Saskatchewan Exploration and Development Highlights 2011 · 2012. 1. 13. · Saskatchewan...

Saskatchewan Explorationand

Development Highlights2011

19 48Compiled by Staff of the

Saskatchewan Ministry ofEnergy and Resources

Saskatchewan Exploration and Development 1 Saskatchewan Ministry of Energy and Resources Highlights 2011

Saskatchewan Exploration and Development Highlights 2011 Compiled by Staff of the Saskatchewan Ministry of Energy and Resources

1. GENERAL OVERVIEW Saskatchewan mineral exploration expenditures in 2011 are expected to be about $281 million (M). Although the bulk of spending will be on potash and uranium projects; there will also be spending on diamond, gold, base metal, coal, platinum group metal (PGM), and rare earth element (REE) projects (Figure 1). This year’s estimate is down from actual expenditures of $321 M in 2010, a reflection of several major projects moving beyond the capital-intensive exploration phases and advancing towards the pre-feasibility and feasibility stages of evaluation. Even with the forecasted minor decrease, exploration spending in Saskatchewan continues to be well above historic levels. Since 2004, it is estimated that over $2.0 B has been spent on exploration programs, a dramatic increase when compared to the total $674.5 M spent in the previous 20 years. The continued interest in Saskatchewan’s mining industry is due to the province’s diverse geology, which has the potential to host a variety of metallic and non-metallic mineral deposits.

As of September 2011, the amount of land under disposition for mineral exploration, pursuant to The Mineral Disposition Regulations, 1986, totalled 5.6 M hectares (ha). There were also 4.4 M ha of land under disposition for potash exploration and development, pursuant to The Subsurface Mineral Regulations, 1960, with an additional 3.9 M ha disposed under The Coal Disposition Regulations, 1988.

In 2010, Saskatchewan accounted for about one-third of global potash production and 18% of the world’s primary uranium production. Coal, gold, salt, sodium sulphate, silica sand, and bentonite were also mined and there is good potential for a variety of other commodities including diamonds, base metals, and rare earth elements.

Figure 1 – Mineral exploration expenditures in Saskatchewan. Data in the histogram compare actual historical expenditures to estimates(e) for 2011, which are compiled from the annual survey of exploration expenditures by the Saskatchewan Geological Survey. Tabulated data are from the same survey. All values are in millions of Canadian dollars ($M).

Front Cover: Employees/miners departing the portal of Claude Resources Inc.’s Santoy 8 gold mine. Santoy 8, the second producing mine in the Seabee camp, declared commercial production January 1, 2011. Photo courtesy of Claude Resources Inc.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011eUranium 15.4 13.3 31.2 74.6 123.7 199.2 204.4 108.6 103.2 104.4Diamonds 6.1 12.0 22.4 55.4 98.8 76.6 73.2 10.9 17.3 7.1Gold 2.5 2.9 5.7 15.3 13.8 15.3 8.9 3.0 9.5 9.9Base Metals 1.9 2.2 0.9 2.9 3.9 11.5 6.8 1.6 6.5 18.6PGM 1 0.6 0.5 0.0 0.0 0.0 0.0 0.0 1.4 0.0 0.0Industrial Minerals 2 1.3 0.5 0.5 1.8 3.4 22.7 180.7 151.2 184.0 141.6

Total 27.8 31.4 60.7 150.0 243.6 325.3 474.0 276.6 320.5 281.61 Platinum group metals2 Including REE, potash, and clays.

0

50

100

150

200

250

Uranium Diamonds Gold Base Metals PGM Other

$M

2007 2008 2009 2010 2011e


A strong rebound in potash sales volumes in 2010 resulted in an increase in provincial mineral sales to $6.9 billion (B), up from the $4.6 B of 2009. Strong potash sales volumes in the first-half of the year, coupled with higher prices for other minerals, provide a clear indication that mineral sales values for 2011 will once again be among the highest in Canada.

Saskatchewan was the world’s second most prolific uranium-producing jurisdiction in 2010, accounting for 25.43 M lb U3O8, about 18% of the world total. Production came from Rabbit Lake, McClean Lake, and McArthur River/Key Lake mines, the latter of which, with a yield of 19.9 M lb U3O8, was the world’s most prolific uranium mine. Saskatchewan production has been forecasted to be 22.3 M lb U3O8 in 2011, and is expected to remain at similar levels until the Cigar Lake mine is operational in 2013. Uranium exploration, primarily in the Athabasca Basin, is expected to remain robust in 2011 with $104.4 M in expenditures forecast. Cameco Corporation (Cameco) is involved in a number of exploration projects at various stages of advancement, including the McArthur River and Rabbit Lake mining leases. In addition, the Millennium deposit is currently at the feasibility stage and the Tamarack deposit, near Rabbit Lake, is being advanced towards the pre-feasibility stage. Hathor Exploration Limited (Hathor) and Fission Energy Corp. (Fission) are both working at expanding a mineralized trend that spans their property boundary and includes the Roughrider deposit, which now contains three mineralized pods, and J-Zone. In addition, Denison Mines Corp. (Denison) continues to expand the uranium mineralization encountered on the Phoenix trend at the Wheeler River property. The Phoenix trend now has Resource estimates on zones A and B, currently the most prospective parts of the mineralization discovered on the property.

Gold exploration expenditures for 2011 are estimated at $9.9 M, up slightly from actual 2010 expenditures of $9.5 M. In addition to Claude Resources Inc.’s (Claude) Seabee gold mine in the Glennie Domain, which has produced since 1991, two new gold mines came online in 2011. Claude’s Santoy 8 mine, located 12 km east of Seabee, initiated commercial production in April, with ore being processed at the Seabee central milling facility. As part of its La Ronge gold project in the La Ronge Domain, Golden Band Resources Inc.’s (Golden Band) Roy Lloyd mine also commenced commercial production in April, with ore being processed at its refurbished Jolu mill. Golden Band plans to bring additional deposits within the project (EP and Komis) online in the short term, and has recently acquired additional properties in the North Lake–Preview lakes area. Claude has also undertaken significant exploration over the past year at its Seabee mining operation and Amisk Gold project, and has released a new NI 43-101–compliant Mineral Resource estimate for the Amisk Gold deposit. Brigus Gold Corp. (Brigus) is continuing exploration of its Goldfields property in the Beaverlodge Domain north of Lake Athabasca and is conducting a Preliminary Feasibility Study (PFS), the results of which will be considered in making a final production decision for the project.

Base metals exploration expenditure are expected to be $18.6 M in 2011, which is a significant increase over the $6.5 M spent in 2010 and well above the $1.6 M spent in 2009. Advanced exploration projects in northern Saskatchewan include the: Foran Mining Corp. (Foran) McIlvenna Bay deposit in the western Flin Flon Domain; the Exploration Syndicate Inc. (ESI) McKenzie Lake project in the sub-Phanerozoic extension of the western Flin Flon Domain; and the Manicouagan Minerals Inc. (Manicouagan) Brabant Lake deposit in the western Kisseynew Domain.

REE explorers Great Western Minerals Group (GWMG) and Quantum Rare Earth Developments Corp. (Quantum) continued to work on REE projects in the Douglas River and Archie Lake areas, respectively. Heavy rare earth element (HREE) prices surged in June as the Chinese government announced plans to further control the export of the commodities.

Diamond exploration in Saskatchewan has been primarily focussed in the Fort à la Corne area, where Shore Gold Exploration Inc. (Shore) is in the advanced stages of evaluating the joint Star–Orion South kimberlite project. Shore is the operator on both projects, and is partnered with Newmont Mining Corporation of Canada Ltd. (Newmont) (34% interest) on the Fort à la Corne Joint Venture (FALC JV), which has holdings that include over 70 known kimberlites as well as the Orion and Taurus kimberlite clusters and a portion of the west side of the Star kimberlite. In July, Shore released a full Feasibility Study (FS) on the combined Star–Orion project, which concluded that 34.4 M carats, at a weighted average price of US$242 per carat, could be recovered over a 20-year mine life. Shore is now working towards completion of its Environmental Impact Assessment (EIA) and a decision on whether to proceed to production.

In 2009, Saskatchewan’s loan coal producer Sherritt International Corporation (Sherritt) produced 10.1 M t of coal from the Boundary Dam (6.1 M t), Poplar River (3.5 M t), and Bienfait (0.5 M t) mines. The majority of coal exploration in 2009 and early 2010 was focussed in the Hudson Bay area, in and around the area where Goldsource Mines Inc. (Goldsource) discovered anomalously thick intersections of relatively shallow Mannville-aged coal. Goldsource has now drilled over 140 holes and discovered 17 coal deposits, some with cumulative coal thicknesses in excess of 100 m. Other coal explorers such as: Westcore Energy Ltd. (Westcore) and Saturn Minerals Inc. (Saturn) have also reported intersecting significant thicknesses of coal in the Hudson Bay area and just across the


Manitoba border. Most exploration companies in the area are investigating the possibility of utilizing these coal deposits for the production of synthetic gasses and various liquid fuels.

