WORLD OVERVIEW OF EXPLORATION

World domestic uranium exploration expenditures reported to the 2018 Red Book [2.25] were US $ 877 876 000 and US $ 663 678 000 for 2015 and 2016, respectively (Table 2.10). Information on exploration expenditures is some of the most incomplete and unreliable of data for uranium activities. In several areas with no officially reported expenditures, active exploration programmes are documented. In many cases, the reports discuss exploration without providing the cost of such activities. However, the data on exploration expenditures do provide some indication of the relative amount of exploration, particularly for those areas that regularly report such information.

TABLE 2.10. WORLD DOMESTIC URANIUM EXPLORATION AND DEVELOPMENT EXPENDITURE BY REGION (US $1000) [2.25]

(as of 1 January 2017)

Of note is the very low level of exploration and development being conducted in Western Europe, a region whose countries do regularly report to the Red Book. The region accounts for less than 1% of the world’s total exploration expenditure. In contrast, high levels of exploration and development have been reported in Central Asia (Kazakhstan), East Asia and Pacific (Australia and China) and North America (Canada and the United States of America). Other areas with reported high expenditure levels are India, Iran and the Russian Federation.

Non-domestic uranium exploration and development expenditures have been reported by 10 countries (Table 2.11). Six of the 10 are Western European countries, each of which has relied, at least in part, on uranium imports to fuel their nuclear power programmes. Belgium, Germany, Spain and the United Kingdom have not reported expenditures in this category for over a decade. Switzerland reported only minor expenditures up until 2001 and has not reported any since. Beginning in 2007 and 2008, respectively, China and the Russian Federation reported large governmental non-domestic expenditures, indicating their high level of interest in obtaining uranium from non-domestic sources.

The only other countries with reported large, continually ongoing, non-domestic exploration and development expenditures are Canada and France. The Canadian expenditures are all non-governmental and were made by the very large number of Canadian based companies with international uranium exploration and development activities. It should be noted that Australia, Canada and the USA do not report non-domestic exploration expenditures, when information is indicated as not being available.

Region 2016 Proportion (%) 2017 Proportion (%)

Africa 15 900 1.81 8 640 1.30

Central, Eastern and South-eastern Europe 25 745 2.93 12 025 1.81

South-eastern Asia, Pacific, East Asia 196 555 22.39 165 782 24.98

Western Europe 9 106 1.04 5 702 0.86

North, Central and South America 509 805 58.07 375 232 56.54

Middle East, Central and Southern Asia 120 765 13.76 96 297 14.51

Total 877 876 100.0 663 678 100.0

TABLE 2.11. NON-DOMESTIC URANIUM EXPLORATION AND DEVELOPMENT EXPENDITURES FOR SELECTED COUNTRIES (US $1000) [2.25]

Country Pre-2010 2010 2011 2012 2013 2014 2015 2016 Total to 2016

Australia n.a.^a n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Belgium 4 500 0 0 0 0 0 0 0 4500

Canada 355 644 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 355 644

China^b 573 020 94 950 94 740 81 690 599 100 762 980 526 310 378 010 3 110 800 France 1 244 328 61 652 68 670 68 320 71 710 27 600 34 866 30 736 1 607 882

Germany 403 158 0 0 0 0 0 0 0 403 158

Japan^c 428 490 3 020 3 030 5 371 3 512 5 465 3 922 5 089 457 899

Korea, Republic of n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Russian

Federation n.a. 26 300 31 100 30 100 18 200 4 900 17 100 6 100 133 800

Spain 20 400 0 0 0 0 0 0 0 20 400

Switzerland 29 679 0 0 0 0 0 0 0 29 679

United Kingdom 61 263 0 0 0 0 0 0 0 61 263

USA n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Total 3 120 482 185 922 197 540 185 481 692 522 800 945 582 198 419 935 6 185 025 Note: Domestic exploration and development expenses equal total expenses from domestic and foreign sources per country.

Expenses overseas are thus a subset of domestic expenses.

a n.a.: not available.

b Industry expenditures for 2014, 2015 and 2016 only.

c Government expenditures only.

2.3.1. Exploration in Africa

The individual reports for 52 African countries in this volume summarize and outline the history of uranium exploration in each country. For countries where more recent exploration has taken place, a recapitulation of reported activities, expenditure and results is given. In order to emphasize the importance of Africa’s resources, the following are a few of the highlights from the past few years.

