Uranium Operations

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					                                   Uranium Operations
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    Cameco is one of the
    world’s largest, low-cost                     Rabbit Lake
                                                 Cigar Lake
    uranium producers with
                                                                McArthur River
    mining and milling                                          Key Lake
    operations in Canada,
    the US and Central Asia. Our                                   Crow Butte
                                                        Smith Ranch-Highland
    diverse operations account for 16%
    of world production and are backed
    by approximately 480 million pounds
    of proven and probable reserves and
    extensive resources.
                                                                                   Top Uranium Producers
    Uranium Strategy                                                               In	2009,	seven	companies	provided	more	than	83%	
                                                                                   of	the	world’s	uranium	production.

                                                                                                                      million pounds
    Cameco’s strategy is to double annual uranium production by                     Company                                U3O8            %
    2018 from our existing assets. Within our operating properties,                	AREVA	(France)                            22           17
    we intend to develop new mining zones and also upgrade
                                                                                   	Cameco	(Canada)                           21           16
    the mills at Key Lake and Rabbit Lake to support increased
    production. At Cigar Lake, our main development project, we                    	Rio	Tinto	(Australia)	                    21           16
    intend to resume construction after completing remediation activities
                                                                                   	Kazatomprom	(Kazakhstan)                  17           13
    with a target of first production in 2013. Major projects under evaluation
    are: expansion of the McArthur River mine along its prolific, high grade       	ARMZ	(Russia)                             12            9
    system; doubling production within blocks 1 and 2 at Inkai and then            	BHP	Billiton	(Australia)                  8             6
    advancing block 3; the Kintyre deposit in Australia; and the Millennium
    deposit in Canada. Outside of our own asset portfolio, Cameco continues        	Navoi	(Uzbekistan)                        6             5
    to evaluate other quality uranium opportunities.                                                   Source:	Cameco	supply	and	demand	estimate

    Exploration Potential
    Cameco operates an active exploration program to maintain our production
    base. Over the past six years we have significantly increased our investment in
    exploration programs and expanded our land holdings in Canada, Australia, the
    US, Mongolia and Peru. In 2009, we invested $54 million in direct uranium
    exploration with significant programs at Kintyre in Australia as well as at
    McArthur River, Rabbit Lake and the Millennium deposit within the Athabasca
    basin in Canada. Our plans for 2010 include spending between $90 and $95
    million on uranium exploration, including $40 million for advanced exploration at
    Kintyre and Inkai block 3 in Kazakhstan. Our active global exploration program,
    combined with our disciplined acquisition strategy, will add to our pipeline of
    future production sources, replacing our reserves and resources and helping to
    ensure our growth beyond 2018. Our leadership position and industry expertise
    in exploration makes us a partner of choice with smaller companies that hold
    properties that meet our investment criteria.

J U N E 2010
                                       McArthur River & Key Lake
                                       The world’s largest, high-grade, low-cost uranium production centre

                           McArthur River Mine                                                 Key Lake Mill
                           Location		620	kilometres	north	of                                   Location		570	kilometres	north	of
                           Saskatoon,	Saskatchewan,	Canada                                     Saskatoon,	Saskatchewan,	Canada
                           Ownership		70%	Cameco,	                                             Ownership		83%	Cameco,	
                           30%	AREVA	Resources                                                 17%	AREVA	Resources
                           Proven & probable reserves                                          Annual licensed milling capacity*
                           335.2	million	pounds	U3O8                                           18.7	million	pounds	U3O8	
                           (Cameco’s	share	234.0	million	pounds	U3O8)                          2009 production
                           Average grade		19.53%	U3O8                                          (McArthur	River	mine	-	Key	Lake	mill)
                           Annual production capacity                                          19.08	million	pounds	U3O8
                           18.7	million	pounds	U3O8                                            (Cameco’s	share	13.3	million	pounds	U3O8)
                           2009 production                                                     History		Dedicated	to	open	pit	uranium	
                           (McArthur	River	mine	-	Key	Lake	mill)                               mining	from	1983	through	the	1990s.		
                           19.08		million	pounds	U3O8                                          In	2000	began	milling	ore	from		
                           (Cameco’s	share	13.3	million	pounds	U3O8)                           McArthur	River.
                           Mine life		24	years                                                 Employment		372	Cameco	employees,
                                                                                               145	long-term	contract	employees	
                           Employment		410	Cameco	employees,
                                                                                               * flex production provisions allow mill to exceed yearly
                           270	long-term	contract	employees
                                                                                                 limit to make up for past production shortfalls