After an anomalously slow year in 2009, potash markets stabilized in early 2010 largely due to the negotiation of longer term contracts with key clientele, which resulted in a strong rebound in global demand. Saskatchewan potash production in 2010 was 14.9 M t KCl, a significant increase over the 9.6 M t produced in 2009. Saskatchewan’s three potash-producing companies, Potash Corporation of Saskatchewan Inc. (PotashCorp), The Mosaic Company (Mosaic), and Agrium Inc. (Agrium), all reported increases in potash sale prices and sales volumes in the first half of 2011. Preliminary indications are that 2011 production is on pace to meet or exceed the record level of 16.5 M t KCl set in 2007. It is estimated that between 2004 and 2020, the province’s three producers will invest up to $13 B to upgrade and expand existing mining facilities to increase provincial productive capacity by 90%. In 2010, more exploration expenditures were aimed toward potash than any other mineral in the province and in 2011 industrial minerals are once again forecast to account for over 50% of total provincial expenditures. The landscape of the potash exploration industry is continuing to evolve as more multi-national mining companies continue to partner with or acquire junior companies with projects and exploration dispositions. Some of the world’s largest mining companies such as: BHP Billiton Inc. (BHP), Vale S.A. (Vale), Rio Tinto PLC (Rio Tinto), JSC Acron (Acron), and K+S Aktiengesellschaft (K+S) are now involved in potash projects in the province.

2. INTRODUCTION This report is a review of current activity only. Geology, and Mineral and Petroleum Resources of Saskatchewan (Saskatchewan Geological Survey, 2003) provides a comprehensive summary of the economic geology of the province, including historical reserve and production data. For up-to-date information on all Saskatchewan mineral occurrences, refer to the Saskatchewan Geological Atlas (Slimmon, 2011; http://www.er.gov.sk.ca/geological_atlas) and the Saskatchewan Mineral Deposits Index (www.er.gov.sk.ca/SMDI).

All information contained in the document is from publicly available sources. Exploration expenditure forecasts are compiled from an annual survey conducted by geologists of the Saskatchewan Geological Survey, Saskatchewan Ministry of Energy and Resources. Actual annual expenditures for previous years are from the same survey. Grade, tonnage, reserve, and resource data reported herein are from a variety of public sources including: published reports, public records, corporate websites, securities filings, and Saskatchewan Mining Association facts sheets. These data may not necessarily conform to the current CIM and NI 43-101 standards required by Canadian securities regulators for publicly reporting companies. Although the contained information has been carefully compiled, the Saskatchewan Ministry of Energy and Resources and the Government of Saskatchewan do not accept liability for any errors, omissions or inaccuracies that may be included in, or derived from, this report. Nor does the Saskatchewan Ministry of Energy and Resources and the Government of Saskatchewan recommend or endorse any of the projects described in this document.

This document is an attempt to capture relevant information current as of September 13, 2011. Information released after this date may, or may not, be present in the document. Only active exploration and development projects are included. Due to the current rapid pace of exploration for uranium, potash, coal, diamonds, and gold, it is inevitable that significant new activities have occurred since printing.

Tables 1 and 2 contain data on the current mineable reserves and geologic resources for the active uranium and gold properties in the province, respectively. The last page is a colour map, showing the locations of properties discussed herein. The map also outlines the general mineral and hydrocarbon potential of the province and shows the lithotectonic elements of the Precambrian Shield in northern Saskatchewan.

3. THE ENERGY AND MINERALS SECTOR The energy and mineral extraction sectors are critical components of the Saskatchewan economy, accounting for 13.3% of the provincial Gross Domestic Product (GDP) ($39.8 B) in 2010 (Figure 2). This is up slightly from the 2009 level when this sector contributed 12.4% of the provincial GDP ($36.9 B). This increase is largely due to strengthening demand for commodities, especially potash, as many economies emerge from recession.

Saskatchewan is Canada’s second-largest producer of crude oil, behind Alberta, with a total output of 24.5 M cubic metres (m3) at a value of $10.2 B. An increase of 13.3% is mainly due to a recovery in prices. Natural gas production was 6.8 B m3 in 2010 at a value of $626 M, a decrease of 16% from 2009 due to a decrease mainly in market price.

In 2010, 2,730 oil wells were drilled in Saskatchewan compared with only 98 gas wells. This is an increase in oil drilling activity of 69% and a decrease in gas drilling activity of 58% from 2009. As of the end of October, oil well drilling activity in 2011 had already surpassed 2010 levels making 2011 the third-best year ever in terms of oil well

http://www.er.gov.sk.ca/geological_atlas�


drilling with another two months to go. Horizontal oil well drilling in 2011 has also surpassed 2010 levels, setting a new record for horizontal oil wells drilled in one year.

Saskatchewan mineral production in 2010 included metallic mineral production of uranium and gold, and industrial mineral production of potash, silica sand, salt and sodium sulphate, bentonite, clay, and coal. The value of non-renewable resource sales in 2010 totalled just over $6.6 B (Figure 3).

The mines of the Athabasca Basin, in northern Saskatchewan, and the Prairie Evaporite Formation, in central Saskatchewan, continue to be among the world’s most important suppliers of uranium and potash, respectively. In 2010, Saskatchewan produced 100% of Canada’s uranium from three operations, and accounted for approximately 18% of world output. The province also produced approximately 95% of Canada’s potash from ten facilities, accounting for about 28% of world production. Market fundamentals indicate strong future demand for both commodities. The Saskatchewan potash industry has responded to this by investing $2.2 B in expansions in 2010 and, with more investments planned, the industry should nearly double production over the next ten years.

The energy and minerals sectors increased prosperity in Saskatchewan by creating high-paying jobs (24,000 directly employed) and contributing nearly $400 M in royalties in 2010. These sectors will continue to make significant contributions to the Saskatchewan economy for many generations.

4. URANIUM OVERVIEW OF PRODUCTION AND EXPLORATION In 2010, Saskatchewan produced 25.43 M lb U3O8, constituting about 18% of world and 100% of Canadian production. Uranium was produced from three mines: McArthur River, McClean Lake, and Eagle Point. The McArthur River mine was the world’s largest uranium producer in 2010, yielding 19.9 M lb U3O8. Production is anticipated to be 18.7 M lb U3O8 in 2011. The Eagle Point mine at Rabbit Lake produced 3.8 M lb U3O8 in 2010 and is expected to produce a further 3.6 M lb U3O8 in 2011. The McClean Lake operation produced 1.73 M lb U3O8 in 2010 before the mine was placed on care and maintenance on June 30, 2010. The McClean Lake mill awaits ore from the Cigar Lake mine and smaller deposits, such as Midwest. Remediation and construction at the Cigar Lake mine continues and production is expected to begin by the middle of 2013. No production start-up date has been divulged for the Midwest deposit.

Exploration remained robust in the Athabasca Basin in 2011 with large-scale programs undertaken by both major companies Cameco and AREVA Resources Canada Inc. (AREVA), mid-tier producer Denison, and a number juniors, including UEX Corporation (UEX), Hathor, and Fission. Uranium exploration spending in 2010, primarily focussed in the prolific Athabasca Basin, was $103.2 M and is expected to be $104.4 M in 2011.

MINES AND MAJOR DEPOSITS McArthur River Mine/Key Lake Mill McArthur River mine: Cameco Corporation, operator (69.805%) and AREVA Resources Canada Inc. (30.195%); Key Lake mill: Cameco Corporation, operator (83%) and AREVA Resources Canada Inc. (17%).

The McArthur River/Key Lake operation is the world’s leading uranium producer, yielding 19.9 M lb U3O8 in 2010, about 14% of primary production globally (World Nuclear Association, 2011, URL <http://www.world-nuclear.org/info/inf23.html?ekmensel=c580fa7b_702_744_430_1>). The Key Lake mill is subject to a special case scenario where production can be increased to as much as 20.4 M lb U3O8 annually to recover previous production

Figure 2 – 2010 percentage of GDP by sector ($39.8 B, CANSIM Table 379-0025, Statistics Canada, 2011).

Figure 3 – Value of non-renewable resources ($M, Saskatchewan Ministry of Energy and Resources).

Agriculture, Forestry, Fishing & Hunting, 10.2%

Mining & Petroleum, 13.3%

Manufacturing, 6.9%

Construction, 6.6%

Transp, Warehousing

& Utility, 8.1% Wholesale &

Retail Trade, 11.7%

Finance, Insurance & Real Estate , 15.4%

Business Services, 5.9%

Government Services,

5.3%

Education & Healthcare, 11.3%

Other Services

Industries, 5.2%

Industrial Minerals, $5,400

Other Minerals, $1,074

Petroleum and Coal, $15,052

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http://www.world-nuclear.org/info/inf23.html?ekmensel=c580fa7b_702_744_430_1�


shortfalls, as long as the average annual production over the life of the license does not eclipse 18.7 M lb U3O8. The additional production in 2010 makes up for part of the 2008 shortfall when only 16.6 M lb U3O8 was produced. Production is slated to be 18.7 M lb U3O8 over the next several years. Total Reserves (Table 1) at the McArthur River Mine at the end of 2010 were 335.5 M lb U3O8 grading 15.24%. As of early 2011, McArthur River had Measured and Indicated Resources of 16.9 M lb U3O8 at 7.09% and Inferred Resources of 150.2 M lb U3O8 grading 13.46%.

The McArthur River deposit has four zones with Mineral Reserves and two, zones A and B, that fall into the Inferred Resource category. From the start of production until the fourth quarter of 2010, when production commenced from zone 4, all of the production from the McArthur River deposit was from zone 2. A multi-year exploration program, called the McArthur River extension, has now been initiated. This work will further delineate zones A and B to the north as well as other mineral resources to the south of the deposit. An exploration drift towards the north has been approved which will allow zones A and B to be explored from underground.

A proposal has been submitted to increase the tailings capacity of the Deilmann facility at Key Lake. The Key Lake extension project will allow continued processing of McArthur River ore as well as other potential mining operations, such as Millennium, by allowing tailings to be deposited to a higher elevation. The work will require stabilizing the pit walls and flattened wall slopes at the Deilmann pit. In addition, an increase in production capacity to 25 M lb U3O8 has been proposed.

