Thomas Drolet is one of the world's leading energy
experts. His 43-year career includes senior positions in nuclear,
geothermal, coal, natural gas and renewable power sectors.
Mr. Drolet is a consultant to a variety of international
organizations, assisting at Chernobyl, Ukraine in 1986 and has been
on various major news networks talking and advising on the recent
Fukushima incident. He is one of the few people in the nuclear
industry to have operational experience on the uranium demand and
supply sides of nuclear energy. He spent three years with the
RCAF on the C 130 Hercules on International military assignments.
Mr. Drolet recently sat down for an exclusive interview with
Financial Press to talk about the future of uranium and investment
opportunities in the red hot Athabasca Uranium Basin in Canada.
Financial Press: Mr. Drolet, can you tell us a bit about your
background?
Drolet: I'll give you the condensed version. I worked for
what is now called Ontario Power Generation for 27 years in nuclear
operations, engineering, construction and project
management. I also sold our technology to Utilities and
reactor operators all around the world.
Financial Press: Is that where you gained your
international perspective?
Drolet: Yes - analysing other country's nuclear systems, I
became knowledgeable about the global demand for uranium
fuel. So I have spent a major part of my career dealing with
the demand side. Where do the reactors buy the uranium? How do
we convert it from U308 Yellowcake? Or convert it to UF6? Or enrich
it?
Financial Press: How did you forge relationships with
uranium explorers and producers?
Drolet: About 5 years ago, uranium exploration and
production companies started asking for assistance in bridging the
demand side with the production side.
Financial Press: What exactly do you mean by "demand
side"?
Drolet: Utility companies that own nuclear reactors in
China, Japan, Europe or elsewhere. These are motivated investors
because they require an assured supply of uranium.
Financial Press: Hard data supports the view that nuclear energy
is the safest form of energy in the world.
Drolet: Yes, but I have literally had tomatoes thrown at me
for stating that publically. The public erroneously links nuclear
power with nuclear weapons. So, for emotional reasons, not
scientific ones, it is hard to win a public debate about nuclear
safety.
Financial Press: What is the best argument?
Drolet: The economic argument is the most
powerful. Utility operators need a "base load" - a steady
supply of electricity that you can always count on. Renewable
energy has an important role to play but when the wind doesn't blow
or the sun doesn't shine – it breaks down. Hydroelectric and
geothermal together provide about 16% of the world's base load
requirements. Environmental concerns around coal are growing.
That leaves a growing future role for nuclear energy.
Financial Press: How do you identify the best uranium
explorers?
Drolet: When I am approached by a uranium exploration
company, I enter a methodical phase of due diligence. I first
look at the management and then the geological potential of their
properties. If the company scores very high in both
categories, I continue my investigation.
Financial Press: What companies are you watching now?
Drolet: I have recently joined the advisory board of a company
called Aldrin Resources (TSX-V:ALN), who are developing a property
in a very interesting part of the Athabasca Basin.
Financial Press: What do you like about them?
Drolet: Aldrin has good looking properties. No, not
good. Very good. Their CEO, Johnathan More is aggressive
and progressive. What I mean is, he is down to earth. He
doesn't live on hype. He gets things done. Jonathan talks
my type of technical language. At the end of the day, these
are the things that matter: the geology, the technical approach and
the management.
Financial Press: What stage of development is Aldrin at?
Drolet: From an investing point of view, it is probably in
the sweet spot. Compared to some other junior explorers,
Aldrin has raised a lot of cash, so they are able to execute a
large drill program, which began a few days ago. The scope and
design of the drill program is important. Everybody wants a
win on the first hole, but to get meaningful geological data on
uranium mineralisation, you need a rigorous and extensive drill
program.
Financial Press: What is your role as an advisor to
Aldrin?
Drolet: To assist them in developing their project to meet
future uranium demand. My other function is to bring investors
to the company. These could be straight capitalist investors
or partnerships with nuclear utilities looking for secure
supply.
Financial Press: What is your assessment of the Athabasca
Basin?
Drolet: In the future, the Athabasca basin will be the biggest
source of uranium for the whole world. Kazakhstan is currently a
big supplier. But it is connected to the Russian supply
vector. The Russians are aggressively building new reactors.
So that supply may not always be totally available to the rest of
the world's users.
Financial Press: There are a number of explorers in the
Athabasca Basin - what is Aldrin's differentiator?
Drolet: Aldrin is distinguished by its location, size and
the geological indicators which suggest there is a strong potential
for an economic uranium mine. Yes they have very good management,
but the key differentiator is the geology of their properties.
Financial Press: Thank you very much for your expertise, your
opinions and your time.
Drolet: My pleasure.
Editor's note: On March 25, 2014 Aldrin announced the
commencement of drilling on its Triple M Property in northern
Saskatchewan, adjacent to the high-grade uranium discovery at
Patterson Lake made recently by Fission Uranium Corp. The
drill program is planned for up to 4,000 meters, and is testing
coincident geological, structural, gravity, basement conductor,
magnetic and radon anomalies.
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CONTACT: Aldrin Resource Corp.
Suite 400, 570 Granville Street
Vancouver, BC
V6C 3P1
Tel: 604-687-7741
Fax: 604-681-0796
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