Cameco : 2024 Inkai Technical Report
CCJ
Inkai Operation
Turkestan Region, Republic
of Kazakhstan
National Instrument 43-101
Technical Report
Effective Date: September 30, 2024
Date of Technical Report: November 12, 2024
PREPARED FOR CAMECO CORPORATION BY:
C. SCOTT BISHOP, P.ENG.
SERGEY IVANOV, P.GEO.
ALAIN D. RENAUD, P.GEO.
Table of Contents
1
Summary
1
1.1
Operation overview
1
1.2
Property tenure
1
1.3
Location and existing infrastructure
2
1.4
Geology and mineralization
2
1.5
Exploration and delineation
3
1.6
MPP, Sat1 and Sat2 area development
4
1.7
Mineral resources and mineral reserves
4
1.8
Mining
6
1.9
Processing
7
1.10
Environmental assessment and licensing
7
1.11
Production plan and mine life
10
1.12
Economic analysis and cost estimates
10
1.13
Regulatory and production risks
11
1.14
Implementation agreement
12
1.15
Conclusions and recommendations
13
2
Introduction
14
2.1
Introduction and purpose
14
2.2
Report basis
14
3
Reliance on other experts
15
4
Property description and location
16
4.1
Location
16
4.2
Exploration and mining licences
17
4.3
Surface tenure
17
4.4
Resource use contract
17
4.5
Subsoil code
18
4.6
Strategic object
23
4.7
Royalties
23
4.8
Known environmental liabilities
23
4.9
Permitting
23
4.10
Factors affecting the right to work on the property
23
5
Accessibility, climate, local resources, infrastructure and physiography
25
5.1
Access
25
5.2
Climate
25
5.3
Physiography
25
ii
5.4
Local resources
26
5.5
Infrastructure
26
6
History
27
6.1
Ownership
27
6.2
Exploration and development history
27
6.3
Historical mineral resource and mineral reserve
29
6.4
Historical production
29
7
Geological setting and mineralization
31
7.1
Regional geology
31
7.2
Local and property geology
33
7.3
Mineralization
36
8
Deposit types
43
8.1
Roll-front deposits of the Chu-Sarysu Basin
43
9
Exploration
45
10
Drilling
46
10.1
Uranium exploration and delineation drilling
46
10.2
Methodology and guidelines
46
10.3
Core recovery
47
10.4
Geophysical logging
47
10.5
Factors that could materially affect the accuracy of the results
48
11
Sample preparation, analyses and security
50
11.1
Sampling density
50
11.2
Procedure for sampling and sample preparation
50
11.3
Assaying
50
11.4
Radioactivity, radium and equivalent uranium grades
51
11.5
Density sampling
51
11.6
Quality assurance/quality control
51
11.7
Adequacy of sample preparation, assaying, QA/QC and security
52
12
Data verification
53
13
Mineral processing and metallurgical testing
55
13.1
MPP, Sat1 and Sat2 processing plants
55
13.2
Production expansion test work
55
13.3
Deleterious elements at Inkai
56
14
Mineral resource estimates
57
14.1
Definitions
57
14.2
Key assumptions, parameters and methods
57
14.3
Resource classification
59
iii
14.4
Mineral resource estimate and classification
62
14.5
Factors that could materially affect the mineral resource estimate
63
15
Mineral reserve estimates
64
15.1
Definitions
64
15.2
Key assumptions, parameters and methods
64
15.3
Mineral reserve estimate and classification
65
15.4
Factors that could materially affect the mineral reserve estimate
66
16
Mining methods
67
16.1
Hydrogeology
67
16.2
Mining
71
16.3
Wellfield production
74
16.4
Production schedule
77
17
Recovery methods
80
17.1
Processing facilities
80
17.2
Reagents and energy requirements
81
17.3
Overall uranium recovery
82
17.4
Expansion project
83
18
Project infrastructure
84
18.1
Inkai facilities
84
18.2
UOC shipping routes
84
19
Market studies and contracts
86
19.1
Markets
86
19.2
Uranium sales contracts
86
19.3
Material contracts
87
19.4
Uranium price assumptions used for economic analysis
87
20
Environmental studies, permitting and social or community impact
88
20.1
Environmental considerations
88
20.2
Social and community requirements
92
21
Capital and operating costs
94
21.1
Capital cost estimates
94
21.2
Operating cost estimates
94
22
Economic analysis
96
22.1
Economic analysis
96
22.2
Sensitivities
96
22.3
Payback
98
22.4
Mine life
98
22.5
Taxes and royalties
98
iv
23
Adjacent properties
100
24
Other relevant data and information
101
24.1
Implementation agreement
101
24.2
Currency control regulations
102
24.3
Regulatory risks
102
24.4
Production and product delivery risks
106
24.5
Caution about forward-looking information
107
25
Interpretation and conclusions
110
26
Recommendations
111
27
References
....................................................................................................................