McClean Lake Mine/Mill AREVA Resources Canada Inc., operator (70%); Denison Mines Corp. (22.5%); and OURD (Canada) Co. Ltd. (7.5%).

The McClean Lake mine produced 1.73 M lb U3O8 in 2010 before being placed into care and maintenance at the end of June of 2010. Current Reserves at the McClean Lake operation are 16.03 M lb U3O8 grading 1.84% from a number of small deposits (Table 1). Although the Caribou deposit is now fully permitted for open-pit mining, AREVA has decided not to proceed with construction at this time. The main source of feed for the JEB mill in the future will be the Cigar Lake mine; however, the well-documented development difficulties at Cigar Lake have delayed production (see below). No date has been given for restart of the McClean Lake operation; however, AREVA has proposed hauling some slurry from the McArthur River mine to the site in order to test the milling system in advance of receiving high-grade Cigar Lake ore. Unlike the Key Lake mill, which blends ore from McArthur River with low-grade waste to achieve a head grade of about 4%, the McClean Lake mill will process undiluted ore slurry from Cigar Lake. The proposal awaits regulatory approval, but if successful would see the McClean mill reopen before the beginning of production at Cigar Lake. The McClean Lake mill was originally to produce about 45% of the yellow cake from the Cigar Lake Mine and the remaining uranium solution was to be sent to the Rabbit Lake mill. In order to achieve the necessary milling capacity for the 18 M lb U3O8 production from Cigar Lake beginning in 2017 and to maintain capacity for other deposits, such as Midwest, an amendment to the McClean Lake operating license will be necessary.

Eagle Point Mine, Rabbit Lake Mill Cameco Corporation, operator (100%)

The Eagle Point mine produced 3.8 M lb U3O8 in 2010, slightly more than was anticipated. Production for 2011 is forecast at about 3.6 M lb U3O8. At the end of 2010, total Reserves were 25.5 M lb U3O8 grading 0.76% with Measured and Indicated Resources of 4.0 M lb U3O8 at 0.52% and Inferred Resources of 10.2 M lb U3O8 grading 1.26% (Table 1). New reserves have been consistently added over the last few years and the mine’s life is now expected to extend until 2017; however, in order to accommodate the extended mine life at Eagle Point beyond 2016, an increase in the tailings capacity may be necessary. Regulatory approval for the expansion remains to be achieved. The Rabbit Lake mill has long been scheduled to produce about 50% of the uranium mined at Cigar Lake with pregnant solution to arrive after initial processing at McClean Lake beginning in 2013. Cameco has announced a revision to that plan and now proposes that all milling services for the Cigar Lake mine will be handled at McClean Lake. The move liberates milling capacity at Rabbit Lake for continued mining from the Eagle Point deposit and development of a number of other ore bodies, e.g., Tamarack, in the northeastern Athabasca Basin.

Cigar Lake Deposit Cameco Corporation, operator (50.025%); AREVA Resources Canada Inc. (37.100%); Idemitsu Uranium Exploration Canada (7.875%); and TEPCO Resources Inc. (5.0%).

Construction of the Cigar Lake mine was beset by floods in 2006 and 2008. With the in-flow sites now sealed, remediation of the underground workings continued in 2010 and 2011. Restoration of all the underground mine


Table 1 – Reserves and Resources for uranium deposits in Saskatchewan at the end of 2010.

Owner(s)* Property/Deposit

Reserves (M lbs U3O8)

Grade (%U3O8)

Production (M lbs U3O8) ***

RESERVES** 2010 2011 (e) Cameco Corporation Rabbit Lake; Eagle Point

Mine 25.5 0.76 3.8 3.6

Cameco Corporation – AREVA Resources Canada Inc.

Key Lake 0.7 0.52 – –


McArthur River 335.5 15.24 19.9† 18.7†

Cameco Corporation – AREVA Resources Canada Inc. – Idemitsu Uranium Exploration Canada – TEPCO Resources Inc.

Cigar Lake 209.3 17.04 – –

AREVA Resources Canada Inc. – Denison Mines Corp. – OURD (Canada) Co. Ltd.

McClean Lake (Sue D, Caribou, McClean underground, Sue B, MED)

16.03‡ 1.84‡ 1.73 –


Midwest 42.5‡ 1.7‡ – –

UEX Corporation Hidden Bay (West Bear) 1.5 0.94 – –

RESOURCES**

Measured and Indicated (M lbs

U3O8) Grade %U3O8 Inferred

Grade (%U3O8)

Cameco Corporation Rabbit Lake; Eagle Point Mine

4.0 0.52 10.2 1.26

Cameco Corporation – AREVA Resources Canada Inc. – Idemitsu Uranium Exploration Canada – TEPCO Resources Inc.

Cigar Lake 1.2 2.27 133.5 12.61


McArthur River 16.9 7.09 150.2 13.46

Cameco Corporation – AREVA Resources Canada Inc. – JCU Exploration (Canada) Co., Ltd.

Dawn Lake 12.9 1.69 – –


Tamarack 17.9 4.42 1.0 1.02


Millennium 50.9 4.55 10.2 2.12


Midwest A 5.8 0.57 4.3 21.2

AREVA Resources Canada Inc. – UEX Corporation

Shea Creek (Anne, Kianna, Colette)

63.6 1.54 24.5 1.04

Hathor Exploration Limited Roughrider (west, east) 17.2 1.98 40.7 11.5

UEX Corporation Hidden Bay (Horseshoe, Raven)

40.0 0.12 3.47 0.08

Denison Mines Corp. – Cameco Corporation – JCU Exploration (Canada) Co., Ltd.

Phoenix A and B 35.6 17.98 3.81 7.27

Notes: * Operator first. ** Total Reserves (Proven and Probable) are reported. Reserve and Resource data are from company releases unless otherwise

specified. *** 2010 and 2011 production figures and estimates are from company releases. † Combined production from Key Lake and McArthur River ore. ‡ Saskatchewan Mining Association uranium fact sheets. Reserve and Resource figures are NI 43-101 compliant, but not

separated into categories (Proven, Probable; Measured, Indicated, Inferred) by this source. e estimated.


systems and infrastructure, completion of shaft 2, and the resumption of underground construction are all anticipated by the end of 2011. Production start up remains on target for the middle of 2013, with a ramp-up period of four years before the mine produces at its full capacity of 18 M lb U3O8.

Cigar Lake is the world’s second-largest, high-grade uranium deposit with total Reserves of 209.3 M lb U3O8 at an average grade of 17.04%, Measured and Indicated Resources of 1.2 M lb U3O8 grading 2.27% and an Inferred Resource of 133.5 M lb U3O8 at an average grade of 12.61% (Table 1). Cameco plans to use a jet-bore technique (Figure 4) to extract the ore from beneath the Cigar Lake deposit and then pump primary ore slurry to the surface. The slurry will be transported to AREVA’s JEB mill at McClean Lake. Although ~55% of Cigar Lake’s yellowcake was to be produced at the Rabbit Lake facility, a non-binding Memorandum of Understanding (MOU) between Cameco and its partners will result in 100% of the production occurring at McClean Lake. The new arrangement will result in a reduction of production costs of about $4.50/lb U3O8 and will increase Cameco’s share of total capital cost by $189 M.

Midwest Property AREVA Resources Canada Inc., operator (69.16%); Denison Mines Corp. (25.17%); and OURD (Canada) Co. Ltd. (5.67%).

The Midwest deposit, discovered in 1978, has a Reserve of 42.5 M lb U3O8 at a grade of 1.7%. In addition, a deposit study commissioned by Denison suggests a further Indicated Resource of 33.9 M lb Ni at an average grade of 4.35%. AREVA is currently progressing through the environmental assessment process for their proposed open-pit mine at the site, which will be followed by submission of the final Environmental Impact Statement (EIS). This submission is contingent on development of a viable fish habitat compensation plan. During this process the site will remain on care and maintenance.

EXPLORATION OVERVIEW Cameco is active in both brownfield, detailed above, and greenfield exploration globally and much of its exploration expenditures are focussed in Saskatchewan. One of the company’s more advanced stage projects is at the Millennium joint venture (Cameco 42%, operator; JCU Exploration (Canada) Co., Ltd. (JCU) 30%; AREVA 28%), which is currently the focus of a FS, and awaits a production decision. If favourable, milling would be handled by the Key Lake operation. Cameco continues to identify additional resources in the immediate area of the Millennium deposit (Table 1) and to test other basement and unconformity targets to the north. Exploration at the Dawn Lake joint venture property (Cameco 57.5%, operator; AREVA 23%; JCU 19.5%) is focussed at the Tamarack deposit where delineation continues (Table 1) with the goal of advancing to the preliminary feasibility stage. On the Virgin

River property (Cameco 49%, operator; AREVA 49%; Coronation Mines Ltd. 2%), $3 M was budgeted for exploration in and around the Centennial deposit in 2011. This follows up on 8562 m of drilling in 2010, which included five pilot holes and 14 directional cuts. Significant mineralization includes 13.2 m grading 7.46 % U3O8 at a depth of 800 m and 9.0 m grading 8.4% U3O8 at a depth of 823 m.

