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February 17, 2012Amended May 2, 2012
ROSCOE POSTLE ASSOCIATES INC.
URANIUM ONE INC.
TECHNICAL REPORT ON THE
AKDALA URANIUM MINE,KAZAKHSTAN
NI 43-101 Report
Qualified Persons:Wayne W. Valliant, P.Geo.R. Dennis Bergen, P.Eng.
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Report Control Form
Document Title Technical Report on the Akdala Uranium Mine, Kazakhstan
Client Name & Address Uranium One Inc.Suite 1710, 333 Bay StreetBay Adelaide CentreToronto, OntarioM5H 2R2
Document Reference
Project #1744
Status &Issue No.
Final
Version
Rev 0
Issue Date February 17, 2012 Amended May 2, 2012
Lead Author Wayne Valliant, P.Geo.
R. Dennis Bergen, P.Eng.
(Signed)
(Signed)
Peer Reviewer Deborah A. McCombe (Signed)
Project Manager Approval Wayne W. Valliant (Signed)
Project Director Approval William E. Roscoe (Signed)
Report Distribution Name No. of Copies
Client
RPA Filing 1 (project box)
Roscoe Postle Assoc iates Inc.55 University Avenue, Suite 501
Toronto, Ontario M5J 2H7Canada
Tel: +1 416 947 0907Fax: +1 416 947 0395
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page i
TABLE OF CONTENTS
PAGE
1 SUMMARY ................................................................................................................1-1 Executive Summary ................................................................................................1-1
Technical Summary ................................................................................................1-3
2 INTRODUCTION .......................................................................................................2-1
3 RELIANCE ON OTHER EXPERTS ........................................................................... 3-1
4 PROPERTY DESCRIPTION AND LOCATION ..........................................................4-1
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE ANDPHYSIOGRAPHY ........................................................................................................5-1
6 HISTORY ..................................................................................................................6-1
7 GEOLOGICAL SETTING AND MINERALIZATION ................................................... 7-1
Regional Geology ...................................................................................................7-1
Property Geology....................................................................................................7-1
Local Geology ........................................................................................................7-2
Mineralization .........................................................................................................7-5
8 DEPOSIT TYPES ......................................................................................................8-1
9 EXPLORATION .........................................................................................................9-1
10 DRILLING .............................................................................................................. 10-1
11 SAMPLE PREPARATION, ANALYSES AND SECURITY ..................................... 11-1
12 DATA VERIFICATION ........................................................................................... 12-1
13 MINERAL PROCESSING AND METALLURGICAL TESTING ............................... 13-1
14 MINERAL RESOURCE ESTIMATE ....................................................................... 14-1
15 MINERAL RESERVE ESTIMATE .......................................................................... 15-1
16 MINING METHODS .............................................................................................. 16-1
17 RECOVERY METHODS ....................................................................................... 17-1
18 PROJECT INFRASTRUCTURE ............................................................................ 18-1
19 MARKET STUDIES AND CONTRACTS................................................................ 19-1
Markets ................................................................................................................19-1
Contracts ..............................................................................................................19-2
20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITYIMPACT ..................................................................................................................... 20-1
21 CAPITAL AND OPERATING COSTS .................................................................... 21-1
Capital Cost Estimate ........................................................................................... 21-1
Operating Costs ................................................................................................... 21-2
22 ECONOMIC ANALYSIS ........................................................................................ 22-1
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page ii
23 ADJACENT PROPERTIES ................................................................................... 23-1
24 OTHER RELEVANT DATA AND INFORMATION ................................................. 24-1
25 INTERPRETATION AND CONCLUSIONS ............................................................ 25-1
26 RECOMMENDATIONS ......................................................................................... 26-1
27 REFERENCES ...................................................................................................... 27-1
28 DATE AND SIGNATURE PAGE ............................................................................ 28-1
29 CERTIFICATE OF QUALIFIED PERSON ............................................................. 29-1
LIST OF TABLES
PAGE
Table 1-1 Mineral Resources - December 31, 2011 ................................................... 1-6
Table 1-3 Capital Expenditure Estimate ................................................................... 1-10 Table 1-4 LOM Operating Cost Estimate .................................................................. 1-10
Table 6-1 Production History ......................................................................................6-2
Table 13-1 Comparative Statistics Uranium One Mines in Kazakhstan .................... 13-2
Table 14-1 Mineral Resources - December 31, 2011 ............................................... 14-2
Table 14-2 CIS Classification of Mineral Resources ................................................. 14-3
Table 14-3 Blizhniy Measured Mineral Resources - December 31, 2011 .................. 14-8
Table 15-1 Mineral Reserves – December 31, 2011 ................................................. 15-1
Table 15-2 Breakeven Cut-off Grade ........................................................................ 15-2
Table 15-3 Incremental Cut-off Grade Estimate ....................................................... 15-3
Table 15-4 Technological Well Extraction ................................................................. 15-5
Table 15-5 Blizhniy Reserve Estimation ................................................................... 15-6
Table 15-6 Letniy Reserve Estimate ......................................................................... 15-7 Table 15-7 Comparison to Previous Estimate ........................................................... 15-7
Table 16-1 Productive Solution Grades .................................................................... 16-6
Table 16-2 Life of Mine Production Plan ................................................................... 16-7
Table 21-1 Capital Expenditure Estimate ................................................................. 21-1
Table 21-2 September 2012 Operating Cost versus Budget ..................................... 21-2
Table 21-3 LOM Operating Cost Estimate ................................................................ 21-3
Table 21-4 2012 Manpower ...................................................................................... 21-4
LIST OF FIGURES
PAGE
Figure 4-1 General Location of South Kazakhstan Uranium Deposits ........................ 4-4
Figure 4-2 Akdala Licence Location ........................................................................... 4-5
Figure 7-1 Regional Geology ...................................................................................... 7-3
Figure 7-2 Regional Cross Section A-B ......................................................................7-4
Figure 7-3 Akdala Plan Map ....................................................................................... 7-6
Figure 7-4 Deposit #1 Section Looking West .............................................................. 7-7
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page iii
Figure 13-1 Process Flow Sheet .............................................................................. 13-3
Figure 16-1 General Layout – Blizhniy Area Resource/Reserve Blocks .................... 16-3
Figure 16-2 Typical Wellfield Layout ......................................................................... 16-4
Figure 16-3 Typical Well Cross Section .................................................................... 16-5
Figure 16-4 2011 Productive Solution Grade ............................................................ 16-6
Figure 17-1 Akdala Extraction Versus Months Leaching........................................... 17-2
Figure 17-2 Akdala Extraction Versus Liquid:Solid Ratio .......................................... 17-2
Figure 18-1 UxC U3O8 Historical Uranium Prices ...................................................... 19-2
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-1
1 SUMMARY
EXECUTIVE SUMMARY
Roscoe Postle Associates Inc. (RPA) was retained by Uranium One Inc. (Uranium One),
to prepare an independent Technical Report on the Akdala Uranium Mine (the Mine),
Kazakhstan. The purpose of this report is to provide an updated estimate of the Mineral
Resources and Mineral Reserves at the Mine and support the public disclosure of
information related to the Mine. This Technical Report conforms to NI 43-101 Standards
of Disclosure for Mineral Projects (NI 43-101). RPA carried out a site visit on October
17, 2011. This Technical Report was amended on May 2, 2012, to reflect a slight
modification in the mineral extraction tax (MET) estimate, however, this has no impact on
the Mineral Reserve estimate.
