Appendices
Related Pages
(Updated October 2009)
Canada is a country rich in uranium resources and a long history of exploration, mining and generation of nuclear power (for coverage of nuclear power, see information page on Nuclear Power in Canada). Exploration for uranium ore began in earnest in 1942 under direction of the government for military purposes. A wartime ban on private prospecting was lifted in 1947, which led in the early 1950s to the discovery of major deposits near Elliot Lake, Ontario, and northern Saskatchewan. By 1959, 23 mines and 19 treatment plants were in operation, and Canada's C$330 million in uranium exports exceeded the value for every other mineral.
A second burst of exploration in the 1970s resulted in major discoveries in the Athabasca Basin in northern Saskatchewan. Mines at Rabbit Lake, Cluff Lake and Key Lake started up in 1975, 1980 and 1983, which up until 2000 accounted for most of Canada's uranium production (14,223 tonnes of U3O8 in 1998). Cluff Lake, Key Lake and the original open pit at Rabbit Lake have now been mined out (underground mining continues at Rabbit Lake). Mines that began operation just a decade ago now contribute most of Canada's production. (See also Appendix 1: Brief History of Uranium Mining in Canada)
Current production
Canada produced 10,617 tonnes of U3O8 in 2008, or 20.5% of world production. Most of Canada's current production comes from its third generation mines, which started operation in 1999 at McClean Lake and McArthur River in northern Saskatchewan (the Rabbit Lake mine in the same region is the third source).
The main uranium producers are Cameco and Areva Resources Canada (formerly Cogema Resources), part of France's Areva Group. Cameco was formed in the 1988 merger of Saskatchewan Mining Development Corporation and the government-owned Eldorado Nuclear Ltd. The company issued its first public shares in 1991 and was fully privatized in 2002. Today, it is the world's largest uranium producer.
In the early 1990s, the Saskatchewan government had considered phasing out uranium mining in the province. This policy was later reversed after a joint Federal-Saskatchewan study panel on health, safety, environment and socio-economic impact found that the jobs provided by the industry would be hard to replace and that the environmental impact of mining could be minimized. Today, the provincial government actively supports uranium mining, and all new Saskatchewan uranium mines have international ISO 14001 environmental certification.
Annual uranium production (tonnes U3O8)a
Canadian uranium exports (tonnes uranium)b
McArthur River
The McArthur River uranium mine is the world's largest, with enormous reserves (about 150,000 tonnes U3O8) of high grade ore (21%) located 600 metres underground. Remote control raise boring methods are used to mine the ore, which is then trucked 80 km south to be milled at Key Lake, site of the closed mine that once produced 15% of the world's uranium. At the mill, which has been modified for the McArthur River ore, the ore is blended with 'special waste rock' and processed to produce U3O8. Tailings are deposited in a mined-out pit. The current licensed capacity is 8,500 t/y, but is expected to be increased to 10,000 t/y in 2009.
Cameco is the majority owner and operator of McArthur mine as well as the Key Lake Mill (Areva is a 30.2% and 16.7% partner, respectively).
Other deposits close to McArthur River are prospective.
McClean Lake
After starting operation in mid-1999, McClean Lake produced about 2500 t/y of U3O8 from 2.4% ore up until 2005, although production was well down in 2006 through to 2008 due to lower ore grades. The mine has now been relicensed at 3640 t/y. Operations consist of three open pits, with an underground mine planned for the future. McClean Lake also has high-quality new plant and infrastructure. It uses the first mined-out pit for tailings disposal. The mill has been expanded to 5,500 t/y U3O8 to accommodate the ore that eventually will be shipped from the Cigar Lake mine now under construction. Efforts are being made to increase production to fill the gap left by the delay in Cigar Lake production.
McClean Lake is majority-owned (70%) and operated by Areva Resources. Denison Mines (22.5%) and the Japanese company Overseas Uranium Resources Development (OURD, 7.5%) are Areva's joint venture partners.
Rabbit Lake
Uranium was discovered at Rabbit Lake back in 1968 and brought into production in 1975. Most of the deposit has been mined out, but reserves still exist at Eagle Point, where 1,613 tonnes of U3O8 from an ore grade of 2.1% were mined in 2008. However, production is expected to diminish in the near future.
Future mines
Uranium production in Canada is likely to increase significantly as several new mines, now planned or under construction, go into operation sometime after 2011. The two largest projects are Cameco's Cigar Lake mine and Areva's Midwest mine, both in northern Saskatchewan. The mill at McClean Lake has been modified to process ore from both mines. The Rabbit Lake mill will also be modified to take ore from Cigar Lake. Total production is expected to be 8,200 t/y U3O8 from Cigar Lake and 2,600 t/y from Midwest.