Hathor has been aggressively exploring the Roughrider property near Points North Landing, and now has defined three pods of uranium mineralization over a strike length of about 500 m. Late in 2010 they released a new Resource estimate for the Roughrider west zone, the original discovery on the property, that better represented the contained uranium. The new model contains 17.2 M lb U3O8

Figure 4 – A jet-boring machine at the Cigar Lake mine. The jet-boring method loosens the ore with jets of high-pressure water. Photo courtesy of Cameco Corp.


grading 1.98% in the Indicated category and 10.6 M lb U3O8 grading 11.03% in the Inferred category. They followed this up with a Resource estimate for the Roughrider east zone in May 2011 which outlined an Inferred Resource of 30.1 M lb U3O8 grading 11.58%. They also announced the discovery of a new zone, named “far east”. In contrast to the west and east zones, which lie at the unconformity at the base of the Athabasca Group about 200 m below surface, far east was intersected as deep as 200 m below the unconformity in spite of being about 50 m east of the east zone laterally. The far-east zone is similar to the other pods in that it contains wide, high-grade drill intersections including 37.5 m at 1.57% U3O8 in the discovery hole and 42.5 m at 2.40% U3O8. Hathor also consolidated its position in the Roughrider property by acquiring Terra Ventures Ltd. The acquisition gives Hathor 100% interest in the project. In September of 2011, Hathor received a Preliminary Economic Assessment (PEA) for the Roughrider deposit that did not take into account the far-east zone. The analysis, based on a $567 M stand-alone mine and mill operation, has a best-case scenario of $70/lb U3O8 with a predicted pre-tax payback period following start up of 1.2 years. Production would be 5 M lb U3O8. These successes have led to interest from other companies, including Cameco, which launched a hostile takeover attempt for Hathor late in August, the result of which was uncertain at the time of publication. Although Hathor has generated the most interest from the Roughrider property, it was also active on the Russell Lake property. The Russell Lake project is centred in the highly prospective southeast part of the Athabasca Basin. The large property contains many potential targets and drilling at one of those, Christie Lake, generated a new, low-grade uranium occurrence late in 2010. Hathor continues to explore the property.

Fission (operator, 60%) and the Korea Waterbury Uranium Limited Partnership have focussed exploration efforts on the east-west Discovery Bay corridor, the western extension of the trend that host the Roughrider deposit, on their Waterbury Lake project. Several uranium occurrences have been identified by an aggressive drill program, the most significant being the J-Zone and J-Zone east, likely part of the Roughrider west zone. Fission has now identified both unconformity and basement mineralization, with the former now defined over a strike length of 578 m after drilling merged it with the previously discovered PKB zone. Two other prospective zones have been identified further to the west, Talisker and Summit, with the latter lying about 1 km west of the J-zone.

At the Shea Creek project (AREVA 51%, operator; UEX 49%) AREVA has worked at testing open parts of the better known Anne, Colette, and Kianna deposits and untested parts of the 2.5 km mineralized trend along the northwest-trending Saskatoon Lake conductor. Targets remain between the Kianna and Colette deposits and the Anne and Kianna deposits. An example is the 58B deposit that has been enlarged continuously since its discovery. The true potential of the Shea Creek property may not be recognized, however, until underground development allows for focussed exploration of the deposits nearly 800 m below the surface. In addition, UEX is active in the eastern Athabasca Basin at its wholly owned Hidden Bay project. In early 2011, it released a PEA for the Horseshoe and Raven deposits that recommends that the deposits be advanced to the pre-feasibility stage. Exploration continues on the Hidden Bay project.

The Phoenix trend on the Wheeler River property (Denison, 60%, operator; Cameco 30%; JCU 10%) now contains four mineralized zones, A to D, that lie near the unconformity at the base of the Athabasca Group some 400 m below surface. An initial Resource estimate for zones A and B was released late in 2010 in which zone A contained an Indicated Resource of 35.6 M lb U3O8 grading an impressive 17.98% and zone B an Inferred Resource of 3.81 M lb U3O8 grading 7.27%. Denison has designed a drill program to test the open areas of the four zones and hopes to fill gaps between them. Winter drilling in 2011 resulted in more high-grade mineralization in zone A and a further 24 000 m of drilling was planned for the summer program. Further success at zone A includes an intersection of 8.4 m grading 38.5% e U3O8 1 reported in August. Denison has also restarted exploration at the nearby Moore Lake property where it hopes to define other deposits similar to or larger than the Moore Lake deposit along the strike of the favourable trend.

5. GOLD OVERVIEW Saskatchewan gold exploration expenditures for 2011 are estimated at $9.9 M, up slightly from actual 2010 expenditures of $9.5 M. Sustained interest in exploration in recent years has been supported by elevated gold prices, which ranged between about US$1,240 and US$1,900 per troy ounce (oz.) over the past year.

Gold exploration in 2011 is widespread throughout several geological domains of the Precambrian Shield and is focussed on both historical properties and on greenfields plays. The bulk of exploration is taking place in the La Ronge, Glennie, and Flin Flon domains of the Reindeer Zone, as well as in the Beaverlodge Domain of the Rae Province. Additional potential for gold mineralization is currently known in the Tantato Domain of the Rae Province and the Mudjatik Domain of the Hearne Province. The majority of known occurrences in the Precambrian rocks are of epigenetic origin (i.e., ‘structurally controlled’), though a few deposits are known to be pre-deformational. A small number of placer and paleoplacer gold occurrences are also known in the southern part of the province.

1 Equivalent U3O8 calculated from a down-hole, gamma-ray probe rather than an assay result.


The past year was a significant one for the history of gold mining in the province. After several years of having a single producing gold mine, the Seabee Mine in the northern Glennie Domain, two new mines were brought online in 2011. Golden Band brought the Roy Lloyd mine (Bingo deposit), located in the southern La Ronge Domain, into commercial production on April 1, 2011. Likewise, Claude announced in April that it had achieved commercial production at its Santoy 8 mine, located about 12 km east of the Seabee Mine, as part of its Seabee gold operation.

GOLD PRODUCTION Seabee Gold Operation The Seabee gold operation is 100% owned by Claude and consists of two producing mines, Seabee and Santoy 8, ore from which are processed at the Seabee central milling facility. Since the opening of the Seabee mine in 1990, the operation has produced around 950,000 oz. of gold, including ore from the Seabee and Santoy 8 mines and bulk samples from the Porky West and Santoy 7 deposits. In 2010, the operation produced 47,240 oz. of gold from 203 958 tonnes (t) of ore grading 7.55 grams/tonne (g/t) Au. An additional 22,163 oz. were produced during the first half of 2011 from 116 003 t of ore grading 6.23 g/t Au; total 2011 production is anticipated to be 50,000 to 52,000 oz. of gold.

Roy Lloyd Mine (Bingo deposit) The Roy Lloyd mine, 100% owned by Golden Band, officially came into production in April of 2011 and is the first producing mine of the company’s La Ronge gold project. Ore from the mine is being milled at the newly refurbished Jolu mill, located ~45 km to the northeast and centrally located within the greater La Ronge gold project area. To date the mine has produced around 20,000 oz. with a mill throughput averaging 400 t/day. Total production for the first year of operation is estimated to be ~45,000 oz.

GOLD EXPLORATION A) LA RONGE DOMAIN ‘La Ronge Gold Belt’ Golden Band holds a land package in the La Ronge Domain of over 875 km2 that hosts numerous known gold deposits, many of which have Mineral Reserve/Resource estimates (Table 2). Development activity at the producing Roy Lloyd mine continues and includes deepening of the decline ramp and underground drilling. Exploration and development is also ongoing at the past producing Komis deposit (Table 2) and the Golden Heart and EP deposits, which are the next scheduled for mining within the La Ronge gold project. Rehabilitation of the past producing Komis underground mine is reportedly well advanced, with dewatering of existing workings near completion and re-establishment of ventilation and access to former mining areas underway. Drilling at Komis in 2011 has confirmed the continuation of high-grade ore down-dip and along strike to the west of the deposit. High-grade mineralization was also intersected during 2011 infill drilling at the Golden Heart deposit. The Golden Heart project is currently in the environmental review process, anticipated to be completed this fall. Open pit mining of the EP deposit was originally scheduled for mid-2011, but was delayed in order to complete bulk sampling at the Alimak zone at the site of the past-producing Jolu mine. This bulk sampling will test the continuity of near surface mineralization detected by drilling in 2011, and will also provide waste rock to construct a 3 m dam lift on the Jolu above-ground tailings management facility. Mining at EP is anticipated to commence upon completion of this bulk sampling. Golden Band has also initiated clearing and dewatering of the portal to the past-producing Decade mine (Table 2) to undertake underground exploration for unmined ore. Additional properties, including those encompassing the North Lake, Preview, and Little Deer Lake projects, were acquired by Golden Band over the past year and additional exploration will be undertaken on new prospects identified in the Upper Waddy Lake area during a summer bulk till sampling program.

Other active gold exploration projects in the La Ronge Domain include Wescan Goldfields Inc.’s (‘Wescan’) Jojay and Jasper projects, and Patrone Gold Corp.’s (Patrone) Dickens Lake project. Wescan reportedly initiated drill programs in 2011 at both the Jojay and Jasper projects based on the recommendations from reviews of historical data. Patrone, a wholly owned subsidiary of Unity Energy Corp., completed a VTEM survey over its Dickens Lake project area, situated ~95 km northeast of La Ronge.

B) GLENNIE DOMAIN Seabee Mine Area The majority of gold exploration and development activities in the Glennie Domain in the past year were carried out by Claude in relation to its Seabee gold operation. Underground exploration at the Seabee mine (‘Seabee Deep’) continued throughout the year in order to add to existing mine reserves. This drilling yielded multiple intersections of high-grade gold mineralization, including discovery of a new zone (‘L62’) in the hanging wall of the Seabee ore body, about 200 m from existing mine workings. Recent drilling at L62 produced one intersection of 261.3 g/t over


Table 2 – Published reserves/resources for selected gold deposits in Saskatchewan.