Uranium One is a Canadian based uranium producing company with a principal listing
on the Toronto Stock Exchange (TSX:UUU) and a secondary listing on the
Johannesburg Stock Exchange (JSE:UUU). The company has producing operations
and/or advanced exploration projects in Kazakhstan, USA, and Australia and is the
operator of a uranium project in Tanzania.
The Mine is an in-situ recovery (ISR) project which includes wellfields, a pumping
station, and a processing plant. The final product produced at the Mine is uranium oxide
(U3O8). The Mine is owned and operated by the Betpak Dala Joint Venture LLP (Betpak
Dala), a joint venture between Uranium One (70%) and Kazakhstan National Atomic
Company (Kazatomprom) (30%).
The Akdala Mine comprises:
• An ISR operation producing uranium yellowcake from production wells pumpingleach solutions from wellfields.
• A processing plant with a design capacity to produce nominally 1,000 tonnes Uper annum.
• Infrastructure including office buildings, warehouse, and materials storage areas.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-2
CONCLUSIONS
Based on the site visit, review of the available data, and field observations, RPA
concludes that:
• The uranium mineralization is a sandstone-hosted, roll front type deposit.
• The December 31, 2011 Mineral Resources are estimated to be:
o Measured and Indicated Mineral Resources of 33.9 million tonnes grading0.010% U (0.012% U3O8) containing approximately 3,381 t U (8.8 M lbU3O8).
o Inferred Mineral Resources of 9.7 million tonnes grading 0.062% U(0.073% U3O8) containing approximately 6,015 t U (15.6 M lb U3O8).
• The December 31, 2011 Mineral Reserves as estimated by RPA consist of 28.6million tonnes of Proven Mineral Reserves grading 0.009% U (0.011% U3O8) and
containing 2,690 t of extractable U (6.99 M lb U3O8) and 1.3 million tonnes ofProbable Mineral Reserves grading 0.028% U (0.033% U3O8) and containing 360t of extractable U (0.94 M lb U3O8).
• The extraction of the Mineral Reserves is estimated to be 90%.
• The Akdala deposit is being successfully exploited using ISR techniques.
• The production to date is from the Blizhniy deposit while future production isexpected to include production from the Letniy deposit as well.
• There has not been a project to date reconciliation between the production and
the original Mineral Reserve estimate for the producing areas.
• The estimated operating cost for the Akdala Mine is US$20.66 per pound U3O8 sold.
• The Life of Mine (LOM) plan includes the extraction of 3,050 tonnes U from theestimated Mineral Reserves. The remaining mine life as of December 31, 2011,and based on current Mineral Reserves, is 3.5 years.
• The maximum annual production is estimated to be 1,000 tonnes U.
• The capital cost for the LOM is US$48.7 million including plant construction,
production and exploration drilling, sustaining capital and contingency.
RECOMMENDATIONS
Based on the site visit and review of technical data, RPA recommends that Uranium
One:
• Continue production at the Blizhniy deposit, development of the Letniy depositand exploration to upgrade Inferred Resources.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-3
• Pursue the implementation of reconciliation procedures that are maintained on aregular basis and include block by block reconciliation of the productioncompared to the Mineral Reserve estimate.
• Direct more effort to the analysis of the physical and chemical data related to thewellfields, process solutions and plant operations to assist in the evaluation of the
operations and to possibly determine the cause of better or worse than plannedoperating results.
• Consider and implement procedures to obtain all of the exploration andtechnological estimation data on a timely basis and complete Mineral Resourceand Mineral Reserve estimates independently of the joint venture for reporting asa Canadian issuer.
ECONOMIC ANALYSIS
Under NI 43-101 and Form 43-101F1, producing issuers may exclude the information
required for Section 22 (Economic Analysis) for properties that are currently inproduction, unless the Technical Report includes a material expansion of current
production. RPA notes that Uranium One is a producing issuer, the Akdala Mine is
currently in production, and a material expansion is not being planned. RPA has
performed an economic analysis of the Akdala Mine as part of its estimate of Mineral
Reserves using the estimates presented in this report and concluded that the outcome is
a positive cash flow.
TECHNICAL SUMMARY
PROPERTY DESCRIPTION AND LOCATION
The Akdala deposit is located in the Suzak region of the South Kazakhstan Oblast, in the
Republic of Kazakhstan, approximately 240 km in a direct line north of Shymkent,
Kazakhstan. The property is accessible by a 240 km paved road, which runs northeast
from Suzak, and by a 470 km road, some of which is unimproved, from Shymkent The
closest airports with scheduled local service are at Shymkent and Kyzylorda.
The property comprises three non-contiguous adjacent blocks, totalling 31.54 km2 and
centred about Longitude 68o37’E and Latitude 45o30’N. The Blizhniy deposit is being
mined and is adjacent to the plant, the Letniy deposit, planned for mining in 2012, is
some 30 km from the plant, and the Don deposit is an exploration target.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-4
LAND TENURE
The property is held under a Subsoil Use Contract granted by the Republic of
Kazakhstan dated March 28, 2001, as subsequently amended, which authorizes
exploration and production on the Akdala deposit (the Akdala Contract). The Akdala
Contract is valid for a period of 25 years and may be renewed by the mutual agreementof the parties if all conditions of the contract have been met.
EXISTING INFRASTRUCTURE
There are power lines to the sites and access roads to major centres. On site, there are
office buildings, solution ponds, wellfields, pump houses, and service areas, all part of
the ISR operation.
HISTORY
Drilling in the region began in 1961 and resulted in the discovery of a few small deposits
in 1963. The Akdala deposit was discovered in 1982. By 1999, the Akdala deposit was
considered a separate entity and detailed drilling was carried out between 2001 and
2003. Kazatomprom entered into a Subsoil Use Agreement with the Ministry of
Environment and Mineral Resources of Kazakhstan (MEMR), which authorized
Kazatomprom to carry out exploration and production on the Akdala deposit.
The contract was amended on June 7, 2004, to change the holder of the mineral rights
from Kazatomprom to Betpak Dala. On November 7, 2005, UrAsia Energy (BVI) Ltd.
(UrAsia) acquired a 70% interest in Betpak Dala. On April 20, 2007, Uranium One
acquired 100% of UrAsia’s parent corporation, thereby acquiring a 70% interest in
Akdala.
The Mine commenced official production in January 2004 and has produced 8,025
tonnes uranium from the start of extraction to September 30, 2011.
GEOLOGY AND MINERALIZATION
The Mine is located in the Chu-Sarysu depression, which represents a large Cretaceous
age basin up to 250 km wide and which extends northward for more than 1,000 km from
the foothills of the Tien Shan Mountains.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-5
The mineralized horizons extend for over 45 km along strike. As the mineralized
horizons occur as sinuous structures, the lineal length is much greater. The three
Akdala deposits cover a minimum strike length of approximately 25 km and are underlain
by Cretaceous to Cenozoic sediments, predominately sands, with occasional pebble and
gravel layers, clay and loamy soils up to 190 m thick. The sediments are gently dippingto the southeast. The various plans and sections observed by RPA do not indicate the
presence of any significant faulting.
