secretary of Uracan Resources and a
geology in southwestern Colorado that isdirector of four other publicly listed companies.
associated with some of the largest and mostAtomic’s Vice President of Exploration,
prolific uranium resources in US history.Richard Dorman has extensive history mining for
Atomic’s Dolores Anticline project is located inuranium in Colorado, Wyoming, Utah and Nevada.
the Paradox Basin and the Uruvan Belt only 30He works with Mark Steen (the eldest son of
miles from the famous Lisbon Valley in Utah, andCharlie Steen) actively exploring in various areas in
only 30 miles from Denison Corp’s Whitethe Lisbon Valley. He has recently attracted the
Mesa Mill, the only operating uranium mill in theattention of James Finch, a US based uranium
United States. The Dolores Anticline is in the fourpundit who said of Dorman’s projects in the
corners uranium area made famous by CharlieLisbon Valley, “the area is right, and it may be
Steen who discovered a massive, highly-enrichedripe for a discovery.”
uranium deposit, which became the Mi Vida Mine inIf so, Atomic has all the right ingredients – an
the Lisbon Valley, Utah in 1952. Steen’s wasexperienced exploration team, financial leadership,
the first massive find in the uranium boom of theconnections within the uranium industry and
1950’s prompted by government support ofproperties in one of the best-known and most
the industry to fuel the Manhattan Project duringprolific regions in the United States. Also attractive
World War II.is Atomic’s tight share structure and a price
Uranium was so prolific in the area in thetag that flirts promisingly with its 52-week low.
1950’s that Moab, Utah earned a reputationInvestors can expect results from the first
as the uranium capital of the world. By 1955 theportion of the drill campaign at the Dolores
Colorado Plateau was home to 800 uraniumAnticline to be announced early in 2008.
mines. By the end of the boom in 1962 Utah hadThis article is intended for information purposes
produced over 9 million tonnes of ore before theonly, and is not a recommendation to buy or sell
government-boosted boom ended with dwindlingthe equities of any company mentioned herein. It
demand due to the end of the war.is based on sources believed to be reliable, but no
Picking up where history left off, Atomic’swarranty as to accuracy is expressed or implied.
Dolores Anticline project consists of 1,177 claims inThe opinions expressed in the article are those of
the area, totalling 24,280 acres in the Doloresthe author except where statements are
Anticline, an asymmetrical northwest trending foldattributed to individuals other than the author, in
in the Paradox Basin.which case the opinions are those of the individual
An anticline is a fold in the layers of rock thatto whom they are attributed.
pushes the earth up into a dome shape. The