Cameco, Orano take full ownership of Cigar Lake

The agreement with Tokyo Electric Power Company Holdings' subsidiary Tepco Resources Inc will see Cameco's ownership in the Cigar Lake uranium mine in northern Saskatchewan increase by 2.871 percentage points to 57.418%, while Orano's share will rise by 2.129 percentage points to 42.582%, giving the two companies 100% ownership of the project between them. Idemitsu Canada Resources Ltd previously owned a 7.875% stake, which Cameco and Orano agreed to purchase in 2022.

Cameco said the purchase cost to acquire its respective share of Tepco's interest in Cigar Lake was around CAD115.75 million (USD83.7 million), subject to customary closing adjustments. The acquisition is subject to regulatory approvals and other standard closing conditions, with the transaction expected to close in the third quarter of this year.

"Cigar Lake is among the world's best uranium mines, producing the highest-grade uranium ore from a safe, reliable, and cost-effective operation," said Cameco's CEO Tim Gitzel. "Increasing our ownership in this world-class, tier-one asset further demonstrates our commitment to our strategy, with scarce, licensed, permitted assets like Cigar Lake playing an essential role in fuelling global ambitions to expand nuclear energy generation."

Cigar Lake is described by operator Cameco as the world's highest grade uranium mine, with an average ore grade of 16.33% U3O8, but the orebody is in soft Athabasca sandstone, and ground conditions at the 480-metre-deep mine are challenging. Cameco developed an innovative jet-boring technique specifically for the project, freezing the ground and using a high-pressure water jet to mine out cavities in the frozen ore. The mixture of ore and water is then pumped to underground grinding and processing circuits. Thickened ore slurry is pumped to the surface and transported in tanker trucks 70 kilometres to the McClean Lake mill - operated by Orano - where it is processed into uranium concentrate.

Cigar Lake has estimated proven and probable reserves of 172.4 million pounds of U3O8 (66,313 tU), measured and indicated resources of around 26.3 million pounds, and inferred resources of 20.0 million pounds. (100% basis, as of December 31, 2025). Production began in 2014, and by the end of 2025, it had produced around 174.5 million packaged pounds (on a 100% basis).

Cameco's production outlook for the mine for 2026 is 17.5-18 million pounds U3O8 on a 100% basis, with the company planning to continue production and development activities in the area currently being mined, while continuing to advance development work related to Cigar Lake extension needed to extend the life of the mine to 2036. Planned capital projects related to the extension include construction of a freeze pad, freeze distribution, and underground infrastructure, Cameco said.