Mineralization on the Akdala licence occurs at depths varying between 136 m and 190 m
over a distance of 25 km. The Jalpak horizon hosts the two main deposits, Blizhniy and
Letniy, that contain the majority of the Mineral Resources and Mineral Reserves. Other
mineralized bodies include those hosted in the finer grained Intymak horizon at a depth
of 70 m to 90 m containing approximately 10% of the Inferred Resources. Mineralization
has also been intersected in wide-spaced drilling on the Mynkuduk horizon in three
areas at a depth of about 220 m.
Roll fronts are continuous along strike and have widths from 30 m to 60 m. Thickness
varies between 0.5 m and 12 m at the thickest part of the roll front, averaging seven
metres. The principal ore minerals are pitchblende (36%) and coffinite (64%), often
accompanied by selenium, rhenium, yttrium, molybdenum, arsenic, and phosphorus.
EXPLORATION STATUS
All of the exploration on the site was completed prior to the acquisition of the interest in
the Mine by UrAsia and Uranium One. There has been technological drilling for the
wellfields.
MINERAL RESOURCES
Mineral resources at Akdala were originally estimated by Volkov Geological and Mining
Company (Volkovgeologia), the exploration arm of Kazatomprom, effective 2001, using
the system developed for Mongolia and the CIS countries. In 2006, Scott Wilson
Roscoe Postle Associates Inc. (Scott Wilson RPA), a predecessor company to RPA,
reviewed the parameters and methodology for mineral resources and, based on the data
density, demonstrated continuity of the mineralization, and established high
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-6
recoverability of U from the mineralization, converted the C1 and C2 category resources
to Indicated Mineral Resources and Inferred Mineral Resources, respectively.
Since that time, no further exploration drilling has been undertaken within the Indicated
Mineral Resource blocks. The Indicated Mineral Resource blocks in the Blizhniy deposithave subsequently been adjusted based on production drilling and depletion and have
been upgraded to Measured Mineral Resources. The Indicated and Inferred Mineral
Resource estimates are based on exploration drilling and remain unchanged since the
Scott Wilson RPA 2010 Technical Report.
A summary Mineral Resources estimate, effective December 31, 2011, is presented in
Table 1-1.
TABLE 1-1 MINERAL RESOURCES - DECEMBER 31, 2011
Uranium One Inc. - Akdala Uranium Mine
Classification Tonnes Grade Contained U Grade Contained U3O8 (000 t) (% U) (tonnes) (% U3O8) (000 lb)
Measured 33,230 0.009 2,982 0.011 7,753
Indicated 628 0.064 399 0.075 1,037
Meas + Indicated 33,858 0.010 3,381 0.012 8,791
Inferred 9,683 0.062 6,015 0.073 15,639
Notes:1. Mineral Resources are based on CIM definitions.2. Mineral Resources based on 0.04 m% (grade x thickness) cut-off per hole and 0.10 m% per
resource block.3. Indicated Mineral Resources include 100% of C1 CIS category resources.4. Inferred Mineral Resources include 100% of C2 CIS category resources.5. Bulk density is 1.7 t/m
3.
6. Mineral Resources are inclusive of Mineral Reserves.7. Columns and rows may not add due to rounding.8. Measured Mineral Resources based on production drilling.9. Indicated and Inferred Mineral Resources based on exploration drilling.10. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
In RPA’s opinion, the classification of Mineral Resources as reported in Table 1-1 is
consistent with CIM definitions.
MINERAL RESERVES
Proven Mineral Reserve estimates are based upon the ore developed for extraction and
Probable Mineral Reserve estimates are based upon the conversion of the remaining
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-7
Measured and Indicated Mineral Resources. The Mineral Reserve estimates include
dilution and an estimate of the uranium extraction. The estimates are based upon
production to September 30, 2011 plus an estimate of the fourth quarter 2011
production. The Mineral Reserves are for the 100% joint venture interest and do not
represent the reserves attributable to the individual Betpak Dala partners. The estimatedMineral Reserves are shown in Table 1-2. The Qualified Person for this Mineral Reserve
estimate is R. Dennis Bergen, P.Eng.
The low grades, especially of the Proven Mineral Reserves, reflect the deduction of
uranium extracted to date. The Proven Mineral Reserves are in the Blizhniy deposit,
while the Probable Mineral Reserves are in the Letniy deposit.
TABLE 1-2 MINERAL RESERVES – DECEMBER 31, 2011Uranium One Inc. – Akdala Uranium Mine
CategoryTonnes
(000)Grade(% U)
Recoverable U(tonnes)
Grade(% U3O8)
Recoverable U3O8 (M lb)
Proven 28,600 0.009 2,690 0.011 6.99
Probable 1,300 0.028 360 0.033 0.94
Prov en & Probable 29,900 0.010 3,050 0.012 7.93
Notes:1. CIM definitions were followed for Mineral Reserves.2. Mineral Reserves are estimated at a cut-off grade of 0.01% U.
3. Mineral Reserves are estimated using an average long-term uranium price of US$65 per poundU3O8.4. A minimum mining thickness of four metres was used.5. Bulk density is 1.7 t/m
3
6. Mineral Reserves assume 90% extraction of Mineral Resources.7. Numbers may not add due to rounding.8. Uranium quantities and grade are net of extraction.
MINING METHOD
Operations at the Mine include the wellfield operations and the process plant. The
Blizhniy deposit is located adjacent to the processing plant and is the sole producing
deposit. The Letniy deposit is located approximately 30 km from the plant site and is
scheduled to commence extraction of uranium in 2012.
The uranium ISR operation uses a sulphuric acid leach. Sulphuric acid leaching solution
is pumped into the mineralized zone through a network of injection wells (boreholes) and
extracted by production wells. The wells are typically 200 mm in diameter in the upper
portions reducing to 100 mm lower in the hole. At the Mine, the wells are approximately
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-8
200 m deep and are generally placed in a hexagonal pattern with a 40 m radius or in line
patterns with wells 25 to 40 m apart on lines that are 25 to 50 m apart.
As of September 30, 2011, the wellfield had 1,346 wells in total (398 production and 948
injection), with 958 wells in operation (242 production wells and 716 injection wells).Production solutions are mainly pumped to surface using submersible pumps. The
average grade of the production solution was 79.7 mg/L U for September 2011 and
105.1 mg/L U for the project to date. Acid consumption for the project to date has
averaged 10.5 kg acid per kilogram of uranium for acidification and 13.1 kg acid per
kilogram of uranium for leaching.
The Akdala LOM plan is based on an estimated 90% extraction of in-situ uranium
resources being recovered in solution and delivered to the processing plant. Production
experience to date indicates that this rate of extraction may in fact be conservative
relative to the estimated Mineral Reserves. A number of production blocks have shown
well above 100% extraction of the estimated Mineral Resource. Other blocks have not
yet achieved the 90% target; however, they remain under leach so indications are that
on average the 90% level is likely to be exceeded. RPA is of the opinion that these
results are indicative of conservative estimation methodology.
