Home › Invest › Overview › Reserves & Resources › Proven & Probable Reserves Reserves & Resources Proven & Probable Reserves Measured & Indicated Resources Inferred Resources Proven and Probable Reserves Download as PDF As at December 31, 2014 (100% basis – only the second last column shows our share) Tonnes in thousands; pounds in millions As of December 31, 2014 Proven reserves Probable reserves Total mineral reserves Property Tonnes Grade %U3O8 Content (lbs U3O8) Tonnes Grade %U3O8 Content (lbs U3O8) Tonnes Grade %U3O8 Content (lbs U3O8) Cameco's share of content (lbs U3O8) Metallurgical recovery (%) McArthur River (UG) 497.8 18.71 205.3 555.2 11.43 139.9 1,053.0 14.87 345.2 241.0 98.7 Cigar Lake (UG) 205.6 24.00 108.8 391.6 14.60 126.1 597.2 17.84 234.9 117.5 98.5 Rabbit Lake (UG) 32.7 0.26 0.2 1,093.7 0.62 15.0 1,126.4 0.61 15.2 15.2 97.0 Key Lake (OP) 67.5 0.50 0.7 67.5 0.50 0.7 0.6 98.7 Inkai (ISR) 1,420.5 0.08 2.6 52,999.2 0.07 76.8 54,419.7 0.07 79.4 45.6 85.0 Smith Ranch–Highland (ISR) 1,145.5 0.10 2.4 1,241.1 0.09 2.4 2,386.6 0.09 4.8 4.8 80.0 North Butte–Brown Ranch (ISR) 753.4 0.08 1.4 875.2 0.08 1.5 1,628.6 0.08 2.9 2.9 60.0 Crow Butte (ISR) 801.4 0.10 1.7 801.4 0.10 1.7 1.7 85.0 Total 4,924.4 – 323.1 57,155.9 – 361.6 62,080.3 – 684.6 429.2 Notes UG - underground OP - open pit ISR - in situ recovery Estimates in the above table: use an average uranium price of $70 (US)/lb U3O8 are based on an average exchange rate of $1.00 US=$1.05-$1.10 Cdn totals may not add up due to rounding. Mineral Reserves and Resources Our mineral reserves and resources are the foundation of our company and fundamental to our success. We have interests in a number of uranium properties. The tables in this section show our estimates of the proven and probable reserves, measured and indicated resources and inferred resources at those properties. However, only three of the properties listed in those tables are material uranium properties for us: McArthur River and Inkai, which are being mined, and Cigar Lake, which is being developed. We estimate and disclose mineral reserves and resources in five categories, using the definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum, and in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101), developed by the Canadian Securities Administrators. You can find out more about these categories at www.cim.org. About mineral resources Mineral resources do not have demonstrated economic viability, but have reasonable prospects for economic extraction. They fall into three categories: measured, indicated and inferred. Our reported mineral resources are exclusive of mineral reserves. Measured and indicated mineral resources can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters to support evaluation of the economic viability of the deposit. measured resources: we can confirm geological and grade continuity to support production planning indicated resources: we can reasonably assume geological and grade continuity to support mine planning Inferred mineral resources are estimated using limited information. We do not have enough confidence to evaluate their economic viability in a meaningful way. You should not assume that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Our share of uranium in the mineral resource tables below is based on our respective ownership interests, except for Inkai which is based on our interest in potential production (57.5%), which differs from our ownership interest (60%). Mineral resources that are not mineral reserves have no demonstrated economic viability. About mineral reserves Mineral reserves are the economically mineable part of measured and indicated mineral resources demonstrated by at least a preliminary feasibility study. They fall into two categories: proven reserves: the economically mineable part of a measured resource for which at least a preliminary feasibility study demonstrates that economic extraction is justified probable reserves: the economically mineable part of a measured and/or indicated resource for which at least a preliminary feasibility study demonstrates that economic extraction is justified We use current geological models, an average uranium price of $63.75 (US) per pound U3O8, and current or projected operating costs and mine plans to estimate our mineral reserves, allowing for dilution and mining losses. We apply our standard data verification process for every estimate. The price assumption is based on independent industry and analyst estimates of spot prices and the corresponding long-term prices and reflects our committed and uncommitted sales volumes. For committed sales volumes, the spot and term price assumptions were applied in accordance with the terms of the agreements. For uncommitted sales volumes, the same price assumptions were applied using a spot-to-term price ratio of 60:40. Our share of uranium in the mineral reserves table below is based on our respective ownership interests, except for Inkai which is based on our interest in planned production (57.5%) assuming an annual production rate of 5.2 million pounds, which differs from our ownership interest (60%). Changes this year Our share of proven and probable mineral reserves went from 465 million pounds U3O8 at the end of 2012 to 443 million pounds at the end of 2013. The change in reserves was mainly the result of: the mining, milling and leaching activities, which removed 24.6 million pounds from our mineral inventory the upgrade of zone 1 at McArthur River from probable reserves to proven due to completion of detailed mining plans the conversion of mineral reserves to resources at Gas Hills due to geological re-interpretation, re-estimation, and non demonstrated profitability Measured and indicated mineral resources increased from 244 million pounds U3O8 at the end of 2012 to 391 million pounds at the end of 2013. Our share of inferred mineral resources is 289 million pounds U3O8. The variance in resources was mainly the result of: the addition of Yeelirrie mineral resources the addition of indicated resources at Rabbit Lake from delineation drilling and conversion of inferred to indicated the addition of indicated and inferred resources to Millennium from drilling the conversion of mineral reserves to resources at Gas Hills Qualified persons The technical and scientific information discussed in this MD&A for our material properties (McArthur River/Key Lake, Inkai and Cigar Lake) was approved by the following individuals who are qualified persons for the purposes of NI 43-101: McArthur River/Key Lake Alain G. Mainville, director, mineral resources management, Cameco David Bronkhorst, vice-president, mining and technology, Cameco Greg Murdock, mine manager, Rabbit Lake, Cameco Les Yesnik, general manager, Key Lake, Cameco Cigar Lake Alain G. Mainville, director, mineral resources management, Cameco Eric Paulsen, chief metallurgist, technology group, Cameco Scott Bishop, principal mine engineer, technology group, Cameco Inkai Alain G. Mainville, director, mineral resources management, Cameco Ken Gullen, technical director, international, Cameco Lawrence Reimann, manager, technical services, Cameco Resources Important information about mineral reserve and resource estimates Although we have carefully prepared and verified the mineral reserve and resource figures in this document, the figures are estimates, based in part on forward-looking information. Estimates are based on our knowledge, mining experience, analysis of drilling results, the quality of available data and management’s best judgment. They are, however, imprecise by nature, may change over time, and include many variables and assumptions, including: geological interpretation extraction plans commodity prices and currency exchange rates recovery rates operating and capital costs There is no assurance that the indicated levels of uranium will be produced, and we may have to re-estimate our mineral reserves based on actual production experience. Changes in the price of uranium, production costs or recovery rates could make it unprofitable for us to operate or develop a particular site or sites for a period of time. See here for information about forward-looking information. Please see our mineral reserves and resources section of our annual information form for the specific assumptions, parameters and methods used for McArthur River, Inkai and Cigar Lake mineral reserve and resource estimates. Important information for US investors While the terms measured, indicated and inferred mineral resources are recognized and required by Canadian securities regulatory authorities, the US Securities and Exchange Commission (SEC) does not recognize them. Under US standards, mineralization may not be classified as a ‘reserve’ unless it has been determined at the time of reporting that the mineralization could be economically and legally produced or extracted. US investors should not assume that: any or all of a measured or indicated mineral resource will ever be converted into proven or probable mineral reserves any or all of an inferred mineral resource exists or is economically or legally mineable, or will ever be upgraded to a higher category. Under Canadian securities regulations, estimates of inferred resources may not form the basis of feasibility or prefeasibility studies. Inferred resources have a great amount of uncertainty as to their existence and economic and legal feasibility. The requirements of Canadian securities regulators for identification of ‘reserves’ are also not the same as those of the SEC, and mineral reserves reported by us in accordance with Canadian requirements may not qualify as reserves under SEC standards. Other information concerning descriptions of mineralization, mineral reserves and resources may not be comparable to information made public by companies that comply with the SEC’s reporting and disclosure requirements for US domestic mining companies, including Industry Guide 7. Menu About Our Vision Executive Team Board of Directors Governance Board's Mandate Board Committees Chair's Role CEO's Role Code of Conduct & Ethics Governance Guidelines NYSE Compliance Policies & Programs Sustainability History Recognition Invest Why Invest? 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