                                                          Operating together, Cameco’s McArthur River and Key Lake operations
                                                          are the world’s largest, low-cost uranium producer. Together, these facilities
                                                          accounted for about 14.5% of world production in 2009. The McArthur River
                                                          deposit with ore grades about 100 times the world average was discovered
                                                          in 1988 and production began in 1999. McArthur River produced more
                                                          than 171 million pounds of U3O8 from 2000 through 2009 and has reserves
                                                          sufficient to sustain production until 2033. Upgrading known resources to
                                                          the category of reserves could help achieve licensed annual production at 18.7
                                                          million pounds for longer than currently estimated. Exploration drilling since
                                                          2007 on the fault structure that produced the deposit has shown encouraging
                                                          results. A multi-year project known as the McArthur River expansion, begun
                                                          in 2010, will advance underground exploration drifts to the north and south
                                                          of the existing mine to further delineate known resources.
                                                          Key Lake began production as a mining and milling operation in 1983 with
                                                          the two orebodies on the site mined out by 1997. Cameco is planning a major
                                                          renewal of its milling facilities through the Key Lake extension project to
                                                          upgrade process circuits to new technology, increase nominal production
                                                          capacity, add tailings capacity and improve environmental performance.
                                                          A revitalized Key Lake will provide a regional milling facility for continued
                                                          processing of ore from McArthur River and other potential sources in the
                                                          area such as from our Millennium project.
             McArthur	River	began	production	in	1999.

                                Cigar Lake & Rabbit Lake
                                Uranium supply for the future

                    Cigar Lake Project                                                   Rabbit Lake Operation
                    Location		660	kilometres	north	of	                                   Location		700	kilometres	north	of	
                    Saskatoon,	Saskatchewan,	Canada                                      Saskatoon,	Saskatchewan,	Canada
                    Ownership		50%	Cameco,	37%	AREVA	                                    Ownership		100%	Cameco
                    Resources,	8%	Idemitsu	Uranium		                                     Annual milling capacity
                    Exploration	Canada	Ltd.,	5%	TEPCO	                                   16	million	pounds	U3O8	
                    Resources	Inc.
                                                                                         2009 production		3.8	million	pounds	U3O8
                    Proven & probable reserves		
                    209.3	million	pounds	U3O8                                            Proven & probable reserves
                    (Cameco’s	share	104.7	million	pounds)	                               21.3	million	pounds	U3O8

                    Average grade		17.04%	U3O8                                           History		Production	began	in	1975.	
                                                                                         Five	orebodies	have	been	mined	
                    Mine life 15	years                                                   at	the	site	to	produce	more	than	
                    Employment		175	Cameco	and	215	                                      178.7	million	pounds	U3O8
                    contractors,	at	beginning	of	2010.	Up	to	                            Employment		311	Cameco	employees,	
                    500	combined	permanent	and	contractor	                               275	long-term	contract	employees
                    employees	during	peak	construction.		
                    250	employees	when	fully	operational