As of September 30, 2011, the process plant was operating at a rate of 1,700 m3/h using
a resin for the recovery of uranium, producing a yellowcake precipitate which is shipped
off site for further processing.
MINERAL PROCESSING
Uranium rich solutions (pregnant solutions) are pumped from the wellfields and delivered
via a series of pipelines into the pregnant solution pond. Pregnant solution is recovered
from the pregnant solution pond via pumps located adjacent to the processing plant
facilities. Within the processing facility, the pregnant solution is passed through ionexchange columns loaded with a uranium-selective resin. The resin is loaded with
uranium within these column reactors and the barren solution is sent for re-injection at
the wellfield.
The uranium-bearing resin is transferred from the column reactors and the resin is
stripped of uranium using an ammonium nitrate solution. The strip solution is transferred
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-9
to a precipitation vessel where hydrogen peroxide is used to precipitate the uranium out
of solution. The precipitate is dewatered using a belt filter producing a solid product
containing approximately 40% U and 12% moisture. This yellow cake material is the
final product generated at the Akdala operation.
Process recovery of the uranium delivered to the plant in solution is forecast to average
approximately 97.5%. Current operating experience indicates that this performance
level is achievable.
PROJECT INFRASTRUCTURE
The Mine has a number of support facilities including:
• Connection to the electrical grid.
• Hot water heaters for plant heat supply.
• Shops and supplies storage area.
• Acid storage tanks.
• Offices, change rooms, and dining room.
• Fenced plant area with security at the gate.
ENVIRONMENTAL
Current Kazakhstan regulations regarding development are being followed. For this
operation, the environmental issues relative to start-up can be expected to be minimized.
In view of the depth of the zones being mined and the relative isolation of the aquifer,
there is no aquifer remediation planned as part of the Mine closure. The surface
disturbances will be reclaimed and process facilities will be removed.
The environmental risk is currently perceived to be low.
As of December 31, 2011, the Uranium One portion of the asset retirement obligations
(on an undiscounted basis) has been estimated at US$4.0 million for the successful
decommissioning, reclamation and long term care of the surface and well field facilities.
The total asset retirement obligation is then estimated to be US$5.7 million.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 1-10
CAPITAL COST ESTIMATE
The capital expenditures are estimated to be US$49 million over the LOM and are
summarized in Table 1-3.
TABLE 1-3 CAPITAL EXPENDITURE ESTIMATEUranium One Inc. – Akdala Uranium Mine
2012 2013 2014 2015 Total
US$ (M) US$ (M) US$ (M) US$ (M) US$ (M)
Wellfield Development 9.14 6.76 3.00 18.91
Exploration drilling 1.22 1.51 1.62 1.66 6.01
Expansion/Upgrade 15.87 0.89 0.92 - 17.68
Sustaining Capital 1.04 4.45 5.49
Social Sphere Spending 0.56 - - - 0.56
Total 27.84 13.62 5.53 1.66 48.65
OPERATING COSTS
The LOM estimated operating costs are summarized in Table 1-4.
TABLE 1-4 LOM OPERATING COST ESTIMATEUranium One Inc. – Akdala Uranium Mine
2012 2013 2014 2015 Total
US$ (M) US$ (M) US$ (M) US$ (M) US$ (M)
Mining 13.62 14.40 15.45 3.90 47.38
Processing 6.04 6.26 6.70 1.68 20.68 Auxiliary 5.53 6.10 6.33 1.58 19.53
Administration 2.36 2.53 2.71 0.68 8.27
Contract Processing Services 4.17 4.46 4.78 1.19 14.61
Betpak Office Allocation 2.98 3.27 3.48 0.87 10.60
Selling expenses 3.07 2.89 2.93 3.00 11.89
Subtotal 37.77 39.91 42.37 12.90 132.96
Social Cost 0.16 0.16 0.16 0.16 0.64
Training 0.38 0.40 0.42 0.13 1.33
Reclamation 0.38 0.40 0.42 0.13 1.33
Subtotal other costs 0.92 0.96 1.01 0.42 3.30
Total operating costs 38.69 40.87 43.38 13.32 136.26
MET 6.27 6.58 6.58 1.74 21.17
Total operating costs 44.96 47.45 49.96 15.06 157.43
Cost per lb U Sold 21.24 22.41 29.50 28.45 24.38
Cost per kg U Sold 46.82 49.40 65.03 62.72 53.75
Cost per lb U3O8 Sold 18.00 18.99 25.00 24.11 20.66
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 2-1
2 INTRODUCTION
Roscoe Postle Associates Inc. (RPA) was retained by Uranium One Inc. (Uranium One),
to prepare an independent Technical Report on the Akdala Uranium Mine (the Mine),Kazakhstan. The purpose of this report is to provide an updated estimate of the Mineral
Resources and Mineral Reserves at the Mine and support the public disclosure of
information related to the Mine by Uranium One. This Technical Report conforms to
National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
This Technical Report was amended on May 2, 2012, to reflect a slight modification in
the mineral extraction tax (MET) estimate, however, this has no impact on the Mineral
Reserve estimate.
Uranium One is a Canadian based uranium producing company with a principal listing
on the Toronto Stock Exchange (TSX:UUU) and a secondary listing on the
Johannesburg Stock Exchange (JSE:UUU). The company has producing operations
and/or advanced exploration projects in Kazakhstan, USA, and Australia and is the
operator of a uranium project in Tanzania.
The Mine is an in-situ recovery (ISR) project which includes wellfields, a pumping
station, and a processing plant. The final product produced at the Mine is uranium oxide
(U3O8). The Mine is owned and operated by the Betpak Dala Joint Venture (Betpak
Dala), a joint venture between Uranium One and Kazakhstan National Atomic Company
(Kazatomprom), on a 70-30 basis respectively.
RPA prepared a report for UrAsia Energy (BVI) Ltd. entitled “Technical Report on the
Akdala Uranium Mine, Kazakhstan”, dated October 3, 2005, and updated March 21,
2006, as well a previous report for Uranium One Inc. entitled “Technical Report on the
Akdala Uranium Mine, Kazakhstan”, dated May 27, 2010 .
SOURCES OF INFORMATION
A site visit was carried out on October 17, 2011, by Mr. Wayne W. Valliant, P.Geo.,
Principal Geologist, RPA, and Mr. R. Dennis Bergen, P.Eng., Associate Principal Mining
Engineer, RPA.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 2-2
Discussions were held with personnel from Uranium One and the Akdala Mine:
• Mr. Thys Heyns, Senior Vice President, New Business and TechnicalServices, Uranium One
• Mr. Jan Fajgl, Manager Technical, Uranium One, Kazakhstan• Mr. Kanat Duisemuratov, Mine Manager, Akdala Mine• Mr. Mokhoten, Chief Geologist, Akdala Mine
Mr. Valliant prepared sections 2 through 14 and 23 and with Mr. Bergen contributed to
sections 1, 25, 26, and 27. Mr. Bergen prepared sections 13, 15 through 22 and 24 and
with Mr. Valliant contributed to sections 1, 25, 26, and 27.
