Rabbit Lake
The Rabbit Lake operation, which opened in 1975, is the longest operating uranium production facility in North America, and the second largest uranium mill in the world.
| Location | Saskatchewan, Canada |
| Ownership | 100% |
| End product | Uranium concentrates |
| ISO certification | ISO 14001 certified |
| Mine type | Underground |
| Estimated reserves | 15.2 million pounds (proven and probable), average grade U3O8: 0.61% |
| Estimated resources |
22.2 million pounds (indicated), average grade U3O8: 0.75% 25.9 million pounds (inferred), average grade U3O8: 0.58% |
| Mining methods | Vertical blasthole stoping |
| Licensed capacity | Mill: maximum 16.9 million pounds per year; currently 11 million |
| Licence term | Through October, 2023 |
| Total production: 1975 to 2014 | 198.4 million pounds |
| 2014 production | 4.2 million pounds |
| 2015 production outlook | 3.9 million pounds |
| Estimated decommissioning cost | $203 million |
2014 update
Production
Production this year was 2% higher than both our forecast and our 2013 production as a result of planned timing of production stopes, coupled with slightly improved ore grades.
Development and production continued at Eagle Point mine. At the mill, we continued to improve performance by replacing key pieces of mill infrastructure and improving the efficiency of the mill operation schedule. The mill ran continuously for eight months and maintenance work was completed during an extended four-month summer shutdown period.
Impairment
In 2014, we recognized a $126 million impairment charge related to our Rabbit Lake operation. The impairment was due to the deferral of various projects that were related to planned production over the remaining life of the Eagle Point mine. The amount of the charge was determined as the excess of the carrying value over the recoverable amount. The recoverable amount of the mine was determined to be $29 million. See note 10 to the financial statements.
Exploration
We continued our underground drilling program to delineate resources northeast of the current mine workings, and below active mining areas. As a result, we added additional resources at Rabbit Lake. See Mineral reserves and resources for more information.
Planning for the future
Production
We expect to produce 3.9 million pounds in 2015.
Tailings capacity
We expect to have sufficient tailings capacity to support milling of Eagle Point ore until about 2018 (based upon expected ore tonnage and milling rates).
In 2015, we are continuing to evaluate options, including expansion of the existing Rabbit Lake In-pit Tailings Management Facility, or a possible north pit expansion to allow for tailings deposition into the future. An expansion of existing tailings capacity is required to support future mining at Eagle Point, and provide additional tailings capacity to process ore from other potential sources. Depending upon the chosen option, we may need an environmental assessment and regulatory approval to proceed with any increase in capacity.
Exploration
We plan to continue our underground drilling reserve replacement program in areas of interest east and northeast of the mine in 2015. The drilling will be carried out from underground locations.
Reclamation
As part of our multi-year site-wide reclamation plan, we spent over $0.9 million in 2014 to reclaim facilities that are no longer in use and plan to spend over $0.5 million in 2015.
Managing our risks
We manage the risks listed here.