Cigar Lake is the world’s second largest, undeveloped, high-
grade uranium deposit.
Cameco and its partners secured regulatory approval to begin
mine construction in late 2004, but water inflows in 2006
and 2008 delayed construction. The two inflow areas were
subsequently identified and then sealed successfully. Dewatering
of the mine workings was completed in February 2010.
Underground infrastructure and systems are now being secured
and restored prior to resumption of mine construction.             Initially, Cigar Lake ore in slurry form will be loaded into
                                                                   containers and trucked 70 kilometres to Areva’s mill at McClean
In March 2010, Cameco provided a new technical report
                                                                   Lake for processing. As the mine ramps up to full capacity,
on Cigar Lake which outlined a revised mine development plan
                                                                   slightly more than half of the uranium in solution form will
that incorporates lessons learned from the inflows and a greater
                                                                   be processed at Cameco’s Rabbit Lake mill.
understanding of the deposit’s hydrogeological structure. The
new mine plan makes expanded use of ground freezing around         In the meantime, Rabbit Lake’s mill will continue to process
the orebody to control groundwater. Development tunnels to         ore produced at the Eagle Point underground deposit. Ongoing
support both freeze drilling and jet bore production will now      exploration has extended the mine life of Eagle Point through
be established at the 480-metre level, 25 metres below the         to 2015.
orebody. The previous development tunnels built at the 465         Facilities at the Rabbit Lake mill are being renewed. Design
level will be backfilled.                                          details of mill modifications are being completed with work
Construction of the Cigar Lake mine is expected be complete        expected to commence in 2011. A tailings facility expansion
in 2013 with initial production targeted for mid-2013 and full     was completed in 2009 and a further expansion is now required
production of 18 million pounds of U3O8 annually by 2018.          as a result of the extension of the mine life at Eagle Point.
                                   Providing diversity of supply

Inkai                                                      Overview
Location		Kazakhstan                                       Inkai is an in situ recovery (ISR) uranium mine in Kazakhstan,
Ownership		60%	Cameco,	                                    operated by Joint Venture Inkai, a limited partnership that is owned
40%	JSC	Kazatomprom                                        60% by Cameco and 40% by the Kazakh government through
Proven & probable reserves		                               JSC Kazatomprom.
134.7	million	pounds	U3O8                                  Test mining at Inkai began in April 2002. Construction began in
(Cameco’s	share	80.9	million	pounds)	                      2004 on a scale double the original project size.
Average grade		0.07%	U3O8
                                                           The main processing plant, which commenced operations in mid-
Capacity		5.2	million	pounds	U3O8	                         2009, is located on Block 1. Uranium resin is produced at a satellite
annually	by	2011	                                          plant on Block 2 with the resin taken to the main processing plant for
(Cameco’s	share	3.1	million	pounds)
                                                           final processing.
2009 production	
1.1	million	pounds	U3O8                                    JV Inkai is expected to receive regulatory approvals to step up
                                                           production to 5.2 million pounds by 2011. A non-binding
Expected mine life 	21	years
                                                           memorandum of understanding signed between Cameco and
Employment                                                 Kazatomprom in May 2007 provides for a doubling of future
340	at	full	production
                                                           production capacity to 10.4 million pounds on a timeframe yet
                                                           to be determined.
               RUSSIA                                      As well, JV Inkai has submitted a potential commercial discovery
                                                           notice and associated geological report in support of an application to
                                                           extend the block 3 licence for a multi-year appraisal period to carry
                                                           out: delineation drilling, construction and operation of a test leach
                                                           facility, and a feasibility study.

  AF R I C A

The	Inkai	project	is	located	in	
a	remote	part	of	south	central	
Kazakhstan.	The	site	is	about	20	
kilometres	by	road	from	the	nearest	
village	and	370	kilometres	from	the	
regional	capital,	Chimkent.	Supplies	
and	equipment	are	brought	to	
the	site	by	road.	Inkai	is	essentially	
staffed	by	Kazakh	nationals.	Training	
and	education	opportunities	are	
provided	to	ensure	the	safe	and	
efficient	operation	of	the	mine.	The	                               Inkai	follows	western	safety,	health	and	environmental	standards.
operation	follows	western	standards	
for	worker	safety	and	environmental	        Uranium mineralization at Inkai occurs in sandstone aquifers 400 to 500 metres
protection.	Cameco	maintains	a	solid	       below the surface. The uranium is recovered using the in situ recovery mining
relationship	with	Kazakh	authorities	       method which produces no waste rock or tailings and results in minimal disturbance
through	the	joint	venture	partnership	      to the surface and underground areas being mined. Using a grid of injection and
and	is	familiar	with	the	country’s	laws	
                                            production wells, an acid solution is circulated through the orebody to dissolve the
and	procedures	related	to	mining	
developments.                               uranium. Uranium-bearing solution is then pumped to a surface processing facility
                                            where the uranium is removed using a multi-stage, chemical milling process.
                                Smith Ranch-Highland /
                                Crow Butte                           The largest US producer

