TSX: CCO CDN $23.58 up arrow 0.01
NYSE: CCJ US $23.76 up arrow 0.22
  • Investors
  • Exploration
  • Mining
  • Fuel And Power
  • Responsibility

Mining

Home ›Mining ›Inkai ›Reserves

INKAI

Reserves

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.
© 2012 Cameco Corp.
Last Reviewed: March 9, 2011