112
28
Date and signature page
114
v
Tables
TABLE 1-1: INKAI MINERALIZED HORIZONS
3
TABLE 1-2: EXPLORATION AND DELINEATION DRILLING AT INKAI
4
TABLE 1-3: SUMMARY OF MINERAL RESOURCES - AS OF SEPTEMBER 30, 2024
5
TABLE 1-4: SUMMARY OF MINERAL RESERVES - AS OF SEPTEMBER 30, 2024
6
TABLE 3-1: RELIANCE ON OTHER EXPERTS
15
TABLE 6-1: HISTORICAL DRILLING
27
TABLE 6-2: INKAI URANIUM PRODUCTION
29
TABLE 7-1: HORIZONS AND SUB-HORIZONS DIVISION
36
TABLE 7-2: EXTENT AND DIMENSIONS BY MINERALIZED HORIZON
39
TABLE 10-1: EXPLORATION AND DELINEATION DRILLING AT INKAI
46
TABLE 14-1: CUT-OFFS AND ADDITIONAL ESTIMATION PARAMETERS
59
TABLE 14-2: INKAI MINERAL RESOURCES - AS OF SEPTEMBER 30, 2024
62
TABLE 15-1: INKAI MINERAL RESERVES - AS OF SEPTEMBER 30, 2024
66
TABLE 16-1: HYDRAULIC CONDUCTIVITY
69
TABLE 16-2: LIST OF MINING EQUIPMENT
74
TABLE 16-3: RESERVES-BASED JV INKAI PRODUCTION SCHEDULE - 100% BASIS
79
TABLE 17-1: INKAI REAGENT CONSUMPTION
82
TABLE 19-1: EXPECTED AVERAGE URANIUM PRICES BY YEAR
87
TABLE 21-1: CAPITAL COST FORECAST BY YEAR - 100% BASIS
95
TABLE 21-2: OPERATING COST FORECAST BY YEAR - 100% BASIS
95
TABLE 22-1: ECONOMIC ANALYSIS BY YEAR - 100% BASIS
97
vi
Figures
FIGURE 1-1: ANNUAL PRODUCTION PLAN - 100% BASIS
10
FIGURE 4-1: LOCATION MAP
16
FIGURE 5-1: GENERAL LOCATION MAP
26
FIGURE 7-1: GEOLOGICAL MAP OF CHU-SARYSU BASIN AND ITS SURROUNDINGS
32
FIGURE 7-2: SCHEMATIC CROSS-SECTION OF THE CHU-SARYSU BASIN - LOOKING
WEST
32
FIGURE 7-3: SCHEMATIC STRATIGRAPHIC COLUMN FOR THE CHU-SARYSU BASIN
35
FIGURE 7-4: INKAI URANIUM ROLL FRONTS
37
FIGURE 7-5: ROLL-FRONT MORPHOLOGY OF MINERALIZATION
41
FIGURE 7-6: TYPICAL CHARACTERISTICS OF A ROLL-FRONT DEPOSIT
42
FIGURE 10-1: DRILL HOLE COLLAR LOCATION MAP
49
FIGURE 13-1: PROCESSING PLANTS TOTAL AVERAGE RECOVERY (2015-JUNE 30, 2024)
...............................................................................................................................................
