Up until 2014, Canada had mined more uranium than any other country in the world. Totalling 485,000 tons produced, the country accounted for at least one fifth of global production, according to the World Nuclear Association (WNA).
While uranium ores first became known in Canada in the 1930s when the Eldorado Mining Company commenced operations to recover radium, exploration for uranium didn’t begin until 1942 to fulfill military purposes.
It wasn’t until 1959 that the first phase of uranium production in Canada peaked. At the time, over 12,000 tons of uranium was produced, which generated $330 million in export revenue. Despite some early struggles, uranium production has no doubt flourished in Canada over the last half century or so, particularly with discoveries in the Athabasca Basin in the 1970s.
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Uranium mining in Canada
For years, Canada ranked number one as the world leader of uranium production. Although Kazakhstan has been the world leader since 2009, uranium mining in Canada is currently ranked number two. Most recent data shows that Canada mined 13,325 tons of uranium in 2015.
Still–production over the last few years has dropped from roughly 20 percent to 15 percent of global production. That said, the WNA notes Canada has known uranium resources of 582,500 tons, ensuring the country will have a big impact in supplying future demand.
In particular, the Athabasca Basin–located in Saskatchewan–is home to the highest grade uranium deposits in the world. The region alone accounts for 18 percent of global production and plays host to the world’s largest uranium mine–McArthur River–of which Cameco (TSX:CCO) owns a 69.8 percent interest.
While Cameco and Areva Resources–a subsidiary of AREVA (EPA:AREVA)— are currently the largest uranium producers in the North American country, other companies are putting themselves on the map. On that note, here’s a look at uranium mining in Canada. This list looks at those companies already in production and a few with exploration projects that are underway.
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Cameco
Of course, the list would be incomplete without Cameco. The company alone accounts for roughly 18 percent of world mine production from operations in Canada, as well as the US and Kazakhstan. That said, the company has three mines and two mills in Canada, all located in the Athabasca Basin.
As mentioned above, the McArthur River–of which Cameco holds a 69.8 percent interest in–is the world’s largest uranium mine. In 2015, the mine produced 8,673 tons of uranium, and has output more than 291 million pounds since operations began in 1999.
Cameco also operates the Cigar Lake, of which the owns a 50 percent interest. The operation is the world’s highest grade uranium mine and began commercial production in May 2015. By the end of that year, the mine had produced 11.3 million pounds, and it is expected the mine will produce 18 million pounds in 2017.
The company has also operated the Rabbit Lake mine–the longest-running uranium mine in Saskatchewan–although operations are currently suspended due to tough market conditions.
In early 2016, Cameco made the Fox Lake deposit discovery, located on its Read Lake property close to McArthur River, with 30,9000 tons at eight percent inferred resources. Cameoco also holds the prospective Boomerang project in the Northwest Territories in the southwest Thelon Basin.
While Cameco has no doubt been a powerhouse in the uranium sector, it’s expected the company will report a loss for 2016 following the completion of financial reports for the year.
Denison Mines (TSX:DML)
Denison Mines holds a 22.5 percent interest in the McClean Lake operation, which is also located in the Athabasca Basin. Commercial production began on November 1, 1999 until operations were halted at the end of June 2010. During that time, the mill produced roughly 50 million pounds of uranium. By 2014, McCLean Lake was up and running again, with delivery of ore shipments from the Cigar Lake mine.
Throughout 2014, McCLean Lake processed over 456,800 pounds of ore with a 97.5 percent recovery rate. By 2015, production was on the upswing with 11.3 million pounds produced. In 2016, the Canadian Nuclear Safety Commission authorized an increase to 24 million pounds, up from 13 million. Looking ahead, it is expected that 18 million pounds will be produced per year, starting in 2017.
Denison also holds an interest in the Wheeler River, and is currently estimated to hold inferred resources of 45 million pounds of uranium at a grade of 2.3 percent. The company has an executed agreement with partners of the Wheeler River Joint venture to increase its ownership to 66 percent up from 60 percent by the end of 2018.
The Wheeler River joint Venture hosts 19 unsurveyed mineral claims totaling 11,720 hectares in the Athabasca Basin.
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UEX (TSX:UEX)
UEX is also largely focused in the Athabasca Basin, with an interest in a number of projects in the region. The Shea Creek project, of which UEX holds a 49.1 percent interest, hosts one of the largest undeveloped uranium resources in the Basin.