Ownership, operator first (at time of mining for PRODUCTION; at present for RESERVES/RESOURCES) % share Mine/Deposit tonnes

Au grade (g/t)

Au grade (oz/ton)

Total Au Production

(oz)

Claude Resources Inc. † 100 Seabee gold operation1

4 200 0002 7.72 0.225 950,930

Golden Band Resources Ltd. † 100 Roy Lloyd (Bingo)2 n/a n/a n/a ~17,518

Golden Rule Resources Ltd. 100 Komis 128 634 6.90 0.201 28,595

Decade Development Ltd./L.J. Manning & Associates Ltd./Jolu Mining Ltd.

n/a Decade 5 000 10.3 0.301 425

Consolidated Mining and Smelting Company of Canada Ltd. 100 Box 1 418 320 1.55 0.045 64,066

tonnescut off (g/t)

Au grade (g/t)

Au grade (oz/ton)

in situ Au (oz)

Claude Resources Inc. 100 Seabee Mine2 887 131 3.90 6.69 0.195 190,752Claude Resources Inc. 100 Santoy 82 1 079 922 2.30 4.66 0.136 161,891Brigus Gold Corp. 100 Box 16 502 247 0.72 1.51 0.044 800,000Brigus Gold Corp. 100 Athona 5 830 798 0.72 1.17 0.034 220,000

Brigus Gold Corp. 100 Box 13 824 000 0.50 1.66 0.048 737,000Brigus Gold Corp. 100 Athona 7 036 400 0.50 1.28 0.037 289,600

Claude Resources Inc. /St. Eugene Mining Corp.

6535 Amisk Gold3 30 150 000 0.40 0.028 0.012 921,000

Claude Resources Inc. 100 Porky Main4 160 000 2.30 7.50 0.219 38,581Claude Resources Inc. 100 Porky West4 110 974 2.30 3.10 0.091 11,045Golden Band Resources Ltd. 100 Bingo 157 116 5.00 13.14 0.384 63,376Golden Band Resources Ltd. 100 Golden Heart 362 423 4.00 7.94 0.232 95,520Golden Band Resources Ltd. 100 Komis 191 740 4.00 7.85 0.229 48,398Golden Band Resources Ltd. 100 Memorial 288 400 1.00 2.83 0.083 26,220Golden Band Resources Ltd. 100 Tower East 5 019 080 1.00 1.86 0.054 299,835Golden Band Resources Ltd. 100 EP (Eric Partridge) 102 000 1.00 3.81 0.111 12,494Masuparia Gold Corp. / Golden Band Resources Ltd.

5149

Greywacke Lake (North zone)

184 000 5.00 8.40 0.245 49,700

Wescan Goldfields Inc. 100 Jojay 420 000 2.00 3.70 0.108 50,000

4 As of December 31, 2010 (Claude Resources Inc. - Annual Information Form of March 25, 2011).

3 Resource includes Ag as 'Au equivalent'.

2 Approximate totals, from company press releases.

1 Currently in production; values are approximate and include production from the Santoy 8 mine and the Santoy 7 and Porky West bulk samples.

Notes: Data in this table are intended to reflect NI 43-101–compliant standards but do not all necessarily conform to the current legal definition of reserves and resources by CIM. Data are from a variety of public sources including published reports, public records, corporate websites, and Saskatchewan Mining Association Facts Sheets. Data for different deposits are not necessarily comparable.

PRODUCTION (Current (†) + Historical)

RESERVES (Proven + Probable)

RESOURCES (Measured + Indicated)


a true width of 3.6 m. Claude has also intersected mineralization during underground and surface drilling at its Santoy 8 mine as well as surface drilling at the adjacent Santoy Gap (i.e., between the Santoy 7 and 8 zones) and at its ‘Neptune’ target, located about 6 km north of the Seabee minesite in the Pigeon Lake area. Winter drilling at Neptune, initially discovered as a gold-in-soil anomaly, reportedly confirmed the mineralized structure over at least 1200 m along strike and 250 m to depth. Claude anticipates drilling approximately 100 000 m at the Seabee mining operation by the end of the year.

Wescan is also actively exploring the Glennie Domain for gold, having conducted an airborne geophysical (magnetic and electromagnetic) survey over its Munro Lake property, situated 7 km from the Seabee mine.

C) FLIN FLON DOMAIN Amisk Lake Project The most significant gold exploration project currently underway in the Flin Flon Domain is the Amisk gold project, a joint venture between Claude (65%) and St. Eugene Mining Corp. (‘St. Eugene’; 35%). This project entails an area of ~15 500 ha on northern Amisk Lake, with intensive exploration currently focussed on the Amisk gold-silver deposit on northwestern Missi Island. This deposit was previously explored by a Saskatchewan Mining and Development Corporation (SMDC)–led partnership in the 1980s and 1990s (the ‘Laurel Lake deposit’), which targeted a fracture-controlled vein network of high grade Au-Ag mineralization. In contrast, the Claude/St. Eugene partnership is currently exploring the deposit for its bulk mining potential, including an extensive envelope of lower grade mineralization. Drilling by the present partnership was initiated in 2010 and continued over the past year during an 18-hole winter drilling campaign. In addition, over 22 000 m of previously unsampled historic drill core was assayed. Collectively, the results from new drilling and assaying of historic core were used to determine a new Mineral Resource estimate for the deposit (Table 2). Metallurgical and engineering testing of ore from the deposit was also carried out and deemed successful. Additional drilling is currently underway to expand the limits of the deposit and to infill its northern and eastern portions.

St. Eugene has also staked an area of 8671 ha immediately adjacent to the north and east of the Amisk gold project, referred to as the ‘Amisk North’ project. An airborne VTEM and magnetic survey was completed over the property in 2011, from which six geophysical anomalies and 23 geophysical targets were identified. St. Eugene is planning to follow-up these preliminary results with geologic mapping and surface sampling later this year.

D) BEAVERLODGE DOMAIN Goldfields Project The other major gold project in the province is Brigus Gold Corp.’s Goldfields project, situated near Uranium City on the north shore of Lake Athabasca. The Goldfields property includes the past-producing Box mine (Table 2) and the Athona deposit, both having associated Mineral Reserve/Resource estimates (Table 2). Brigus is currently conducting a PFS for the project, the results of which will be considered in making a final production decision. In the meantime, Brigus is continuing with exploration and definition drilling on the property and undertaking confirmatory metallurgical sampling and geotechnical investigations.

6. BASE METALS AND PLATINUM GROUP METALS Estimated base metal exploration expenditures for 2011 are expected to be $18.6 M, which would be a marked increase over 2010 expenditures of $6.5 M. Advanced exploration projects in northern Saskatchewan include: the McIlvenna Bay deposit (Foran) in the western Flin Flon Domain; the McKenzie Lake project (ESI) in the sub-Phanerozoic extension of the western Flin Flon Domain; and the Brabant Lake deposit (Manicouagan) in the western Kisseynew Domain.

Foran, after becoming 100% owner of the McIlvenna Bay property in the fall of 2010, has completed a 5 km ‘Phase One’ drill program on its McIlvenna Bay Cu-Zn-Ag deposit, which is located 80 km west of Flin Flon south of the Hanson Lake road. The main objective of this ten-hole in-fill drill program was to test the continuity of grade and thickness of the copper stringer zone underlying semi-massive sulphide Lens 2, in an effort to upgrade the Mineral Resource calculation of this volcanogenic massive sulphide deposit. One hole (MB-11-145) tested a deeper, down-plunge portion of the zinc-silver–rich Lens 2 itself. It intersected 13.33 m of massive sulphide grading 5.32% zinc and 54.1 g/t silver (Table 3). One of the thickest intersections of the copper stringer zone returned 32.52 m grading 1.69% Cu, 0.35 g/t Au, 0.27% Zn, and 11.29 g/t Ag, including a section of 8.00 m grading 3.19% Cu, 0.40 g/t Au, 0.59% Zn, and 24.79 g/t Ag (MB-11-138). Overall the diamond-drill program confirmed the continuity of the copper stringer zone, and extended the zinc-silver–rich Lens 2 down plunge. A second, 12 to 15 km (~35 holes) ‘Phase Two’ drilling program commenced in the late summer of 2011. Its purpose is, in part, to expand the extent of the copper stockwork zone by step-out drilling.


Manicouagan has completed a 560 km helicopter-borne VTEM PLUS survey over its 100% owned 28 km2 Brabant Lake property and has identified a number of significant new anomalies. The property hosts the Brabant Lake Zn-Pb-Cu-Ag deposit and is located 175 km northeast of La Ronge. In 2008, Manicouagan released an updated NI 43-101 Resource estimate incorporating 129 drill holes, which outlined an Indicated Resource of 1.48 M t grading 9.18% Zn, 0.79% Cu, 32.6 g/t Ag, and 0.15 g/t Au. An additional 2.98 M t grading 5.55% Zn, 0.55% Cu, 13.9 g/t Ag, and 0.10 g/t Au were categorized as an Inferred Resource.

ESI recently released a technical report (prepared by Strathcona Mineral Services Limited) on its McKenzie Lake project, located approximately 80 km southwest of Flin Flon, detailing drilling results of a 2011 six-hole 2.8 km diamond-drill hole program. In

2007-08, four zones of volcanogenic massive sulphide–related base metal mineralization (M2–Suggi Lake, M45, Emily, and Alex-Groucho) were discovered. At Suggi Lake, a high-grade Cu-Zn zone was intercepted in two holes, drilled 57 m apart, and returned grades of 4.4% Cu and 4.8% Zn over 16.4 m (ML-10-01), and 6.1% Cu and 5.8% Zn over 9.8 m (ML-10-02). The objective of the 2011 drill program was to better define the extent of the M2–Suggi Lake mineralized zone. According to the report, the zone has a minimum dimension of 200 x 250 x 500 m, is open laterally and at depth, and consists of low-grade disseminated and stringer-type mineralization and alteration.

