Uranium Exploration – 2006

Uranium exploration activity remains concentrated in areas favourable for the occurrence of deposits associated with Proterozoic unconformities, notably in the Athabasca Basin of Saskatchewan and the Thelon Basin of the Northwest Territories and Nunavut. In 2005, overall uranium exploration expenditures amounted to $99 million, compared to $44 million reported in 2004. Uranium exploration and surface development drilling in 2005 totaled 274 600 m, up significantly from the 119 000 m reported in 2004 and the 74 000 m reported in 2003.

Continuing uranium spot price increases since 2005 have sustained the surge in exploration activity across Canada, principally in the Athabasca Basin, Nunavut, and the Northwest Territories, but also in Quebec, Newfoundland and Labrador, Ontario, Manitoba, Alberta, and the Yukon. The strong market has also stimulated interest in re-examining deposits discovered in the late 1970s in British Columbia.

In 2004 and 2005, slightly less than one third of the overall exploration expenditures can be attributed to advanced underground exploration, deposit appraisal activities, and care-and-maintenance expenditures associated with those Saskatchewan projects awaiting production approvals. The Saskatchewan government estimates that “grassroots” uranium exploration in the province in 2005 amounted to $74.6 million, a significant increase from the $31.2 million spent in 2004 and the $13 million spent in 2003.

In recent years, due to rising uranium prices, the number of companies with major exploration programs in Canada has increased dramatically. Although major companies, such as Cameco and AREVA, account for the majority of exploration expenditures, more than 200 junior exploration companies are now active in uranium exploration.