The documentation reviewed, and other sources of information, are listed at the end of
this report in Section 27 References.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 2-3
LIST OF ABBREVIATIONS
Units of measurement used in this report conform to the Imperial system. All currency in
this report is US dollars (US$) unless otherwise noted.
µ micron km square kilometre
°C degree Celsius kPa kilopascal°F degree Fahrenheit kVA kilovolt-amperesµg microgram kW kilowatt
A ampere kWh kilowatt-houra annum L litrebbl barrels L/s litres per secondBtu British thermal units lb poundC$ Canadian dollars m metrecal calorie M mega (million)cfm cubic feet per minute m
2 square metre
cm centimetre m3 cubic metre
cm square centimetre min minuted day m /h cubic metres per hour
dia. diameter MASL metres above sea leveldmt dry metric tonne mm millimetredwt dead-weight ton mph miles per hourft foot MVA megavolt-amperesft/s foot per second MW megawattft square foot MWh megawatt-hourft cubic foot opt, oz/st ounce per short tong gram oz Troy ounce (31.1035g)G giga (billion) ppm part per millionGal Imperial gallon psia pound per square inch absoluteg/L gram per litre psig pound per square inch gaugeg/t gram per tonne RL relative elevationgpm Imperial gallons per minute s second
gr/ft
3
grain per cubic foot st short tongr/m3 grain per cubic metre stpa short ton per year
hr hour stpd short ton per dayha hectare t metric tonnehp horsepower tpa metric tonne per yearin inch tpd metric tonne per dayin square inch US$ United States dollarJ joule USg United States gallonk kilo (thousand) USgpm US gallon per minutekcal kilocalorie V voltkg kilogram W wattkm kilometre wmt wet metric tonnekm/h kilometre per hour yd cubic yard
yr year
Contained uranium is expressed as pounds of U3O8 or tonnes of U and grades are
expressed as %U or % U3O8. The conversion factor to convert tonnes of U to pounds of
U3O8 is 2,599.78. The conversion factor to convert %U to %U3O8 is to multiply %U by
1.179.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 3-1
3 RELIANCE ON OTHER EXPERTS
This report has been prepared by RPA for Uranium One. The information, conclusions,
opinions, and estimates contained herein are based on:
• Information available to RPA at the time of preparation of this report;
• Assumptions, conditions, and qualifications as set forth in this report; and
• Data, reports, and other information supplied by Uranium One and other thirdparty sources.
For the purpose of this report, RPA has relied on ownership information provided by
Uranium One. RPA has not researched property title or mineral rights for the Mine and
expresses no opinion as to the ownership status of the property.
RPA has relied on Uranium One for guidance on applicable taxes, royalties, and other
government levies or interests, applicable to revenue or income from the Mine.
Except for the purposes legislated under provincial securities laws, any use of this report
by any third party is at that party’s sole risk.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 4-1
4 PROPERTY DESCRIPTION AND LOCATION
The Akdala deposit is located in the Suzak region of the South Kazakhstan Oblast,
approximately 240 km in a direct line north of Shymkent, Kazakhstan. The propertycomprises three non-contiguous adjacent blocks, totalling 31.54 km2 and centred about
Longitude 68o37’E and Latitude 45o30’N. The Subsoil Use Contract gives Betpak Dala
the right to mine the deposits to a depth of 220 m and was granted under the
Kazakhstan Republic Mining Law #2828, January 27, 1996.
The MEMR was dissolved in March 2010 and its responsibilities with respect to all
matters relating to power generation, mining, and the nuclear industry were transferred
to a new body, the Ministry of Industry and New Technologies (MINT). All references to
the MEMR in this report include the MINT for all matters from and after March 2010.
LAND TENURE
SUBSOIL USE CONTRACT
In Kazakhstan, the grant of rights for the exploration and exploitation of mineral
resources and reserves takes the form of a Subsoil Use Contract. This contract is
negotiated between the Government of Kazakhstan and the operator. The Subsoil Use
Contract defines the area to which the rights apply and defines a work program for theexploration and development of the property including an approved production schedule.
The contract can be amended by the parties.
Kazatomprom, the Kazakh state-owned uranium mining company entered into a contract
with the MEMR of the Republic of Kazakhstan dated March 28, 2001, which authorized
Kazatomprom to carry out exploration and production on the Akdala deposit (the Akdala
Contract). The Akdala Contract is valid for a period of 25 years and may be renewed by
the mutual agreement of the parties if all conditions of the contract have been met. The Akdala Contract was amended on June 7, 2004, to change the holder of mining rights
under the contract from Kazatomprom to Betpak Dala. Betpak Dala is a joint venture
between Uranium One and Kazatomprom on a 70%-30% basis respectively. The
Akdala Contract was further amended on April 25, 2005 and December 29, 2006, with
minor changes to applicable taxes, royalties, bonuses, and other expenses.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 4-2
The Subsoil Use Contract gives Betpak Dala the exclusive right to explore for uranium
at, and produce (mine) uranium from, the Akdala Mine for the periods indicated, and to
own the uranium so produced. Under the Subsoil Use Contract, Betpak Dala is required
to comply with a detailed exploration and production work program on an annual basis.
The term of the Subsoil Use Contract may be extended by the mutual agreement of the
parties, and upon such renewal, the terms and conditions of the agreement may be
changed by written agreement between the parties. The Subsoil Use Contract may not
be assigned, nor may the subsoil use rights be pledged or otherwise encumbered
without the prior consent of the Government of Kazakhstan.
The Subsoil Use Contract may be unilaterally terminated by the MEMR if Betpak Dala
defaults on any terms of the contract more than twice and fails to cure such defaults
within the period set by the MEMR. In addition, the Subsoil Use Contract can be
terminated for such things as a breach by the subsoil user of the government’s pre-
emptive right or the failure of the subsoil user to obtain consent from the MEMR for the
disposal of subsoil use rights and associated rights.
The Subsoil Use Contract may also be amended and/or terminated unilaterally by the
MEMR if any actions of the subsoil user may result in a material negative impact on
Kazakhstan’s economic interests and/or potentially constitute a threat to national
security.
The Government of Kazakhstan possesses certain statutory pre-emptive rights to (i) to
purchase and requisition uranium from subsoil users, including Betpak Dala, at prices
not exceeding world market prices, (ii) to purchase subsoil use rights or equity interests
in entities holding such rights if the same are put up for sale, and (iii) to terminate, in
certain circumstances, the Subsoil Use Contract.
The Subsoil Use Contract provides that, to the extent that there are any disputes thatcannot be resolved through negotiations between Betpak Dala and the Government of
Kazakhstan, such disputes are to be submitted to the courts of Kazakhstan rather than
to an independent international arbitration body.
The following is a summary of the other principal terms of the current Akdala Subsoil
Use Contract translated from the Russian text and is not meant to be exhaustive:
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 4-3
1. All assets including the raw materials processed at the site are the property of theContractor (Betpak Dala).
2. The Contractor has the right to “use at its discretion the results of its operations,including produced uranium”.
3. The Government of Kazakhstan has the right in the case of emergencies torequisition all or part of the minerals produced by the Contractor at the Mine.