Canadian Platinum Corp. (Canadian Platinum), a company actively involved in exploration for PGM in the Peter Lake Domain, has announced amalgamation with McGregor Capital Corp. According to the press release, the amalgamated corporation will continue to evaluate Canadian Platinum’s Swan Lake PGE exploration project in the Peter Lake Domain. According to a previous press release, Canadian Platinum had spent $5 M to date on exploration of its Peter Lake project.

7. RARE EARTH ELEMENTS Currently, there is no REE production in Saskatchewan, but exploration projects range from grass roots to evaluation stages.

GWMG’s Douglas River property, located in the Athabasca Basin, consists of two claims located ~15 and 25 km south of the Carswell structure, respectively. Marline Oil Corporation (Marline) discovered HREE mineralization on these claims in the early 1980s, where sandstone-hosted xenotime mineralization that yielded TREE grades up to 6.3% was reported by SMDC from ‘Area 10’ in the Beatty River area. In a news release dated June 16, 2011, GWMG announced that they discovered a new xenotime showing on their Beatty claim which they named the Helipad showing. The new showing is located along a north-south structure, similar to the historic Area 10 showing, 50 m to the west of the original discovery. The mineralization was tested by two trenches (Helipad 1 and Helipad 2) from which samples were obtained that contained up to 2.31% total REE (TREE) comprising 99% heavy REE (HREE) over 1.0 m width and 3.0 m depth. GWMG also tested three trenches that extended to the north and south of the historic Area 10 trench. No mineralization was identified to the north, but REE mineralization was located in a trench 5 m south of the historic trench where grades up to 1.14% TREO over 1.2 m width and 3.0 m depth, of which 96% are HREE, were obtained. Geochemical surveys on the southern third of the Beatty claim identified a till dispersion train with a source to the east and up ice from the historic Area 10 showing. Biogeochemical and soil surveys identified five coincident anomalies. Fourteen drill holes (totalling 1006.2 m) tested the original Marline showings, the Helipad showing, and four geochemical anomalies but did not intersect significant REE

Table 3 – Excerpt of significant intercepts of Foran’s Phase One diamond drill hole program (excerpt from press release June 15, 2011).

Hole ID From (m) To (m) Interval (m)1 Cu (%) Au (g/t) Zn (%) Ag (g/t)

MB-11-136 364.57 387.10 22.53 1.59 1.21 0.33 12.34

Including 365.33 377.00 11.67 2.09 2.18 0.61 19.37

MB-11-137 298.93 327.17 28.24 1.30 0.31 0.24 9.05

MB-11-138 374.74 407.26 32.52 1.69 0.35 0.27 11.29

including 375.74 383.74 8.00 3.19 0.40 0.59 24.79

MB-11-139 403.19 450.74 47.55 1.70 0.46 0.17 12.77

including 404.19 412.19 8.00 3.24 0.92 0.54 25.79

MB-11-140 458.43 487.43 29.00 1.25 0.61 0.13 7.10

MB-11-141 453.66 461.00 7.34 1.76 0.68 7.85 21.19

MB-11-141 461.00 491.00 30.00 1.22 0.44 0.08 5.31

MB-11-142 418.55 421.02 2.47 1.10 1.00 11.76 16.74

MB-11-142 421.02 433.85 12.83 1.22 0.27 0.09 4.92

MB-11-143 428.44 429.78 1.34 0.64 0.27 8.27 19.20

MB-11-143 453.75 474.76 21.01 1.19 0.16 0.19 5.35

MB-11-144 303.15 326.00 22.85 1.52 0.25 0.14 9.38

including 303.15 306.60 3.45 4.95 0.72 0.38 34.96

MB-11-145 660.48 673.81 13.33 0.24 0.38 5.32 54.14

including 661.21 663.08 1.87 0.16 0.13 10.80 20.33 1 True thickness is estimated to be approximately 80 to 85% of drill indicated length.


mineralization. GWMG is also continuing to evaluate its Hoidas Lake property north of Uranium City. On the project, the company has completed extensive exploration work, defined Resources, and undertaken metallurgical studies.

Quantum’s Archie Lake REE deposit is located 50 km east of Uranium City in the Beaverlodge Domain. REE mineralization is hosted by retrograded granulite facies gneiss in contact with garnet diatexite and essentially consists of monazite. The deposit has been interpreted as a Paleoplacer (Harper, 1986). Old assessment work reported that the mineralized horizon was traced for 610 m lengthwise and is ~4.6 m wide. Grades up to 29.9% TREE were reported by Quantum last year. In February 2011, Quantum announced the results of their two-phase 2010 exploration program; Phase I involved the completion of a high-resolution airborne magnetic and radiometric survey from which several prospective trends were delineated and new REE targets identified. Phase II involved ground checking of several new targets generated from the airborne survey, conducting a ground geophysical survey, geologic mapping, and sampling of trenches in order to verify the full extent of the historical mineralized horizon. Sampling of historic trenches not evaluated by Quantum in 2009 returned a peak value of 3.32% TREO. Exploration confirmed the known strike length of the mineralized horizon of approximately 550 m. Based on air photos and magnetic data, it was reported that the Beaver River fault to the northwest of the mineralized trend truncates and offsets the mineralization several hundred metres to the east. A sample containing coarse-grained ilmenite and collected from a location where the mineralized horizon was expected to continue north of the fault returned 0.64% TREO. The area was given a high-priority target status for evaluation of the continuity of the historic mineralization. Verification of geophysical targets located 500 m west and 3 km north-northwest of the historic trenches returned anomalous mineralization up to 0.56% TREO and 0.73% TREO, respectively. Quantum later announced that it had mobilized field crews for a drill program from three pads at the Archie Lake Rare Earth Property in order to define the extent at depth of the monazite mineralization. The company stated that the program will include twelve to eighteen, 50- to 100-m deep holes totalling 1200 m.

8. DIAMONDS In 2011, exploration expenditures for diamonds are expected to fall from to about $7.1 M from the $17.3 M spent last year. The decrease in expenditures is a reflection of the province’s main diamond projects moving away from the capital-intensive exploration phases into the feasibility stages. The combined Star–Orion South kimberlite project is the most advanced diamond project in the province. The project is operated by Shore and is jointly owned by Shore and the FALC JV. The FALC JV is made up of Shore’s 100% owned subsidiary, Kensington Resources Inc. (66%), and Newmont Mining Corporation of Canada Ltd. (34%). The project is located in the Fort à la Corne forest, 60 km east of Prince Albert, within a kimberlite field that hosts over 70 known intrusions, some of which are volumetrically amongst the largest in the world. The Star and Orion South kimberlites are composed of eruptive kimberlite phases and mixed kimberlitic sedimentary rocks. The eruptive, or volcanoclastic, phases are of greater economic interest, particularly those most proximal to the volcanic vents.

The Star pipe consists primarily of five major eruptive kimberlite phases: Cantuar (CPK), Pense (PPK), Early Joli Fou (EJF), Mid Joli Fou (MJF), and Late Joli Fou (LJF). These phases are named after the stratigraphic geological formations in which they are hosted. Star is dominated by well-defined pyroclastic flows such as the CPK and the PPK, which radiate away from the center of the crater. The LJF is also a pyroclastic flow, while the MJF is a crater facies vent filling pyroclastic kimberlite and the EJF is a combination of the two. The Star EJF phase has the largest amount of estimate tonnes and estimated carats. Similar to the Star, the Orion South kimberlite is composed of distinct eruptive kimberlite phases, also named after their host geological formations: CPK, PPK, EJF, LJF, and Viking pyroclastic kimberlite. Similar to the Star, the Orion South EJF is the dominant phase for volume and grade. The other time-equivalent phases, such as the CPK and the PPK show significant variability between the two deposits (Orava et al., 2010).

In July 2011, Shore released the results of a full FS for the combined Star–Orion South project, which outlined Probable Mineral Reserves of 279 M t at a weighted average grade of 12.3 carats per hundred tonnes (cpht) (Table 4).

The FS concluded that 34.4 M carats, at a weighted average price of US$242 per carat, could be extracted over a 20-year mine life. The proposed mine, which would consist of two large open pits feeding a 45 000 t/day processing facility, would have an Internal Rate of Return of 16% before taxes and royalties and would have a total capital cost of about $2.5 B. A sensitivity analysis shows that the project is most sensitive to CDN$/$US exchange rate fluctuations on the positive side, and most susceptible to variability in the recovered grade and diamond prices on the negative side. Subsequent to the study, Shore released an update which indicated that the company’s rough diamond prices had increased by 31% to 46% since the last diamond valuation in February 2011. Shore has also signed First Nations and local community cooperation agreements, signed a MOU for waste timber off-take, executed a construction agreement with SaskPower for a 230 kilovolt power line, and submitted an EIS.


Table 4 – Probable Mineral Reserve estimate kimberlite unit detail for Star–Orion South diamond project, effective July 14, 2011.

9. COAL COAL PRODUCTION Present coal mining activity in Saskatchewan is restricted to the shallow Tertiary-aged lignite deposits of the Ravenscrag Formation, and is concentrated near the city of Estevan and the town of Bienfait in southeastern Saskatchewan. Sherritt, through its wholly owned subsidiary Prairie Mines and Royalty Ltd., operates three surface mines: Boundary Dam, Poplar River and Bienfait, which in 2010 produced 6.1 M t, 3.5 M t, and 0.5 M t respectively. Production for 2011 is forecasted to be at similar levels as 2010. Saskatchewan is Canada’s third-largest coal producer behind Alberta and British Columbia and in recent years has typically accounted for about 15% of national production. Nearly all of the coal produced in Saskatchewan is consumed for thermal power generation, which currently accounts for about 60% of the province’s electricity.

