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Kivalliq Energy watches Japan nuclear news
Future restart of Japanese nuclear reactors could be 'major catalyst' for uranium price: industry

Thandiwe Vela
Northern News Services
Published Monday, May 21, 2012

Uranium exploration and development company Kivalliq Energy Corp. is watching news of a possible restart of two Japanese nuclear reactors, closely.

NNSL photo/graphic

A diamond drill rig at Kivalliq Energy Corp.'s Angilak Property, during the 2011 exploration season. - photo courtesy of Kivalliq Energy Corp.

The Vancouver-based company's 2012 exploration program at its Angilak property, southwest of Baker Lake, is in full swing, and a recent vote in the Japanese town of Ohi, in favour of restarting the local nuclear reactors, bodes well for the sector, according to investment bank Versant Partners Inc.

"We expect the news of a decision to restart Japanese nuclear reactors to be a major catalyst for the uranium spot price and uranium equities," stated Rob Chang in a May 17 Versant report.

For the first time since the meltdown at the Fukushima Daiichi nuclear power plant in March 2011, a local government has granted approval for a reactor to resume operations, the report stated, adding as of May 5, all of Japan's 50 nuclear reactors were switched off.

Jim Paterson, CEO of Kivalliq Energy was pleased with the development, and called the vote a "baby step."

"Generally, what we believe is if the reactors in Japan start getting turned back on, then that will be positively received by the investment community," Paterson said.

Last year, Kivalliq Energy conducted one of the largest exploration projects for a uranium junior explorer in the world, Patterson said, with a 2011 program budget of $17 million.

The exploration budget has increased again this year, with $20 million proposed for this year's program at Angilak.

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