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Home ›Exploration ›Reserves

EXPLORATION

Reserves and Resources

Our mineral reserves and resources are the foundation of our company and fundamental to our success.

Mineral reserves are the economically mineable part of measured or indicated mineral resources demonstrated by at least a preliminary feasibility study. They fall into two categories:

  • proven reserves: the economically mineable part of a measured resource for which a preliminary feasibility study demonstrates that economic extraction is justified
  • probable reserves: the economically mineable part of a measured and/or indicated resource for which a preliminary feasibility study demonstrates that economic extraction can be justified.

The following table shows the estimated uranium reserves as at December 31, 2010, on a property basis and Cameco's share.

Proven and probable
(tonnes in thousands; pounds in millions)
    Proven Probable
Property Mining method Tonnes Grade %U3O8 Content
(lbs U3O8)		 Tonnes Grade %U3O8 Content
(lbs U3O8)
               
McArthur River underground 458.5 17.29 174.8 540.2 13.49 160.7
Cigar Lake underground 130.5 25.62 73.7 426.8 14.41 135.6
Rabbit Lake underground 39.6 0.62 0.5 1,478.1 0.77 25.0
Key Lake open pit 61.9 0.52 0.7      
Inkai ISR 4,817.2 0.08 8.9 75,810.0 0.07 112.7
Gas Hills–Peach ISR       6,403.8 0.13 19.0
North Butte–
Brown Ranch		 ISR       3,803.2 0.10 8.2
Smith Ranch–
Highland		 ISR 1,243.4 0.11 3.1 2,707.7 0.08 4.9
Crow Butte ISR 922.2 0.11 2.3 282.2 0.13 0.8
Total 7,673.3 – 264.0 91,452.0 – 466.9
               
Reserves Continued
(tonnes in thousands; pounds in millions)
  Total mineral reserves
Property Tonnes Grade %U3O8 Content
(lbs U3O8)		 Cameco's share of content (lbs U3O8) Estimated metallurgical recovery (%)
           
McArthur River 998.7 15.24 335.5 234.2 98.7
Cigar Lake 557.3 17.04 209.3 104.7 98.5
Rabbit Lake 1,517.7 0.76 25.5 25.5 96.7
Key Lake 61.9 0.52 0.7 0.6 98.7
Inkai 80,627.2 0.07 121.6 72.9 85.0
Gas Hills–Peach 6,403.8 0.13 19.0 19.0 72.0
North Butte/
Brown Ranch		 3,803.2 0.10 8.2 8.2 80.0
Smith Ranch–
Highland		 3,951.1 0.09 8.0 8.0 80.0
Crow Butte 1,204.4 0.12 3.1 3.1 85.0
Total 99,125.3 – 730.9 476.2  
           
 
Notes:
ISR – in situ recovery
Estimates in the table above:

  • are based on the average exchange rate at December 31, 2010 ($1.00 US = $0.99 Cdn)
  • use an average uranium price of $56.50 (US)/lb U3O8.
Totals may not add up due to rounding.
Except for the possible Inkai permitting issue referred to below, we do not expect these reserve estimates to be materially affected by environmental, permitting, legal, taxation, socio-economic, political or marketing 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 quantity of contained metal (content) by the estimated metallurgical recovery percentage. Our share of uranium in the table above is before accounting for estimated metallurgical recovery.
Estimates for Inkai
In 2010, Inkai received approval in principle to produce 3.9 million pounds per year (100% basis), and is seeking final approval with an amendment to the resource use contract.
Our 2011 and future annual production targets and mineral reserve estimate assume Inkai receives the government approvals and support of our partner, Kazatomprom. More specifically, it must:

  • obtain final approval to produce at an annual rate of 3.9 million pounds (our share 2.3 million pounds)
  • obtain the necessary permits and approvals to produce at an annual rate of 5.2 million pounds (our share 3.1 million pounds)
  • ramp up production to an annual rate of 5.2 million pounds this year.
We expect Inkai to receive all of the necessary permits and approvals to meet its 2011 and future annual production targets and we anticipate it will be able to ramp up production as noted above.
There is no certainty, however, that Inkai will receive these permits or approvals or that it will be able to ramp up production this year. If Inkai does not, or if the permits and approvals are delayed, Inkai may be unable to achieve its 2011 and future annual production targets, and we may have to recategorize some of Inkai's mineral reserves as mineral resources.

Mineral Resources

Mineral resources do not have demonstrated economic viability but do have reasonable prospects for economic extraction. They fall into three categories: measured, indicated and inferred. Our reported mineral resources do not include mineral reserves.

  • Measured and indicated mineral resources can be estimated with a level of confidence sufficient to apply technical and economic parameters to support evaluation of the economic viability of the deposit.
    • measured resources: we can confirm both geological and grade continuity to support production planning.
    • indicated resources: we can reasonably assume geological and grade continuity to support mine planning.
  • Inferred mineral resources are estimated using limited information. We do not have enough confidence to evaluate their economic viability in a meaningful way. You should not assume that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.