In 2008, six countries worldwide represented 90% of total reported expenditure for world domestic exploration and development. Niger was one of these. Niger focused on resource development in and around the western Arlit area as well as on the evaluation of other deposits under development in this area. A programme of intensive drilling continued in 2009.

Botswana also reported exploration expenditure in 2008 and regulations were introduced with regard to uranium mining and milling.

As regards Namibia, major drilling programmes in support of proposed expansions to the Rössing and Langer Heinrich mines, development of the Trekkopje mine and evaluation of other deposits with a view to possible mine development were reported. Details were provided by the Government of Namibia for Rössing only.

In Malawi, infill drilling was conducted in 2008 on the Kayelekera project and open pit mining began in April 2009.

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Eight companies were recorded as actively exploring and developing mine deposits in South Africa.

Opportunities for the production of by-product uranium include the Witwatersrand gold reef deposits and recovery from tailings.

In Tanzania, 70 new licences were issued by 2008, primarily to companies interested in uranium exploration and investigations of Karoo age sediments.

During 2007–2008, exploration activities also took place in the Central African Republic, the Democratic Republic of the Congo, Gabon, Guinea, Madagascar, Malawi, Mali, Mauritania, Mozambique and Zambia.

In 2009-2010, exploration activities in Botswana focused on uranium occurrences in the Karoo sandstone formations. Calcrete-type mineralization was a secondary target. In 2011, a JORC compliant indicated and inferred resources, totaling just over 100 000 tU was reported, most of it associated to the Letlhakane deposit.

In Mauritania, exploration started on the Reguibat Craton. Several deposits were defined, in the Bir en Nar and A238 areas, associated to granites. The Reguibat project contains calcrete uranium mineralization.

In Namibia, exploration companies were very active after 2008, which led to the discovery of additional resources, in particular the Husab deposit south of Rossing. Resources reported at Husab, as of August 2014, amounted to 82 883 tU.

In Niger, uranium exploration was revitalized in 2006. New deposits were discovered around Madaouela and in the Dasa area. In November 2017, NI 43-101 compliant resources of Madaouela deposits amounted to 42 615 tU of measured and indicated resources and 10 654 tU of inferred resources. In 2017, indicated and inferred resources at Dasa totaled 41 580 tU. In addition to Dasa, two other deposits, Dajy and Isakanan, were discovered, containing a total of 19 400 tU.

In Tanzania, several companies conducted uranium exploration, mainly on occurrences related to the Karoo sandstones. This works led to the discovery of several deposits, including the Mkuju deposit. In 2013, Mkuju in-situ resources amounted to 58 489 tU. The Mkuju feasibility study was completed in 2013.

TABLE 2.12. DOMESTIC EXPLORATION EXPENDITURES IN AFRICA (US $1000) [2.25]

Country 2015 2016

Mali 774 387

Namibia 9 962 8 253

South africa 5 164 n.a.

Total 15 900 8 640

2.3.2. Exploration in Western Europe

The individual country reports for the 22 countries in the Western European area provide information, where available, on the history of, and current exploration activities for each country. Exploration activities were reported in the 2008-2009 period from Greenland, Finland, Portugal, Spain and Sweden.

With only two of the 14 countries reporting expenditures, domestic exploration expenditures totals USD

5.41 and USD 7.02 million, respectively in 2007 and 2008 [2.5]. This was equivalent to only 0.4% of the world total expenditures in both 2007 and 2008. Finland reported (USD 1.51 and USD 2.42 million) and Spain (USD 3.9 and USD 4.6 million), both respectively in 2007 and 2008.

Six Western European countries (Belgium, France, Germany, Spain, Switzerland and the United Kingdom) have historically reported non-domestic exploration and development expenditures (Table 2.12). Their combined expenditures made pre-2002 equalled USD 1 241.607 million, or 63% of all reported non-domestic expenditures. While making no domestic exploration expenditures, France continued major non-domestic expenditures totalling USD 444.349 million from 2002-2008 and averaging USD 63.5 million/year. In 2007 and 2008 French exploration and development activities were reported in Australia, Canada, the Central African Republic, Finland, Kazakhstan, Mongolia, Niger and South Africa. . Furthermore, on June 15, 2007, the French company AREVA agreed to pay over USD 2.5 billion to acquire the 94.5 % of the company UraMin Inc. it did not already own (AREVA Press Release:

http://www.AREVA.com/EN/news-6505/AREVA-announces-us-7-75-per-share-friendly-cash-offer-for-uramin.html). The principal assets of UraMin Inc. were the Trekkopje deposit, Namibia, the Bakouma deposit, Central African Republic, and the Ryst Kuil project in South Africa.