Canadian uranium resourcesc
Cameco
Cigar Lake
The proven and probable ore reserves at Cigar Lake are extremely large and very high grade. A 450-metre-deep underground mine is being developed in very poor ground conditions. Hence it will use ground freezing and high pressure water jets to excavate the ore. High-grade ore slurry from remote mining will be trucked for toll treatment at Areva's expanded McClean Lake mill, 70 km northeast, for the first two years. The average feed grade will be 20.7% U3O8. Then, as production approaches full capacity, all of the leaching will be done at McClean Lake but about half of the uranium solution will go on to Cameco's Rabbit Lake mill 70 km east for final production of uranium oxide concentrate. From both mills total production is expected to be 8,200 t/y U3O8 (7,000 tU/y) ramping up to this over three years from production start in 2011. Known resources are 160,000 tonnes U3O8 at about 19% average grade, and with other resources the mine is expected to have a life of at least 30 years.
Construction on the project began in 2005 with production originally scheduled to start in 2011. However, underground floods in 2006 and 2008 set the start date back until after 2011 and increased the overall cost of the project from C$660 to more than C$1billion. There will be extra requirements for pumping capacity and ground refrigeration. Some 1.3 million cubic metres of waste rock from Cigar Lake is being emplaced under water in the Sue C pit at McClean Lake, to prevent acid generation from it. Tailings will remain at Mclean Lake and Rabbit Lake.
A Cigar Lake II deposit nearby is being investigated.
Cameco, which has 50% ownership, is managing the joint venture, with Areva holding 37%, Idemitsu 8% and TEPCO 5%.
Midwest
Proven and probable reserves at Midwest are 18,900 tonnes of U3O8 with an average ore grade of 5.47%. A further prospect 3 km to the north is also being evaluated. The original plans were for an underground mine, utilizing ground freezing and water jet boring, but new plans call for a large open pit mine that will go to a depth of 215 metres. The ore will be shipped 15 km to the McClean mill to produce 2600 t/y U3O8 for seven years. A comprehensive environmental assessment for the project began in 2006.
Production was originally scheduled to begin in 2011, but in late 2008 the starting date was postponed due several factors, including a 50% rise in the initial estimated capital costs of $435 million. The Midwest project is being managed by Areva Resources, which owns 69.16%. Denison Energy has a 25.17% stake and OURD Canada 5.67%.
Dawn Lake
Although its development is much further off, a deposit of more than 5,000 tonnes of indicated uranium resources is prospective at Dawn Lake in northern Saskatchewan. Grades of up to 30% ore at depths of 280 metres have also been reported nearby. Cameco has 57.4%, Areva 23.1% and Japan-Canada Uranium subsidiary JCU (Canada) Exploration 19.4%.
Exploration prospects
In addition to mining operations planned for the near future, active exploration involving more than 40 companies continues in many parts of Canada. While exploration has concentrated on northern Saskatchewan, new prospects extend to Labrador and Nova Scotia in the Atlantic provinces, Quebec province, Nunavut Territory in the far north, and Ontario's Elliott Lake area. Resource figures quoted are generally NI 43-101 compliant.
In uranium-rich northern Saskatchewan, exploration projects are now well-advanced at three locations. The Millennium deposit (42% owned by Cameco, 30% by JCU and 28% Areva Resources) has indicated resources of 21,000 tonnes of 4.5% grade U3O8 and 4,400 tonnes of 2.1% grade inferred. It is between McArthur River and Key Lake, and ore would be milled at Key Lake. A feasibility study on the project has led to Cameco seeking approval to mine it. Underground development is envisaged over 2013-17. The Tamarack deposit associated with Dawn Lake is also a focus of interest.
The Shea Creek project (51% owned by Areva, 49% UEX Corp.) in the western Athabasca Basin near Cluff Lake has reported very high grade ore and a 900 metre shaft is being sunk to provide better access. UEX (21.3% owned by Cameco) has invested about C$30 million in exploration. UEX is also exploring the Horseshoe and Raven deposits at Hidden Bay in the eastern Athabasca basin (close to Rabbit Lake and McClean Lake). The Horseshoe deposit has indicated resources of 11,100 tonnes of U3O8 at a grade of 0.237%, and Raven has indicated resources of 7,060 tonnes at 0.02% cut-off.
Denison is actively exploring the Wheeler River deposit half way between Key Lake and McArthur River. It is a long strike from the latter and geologically very similar, with some high-grade uranium mineralisation. Denison has a 60% interest, Cameco 30% and JCU (Canada) 10%.