The company is also focused on the Horseshoe and Raven deposits at the Hidden Bay project on the eastern side of the Athabasca Basin. Looking over to the Christie Lake project, the company holds a 30 percent interest and is the acting project operator. That said, UEX has an option to acquire up to 70 percent interest of the project. At the end of January 2017, the first drill hole of the 2017 exploration program commenced, targeting a new high-grade zone of uranium mineralization along the Yalowega Mineralized trend.
Fission Uranium (TSX:FCU)
Fission Uranium is the owner of the Patterson Lake South project, which plays host to the Triple R deposit–a high grade shallow depth deposit. Much of the deposit is less than 250 meters deep, with nearly half of it able to be mined by an open pit. In September 2015, a preliminary economic assessment was completed, with indicated mineral resources estimated to be 2,011,00 tons at 1.83 percent uranium containing 81,111,000 pounds. Inferred mineral resources are estimated to be 785,000 tons at 1.57 percent uranium with 27,157,00 pounds.
In mid-January 2017, the company announced its winter exploration drill program would soon begin, with 15 holes focusing on exploration targets for new discoveries.
NexGen Energy (TSX:NXE)
Close by to the Patterson Lake project is NexGen’s Rook I property. The company hosts over 259,000 hectares in the southwestern part of the Basin, including the Rook I property which was discovered in early 2015. In January 2017, NexGen commenced its winter drilling program at the property, which will consist of 35,000 m of drilling, using seven drill rigs.
Also in the southwestern part of the Basin are three other discoveries made by NexGen: the Harpoon, Bow, and Cannon discoveries.
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Forum Uranium (TSXV:FDC)
Forum Uranium is also heavily focused on the Athabasca Basin, and holds a portfolio of near-surface projects that are wholly-owned or through joint ventures. That said, its flagship property is the Fir Island project. In late November 2016, gravity and soil surveys showed multiple drill targets on the project. The release noted plans for 2017 are to expand the gravity survey coverage, with future drill programs concentrating on newly developed target areas.
The company’s Key Lake road projects are also located in the eastern Athabasca Basin, consisting of 18 claims. What’s more, in May 2016 Forum Uranium acquired a 100 percent interest in the Wham Property, roughly 20 kilometers northeast of the Key Lake Mine and Mill.
Purepoint Uranium (TSXV:PTU)
Purepoint Uranium is also heavily concentrated in the Athabasca Basin, and is currently drilling its Hook Lake project. The project is owned by Cameco (39.5 percent), AREVA Resources (39.5 percent), and Purepoint Uranium (21 percent), although Purepoint has been the project operator since 2007.
Purepoint also operates the Smart Lake project, under the terms of an agreement with Cameco that will allow it to acquire up to 50 percent interest. Other Canadian projects include the Red Willow, Smart Lake, Turnor Lake, McArthur East, Umfreville, and the Henday Block.
Kivalliq Energy (TSXV:KIV)
In a turn of events, Kivalliq Energy’s flagship project is the Angilak Property, located in Nunavut. The property hosts a number of high grade deposits, including the Lac 50 trend and the Dipole-RIB Trend discovery. Inferred mineral resource estimate is 2,831,000 tons, grading 0.69 percent uranium for a total of 43.3 million pounds.
The company has also acquired the Baker Basin property, as well as the Hatchet Lake and Genesis property, located in the Athabasca Basin.
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Other projects
Of course, there are a variety of other uranium exploration projects underway, including:
Skyharbour Resources (TSXV:SYH), who has a few projects on the go in the Athabasca Basin. The company’s flagship project is the Moore Lake, acquired from Denison Mines in June 2016. Others include the South Bay, Yurchison Lake, Mann Lake, Preston, and Falcon Point.
Azincourt Uranium (TSXV:AAZ), whose principal asset includes an option to acquire a 50 percent interest in Fission Uranium’s Patterson Lake South project.
Pele Resources (TSXV:GEM), whose flagship property is its 100 percent owned Eco Ridge project, located in Ontario.
CanAlaska Uranium (TSXV:CVV), who is largely focused in the Athabasca Basin with the Cree East, and West McArthur . That said, CanAlaska also has the NW Manitoba project, just east of the border of northeast Saskatchewan.
