Mineral reserves
As at December 31, 2011 (100% basis – only the second last column shows Cameco's share)
Proven and probable
(tonnes in thousands; pounds in millions)
| Proven | Probable | Total mineral reserves | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Property | Mining method |
Tonnes | Grade %U3O8 |
Content (lbs U3O8) |
Tonnes | Grade %U3O8 |
Content (lbs U3O8) |
Tonnes | Grade %U3O8 |
Content (lbs U3O8) |
Cameco's share of content (lbs U3O8) |
Estimated metallurgical recovery (%) |
| McArthur River | underground | 457.5 | 22.07 | 222.6 | 412.7 | 11.14 | 101.4 | 870.2 | 16.89 | 324.0 | 226.2 | 98.7 |
| Cigar Lake | underground | 233.6 | 22.31 | 114.9 | 303.5 | 15.22 | 101.8 | 537.1 | 18.30 | 216.7 | 108.4 | 98.5 |
| Rabbit Lake | underground | 91.0 | 0.52 | 1.0 | 1,399.9 | 0.75 | 23.0 | 1,490.9 | 0.73 | 24.0 | 24.0 | 96.7 |
| Key Lake | open pit | 61.9 | 0.52 | 0.7 | 61.9 | 0.52 | 0.7 | 0.6 | 98.7 | |||
| Inkai | ISR | 3,772.4 | 0.08 | 6.9 | 63,692.4 | 0.07 | 92.6 | 67,464.8 | 0.07 | 99.5 | 59.7 | 85.0 |
| Gas Hills-Peach | ISR | 999.2 | 0.11 | 2.4 | 999.2 | 0.11 | 2.4 | 2.4 | 72.0 | |||
| North Butte-Brown Ranch | ISR | 1,839.3 | 0.09 | 3.7 | 1,839.3 | 0.09 | 3.7 | 3.7 | 80.0 | |||
| Smith Ranch-Highland |
ISR | 1,124.7 | 0.11 | 2.7 | 2,263.4 | 0.08 | 3.9 | 3,388.1 | 0.09 | 6.6 | 6.6 | 80.0 |
| Crow Butte | ISR | 1,282.6 | 0.13 | 3.7 | 1,282.6 | 0.13 | 3.7 | 3.7 | 85.0 | |||
| Total | 7,023.7 | – | 352.5 | 70,910.4 | – | 328.8 | 77,934.1 | – | 681.3 | 435.3 | ||
Notes
ISR – in situ recovery
Estimates in the table above:
- use an average uranium price of $58.00 (US)/lb U3O8 except for Cigar Lake which uses an average uranium price of $61.00 (US)/lb U3O8
- are based on an average exchange rate of $1.00 US=$1.02 Cdn, except Cigar Lake, which is based on an average exchange rate of $1.00 US=$1.10 Cdn
Totals may not add up due to rounding.
Except for the possible Inkai permitting issue referred to below, we do not expect these mineral reserve estimates to be materially affected by metallurgical, environmental, permitting, legal, taxation, socio-economic, political, marketing or other relevant issues.
Metallurgical recovery
We report mineral reserves as the quantity of contained ore supporting our mining plans, and include an estimate of the metallurgical recovery for each uranium property. Metallurgical recovery is an estimate of the amount of valuable product that can be physically recovered by the metallurgical extraction process, and is calculated by multiplying the quantity of contained metal (content) by the estimated metallurgical recovery percentage. Our share of uranium in the mineral reserves table above is before accounting for estimated metallurgical recovery.
Estimates for Inkai
Our 2012 and future annual production targets and mineral estimate for Inkai assume, and we expect:
- Inkai will obtain the necessary government permits and approvals to produce at an annual rate of 5.2 million pounds (100% basis), including an amendment to the resource use contract
- we reach a binding agreement with Kazatomprom to finalize the terms of the MOA
- Inkai will ramp up production to an annual rate of 5.2 million pounds (100% basis)
There is no certainty Inkai will receive these permits or approvals or we will reach a binding agreement with Kazatomprom or that Inkai will be able to ramp up production. If Inkai does not, or if the permits and approvals are delayed, Inkai may be unable to achieve its 2012 and future annual production targets and we may have to re-categorize some of Inkai's reserves as resources.