4. The Government of Kazakhstan has a pre-emptive right to purchase up to 10% ofthe annual output of uranium at prices not exceeding world market rates.
5. The Contractor is obligated to use local goods, services and employees providedthat such services are competitive and at comparable quality.
6. The Contractor must allocate no less that 0.05% of operating costs to trainKazakh personnel and provide at least US$50,000 per year to maintain the socialsector of the local village.
7. In the initial five years of the contract, the Contractor is to carry out an explorationprogram, including a full scale pilot plant test. This requirement has been met,and the property is in production.
8. A payment to the Kazakhstan government of US$1,493,919 is required to be paidin 40 instalments on a quarterly basis commencing January 1, 2008, and endingDecember 31, 2017 as a reimbursement for historic costs.
In addition to applicable taxes and various user fees, the Contractor shall pay a
Commercial Discovery Bonus upon a discovery or increase in the initial reserves within
the Contract Area at the rate of 0.05% of the approved recoverable reserves value.
The Akdala Subsoil Use Contract contains various social obligations for the benefit of
Betpak Dala employees. These social obligations include investing at least 0.05% of
Betpak Dala’s operating expenses per annum in training programs for its Kazakh
employees. In addition, Betpak Dala has undertaken to purchase goods and services
from Kazakh businesses to service the Akdala Mine whenever possible provided that
such goods and services are competitive with those that are available outside
Kazakhstan and are of at least comparable quality. Currently most services are suppliednot by Kazatomprom itself, but by its affiliates. The Akdala Contract does not provide for
specific thresholds as to procurement from Kazakh businesses.
RPA is of the opinion that the contract provides sufficient surface rights for the planned
operations.
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February 2012 Source: UrAsia, 2005
N
General Location of SouthKazakhstan Uranium Deposits
Uranium One Inc.
Akdala Uranium MineKazakhstan
Figure 4-1
4-4
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AKDALA
UVANAS
45°N
67°E68°E
Roll Front Deposits
MYNKUDUK
BUDENOVSKOYE
SHOLAK - ESPE
INKAI
0 10 40
Kilometres
20 30
N
February 2012 Source: UrAsia, 2005.
Akda
U
Ak
4 -
5
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 5-1
5 ACCESSIBILITY, CLIMATE, LOCALRESOURCES, INFRASTRUCTURE ANDPHYSIOGRAPHY
ACCESSIBILITY
The property is accessible by a 240 km paved road, which runs northeast from Suzak,
and by a 470 km road, some of which is unimproved, from Shymkent (see Figure 4-1).
The railway passes through Suzak. The closest airports with scheduled local service are
at Shymkent and at Kyzylorda, which is approximately 350 km to the southwest.
CLIMATE
The climate is continental, with annual precipitation from 130 mm to 170 mm, occurring
mostly in winter and spring. There are extreme temperature fluctuations, both daily and
annually, reaching from -40oC in January to 40oC in July. The climate does not unduly
affect production, although during extreme cold, if the solutions are not continually
pumped, there is the potential to freeze solution in the pipes and a loss of production
may occur until the solution can be thawed.
LOCAL RESOURCESThe local resources are limited in the area of the Mine. The area is predominantly desert
terrain and has limited agriculture use. Local communities exist although they are
sparsely populated and with limited access to resources or infrastructure.
INFRASTRUCTURE
The Stepnoye Mining Company town site, Kyzymshek, 45 km south of the Mine,
provides housing for the workers and their families for all the nearby mining activities.
A 35 kV power line is connected to the site. Both mill and potable water is obtained from
the local aquifers.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 5-2
On site are several office buildings, a cafeteria, a work shop, and a processing plant with
associated pregnant and barren solution ponds, wellfields, and pump houses connected
with the ISR operation.
PHYSIOGRAPHYThe property is located in the Betpak-Dala desert plateau with elevations of 245 MASL
to 265 MASL. The ground consists of extensive sand deposits. There are no significant
rivers in the area and vegetation is limited to grasses and occasional low bushes.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 6-1
6 HISTORY
EXPLORATION HISTORY
In 1956, geologists studying uranium deposits in Uzbekistan established a model basedon the spatial relation of uranium mineralization to the boundaries between yellow
oxidized sands and unoxidized grey sands, which is now the established model of roll
front type uranium deposits.
In the late 1950s, exploration commenced in the Chu-Sarysu basin based on the
presence of young uplifted mountains adjacent to the basin. Initial reconnaissance
drilling was carried out at a line spacing of 25.6 km, often reduced to 12.8 km and 6.4 km
depending on the results of reconnaissance work. A line spacing of 3.2 km to 1.6 kmwas used to increase the possibility of discovering a deposit once the roll front had been
identified. Spacing of the drill holes was reduced as discoveries were made, with
resource estimation requiring a line spacing of 400 m to 800 m with holes 50 m to 200 m
apart.
Drilling in the region began in 1961 and resulted in the discovery of a few small deposits,
and in 1963, Uvanas was discovered. The Mynkuduk deposit, which extends over a 65
km length, was explored between 1975 and 1989. The Inkai deposit, which covers an
area of 55 km in length and up to 17 km in width, was explored between 1976 and 1991.
Uranium was initially discovered at Akdala in 1982 as part of the Mynkuduk deposit,
which was actively explored during the period 1982 to 1987. The Akdala deposit was
considered a separate entity by 1999, and detailed drilling was carried out between 2001
and 2003. The results of the exploration program were used to estimate the Mineral
Resources and Mineral Reserves in this report. Exploration work included the
establishment of a pilot ISR extraction and processing facility.
OWNERSHIP HISTORY
Kazatomprom entered into a Subsoil Use Contract with the MEMR dated March 28,
2001, which authorized Kazatomprom to carry out exploration and production on the
Akdala deposit. The contract was amended on June 7, 2004, to change the holder of
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 6-2
the mining rights from Kazatomprom to Betpak Dala, and the Subsoil Use Contract was
assigned to Betpak Dala in September 2004.
On November 7, 2005, UrAsia acquired a 70% interest in Betpak Dala. The remaining
30% interest in Betpak Dala is owned by Kazatomprom.
On April 20, 2007, Uranium One acquired 100% of the issued and outstanding shares of
UrAsia’s parent company, thereby acquiring an indirect 70% interest in Akdala.
PRODUCTION HISTORY
The Mine commenced official production in January 2004 and has produced 20.9 million
lb U3O8 (8,025 t U) from January 2004 to September 31, 2011. The production history is
summarized in Table 6-1.