55
FIGURE 14-1: TOTAL INKAI MINERAL RESOURCES BY CIM CATEGORIES
61
FIGURE 16-1: IN SITU RECOVERY SCHEMATIC
72
FIGURE 16-2: CONFIGURATION OF TYPICAL WELLFIELD PATTERNS USED AT INKAI
73
FIGURE 16-3: HISTORICAL YEARLY UBS VOLUMES
75
FIGURE 16-4: HISTORICAL YEARLY UBS HEAD GRADES
75
FIGURE 16-5: HISTORICAL YEARLY PRODUCTION BY MINING AREA
76
FIGURE 16-6. MONTHLY HEAD GRADE VARIABILITY
76
FIGURE 16-7: MPP, SAT1 AND SAT2 HISTORICAL RECOVERY CURVES
77
FIGURE 16-8: RESERVES-BASED JV INKAI PRODUCTION SCHEDULE - 100% BASIS
79
FIGURE 17-1: CURRENT INKAI FLOWSHEET
82
FIGURE 17-2: PROPOSED FLOWSHEET BASED ON ANNUAL PRODUCTION OF 10.4 M LBS
U3O8
83
FIGURE 18-1: INFRASTRUCTURE GENERAL ARRANGEMENT
85
FIGURE 22-1: SENSITIVITY ANALYSIS - 100% BASIS
96
FIGURE 23-1: ADJACENT PROPERTIES TO INKAI MA
100
vii
Units of Measure and Abbreviations
°C
Degree Celsius
$
Canadian dollar (unless otherwise indicated)
>
Greater than
<
Less than
%
Percent
a
Annum (year)
cm
Centimetre
d
Day
g
Gram
GT
Grade times Thickness
h
Hour
IX
Ion exchange
K
Thousand
km
Kilometre
km2
Square kilometre
L
Litre
L/sec
Litre per second
Lbs
Pounds
M
Million
MWh………………………………………………………. Megawatt per hour
m
Metre
m/a
Metre per annum
m/d
Metre per day
m2
Square metre
m2/d
Square metre per day
m3
Cubic metre
m%U3O8
Metre times percent uranium oxide
mg
Milligram
mm
Millimetre
sec
Second
t
Metric tonne
TDS
Total dissolved solids
U
Uranium (1 tonne U = 2,599.8 Lbs U3O8)
%U
Percent uranium (%U x 1.179 = % U3O8)
U3O8
Triuranium octoxide
%U3O8
Percent uranium oxide (%U3O8 x 0.848 = %U)
UBS
Uranium-bearing solution
UF6
Uranium hexafluoride
UOC
Uranium ore concentrate
viii
Definitions and Interpretation
In this technical report the following capitalized words, terms and expressions, and any derivations thereof as the context may require, will have the following meanings:
2009 Tax Code means the Code of the Republic of Kazakhstan dated December 10, 2006 No.99-IV "On Taxes and Other Obligatory Payments to the State Budget"
Amendment No. 6 means Amendment No. 6 to the Resource Use Contract, dated November 30, 2017
Block 1 means the 16.58 km2 area of land in the Suzak District of the Republic of Kazakhstan, which is designated as Block 1 in Licence Series AY 1370D
Block 2 means the 230 km2 area of land in the Suzak District of the Republic of Kazakhstan, which is designated as Block 2 in Licence Series AY 1371D
Block 3 means the 240 km2 area of land in the Suzak District of the Republic of Kazakhstan, which is designated as Block 3 in Licence Series AY 1371D
BTP means biological treatment plant Cameco means Cameco Corporation
CIM means Canadian Institute of Mining, Metallurgy and Petroleum
CIM Definition Standards means CIM Definition Standards for Mineral Resources and Mineral Reserves
Competent Authority means the appropriate state agency designated under the Subsoil Law as the competent authority; currently, the Ministry of Energy of the Republic of Kazakhstan is the Competent Authority for uranium resources
C1 means C1 category of mineral resources as defined by the GKZ classification system C2 means C2 category of mineral resources as defined by the GKZ classification system Geology Committee means the Geology Committee of the Republic of Kazakhstan
GKZ means State Reserve Commission of USSR which developed the GKZ classification system for mineral resources
Implementation Agreement means the agreement between Cameco, Kazatomprom and JV Inkai dated May 27, 2016, to restructure and enhance JV Inkai, as supplemented or amended from time to time
Inkai means collectively the mine operated by JV Inkai and the MA Area or, as the context requires, the uranium deposit
IRR means internal rate of return
ISL means in situ leaching, a mining process now referred to as ISR ISR means in situ recovery, a mining process described in Section 1.10
JV Inkai means Joint Venture Inkai Limited Liability Partnership, a limited liability partnership registered under the laws of the Republic of Kazakhstan. JV Inkai is currently owned by Cameco (40%) and Kazatomprom (60%)