Important information for US investors

While the terms measured, indicated and inferred mineral resources are recognized and required by Canadian securities regulatory authorities, the US Securities and Exchange Commission (SEC) does not recognize them. Under US standards, mineralization may not be classified as a 'reserve' unless it has been determined at the time of reporting that the mineralization could be economically and legally produced or extracted. US investors should not assume that:

  • any or all of a measured or indicated mineral resource will ever be converted into proven or probable mineral reserves
  • any or all of an inferred mineral resource exists or is economically or legally mineable, or will ever be upgraded to a higher category. Under Canadian securities regulations, estimates of inferred resources may not form the basis of feasibility or prefeasibility studies. Inferred resources have a great amount of uncertainty as to their existence and economic and legal feasibility.

The requirements of Canadian securities regulators for identification of "reserves" are also not the same as those of the SEC, and mineral reserves reported by us in accordance with Canadian requirements may not qualify as reserves under SEC standards.

Other information concerning descriptions of mineralization, mineral reserves and resources may not be comparable to information made public by companies that comply with the SEC's reporting and disclosure requirements for US domestic mining companies, including Industry Guide 7.

As at December 31, 2010 (100% basis – only the last column shows Cameco's share)

Measured and indicated
(tonnes in thousands; pounds in millions)		 Measured Indicated
Property Mining method Tonnes Grade
% U3O8		 Content
(lbs U3O8)		 Tonnes Grade
% U3O8		 Content
(lbs U3O8)
             
McArthur River underground 85.9 6.28 11.9 22.2 10.23 5.0
Cigar Lake underground 8.4 2.07 0.4 15.6 2.35 0.8
Rabbit Lake underground       348.0 0.52 4.0
Dawn Lake open pit, underground       347.0 1.69 12.9
Millennium underground       507.8 4.55 50.9
Phoenix underground       89.9 17.98 35.6
Tamarack underground       183.8 4.42 17.9
Inkai ISR       18,386.3 0.08 30.5
Gas Hills-Peach ISR 1,964.2 0.08 3.4 1,418.2 0.07 2.3
North Butte-
Brown Ranch		 ISR 762.1 0.08 1.4 4,012.0 0.07 6.0
Smith Ranch-
Highland		 ISR 2,079.1 0.11 4.9 13,906.5 0.06 17.6
Crow Butte ISR       2,466.2 0.21 11.2
Ruby Ranch ISR       2,215.3 0.08 4.1
Ruth ISR       1,080.5 0.09 2.1
Shirley Basin ISR 89.2 0.16 0.3 1,638.2 0.11 4.1
Total   4,988.9 – 22.3 46,637.5 – 205.0
               
Measured and indicated
(tonnes in thousands; pounds in millions)		 Total measured and indicated
Property Tonnes Grade
% U3O8		 Content
(lbs U3O8)		 Cameco's Share
(lbs U3O8)
         
McArthur River 108.1 7.09 16.9 11.8
Cigar Lake 24.0 2.27 1.2 0.6
Rabbit Lake 348.0 0.52 4.0 4.0
Dawn Lake 347.0 1.69 12.9 7.4
Millennium 507.8 4.55 50.9 21.4
Phoenix 89.9 17.98 35.6 10.7
Tamarack 183.8 4.42 17.9 10.3
Inkai 18,386.3 0.08 30.5 18.3
Gas Hills-Peach 3,382.4 0.08 5.7 5.7
North Butte-Brown Ranch 4,774.1 0.07 7.4 7.4
Smith Ranch-Highland 15,985.6 0.06 22.5 22.5
Crow Butte 2,466.2 0.21 11.2 11.2
Ruby Ranch 2,215.3 0.08 4.1 4.1
Ruth 1,080.5 0.09 2.1 2.1
Shirley Basin 1,727.4 0.12 4.4 4.4
Total 51,626.4 – 227.3 141.9
           
 
Kintyre Mineral resources
As at March 31, 2011 (100% basis - only the last column shows our share)
(tonnes in thousands; pounds in millions)
Category Tonnes Grade
% U3O8		 Content
(lbs U3O8)		 Our share
(lbs U3O8)
           
Indicated 5,257.0 0.49 56.4 39.5
Inferred 505.0 0.47 5.3 3.7
These indicated and inferred mineral resources are not reflected in the totals.
 
Inferred
(tonnes in thousands; pounds in millions)
Property Mining
method		 Tonnes Grade
U3O8		 Content
(lbs U3O8)		 Cameco's Share
(lbs U3O8)
           
McArthur River underground 506.1 13.46 150.2 104.8
Cigar Lake underground 480.4 12.61 133.5 66.8
Rabbit Lake underground 369.4 1.26 10.2 10.2
Millennium underground 217.8 2.12 10.2 4.3
Phoenix underground 23.8 7.27 3.8 1.1
Tamarack underground 45.6 1.02 1.0 0.6
Inkai ISR 254,696.0 0.05 255.1 153.0
Gas Hills-Peach ISR 861.5 0.07 1.3 1.3
North Butte-Brown Ranch ISR 640.6 0.06 0.9 0.9
Smith Ranch-Highland ISR 6,370.1 0.05 6.6 6.6
Crow Butte ISR 2,349.4 0.11 5.6 5.6
Ruby Ranch ISR 56.2 0.14 0.2 0.2
Ruth ISR 210.9 0.08 0.4 0.4
Shirley Basin ISR 508.0 0.10 1.1 1.1
Total   267,335.8 – 580.1 356.9
           
 
Notes:
ISR – in situ recovery
Mineral resources do not have demonstrated economic viability. Totals may not add up due to rounding.
© 2012 Cameco Corp.
Last Reviewed: May 16, 2011