Overview                                                                  Smith Ranch-
Cameco is the largest uranium producer in the US through
its in situ recovery (ISR) mining operations in Wyoming and
Nebraska. Smith Ranch-Highland and Crow Butte are 100%                    Location		210	kilometres	north	
                                                                          of	Cheyenne,	Wyoming
owned by Cameco. The Smith Ranch and Highland properties
in Wyoming share a common border and operate as a single                  Ownership		100%	Cameco
facility. The Crow Butte operation is located near Crawford,              Proven & probable reserves		
Nebraska. Cameco is working to expand production at its US                5.9	million	pounds	U3O8	
operations to 3.8 million pounds U3O8 annually by 2014.                   Average grade		0.10%	U3O8
These operations and related projects combined have more                  2009 production	
than 37 million pounds of proven and probable reserves plus               1.8	million	pounds	U3O8
additional resources and exploration potential.                           Milling Capacity	
                                                                          4.0	million	pounds	annually
                                                                          Employment		110
Cameco’s US operations employ the environment-friendly in
situ recovery (ISR) mining method. The uranium at all three
                                                                          Crow Butte
sites occurs in sandstone aquifers located up to 300 metres
underground. It is extracted by pumping natural groundwater               Location		460	kilometres	northwest	
                                                                          of	Lincoln,	Nebraska
mixed with small amounts of oxygen and carbon dioxide
into the ore zone to dissolve the uranium. Uranium-bearing                Ownership		100%	Cameco
solution is pumped to the surface and piped or trucked                    Proven & probable reserves	
to processing plants where the uranium is recovered. ISR                  4.1	million	pounds	U3O8	
mining produces no waste rock or tailings and results                     Average grade		0.13%	U3O8
in minimal disturbance to the surface and underground                     2009 production	
areas being mined. It also minimizes workers’ exposure to                 0.8	million	pounds	U3O8
radiation. Water used in the process is recycled back into the            Milling capacity
operation. Cameco is working to expand production at US                   1.0	million	pounds	annually
operations and is currently seeking approval to proceed with
                                                                          Employment		65
the Reynolds Ranch expansion which is a property adjacent
to Smith Ranch-Highland.

    Smith Ranch-Highland

                           Crow Butte

                                                                 ISR	mining	method	has	minimal	environmental	impact.
     Uranium Reserves
     The following table shows the estimated uranium reserves as at December 31, 2009, on a property basis and Cameco’s share.
     *(tonnes in thousands; pounds in millions)

                                              PROVEN                                 PROBABLE                            TOTAL RESERVES
                                              (100%	basis)                               (100%	basis)                             (100%	basis)
                                                Grade		       Content		                     Grade		      Content		                    Grade		     Content		   Cameco’s       Estimated Mining
      Property                   Tonnes         %	U3O8       (lbs	U3O8)    Tonnes           %	U3O8      (lbs	U3O8)    Tonnes          %	U3O8     (lbs	U3O8)      Share		    Metallurgical Method
                                                                                                                                                              (lbs	U3O8)    Recovery	%

      McArthur	River                498.5	         15.72	        172.7	        280.0	         26.33	        162.5	       778.5	         19.53	       335.2	       234.0	           98.7	   UG

      Cigar	Lake                    130.5	         25.62	         73.7	        426.8	         14.41	        135.6	       557.3	         17.04	       209.3	       104.7	           98.5	   UG

      Rabbit	Lake                    37.4	          0.75	          0.6	      1,059.0	           0.89	        20.7	     1,096.4	          0.88	        21.3	         21.3	          96.7	   UG

      Key	Lake                       61.9	          0.52	          0.7	            		–            	–	          	–	        61.9	          0.52	         0.7	          0.6	          98.7	   OP