TABLE 6-1 PRODUCTION HISTORY
Uranium One Inc. - Akdala Uranium Mine
Year U3O8 Uranium
(000 lb) (t)
2001 194 74.6
2002 1,210 465.6
2003 740 284.6
2004 1,463 562.8
2005 1,906 733.1
2006 2,702 1,039.2
2007 2,610 1,003.9
2008 2,676 1,029.3
2009 2,701 1,038.8
2010 2,686 1,033
2011 Sep YTD 1,976 760.3
Total 20,864 8,025.2
Note: The estimates above represent uranium process plant production.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 7-1
7 GEOLOGICAL SETTING ANDMINERALIZATION
REGIONAL GEOLOGY
The Mine is located in the Chu-Sarysu depression (Figures 7-1 and 7-2), which
represents a large Cretaceous age basin up to 250 km wide and which extends
northward for more than 1,000 km from the foothills of the Tien Shan Mountains. The
basin is underlain by folded Proterozoic and Early Paleozoic formations which flank the
basin and are exposed at the southwest margin, where the Karatau Mountains separate
the Chu-Sarysu basin from the parallel Syrdarya basin. The platform sediments are
continental sediments up to 320 m thick and marine Paleogene sediments of up to 200
m that are overlain by red-coloured sandy-clay Oligocene to Quaternary sediments.
The basin is an asymmetric syncline with a broad gently sloping northeast limb and an
uplifted south limb which form the Karatau Mountains. The axis of the basin is parallel to
its southwest margin.
PROPERTY GEOLOGY
The mineralized horizons extend for over 45 km along strike. As the mineralized
horizons occur as sinuous structures, the lineal length is much greater. The three
Akdala deposits cover a minimum strike length of approximately 25 km and are underlain
by Cretaceous to Cenozoic sediments, predominately sands, with occasional pebble and
gravel layers, clay and loamy soils up to 190 m thick. The sediments are gently dipping
to the southeast. The various plans and sections observed by RPA do not indicate the
presence of any significant faulting.
The local stratigraphy is divided into nine main units as follows:
1. N21 N2
2 - Middle Miocene to Lower Pliocene, sands, gravel, clay, 0 m to 45 mthick.
2. P23-N
11 - Upper Oligocene to Lower Miocene, clays, sands, 20 m to 35 m thick.
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3. P22
3 - Middle to Upper Eocene, Intymak horizon, greenish-grey to dark grey claysintercalated with sands to the east, 40 m to 50 m thick, contains minormineralization on Akdala.
4. P11
2 - Lower to Upper Paleocene, Uvanas horizon, grey to greenish grey sandswith interbedded clays.
5. K2km-P11 zp2 - Lower Paleocene to Upper Paleocene, Upper zone, Jalpak
horizon, light grey to greenish-grey to yellow fine- to medium-grained sands withinterbedded dark grey clays and lignites 20 m to 40 m thick.
6. zp1 - Lower Paleocene, Jalpak Horizon, sands, interbedded clays and siltstones,20 m to 35 m thick, principal mineralized horizon on Akdala.
7. K2t2-st - Cretaceous, Inkuduk horizon, greenish to yellowish-white sandy gravels,interbedded with clays and carbonated sandstones, 25 m to 50 m thick, maycontain mineralization.
8. K2t1-mk - Cretaceous, Mynkuduk horizon, grey to greenish-grey, varied sized
sands interbedded with gravels, contains Mineral Resources on Akdala.
9. P1 - Lower Permian, folded basement rocks, siltstones, limestones, salt, andgypsum found at a depth of 230 m to 250 m in the area.
The lower Jalpak horizon consists of medium-grained grey sand and gravel with an
average of 85% silica content. Thickness varies from 15 m to 20 m. The upper horizon
consists of fine- to medium-grained sands, intercalated with mottled clays up to two
metres in thickness and densely cemented carbonaceous sandstones. Thickness of the
upper horizon varies from 40 m to 45 m. Organic content varies between 0.05% and0.5%.
LOCAL GEOLOGY
The local geology is the same as the property geology described above.
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Regional Cross SectionRefer to Figure 7-2
MYNKUDUK
A
AKDALA
I N K A I
Q
Q
Q
68° 30’68° 15’68° 00’67° 45’68° 30’
45°
40’
45°
50’
45°
20’
45°
30’
45°
10’
68° 30’68° 15’68° 00’67° 45’68° 30’
68° 45
Mineralization
Legend:
Quaternary
Lower Pliocene sands, gravel
Q
K
Lower Miocene sands, clays
Intymak horizon clays sands
Cretaceous sands2
P 2
N 1
N 2 1-2
2-3
bt
im
February 2012 Source: UrAsia, 2005.
R
U
7 -
3
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MYNKUDUK
A
AKDALA
Legend:
Sand, gravel, clay Clay, sands
Intymak horizon, clays intercalated with sands
Jalpak horizon, sands with interbedded clays and lignites principal mineralized horizon on Akdala
P 2
K 2
N
2
1
km-P
-st
N
2
2
P 2 3 - N 11
2 3
P 1
1
1
1
2
K 2 t 2
-mk K 2 t 1
P 1
Inkuduk horizon, sandy gravels, interbedded with clays and carbonated sandstones
zp2 ,zp1
Mynkuduk horizon, sands interbedded with gravels
Lower Permian, folded basement rocks
Uvanas horizon, grey to greenish grey sands with interbedded clays
Clay Permian Basement Sands
0
February 2012 Source: UrAsia, 2005.
Regio
U
Akd
7 - 4
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 7-5
MINERALIZATION
Mineralization at Akdala occurs primarily at depths varying between 136 m and 190 m
over a distance of 25 km. The Jalpak horizon illustrated in Figure 7-3 hosts the two main
deposits, Blizhniy and Letniy, that contain the majority of the Mineral Resources and
Mineral Reserves. At least one other mineralized occurrence has been discovered to
date on this horizon. Other mineralized bodies include those hosted in the finer grained
Intymak horizon at a depth of 70 m to 90 m containing approximately 10% of the Inferred
Resources. Mineralization has also been intersected in wide-spaced drilling on the
Mynkuduk horizon in three areas at a depth of approximately 220 m. The #1 deposit in
the Blizhniy area is currently in production from several resource blocks as illustrated in
the cross sections in Figure 7-4.
Roll fronts are continuous along strike and have widths from 30 m to 60 m. Thickness
varies between 0.5 m and 12 m at the thickest part of the roll front, averaging seven
metres.
The principal ore minerals are pitchblende (36%) and coffinite (64%), often accompanied
by selenium, rhenium, yttrium, molybdenum, arsenic, and phosphorus.
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Intymak (horizon)
Jalpak
Mynkuduk
Section line / Drill hole
Inkuduk
Mineralized Horizons
OccurrenceM 4
D e p o s i
t # 1
J 2
I 7 M 4
M 5
J 3
M 6
D
Letniy Deposit
B l i z h n
i y D e p o
s i t
0
February 2012 Source: UrAsia, 2005.
A
U
Ak
7 -
6
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Oxidized Sands
1:000 horizontal 1:200 vertical
Oxidized Sands
Clays
ClaysGrey Sands
I
Block
II
February 2012 Source: UrAsia, 2005.
Mineralization
Legend:
Assay interval
15-1-5
14624
Production wells
Exploration wellsScreen interval
m grade GT (m.%)
Deposit #1Section Looking West
Uranium One Inc.
Akdala Uranium MineKazakhstan
Figure 7-4
7-7
www.rpacan.co
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 8-1
8 DEPOSIT TYPES
Sedimentary uranium deposits typically occur in medium- to coarse-grained sandstones
deposited in a continental fluvial environment. Impermeable shale/mudstone units
acting as barriers to the percolating fluids are interbedded in the sequence and oftenoccur above and below the mineralized sandstones. The uranium, perhaps derived from
nearby igneous rocks, is precipitated out of solution under reducing conditions caused
by a variety of reducing agents in the sandstone, including carbonaceous material,
sulphides, or hydrocarbons.
