The following table shows the estimated uranium mineral reserves as at December 31, 2007 on a property basis and Cameco's share.
RESERVES
PROVEN (100% basis)
PROBABLE (100% basis)
PROPERTY
Tonnes
Grade %U3O8
Content (lbs U3O8)
Tonnes
Grade %U3O8
Content (lbs U3O8)
(tonnes in thousands; pounds in millions)
Cigar Lake
497.0
20.67
226.3
–
–
–
Crow Butte
1,467.5
0.18
5.9
–
–
–
Gas Hills - Peach
–
–
–
6,851.0
0.13
19.7
Highland
328.5
0.15
1.1
600.1
0.11
1.4
Inkai
7,463.0
0.08
13.7
86,428.0
0.07
128.8
Key Lake
61.9
0.52
0.7
–
–
–
McArthur River
486.5
17.38
186.6
280.0
26.33
162.5
North Butte/ Brown Ranch
–
–
–
3,874.6
0.10
8.5
Rabbit Lake
24.9
0.94
0.5
619.9
1.15
15.7
Ruby Ranch
–
–
–
2,832.2
0.09
5.5
Ruth
–
–
–
853.7
0.09
1.7
Smith Ranch
542.0
0.11
1.4
3,075.7
0.12
8.1
Total
10,871.3
–
436.2
105,415.2
–
351.9
RESERVES CONTINUED
TOTAL RESERVES (100% basis)
PROPERTY
Tonnes
Grade %U3O8
Content (lbs U3O8)
Cameco’s Share (lbs U3O8)
Estimated Metallurgical Recovery %
Mining Method
(tonnes in thousands; pounds in millions)
Cigar Lake
497.0
20.67
226.3
113.2
98.5%
UG
Crow Butte
1,467.5
0.18
5.9
5.9
85.0%
ISR
Gas Hills - Peach
6,851.0
0.13
19.7
19.7
65.0%
ISR
Highland
928.6
0.12
2.5
2.5
80.0%
ISR
Inkai
93,891.0
0.07
142.5
85.5
80.0%
ISR
Key Lake
61.9
0.52
0.7
0.7
98.7%
OP
McArthur River
766.5
20.66
349.1
243.7
98.7%
UG
North Butte/ Brown Ranch
3,874.6
0.10
8.5
8.5
80.0%
ISR
Rabbit Lake
644.8
1.14
16.2
16.2
96.7%
UG
Ruby Ranch
2,832.2
0.09
5.5
5.5
80.0%
ISR
Ruth
853.7
0.09
1.7
1.7
80.0%
ISR
Smith Ranch
3,617.7
0.12
9.5
9.5
80.0%
ISR
Total
116,286.5
–
788.1
512.6
–
–
Notes:
Cameco reports mineral reserves and mineral resources separately.
Mill recovery factors must be applied in order to obtain the expected amounts of recovered pounds U3O8.
Mineral Reserves incorporate allowances for dilution and mining losses.
Mining Method: OP – Open Pit; UG – Underground; ISR – In situ recovery.
Mineral reserves are estimated using current geological models and current and/or projected operating costs and mine plans. Cameco's data verification procedures have been employed in connection with the mineral reserve estimations for each property.
For the purpose of estimating mineral reserves in accordance with NI 43-101, a uranium price of $49 (US)/lb U3O8 was used. For the purpose of estimating mineral reserves in accordance with US Securities Commission Industry Guide 7, a uranium price of $59 (US)/lb U3O8 was used. Estimated mineral reserves are identical at either price.
The key economic parameters underlying the mineral reserves include an exchange rate of $1.00 US=$0.99 Cdn (reflecting the exchange rate at December 31, 2007).
Except as otherwise set out in the annual information form, environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues are not expected to materially affect the above estimates of mineral reserves.
Totals may not add up due to rounding.
Inkai reserves assume production at an annual rate of 5.2 million pounds of U3O8. Joint Venture Inkai currently has regulatory approval to produce at an annual rate of 2.6 million pounds and an application for regulatory approval to increase annual production to 5.2 million pounds was made in 2005. Through its experience in constructing and operating the test mine at Inkai, Cameco is familiar with the statutory, regulatory and procedural framework governing new mining projects in Kazakhstan and, based upon its experience to date, Cameco has reasonable expectations that all permits and approvals required for the construction and operation of the new ISR mine at Inkai – including approvals for increased annual production to 5.2 million pounds – will be obtained in a timely fashion. However, there can be no certainty that permits or approvals will be forthcoming in a timely fashion. Failure to obtain approval for increased annual production at Inkai will require Cameco to recategorize half of the mineral reserves at Inkai as mineral resources.