Did we miss a company that is mining or exploring for uranium in Canada? Please let us know in the comments!
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Forum Uranium and Kivalliq Energy are clients of the Investing News Network. This article is not paid for content.
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By Dave Brown – Exclusive to Uranium Investing News
Canada has been a major world producer of uranium since global demand for production of the mineral developed; and the country is rich in uranium resources with a well established track record of successful exploration, mining and generation of nuclear power. Exploration for uranium ore began in earnest in 1942 under direction of the government for military purposes and at its zenith in 1959, Canada’s $330 million in uranium exports exceeded the value for every other mineral. With known uranium resources of 499,000 tonnes of U3O8, as well as increasing exploration projects on the horizon, Canada is certain to maintain a significant role in meeting future global demand.
Canada was the world’s largest uranium producer for many years, accounting for about 22 percent of global supply; however, in 2009 the leading position belonged to Kazakhstan with about 28 percent. Today, production comes mainly from the McArthur River mine in northern Saskatchewan, which is the largest in the world, although other areas have been active in the past including Ontario and the Northwest Territories. Canada is the world’s leading exporter of uranium and hosts three of the top ten producing mines in the world. In addition to being the world’s largest supplier of uranium and potash, Saskatchewan has a wealth of developing mineral resources including coal, diamonds, gold, platinum & palladium, rare earth elements, copper, zinc, nickel, oil, gas, sodium and mineralized brines.
Current General Investment Climate
Since 1997, The Fraser Institute has conducted an annual survey of metal mining and exploration companies to assess how mineral endowments and public policy factors such as taxation, geopolitical risk, legislation and regulation impact exploration. The most recent survey includes data on seventy two jurisdictions around the world, on every continent except Antarctica, including sub-national jurisdictions in Canada, Australia, and the United States. This year Canada has continued its world leading performance with six Canadian provinces positioned in the top ten: Alberta, Newfound land & Labrador, New Brunswick, Manitoba, Saskatchewan, and Quebec (in top spot as the global leader). Ontario is also considered a relatively strong investment jurisdiction ranking twenty second, down from last year’s tenth spot finish.
Present Production
Canada produced 10,617 tonnes of uranium in 2008, and in 2009 production was 11,997 tonnes of uranium, 22 percent of global output. Most of this comes from a third generation of mines, which began operating in 1999 at McClean Lake and McArthur River in northern Saskatchewan. The Rabbit Lake mine in the same region is the third source, and is the longest operating uranium production facility in Saskatchewan. The primary uranium producers are Cameco (TSE:CCO) and Areva Resources Canada (formerly Cogema Resources), part of France’s Areva Group (EPA:CEI).
Future Operations
Uranium production in Canada is likely to increase significantly as several new mines, now planned or under construction, go into operation sometime after 2011 well positioned to accommodate forecasts for strong Asian demand. 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 tonnes per year of uranium from Cigar Lake and 2,600 tonnes per year from Midwest.
Prospective Exploration Opportunities
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 expansively range from Labrador and Nova Scotia in the Atlantic provinces, Quebec province, Nunavut Territory in the far north, and Ontario’s Elliott Lake area.
In uranium-rich northern Saskatchewan, exploration projects are now well-advanced at several locations. The Millennium deposit, which is a joint venture (42 percent owned by Cameco, 30 percent by Japan-Canada Uranium Consortium and 28 percent by Areva Resources) has indicated resources of 21,000 tonnes of 4.5 percent grade uranium and 4,400 tonnes of 2.1 percent grade inferred. It is between McArthur River and Key Lake, with the ore expected to be milled at Key Lake. A feasibility study on the project has advanced to Cameco seeking approval for extraction. Underground development is envisaged over 2013 to 2017. The Tamarack deposit associated with Dawn Lake is also a focus of interest.
Denison Mines Corp. (TSE: DML) is actively exploring the Phoenix deposit in the Wheeler River area 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 mineralization. Denison has a 60 percent interest, Cameco has 30 percent and the Japan-Canada Uranium Consortium is at 10 percent ownership. Last month, Denison announced that the summer drill program had discovered two new mineralized zones at the extreme northeast and southwest edges of the Phoenix trend, which the company believes makes the deposit “one of the most exciting discoveries to come out the uranium-rich area in the last twenty years.”
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