The main Labrador prospect centres on the Michelin deposit, which is being drilled in a C$21million program by Aurora Energy Resources (subsidiary of Fronteer Development). Michelin and the adjacent Jacques Lake deposit have measured and indicated resources of 35,000 tonnes of U3O8, plus 16,000 t inferred resources, mostly requiring underground mining. In 2009, a positive economic assessment of the project proposed investment of US$ 984 million to set up mine and mill, with production ramping up to 3000 t/y. A Nunatsiavut government moratorium until March 2011 is in place, and expiry of this will coincide with completion of a land use planning assessment being undertaken jointly by the Nunatsiavut and Newfoundland-Labrador governments. Bayswater Uranium Corp. has announced a very small deposit at Anna Lake nearby.
In Nova Scotia, exploration has been proposed at Millet Brook, but it awaits a review of a 1985 moratorium on uranium mining in the province.
In Quebec, exploration is underway at several locations with a total of more than 40,000 tonnes of indicated or inferred deposits. Strateco Resources has reported indicated resources of 3400 t U3O8 grading 0.68% and inferred resources of 6,000 tonnes grading 0.44% at its Matoush deposit in the Otish Basin of central Quebec. The company completed a scoping study in 2008 and will begin underground development in mid-2009, with a view to mine production in 2012. Azimut Exploration has committed C$42 million to uranium exploration, mainly for the Katavic project in Quebec's northern Nunavik region and other prospects in the Ungava Bay region further north. Uracan Resources reports 18,400 tonnes of U3O8 of inferred resources at its North Shore prospect in eastern Quebec.
In the Nunavut Territory, some 500 km north of Manitoba, a joint venture headed by Areva is conducting a feasibility study on the Kiggavik uranium deposit in the Thelon Basin, with an estimated 67,000 tonnes U3O8 at 0.24% grade. The indigenous Inuit organization, Nunavut Tunngavic, reversed its previous ban on uranium exploration and mining in 2006, but the project has faced opposition from other groups. The project involves the development of three open pit mines at Kiggavik and both an open pit mine and an underground mine at Sissons. Areva and its partners, JCU (Canada) Exploration and Daewoo, hope for a start-up of the mine and mill complex in 2015.e Also in Nunavut, at Amer Lake, Uranium North Resources has reported inferred resources of 8,770 t U3O8.
The Elliot Lake area of Ontario, which was the centre of Canada's early uranium mining, is again attracting exploration. In September 2008, Pele Mountain Resources commenced the permitting process for its Eco Ridge underground uranium mine and processing facility in the region. Eco Ridge contains indicated resources of 5,700 tonnes U3O8 and inferred resources of 37,300 tonnes U3O8. The Serpent River-Pecors deposit is a few kilometres east.
In British Columbia, the Blizzard prospect south of Kelowna, which was first explored in the 1980s, has been revived by Boss Power. The company has challenged a provincial government moratorium on exploration and mining imposed in April 2008, and the British Columbia government has indicated the Blizzard project may be able to go forward.
Uranium exploration appears to be on the upswing throughout Canada. Cameco spent C$57 million on exploration in 2008 (plus a further $32 million in three strategic partnerships with junior explorers) and plans C$50-55 million for 2009, mainly in Saskatchewan, Nunavut and the Northwest Territories. In late 2007, Cameco announced an agreement with the Russian company Uranium Holding ARMZ (JSC Atomredmetzoloto) to create a joint venture to explore and mine uranium in northwest Russia, Saskatchewan and Nunavut.
Further Information
Appendix
Appendix 1: Brief History of Uranium Mining in Canada
Related information pages
Nuclear Power in Canada
Notes
a. Data: company sources. Where an asterisk (*) is shown, the figures are small and included with the McArthur River figure. Domestic production in tonnes of uranium (as opposed to U3O8) is as follows:
Annual uranium production (tonnes U)
[Back]
b. Data: company sources. Where an asterisk (*) is shown, the figures are from the World Nuclear Association Market Report. [Back]
c. Data: company sources. In Canadian figures resources do not include reserves and are reported in accordance with Canadian standard NI-43-101. [Back]
d. Average ore grades given as percentage of U3O8 in the ore. [Back]
e. The two parts of the project (Kiggavik and Sissons) are operated by Areva Resources Canada Inc.; Sissons is held 50% by Areva in joint venture with JCU (Canada) Exploration Co. Ltd. (48%) and Daewoo Corporation (2%); and Kiggavik itself is held 99% by Areva and 1% by Daewoo. [Back]
General sources
Uranium webpage on Natural Resources Canada website (www.nrcan.gc.ca)Cameco annual reportsUranium in Saskatchewan series of fact sheets available on Cameco's website (www.cameco.com)Areva Resources website (www.cri.ca)Canadian Nuclear Association website (www.cna.ca)Uranium 2007 - Resources, Production and Demand, OECD Nuclear Energy Agency and International Atomic Energy Agency, OECD Publishing, June 2008 (ISBN: 9789264047662)