In 2007 and 2008, several foreign companies expressed an interest in obtaining mineral rights for the Nisa area in Portugal. In Spain, Berkeley Resources through its Spanish filial Minera de Rio Alagón S.L (MRA, has been actively investigating a total of 11 exploration licences spanning 45 214 hectares. By reassessing historic data and conducting reverse circulation and diamond drilling programs, it developed a JORC complaint resource base of 10 385 tU distributed in four deposits [2.5].

In February 2008 Continental Precious Minerals Inc. reported NI 43-101 compliant Indicated Resources of 2 208 tU at 0.016 % U, and Inferred Resources of 168 095 tU at 0.014 %U in the Alum Shale at its Viken MMS License, Sweden [2.26].

Main exploration activities in Western Europe after 2009 were limited to Greenland and Spain.

In Greenland, following a renewal interest in REE, exploration activities focused on the Kvanefjeld deposit, where a JORC compliant resources was released in 2013, with 221 170 tU of inferred resources, associated to REE, yttrium and zinc

In Spain, exploration activities were conducted in the Salamanca and Caceres provinces., in the areas of historically known uranium projects. In the Salamanca province, projects include Zona 7 and Retortillo deposits, in the Caceres province, the Gambuta deposit. Total resources account for 23 000 tU in the measured and indicated categories, 11 350 tU in the inferred category. In 2015 and 2016, exploration expenditures amounted to US$ 9 106 000 and US$ 5 702 000 respectively.

2.3.3. Exploration in Central, Eastern and South-eastern Europe

The individual country reports for the 25 countries comprising the Central, Eastern and South-eastern Europe area provide information, where available, on historic and current exploration activities.

Exploration expenditures were reported in the 2008–2009 period by the Czech Republic, Hungary, the Russian Federation, Turkey and Ukraine (Table 2..13). Only five of the 25 countries reported expenditures. Domestic exploration expenditure totalled US $70.973 million and US $229.762 million for 2007 and 2008, respectively [2.23]. This was equivalent to 5.3% of the 2007 and 14% of the 2008 world total reported expenditures. The Russian Federation accounted for 90% and 96%, respectively, of the totals for 2007 and 2008.

In addition to domestic exploration expenditures, the Government of the Russian Federation reported, for the first time, expenditure of US $49 724 000 on domestic exploration in 2008. Information on non-domestic expenditures by the Russian Federation was not made available for the years prior to 2008. A

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significant proportion of the expenditure was for exploration drilling of the in situ leach amenable Budennovskoye deposit, Kazakhstan, as part of the Akbastau Joint Venture with Kazatomprom. No other country in the Central, Eastern and South-eastern Europe region reported non-domestic exploration expenditures prior to or for 2008.

Russia continued uranium exploration activities, aiming of new deposit discoveries (Buryata, Trans-Baikal and Irkutsk regions), development of earlier discovered deposits and expansion of the resource base near existing production centres (Khiagna, Priargunsky).

In Turkey, activities focused in Yozgat province, with resource evaluation drilling. In 2011, a JORC compliant estimate amounting 6693 tU of indicated and inferred resources was released at Temrezli deposit.

TABLE 2.13. DOMESTIC EXPLORATION EXPENDITURES IN CENTRAL, EASTERN AND SOUTH-EASTERN EUROPE (US $1000) [2.25]

Country 2015 2016

Czech Republic 633 514

Russia 17 581 10 804

Turkey 6 842 223

Ukraine 689 484

Total 25 745 12 025

2.3.4. Exploration in South-eastern Asia, Pacific and East Asia

The 18 individual country reports provide information, where available, on the history of exploration and current exploration activities in each country. Exploration expenditures are reported for Australia, China, Indonesia and Mongolia in 2007 and 2008, and prior to 2008 for the Republic of Korea and Japan (Table 2.14). The countries that report resources include these same countries plus Viet Nam.

China and Japan also reported non-domestic exploration and development expenditures in 2008.