      Inkai                       6,043.0	          0.08	         11.1	     83,434.0	           0.07	       123.6	    89,477.0	          0.07	       134.7	         80.9	          80.0	   ISR

      Gas	Hills-Peach                   	–            	–	           	–       6,403.8	           0.13	        19.0	     6,403.8	          0.13	        19.0	         19.0	          72.0	   ISR

      North	Butte-Brown	
                                        	–	           	–	           		–      3,803.2	           0.10	         8.2	     3,803.2	          0.10	         8.2	          8.2	          80.0	   ISR

      Smith	Ranch-Highland          771.9	          0.12	          2.0	      1,931.1	           0.09	         3.9	     2,703.0	          0.10	         5.9	          5.9	          80.0	   ISR

      Crow	Butte                    968.7	          0.11	          2.3	        493.1	           0.17	         1.8	     1,461.8	          0.13	         4.1	          4.1	          85.0	   ISR

      Total                      8,511.9               –        263.1      97,831.0                –       475.3     106,342.9              –       738.4         478.7               –          –

     Notes:                                                                approval	is	received,	the	subsequent	application	              estimation of mineral reserves and resources and
     1.	 Cameco	reports	mineral	reserves	and	mineral	                      for	an	increase	to	5.2	million	pounds	U3O8	per	year	           reports to management and Cameco’s reserve oversight
          resources	separately.	                                           will	be	made.	If	JV	Inkai	does	not	receive	approval	           committee of the board on matters relating thereto.
     2.	 Estimated	metallurgical	recovery	factors	must	be	                 to	increase	production,	half	of	the	mineral	reserves	
          applied	in	order	to	obtain	the	expected	amounts	                 will	be	re-categorized	as	mineral	resources.                  Forward-Looking Statements
          of	recovered	pounds	U3O8.	Cameco’s	share	of	                10.	 Smith	Ranch,	Highland	and	Reynolds	Ranch	are	now	             Statements	contained	in	this	document,	which	are	not	
          U3O8	content	does	not	include	the	estimated	                     reported	under	Smith	Ranch	-	Highland	as	they	are	            current	statements	or	historical	facts	are	forward-
          metallurgical	recovery	factor.	                                  all	part	of	the	same	operation.	                              looking	information	or	statements	which	may	be	
                                                                                                                                         material	and	that	involve	risks,	uncertainties	and	
     3.	 Mineral	reserves	incorporate	allowances	for	
                                                                      Qualified Persons                                                  other	factors	that	could	cause	actual	results	to	differ	
          dilution	and	mining	losses.	
                                                                      Scientific	and	technical	information	regarding	                    materially.	They	represent	management’s	views	as	of	
     4.	 Mining	method:	OP	-	Open	Pit;	UG	-	Underground;	                                                                                March	31,	2010	and	should	not	be	considered	current	
                                                                      Cameco’s	material	uranium	properties,	including	
          ISR	-	In	situ	recovery.	                                                                                                       as	of	any	subsequent	date.	We	specifically	disclaim	any	
                                                                      reserve	estimates,	was	prepared	under	the	supervision	
     5.	 Mineral	reserves	are	estimated	using	current	                of	the	following	qualified	persons,	all	of	whom	are	               obligation	to	update	our	views	except	to	the	extent	
          geological	models	and	current	and/or	projected	             Cameco	employees,	except	as	otherwise	indicated:	                  required	by	applicable	securities	laws.	This	information	
          operating	costs	and	mine	plans.	Cameco’s	data	              (i)	for	McArthur	River/Key	Lake;	*	Alain	G.	Mainville,	            is	presented	for	the	purpose	of	assisting	Cameco’s	
          verification	procedures	have	been	employed	in	              director,	mineral	resources	management,	Cameco;	                   shareholders	in	understanding	management’s	
          connection	with	the	mineral	reserve	estimations	            David	Bronkhorst,	P.	Eng.,	Cameco’s	Vice-President,	               current	views,	and	may	not	be	appropriate	for	other	
