Cameco (TSX: CCO; NYSE: CCJ) announced today that it filed a technical report under Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects titled “Inkai Operation, South Kazakhstan Oblast, Republic of Kazakhstan.” The technical report is dated January 25, 2018, with an effective date of January 1, 2018.
As outlined in the technical report, Joint Venture Inkai LLP’s (JV Inkai) 2017 production was 5.5 million pounds U3O8 (Cameco’s share 3.2 million pounds) and 2018 forecast production is 6.9 million pounds U3O8 (Cameco’s share 3.4 million pounds).
JV Inkai has the right to increase production to 10.4 million pounds U3O8 per year, subject to market conditions and the terms of the Resource Use Contract, with a projected mine life extending to mid-2045. Updated details on planned production, and mineral reserve and mineral resource estimates are included in the technical report.
The report also outlines that, over the remaining life of current mineral reserves:
- forecast production is estimated at 229.2 million pounds U3O8 (Cameco’s share 92.6 million pounds);
- cash operating costs are estimated to be $9.55 Cdn per pound U3O8 (with a currency exchange rate assumption of 265 Kazakhstan Tenge to $1.00 Cdn); and
- capital costs are estimated to be $1.064 billion Cdn (100% basis with a currency exchange rate assumption of 265 Kazakhstan Tenge to $1.00 Cdn).
Due to the restructuring of JV Inkai on January 1, 2018, Cameco’s ownership interest is now 40% and Kazatomprom’s ownership interest is now 60%. With this change, Cameco will equity account for its interest in JV Inkai in its 2018 financial results.
Cameco’s 2017 annual results, 2017 production and 2018 plans will be released before markets open on February 9, 2018.
The technical report is posted on our website at cameco.com. Shareholders may obtain paper copies of the technical report free of charge by contacting:
Cameco Investor Relations
2121 – 11th Street West
Saskatoon, SK S7M 1J3
Phone: (306) 956-6340
Cameco is one of the world’s largest uranium producers, a significant supplier of conversion services and one of two Candu fuel manufacturers in Canada. Our competitive position is based on our controlling ownership of the world’s largest high-grade reserves and low-cost operations. Our uranium products are used to generate clean electricity in nuclear power plants around the world. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan.
The technical and scientific information discussed in this news release was approved by the following individuals who are qualified persons for the purposes of NI 43-101:
- Darryl Clark, PhD, P. Geo., President, Cameco Kazakhstan LLP
- Alain G. Mainville, P. Geo., Director, Mineral Resources Management, Cameco Corporation
- Stuart B. Soliz, P. Geo., Principal Geologist, Power Resources, Inc. (operating as Cameco Resources)
- Robert J. Sumner, PhD, P. Eng., Principal Metallurgist, Technical Services, Cameco Corporation