In Australia, exploration activities continued to be developed around known resources in Northern Territory (Alligator Rivers region, for unconformity related deposits), Queensland (Mount Isa region for metasomatite type deposits), South Australia (Gawler Craton/Stuart Shelf region for hematite breccia complex deposits and Frome Embayment for sandstone-type deposits) and Western Australia (Cenozoic paleochannels sands for calcrete deposits). Additional resources have been outlined at Olympic Dam (SA), Carrapateena (SA), Pepegoona (SA), Princess (WA), Yadglin (SA) deposits.

Exploration in China included uranium resources assessment of previously discovered mineralisation.

Exploration activities were conducted in northern China, including the Turpan, Yli, Junggar and Tarim basins in the Xinjiang region, the Erdos, Erlian, Badanjili and Bayingebi basins in Inner Mongolia, and the Jiuquan basin in the Gansun province. Exploration in Southern China was mainly directed in identifying mineralization related to volcanic- and granite type deposits.

Recent exploration activities in Mongolia were mainly performed in South Mongolian basins, with the objective of discovering sandstone-type uranium mineralization amenable to ISL mining.

TABLE 2.14. DOMESTIC EXPLORATION EXPENDITURES IN SOUTH-EASTER ASIA, PACIFIC AND EAST ASIA (US $1000) [2.25]

Country 2015 2016

Australia 33 665 29 194

China 152 000 128 000

Indonesia 464 194

Mongolia 7 816 6 600

Vietnam 2 610 1 794

Total 196 555 165 782

2.3.5. Exploration in Middle East, Central and Southern Asia

The individual country reports for the Southern and Central Asia, and Middle East region summarize the history of uranium exploration and production in each country [2.23]. For countries where recent exploration has taken place, the following are a few of the highlights of the past few years. In 2005–2006, a very substantial growth in exploration and development was witnessed, driven by increases in the spot price of uranium. Active programmes have been undertaken in many provinces in India, concentrating on Proterozoic basins, Cretaceous sandstones and other favourable geological settings. Activities in Iran involved exploration and evaluation of uranium resources related with Precambrian metasomatic and magmatic complexes. Uranium occurrences associated to the Gachin salt plug were also investigated. In Jordan, the Jordan Atomic Energy Commission was created in 2008 to promote exploration and exploitation of uranium and other nuclear materials. In Kazakhstan, exploration was conducted in the Chu-Sarysu and Syr-Darya Provinces, where several in situ leach test sites were finalized and mining tests started. Works were also conducted in north Kazakhstan in order to define potential resources related to unconformity and vein stockwork deposits. In Uzbekistan, exploration continued in order to increase uranium production. In 2007–2008, exploration expenditures in the Southern and Central Asia, and Middle East region totalled US $305.8 million, 7% of total world expenditure for the period (Table 2.15).

Exploration activities in India have been concentrated on discovery and resources evaluation of unconformity-related deposits (Cuddappah basin, Rajashtan), carbonatite-type deposits (Tummalapalle), fracture-controlled uranium mineralization (Cuddappah basin, Dehli basin), metasomatite type (Rajashtan) and sandstone-type deposits (Satpura Gondwana basin).

In recent years, exploration activities in Kazakhstan have been related with the development of already discovered deposits, amenable to ISL, in the Shu-Sarysu and Syr-Daria provinces. Geological exploration of sandstone-type deposits is also conducted in the Shu-Sarysu province.

Exploration activities in Uzbekistan are related with the development of already discovered deposits, amenable to ISL, in the Kizylkum province. Exploration is also conducted on the black shale deposits in the Boztau area, in Central Kizylkum, in order to develop these deposits.

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TABLE 2.15. DOMESTIC EXPLORATION EXPENDITURES IN MIDDLE EAST, CENTRAL AND SOUTHERN ASIA (US $1000) [2.25]

2.3.6. Exploration in North, Central and South America

Individual country reports for the 27 countries comprising North, Central and South America provide information, where available, on the exploration history of, and current exploration activities in, each country. Expenditures for exploration were officially documented in the Red Book in 2008–2009 by only six countries (Argentina, Brazil, Canada, Chile, Colombia and the USA) [2.23]. Historically, 16 of the 27 countries in the region have reported exploration expenditures. Domestic exploration expenditures totalled US $784.962 million and US $760.582 million for 2007 and 2008, respectively [2.23]. These figures represented 59.1% and 46.3% of world total expenditures reported for 2007 and 2008, respectively. Canada reported expenditures of US $532.710 million and US $514.751 million and the USA reported US $245.700 million and US $246.400 million in 2007 and 2008, respectively.