          for	each	property.	                                         Saskatchewan	Mining	South;	Greg	Murdock,	technical	                purposes.	It	is	subject	to	material	risk	factors	that	
     6.	 For	the	purpose	of	estimating	mineral	reserves	in	           superintendent,	McArthur	River,	Cameco;	Lorne	                     could	cause	actual	results	to	differ	materially,	and	is	
          accordance	with	NI	43-101,	an	average	uranium	              D.	Schwartz,	chief	metallurgist,	mining	technical	                 based	upon	a	number	of	material	assumptions	which	
          price	of	$54	(US)/lb	U3O8	was	used.	                        services,	Cameco;	and	Les	Yesnik,	general	manager,	                may	prove	to	be	incorrect.	For	example,	our	target	
     7.		 The	key	economic	parameters	underlying	the	                 Key	Lake,	Cameco,	(ii)	for	Cigar	Lake,	Alain	G.	Mainville,	        of	doubling	our	annual	uranium	production	by	2018	
          mineral	reserves	include	an	exchange	rate	of		              director,	mineral	resources	management,	Cameco;	                   includes	assumptions	about	2018	production	levels	
          $1.00	US=$1.05	Cdn	(reflecting	the	exchange	rate		          Grant	Goddard,	P.	Eng.,	Cameco’s	Vice-President,	                  at	our	existing	mines	and	assumptions	about	the	
          at	December	31,	2009).	                                     Saskatchewan	Mining	North;	C.	Scott	Bishop,	chief	                 development	of	mines	that	are	not	operating	yet	and	
     8.	 No	known	environmental,	permitting,	legal,	title,	           mine	engineer,	Cigar	Lake;	and	Lorne	D.	Schwartz,	chief	           their	2018	production	levels.	This	target	is	subject	to	
          taxation,	socio-economic,	political,	marketing	or	          metallurgist,	mining	technical	services,	Cameco;	and	              the	risk	of	disruption	in	production	or	development	
          other	issues	are	expected	to	materially	affect	the	         (iii)	Inkai,	Alain	G.	Mainville,	director,	mineral	resources	      due	to	natural	phenomena,	labour	disputes,	political	
          above	estimates	of	mineral	reserves	except	for		            management,	Cameco	and	Charles	Foldenauer,	JV	                     risks	or	other	development	and	operating	risks.	These	
          the	potential	Inkai	permitting	issued	discussed		           Inkai’s	General	Manager,	Operations	and	Development.               and	other	risk	factors	and	assumptions	are	discussed	in	
          at	note	9.                                                                                                                     detail	in	our	current	annual	information	form	and	most	
                                                                      *		 s director, mineral resources management at
                                                                        A                                                                recent	annual	and	quarterly	MD&A,	which	you	should	
     9.	 The	mineral	reserve	estimates	for	the	Inkai	mine	
                                                                        Cameco, Mr. Mainville oversees and coordinates the               read	before	making	any	decision	to	invest	in	Cameco.
          assume	annual	production	of	5.2	million	pounds	of	
          U3O8.	JV	Inkai	has	regulatory	approval	to	produce	            work performed by Cameco qualified persons on the
          2.6	million	pounds,	and	intends	to	increase	
          production	to	5.2	million	pounds	per	year	in	2011.	
          Cameco	expects	JV	Inkai	will	receive	all	permits	
          and	approvals	required	for	this	level	of	production	
          and	will	seek	regulatory	approvals	for	an	increase	                                                                            Cameco Corporation
          in	production	to	3.9	million	pounds	U3O8	per	year	                                                                             2121-11th	Street	West
          in	2010	and	thereafter	for	a	further	increase	to	5.2	
          million	pounds	U3O8	per	year	in	2011.	The	approval	
                                                                                                                                         Saskatoon,	Saskatchewan
          process	for	the	initial	production	increase	to	3.9	                                                                            S7M	1J3
          million	pounds	U3O8	per	year	is	under	way	and	                                                                                 Phone:	306-956-6200					Fax:	306-956-6201
          has	the	support	of	KazAtomProm.	Once	the	initial	


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