COAL EXPLORATION The majority of the province’s coal exploration in 2010 and 2011 was in the Hudson Bay area in east-central Saskatchewan where Goldsource has now drilled over 140 holes on its Border coal property and has discovered 17 coal deposits, some with cumulative coal intersections in excess of 100 m in true thickness. The project has Indicated Resources of 63.5 M t and Inferred Resources of 89.5 M t of sub-bituminous A to sub-bituminous C coal. Average as-received weighted results, from proximate analysis, indicated the coal has 27.33% moisture content, 18.61% ash content, 2.16% sulphur content, and 15 409 kJ/kg average calorific value. In September 2011, Goldsource announced that it had entered into a merger agreement with Zero Emission Energy Plants Ltd. (ZEEP). ZEEP is a Division of United Technologies Inc. and specializes in the commercialization of hydrocarbon gasification technologies. ZEEP claims to have a technology able to convert heavy hydrocarbons, such as the coal Goldsource discovered near Hudson Bay, into clean transportation fuels, while largely eliminating pollutants.

Other companies have utilized airborne electro-magnetics and gravity surveys to help identify similar-style deposits. Saturn and Westcore have both discovered significant thicknesses of coal in the areas adjacent to Goldsource’s discoveries and just over the Manitoba border. Westcore also announced that it had entered into an agreement with Quantex Research Corp. (Quantex) which will provide Westcore the exclusive right to utilize Quantex’s coal-to-liquids technology within Saskatchewan and Manitoba.

All of these coal deposits appear to be isolated pockets of Lower Cretaceous–age coal within the Cantuar Formation of the Mannville Group, that are infilling pre-existing structural lows on Devonian carbonates at the Sub-Mesozoic Unconformity.

COAL TECHNOLOGY In February 2011, the Saskatchewan Government signed a MOU with Japan Coal energy Center (JCOAL), in an effort to spur greater cooperation on clean coal and carbon capture and storage technology. JCOAL is described as a non-profit organization representing more than 100 Japanese coal, gas, steel, and mining companies as well as manufacturers and electricity utilities.

Deposit Kimberlite Unit Ore (M t) Carats (M) Ore Grade (cpht) Star Late Joli Fou 4.078 0.093 2.3

Mid Joli Fou 22.403 1.057 4.7

Early Joli Fou - Inner 88.364 13.554 15.3

Early Joli Fou - Outer 33.783 3.039 9

Pense 7.802 1.203 15.4

Cantuar 9.46 1.44 15.2 Star Total 165.89 20.386 12.3 Orion South Early Joli Fou - Inner 62.04 9.986 16.1

Early Joli Fou - Outer 17.362 1.68 9.7

Pense 33.688 2.328 6.9 Orion South Total 113.09 13.994 12.4

TOTAL 278.98 34.38 12.3 Note: the Mineral Reserves have a 1 mm bottom screen size cut-off.


In April 2011, the Federal Government announced it will be investing nearly $900,000 into the Saskatchewan Energy Innovation Alliance. The partnership between the University of Saskatchewan and the University of Regina will study new, efficient methods to gasify Saskatchewan’s low-grade coal products.

In May, the Saskatchewan Government approved $1.24 B for an integrated carbon capture and storage demonstration project that will capture a million tonnes of carbon dioxide annually from the Boundary Dam facility. Once completed, the project will be the world’s largest commercial-scale application of carbon capture and sequestration technology.

10. INDUSTRIAL MINERALS Expenditures for industrial minerals projects will comprise about half of the $281.6 M anticipated to be spent in the province in 2011. The vast majority of these expenditures will be on potash exploration and evaluation projects, with lesser expenditures on coal, REE, silica sand, and clay projects.

POTASH PRODUCTION After setting records for fiscal year production (16.5 M t KCl in 2007), and for value of potash sales ($7.3 B in 2008), the three potash-producing companies reported significantly decreased product sales in 2009 (Table 5). Potash markets stabilized in early 2010 largely due to the negotiation of longer term contracts with key clientele, which resulted in a strong rebound in global demand. Saskatchewan potash production in 2010 was 14.9 M t KCl, a significant increase over the 9.6 M t produced in 2009. Saskatchewan’s three potash-producing companies, PotashCorp, Mosaic, and Agrium, have all reported increases in potash sale price and sales volumes in the first half of 2011, and preliminary indications are that production is on pace to meet or exceed the record level of 16.5 M t KCl set in 2007.

To keep pace with anticipated global demand growth, Saskatchewan’s three potash-producing companies are undertaking a series of upgrades and expansions to the province’s existing mines. It is estimated that between 2004 and 2020, approximately $13 B will be spent to increase the province’s cumulative capacity by about 90% above 2004 levels.

In the fall of 2010, BHP was unsuccessful in an attempt to acquire PotashCorp. The nearly $40 B deal failed to receive approval from the Federal Government under the Investment Canada Act.

POTASH EXPLORATION Throughout 2010 and the first half of 2011 potash exploration showed no signs of slowing down. The landscape of the industry has changed significantly as large international mining companies continue to partner with or acquire junior explorers with potash projects in various stages of development. There are currently more than a dozen potash projects underway and they range from the early exploration to feasibility stages. Over the past few years, more than 30 000 line-km of seismic surveys have been conducted over potash dispositions and over 150 new test wells have

Table 5 – Saskatchewan potash producing mines annual fiscal year production.

Company Mine

2005 Production (M t KCl)





2010** Production (M t KCl)

Agrium Vanscoy 1.72 1.21 1.73 1.76 0.90 1.78 Mosaic Esterhazy (K-1/K-2)* 4.00 3.40 3.90 4.10 3.00 2.30 Belle Plaine 2.40 2.20 2.20 2.10 1.80 1.50 Colonsay 1.50 1.20 1.30 1.40 1.00 0.80 PotashCorp Lanigan 2.02 1.47 1.91 2.14 0.70 2.37 Rocanville 2.57 1.90 2.65 2.83 0.95 2.18 Allan 1.43 0.99 1.74 1.09 0.69 1.10 Cory 0.83 0.77 0.77 0.42 0.42 0.55 Patience Lake 0.25 0.19 0.26 0.28 0.10 0.37

Production Totals 16.72 13.33 16.46 16.12 9.56 12.95 * PotashCorp’s mineral rights at Esterhazy are mined by Mosaic Potash Esterhazy Canada Limited Partnership under a mining and processing agreement. **Production values are from each company’s annual information forms which are reported by fiscal year and do not correspond to calendar year values discussed earlier in the report.


been drilled. Figure 5 shows the location of the current potash mines and some of the potash exploration/ development projects currently underway.

Despite the failed takeover attempt of PotashCorp, BHP continues to be the most active potash exploration company in the province with several projects at various stages of evaluation. BHP’s Jansen project is the most advanced stage greenfields project in Saskatchewan and the company recently announced approval for further expenditures of US$488 M for Jansen, bringing total investment on the project up to $1.2 B. BHP has progressed the Jansen project to the FS stage and recently received approval of its EIA. On site, construction of a refrigeration plant was completed and 89 freeze-and-monitoring wells were drilled. Excavation of the freeze collar for the production shaft is currently underway. The potential mine at Jansen is scheduled to begin producing saleable potash in 2015, with production capacity increasing incrementally to 8 M t annually (tpa) over the next several years. BHP is continuing to evaluate several other projects in the Burr, Boulder, Young, and Melville areas. The Burr project, which was acquired during the purchase of Athabasca Potash Inc., came with a NI 43-101–compliant Indicated Resource estimate of 241.2 M t with a grade of 23.3% K2O, and an Inferred Resource of 183.1 M t with a grade of 23.2% K2O, however BHP stated that it would independently evaluate the Burr project and assess it in terms of its other potash projects in the province. BHP has drilled several wells and conducted over 15 000 line-km of seismic surveys on its Boulder and Young project areas. The company has conducted a concept study for the Young site which concluded that the location could support a large-scale project. Tim Cutt, president of BHP’s Diamond and Specialty Products, noted that Young or Melville would likely be the company’s next targeted mine area, with production from one of those areas expected by 2017. In the Melville area, BHP is currently conducting an aggressive exploration program which includes 3-D seismic surveys and several wells. Earlier this year BHP announced it was relocating its Diamonds and Specialty Products head office from Vancouver to Saskatoon to be closer to its potash operations. The company is working with the Port of Vancouver in Washington State, USA to build and operate a new export facility and has chosen rail proposals from Canadian Pacific Railway and Burlington Northern Santa Fe Railway, as its preferred options for transporting the potash.

Figure 5 – Location of potash mines (circles) and potash exploration/development projects (squares).

Mosaic Potash Belle Plaine

Mosaic Potash Colonsay

Mosaic Potash Esterhazy Canada

PotashCorp - Lanigan Division

PotashCorp - Rocanville Division

Partnership Ltd. K-1 and K-2 MinesPotashCorp - Allan Division

Agrium Vanscoy Mine

PotashCorp - Cory Division

PotashCorp - Patience Lake Division

Agrium Triton Partnership Project - Agrium Inc.

Jansen Project - BHP Billiton Ltd.

Young Project - BHP Billiton Ltd.

Boulder Project - BHP Billiton Ltd.

Burr Project - BHP Billiton Ltd.(Formerly Athabasca Potash Inc.)

Muskowekwan Project - Encanto Potash Corp.

Ochapowace Project - Encanto Potash Corp.