In Argentina, U3O8 Corporation, a Canadian based company, has been working on at least three projects, including Laguna Salada where mineralization has been identified within a metre of the surface in unconsolidated gravels. There was insufficient information up to 2010 to define the resource but evaluation work is ongoing [2.27].

AREVA NC, a French public company, has evaluated its options concerning resources of uranium in southern Argentina and has cooperated with different owners, including Urex Energy Corporation, in supporting a potential central processing facility. The concept envisaged that the mining of a number of satellite orebodies of uranium, owned by various parties, would make available uranium ore feedstock to the central milling facility [2.27].

In Brazil, the domestic fertilizer company Grupo Galvani announced, in July 2009, it was to sign a 25-year contract with INB to develop a uranium and phosphate mine. The contract was worth US $420 million and mining would occur at Itataia, near Santa Quitéria, in Ceará State. The mine would increase Brazil’s uranium concentrate production fourfold and its phosphate output by 10%. Drilling and other activities for development in the Lagoa Real province were scheduled for 2009, to establish the size of the Cachoeira and Engenho deposits.

In 2007, there was renewed interest in south-eastern Paraguay, in the western portion of the Paraná Basin.

There is potential here for sandstone-hosted roll front type deposits which may be amenable to in situ recovery. Cue Resources Ltd (Canada) investigated this type of deposit in 2008 and filed an updated NI 43-101 technical report for the Yuty uranium project in south-eastern Paraguay, including a significant increase to a historical resource estimate, in 2009 [2.28].

In 2009 and 2010, efforts for exploration in Canada continued to concentrate on promising areas for deposits related with Proterozoic unconformities in the Athabasca Basin, Saskatchewan and, to a lesser extent, in similar geological settings in the Northwest Territories and Nunavut province, in the Thelon Basin. Exploration for uranium was also undertaken in the Otish Basin of Quebec, where Strateco

Resources Inc. has submitted an application for a permit to carry out underground exploration on the Matoush deposit [2.29].

The meteoric increase in the uranium market price after 2003 generated significantly renewed interest in exploration in the USA. This led to expanded exploration for all types of uranium deposit already known to occur in the USA in previously untested areas. Exploration was conducted for deposit types that had not been sought in years, including volcanic targets in the McDermitt Caldera, Nevada, and in Oregon, for example, as well as deposits to be mined conventionally, such as those in the Gas Hills, Wyoming, and in the Grants Mineral Belt, New Mexico. Exploration for breccia pipe targets was also resumed in northern Arizona. The level of exploration decreased significantly with the fall in uranium market prices.

Starting in 2007, there has been an increase in the exploration activities in Argentina, as a consequence of the reactivation of the nuclear programme. Exploration/evaluation works on the Cerro Solo deposit (Chubat province) have been undertaken. Other areas under study are the Sierra Pintada deposits (Chubat province), Laguna Sirven (Santa Cruz province), Urcal, Urcusshun (Rioja Province).

In 2009-2010, exploration activities in Brazil were limited to geological mapping of new targets in the Caetite province. Since 2011, activities focus on albitic formations in the north part of the Lagoa Real province, including geophysical surveys and exploration drillings.

Since 2009, exploration activities in Canada continued to focus on areas favourable for the occurrence of deposits associated with Proterozoic unconformities in the Athabasca Basin of Saskatchewan, and to a lesser extent, similar geologic settings in the Thelon Basin of Nunavut and the Northwest Territories.

Surface drilling, geophysical surveys and geochemical surveys continued to be the main tools used to identify new uranium occurrences, define extensions of known mineralised zones and to reassess deposits.

In 2009-2011, new uranium discoveries in the Athabasca Basin included Centennial, Shea Creek, Wheeler River, Midwest A and Roughrider deposits.

Drilling conducted on the Triple R deposit in 2013 and 2014 outlined a significant uranium resource which is currently one the largest uranium deposit in the Athabasca Basin.

In 2015-2016, new uranium discoveries in the Athabasca Basin included Phoenix/Gryphon, Arrow and Fox Lake deposits.

In the United States, the decrease in uranium price from 2008 to 2009 lead to a decrease in exploration drilling and in exploration expenditures. In 2009 and 2010, the US government made no exploration and

In the United States, the decrease in uranium price from 2008 to 2009 lead to a decrease in exploration drilling and in exploration expenditures. In 2009 and 2010, the US government made no exploration and