KATEP means National Joint Stock Company Atomic Power Engineering and Industry "KATEP" Kazatomprom or KAP means Joint Stock Company "National Atomic Company "Kazatomprom"
KAZRC Code means the code developed in June 2016 by the Kazakhstan Association for Public Reporting of Exploration Results, Mineral Resource and Mineral Reserves (KAZRC) following the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) template
Licences means Licence Series AY 1370D, which allowed for the mining of uranium on Block 1, and
ix
Licence Series AY 1371, which allowed for the exploration and further mining of uranium on Blocks 2 and 3 LOM Plan means the life of mine plan for Inkai
MA Area means the 139 km2 area in which JV Inkai currently has the right to mine, as covered by the Mining Allotment, which includes the historical Block 1 and portions of Blocks 2 and 3; now referred to as MPP Area, Sat1 Area and Sat2 Area, respectively
Mining Allotment means the document issued by the Geology Committee to JV Inkai in July 2017, which is a part of the Resource Use Contract, as provided for in Amendment No. 6, and which graphically and descriptively defines the area in which JV Inkai has the right to mine
MPP means JV Inkai's main processing plant that is located in the MPP Area MPP Area means the portion of Block 1 that is included in the MA Area
NI 43-101 means National Instrument 43-101 - Standards of Disclosure for Mineral Projects NPV means net present value
Project for Uranium Deposit Development (abbreviated PUDD) means the stipulated by Subsoil Code project documentation that contains the mining plan including mining methods, technical indicators as well as production volumes, timeframes and other parameters for uranium deposit development
Qualified person as defined in NI 43-101
Ramp-up means the increase in production at Inkai from its current rate of production to 10.4 million pounds U3O8 as detailed in the Implementation Agreement and the various supplemental agreements thereto
Redox means the oxidation-reduction reaction
Resource Use Contract (abbreviated RUC) means the resource use contract between the Republic of Kazakhstan and JV Inkai that was signed in July 2000 and that provides for JV Inkai's mining rights, as amended by Amendment Nos. 1-6. The Resource Use Contract includes the Mining Allotment
Sat1 means JV Inkai's Satellite Plant 1 processing facility that is located in the Sat1 Area Sat1 Area means the portion of Block 2 that is included in the MA Area
Sat2 means JV Inkai's Satellite Plant 2 processing facility that is located in the Sat2 Area Sat2 Area means the portion of Block 3 that is included in the MA Area
SRC means the State Reserve Commission of Kazakhstan
Subsoil Code means the Subsoil Code No. 125-VI, signed by the President of the Republic of Kazakhstan on December 27, 2017, effective as of January 08, 2018, as amended, and as further described in Section 4.5
Subsoil Law means the Law of the Republic of Kazakhstan "On Subsoil and Subsoil Use", dated June 24, 2010, as amended
Tax Code means the Code of the Republic of Kazakhstan dated December 2017 No.120-VI "On Taxes and Other Obligatory Payments to the State Budget"
TEO stands (from the Russian abbreviation) for "Technical and Economic Substantiation". The TEO of Permanent Conditions is prepared according to the results of completed exploration work. Its purpose is to establish the scale and commercial value of a deposit, to define the economic value of its development, and to aid decision-making on financial investments in mining development of the deposit. All financial estimates on the accepted option for commercial development of the deposit are carried out within the framework of realistically assumed values of all the modifying factors.
Volkovgeology means Volkovgeology Joint Stock Company
x
Disclaimer
Cameco Corporation published this content on November 12, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 12, 2024 at 23:38:45.564.