Wynyard Project - Karnalyte Resources Inc.

Hanley Project - M & J Potash Corp.

Legacy Project - Potash One Inc.

Bredenbury Project - Potash Corporation of Saskatchewan Inc.

Regina Project - Vale S.A.

Milestone Project - Western Potash Corp.

Potash Exploration Boundary

Spar Project - Encanto Potash Corp.

O

Melville Project - BHP Billiton Ltd.

N


Shortly after receiving approval on an EIA for its Legacy solution mine project, Potash One Inc. (Potash One) announced that it had agreed to a friendly $424 M take-over by K+S Canada Holdings Inc., a wholly owned subsidiary of German-based K+S. A PFS conducted on the project by Potash One concluded that the 222 M t K2O of Indicated Mineral Resources and the 852 M t K2O of Inferred Resources could support a 2.5 M tpa KCl mine for 40 years. K+S, Europe’s largest potash producer, stated that it intends to build a 2.7 M tpa mine at a cost of approximately$2.5 B. Western Potash Corp. is continuing to advance its Milestone project, located 30 km southeast of Regina. A PEA completed on the project in 2010 concluded that the resources present could support a 2.5 M t KCl per year mine for over 40 years and would have a capital cost of approximately $2.51 B. The company conducted additional drilling in January 2011 and in April released a new increased NI 43-101 Mineral Resource estimate for the project which now contains 64 M t of Measured, 180 M t of Indicated, and 701 M t of Inferred Resources. The company has purchased large parcels of surface lands for the development of a plant site facility and has signed a MOU with the City of Regina to study water supply options for the project.

Brazilian miner Vale is conducting a PFS on its Regina solution mining project, located just southeast of the city, near Kronau. Over 40 holes have now been drilled on the property and the company has proposed constructing a 2.9 M tpa solution mine. Construction could start as early as 2013 and be completed by 2016 at an estimated capital cost of about $3 B.

In January 2011, Karnalyte Resources Inc. (Karnalyte) announced it would commence a FS on the Wynyard Carnallite project. The study was designed to consider the construction of an initial 500 000 tpa potash-magnesium solution mine which could be expandable up to 2 M tpa. The proposed operation would be the first in Canada to attempt to recover potash from an area where the principal potash mineral is carnallite (KMgCl3·6(H2O)), rather than sylvite (KCl). The company intends to utilize the magnesium as a value-added product. On the project Karnalyte reported net Indicated Resources of 201.3 M t KCl and 167.9 M t MgCl2.

In August 2010, Encanto Potash Corp. (Encanto) released a PEA for its Muskowekwan project, located approximately 100 km northeast of Regina on the Muskowekwan First Nation. The study outlined Indicated Resources of 79.1 M t at 29.4% KCl and Inferred Resources of 60.5 M t at 29.7% KCl. The proposed 2.5 M tpa solution mine has an estimated capital cost of $2.4 B. Encanto is continuing with resource expansion drilling.

M&J Potash Corp., a subsidiary of Zhongchuan International Mining Holding Ltd, is continuing exploration on its Hanley project approximately 50 km southeast of Saskatoon. The company has acquired an adjacent disposition, completed 2-D and 3-D seismic surveys, and drilled seven exploratory holes.

Rio Tinto announced it had partnered with North Atlantic Potash Inc. (North Atlantic), the Canadian subsidiary of Russia’s Acron, in an attempt to develop a new greenfields potash mine. The joint venture will encompass nine exploration permit areas and the partners stated they have plans for an aggressive exploration program. This is Rio Tinto’s second foray into Saskatchewan potash, after the company sold its potash assets to Vale for US$850 M back in 2009.

North Atlantic also announced that it had sold eight of its 26 potash dispositions to Yancoal Canada Resources Co. Ltd. (Yancoal) for $110 M. Yancoal is a division of the Yankuang Group Co., Ltd., a large Chinese state-owned enterprise which is also China’s fourth largest coal producer. In addition to its purchase of dispositions from North Atlantic, Yancoal also announced it had purchased, for $150 M, eleven potash permits from Devonian Potash Inc., a private company.

POTASSIUM SULPHATE Big Quill Resources Inc. In January, Kansas City–based Compass Minerals (parent company of Sifto Canada) completed an all-cash purchase of Big Quill Resources Inc. (Big Quill), which operates a KSO4 plant at Big Quill Lake near Wynyard. Big Quill produces up to 40,000 tons per year of this value-added product. The company has also completed the building of a dedicated facility for food-grade production and are in the process of installing the processing equipment.

11. REFERENCES Harper, C. T. (1986): Geology of the Nevins-Forsyth Lakes area; Sask. Energy Mines, Open File Rep. 86-4, 57p.

Orava, D., Ewert, W., Purtich, E., Brown, F., Hayden, A., Burga, E., Sharpe, C., Trehin, H., Leroux, D., Clifton, W., and Jakubec, J. (2010): Technical Report and Updated Preliminary Feasibility Study on the Star–Orion South Diamond Project; Shore Gold Inc., effective date 31 January 2010 posted on SEDAR, URL<http:// www.sedar.com/homepage_en.htm>.

http://www.sedar.com/homepage_en.htm�

http://www.sedar.com/homepage_en.htm�


Saskatchewan Geological Survey (2003): Geology, Mineral and Petroleum Resources of Saskatchewan; Sask. Industry Resources, Misc. Rep. 2003-7, 173p.

Slimmon, W.L. (2011): Geological Atlas of Saskatchewan; Sask. Ministry of Energy and Resources, Misc. Rep. 2011-7, CD-ROM, version 14.

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WollastonLake

PasfieldLake

WaterburyLake

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Cree

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iver

Turnor Lake

DoreLake

Lac La

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DeschambaultLake

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MontrealLake Cumberland

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Saskatchewan River

Beaver River

Battle River

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Sask

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iver

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skat

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LastMountainLake

Lake Diefenbaker

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WEYBURN

ESTEVAN

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STONYRAPIDS

60°110°

49°110°

102°

12

TRAIN

TANTATO

DODGEZEMLAK

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MUDJATIK

CARSWELL STRUCTURE

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MINERAL RESOURCE MAP OF SASKATCHEWAN Exploration and Development

Highlights 2011

LEGEND

Base metal potentialUranium potential

Gold potentialDiamond potentialMajor peat resource potentialCarbon dioxide (CO ) resource potential 2

Oil fieldsGas fieldsOil sands potentialCoal fieldsPotash and salt resource areasCarnallitic regions (magnesium)

SYMBOLSEdge of Precambrian ShieldPrecambrian domain boundaries and namesMajor bounding shear zonesMajor faults

1 RoadsCitiesTowns

0 25 50

0 25 50 Miles

75 Kilometres25

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SCALE

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URANIUMOperating Mines1. McClean Lake Mine 2. Eagle Point Mine; ore processed at Rabbit Lake Mill 3. McArthur River deposit; ore processed at Key Lake Mill

Locations Referenced in Text1. Tamarack deposit4. Shea Creek5. Cigar Lake Mine6. Midwest deposit7. Centennial deposit8. Christie Lake9. Millennium deposit10. Key Lake Mill11. Roughrider deposit and J-Zone12. Phoenix deposit13. Moore Lake deposit/showing14. Hidden Bay (Raven and Horseshoe)

GOLDOperating Mines1. Seabee Mine2. Santoy 8 Mine (+Santoy Gap)3. Roy Lloyd Mine (Bingo)

Locations Referenced in Text4. Goldfields (Box & Athona)5. Waddy Lake (Komis, EP, Golden Heart)6. Tower East, Memorial7. Jojay8. Jolu/Alimak zone/Decade9. Jasper10. Greywacke Lake11. North Lake/Preview Lake12. Porky Main/West, Neptune13. Munro Lake14. Amisk (Laurel Lake)

COPPER-ZINCLocations Referenced in Text1. McKenzie Lake project2. McIlvenna Bay3. Brabant Lake deposit

COPPER-NICKEL-PGMLocation Referenced in Text1. Swan Lake project

RARE EARTH OCCURRENCE1. Hoidas Lake2. Douglas River3. Beatty River4. Archie Lake

KIMBERLITE OCCURRENCE1. Fort à la Corne kimberlite cluster2. Star-Orion South project

POTASH AND SALTOperating Mines1. Vanscoy potash mine2. Cory Division potash mine 3. Patience Lake Division potash solution mine4. Allan Division potash mine5. Colonsay potash mine6. Lanigan Division potash mine7. Esterhazy K-1 and K-2 potash mines8. Rocanville Division potash mine9. Belle Plaine potash solution mine and fine salt plant

Locations Referenced in Text10. Jansen project11. Burr project12. Regina project13. Legacy project14. Milestone project15. Wynyard project16. Melville project17. Hanley project18. Muskowekwan project19. Boulder project20. Young project

SODIUM SULPHATE AND POTASSIUM SULPHATEOperating Plants1. Chaplin Lake sodium sulphate plant 2. Big Quill Lake potassium sulphate plant

CLAY RESOURCESOperating Quarries1. Saskatoon clay quarry and plant2. Ravenscrag clay quarry3. Truax bentonite quarry

COAL Operating Mines1. Poplar River Mine2. Boundary Dam (Shand, Costello, and Utility) Mine3. Bienfait Mine

Locations Referenced in Text4. Border project Hudson Bay area coal projects

SILICA SANDOperating Mine1. Hanson Lake silica sand quarry

KEY TO NUMBERED MINES AND DEPOSITS

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HUDSON BAY

HUMBOLDT

SANDYBAYPINEHOUSE

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LALOCHE

SOUTHEND

LARONGE

URANIUMCITY

KINDERSLEY

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