There are three main types of sandstone deposits:
1. Tabular deposits, irregular elongate bodies deposited parallel to the depositionaltrend, often associated with organic trash and carbon.
2. Tectonic/lithologic deposits adjacent to permeable fault zones.
3. Roll front deposits, arcuate bodies of mineralization that crosscut sandstonebedding.
The Akdala deposits in Kazakhstan are diagenetic in origin and hosted by Lower
Paleocene (Jalpak) alluvial deposits. As such, they are considered similar to roll front
deposits, as in the Shirley Basin and the Powder River Basin of Wyoming in the United
States.
The Kazakhstan deposits are considered similar to roll front deposits. The geology and
genesis of roll front uranium deposits has been studied since the 1960s. They are
typically found in Cenozoic intermontaine basins where uranium occurs in the form of
mineralized roll fronts emplaced at a redox interface in continental sandstones
containing detrital carbonaceous material. Epigenetic deposits are formed by down dip
migration of oxidizing solutions, with a concentration of uranium mineralization occurring
in the solution front. The highest grade portion of the front is the main part of the “C”
shape, with lesser grades found on the upper and lower limbs. The sandstone behind
the front is altered but essentially barren.
The most favourable host rocks are friable fine- to coarse-grained arkosic sandstones
containing pyrite and carbonaceous material. Interbedded mudstone, claystone, and
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 8-2
siltstone interbeds are often present and sand and silt channels with crossbedding are
common. Below the water table, unaltered sandstones are light grey to greenish grey
with abundant pyrite and carbonaceous material, while the altered sandstones are
reddish or greenish yellow coloured with no pyrite and little carbonaceous material.
Alteration that marks the roll front penetrates the sandstone down dip. The fronts varywidely in size and shape and commonly have lateral extensions of several miles and
thicknesses of several feet. Within any one formation, there may be many individual
beds that contain roll fronts.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 9-1
9 EXPLORATION
Exploration at Akdala consists exclusively of drilling as described in Section 6 and
Section 10. All of the exploration at Akdala was completed prior to the acquisition of an
interest in the Mine by Uranium One.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 10-1
10 DRILLING
Neither Uranium One nor UrAsia has carried out any exploration drilling on the property.
Previous drilling to establish the resource was carried out under the direction of theSoviet Union exploration company, by the state government of Kazakhstan, and other
entities. Rotary mud drilling, using Russian equipment, was supplemented by core
drilling using the same rigs. The core produced by these rigs was approximately nine
centimeters in diameter. Approximately 70% of the holes drilled on the property were
cored through the mineralized horizons. All holes were electrically logged as discussed
in Section 11, Sample Preparation, Analysis, and Security.
The Akdala deposit was considered a separate entity by 1999, and detailed drilling was
carried out between 2001 and 2003. Total drilling on the deposit during the period 1982
to 2003 was 252,531 m in 1,433 drill holes. This figure includes exploration drilling along
the mineralized horizon and therefore may include some drilling beyond the current
Subsoil Use Contract boundaries. Stated exploration drilling on the Blizhniy and Letniy
deposits amounted to 595 holes totaling 110,984 m and 482 holes totaling 77,871 m,
respectively. Total length of core recovered is reported to be 2,868 m. In addition, 49
hydrological holes totalling 8,652 m were completed on the two deposits and 1,346
technological holes (398 production holes and 948 injection holes) were drilled for
wellfield exploitation within the currently producing licence.
The mineralization is generally horizontal and, as the drill holes are vertical, the
mineralized intersections represent the true thickness.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 11-1
11 SAMPLE PREPARATION, ANALYSES ANDSECURITY
RPA was provided with a summary of the sampling methods carried out by previous
workers.
Kazatomprom reports that mineralized intervals (greater than 40 microroentgens per
hour) in the core portions of the holes were split in half. The sample intervals ranged in
length from 0.15 m up to 1.2 m, averaging 0.4 m in length. Both halves of the core were
sent to different laboratories for assays by chemical methods. Samples submitted for
uranium and radium chemical assays included 4,173 samples totaling 1,994 m for the
Blizhniy deposit and 504 samples totaling 172 m for the Letniy deposit.
Approximately 70% of all exploration drill holes were cored through the mineralized
zones. Mineralized core is chemically assayed for uranium, radium, rhenium, yttrium,
scandium, and total rare earths. Kazatomprom reports that chemical analyses on
mineralized intervals in the diamond drill holes were carried out at the Central Analytical
Laboratory PGO Volkovgeologia using the roentgen-spectral method on a fluorescent
roentgen analyzer. On the entire Akdala exploration project, a total of 11,041 samples
were analyzed for uranium and radium. Protocols for internal standards and external
control assays at other laboratories were in place. A total of 756 uranium analyses werererun for internal control and 563 samples were submitted to other laboratories in
Kazakhstan, Central Analytical Laboratory VIMS, and the Central Scientific Research
Laboratory KGRK. Reproducibility on both internal and external controls was shown to
be well within standard limits, but RPA has not verified this statement.
All drill holes were probed with electric logging tools, with results including gamma
counts, caliper, deviation measurements, and self-potential. Chemical assay results
were used to calibrate the gamma data to account for possible disequilibrium. Allreserve and resource estimations were then based on calibrated gamma data.
The gamma calibration process was detailed and exhaustive. Each portion of
approximately six sectors of the mineralized uranium roll front was assigned a specific
chemical to gamma correction factor based on statistical analysis of the chemical assay
data. Overall correlation between corrected gamma and chemical values was reported
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 11-2
to be within approximately five percent. RPA has not verified the raw data associated
with this statement but considers the results to be satisfactory and the data suitable for
inclusion in a database used to estimate resources and reserves.
RPA considers the sampling method and approach to be appropriate for MineralResource estimation.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 12-1
12 DATA VERIFICATION
RPA did not collect any independent samples as the mineralization occurs at depth and
no core was available. As discussed above, the entire mineralized core is submitted for
chemical assay and quality assurance/quality control (QA/QC) protocols.
RPA has reviewed sample drill logs, cross sections, plan maps, and electric logs from
the Akdala geologic database. The Akdala geologic database was originally developed
under the guidelines of the Ministry of Geology of the former USSR and more recently by
the Commission on Mineral Resources of the Republic of Kazakhstan.
Based on past experience, RPA is of the opinion that the process of uranium drill hole
data collection and evaluation developed and used in the former Soviet Union and itsnow independent states, such as Kazakhstan is very exhaustive. RPA has accepted the
basic drill hole data, which are used for estimation of reserves and resources.
RPA, in Sections 14 and 15 of this report, compared the Mineral Resource estimate to
the production from each Mineral Resource block in production. The reconciliation was
favourable and, by inference, RPA considers the data used for the Mineral Resource
estimate to be reliable.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 13-1
13 MINERAL PROCESSING ANDMETALLURGICAL TESTING
Akdala is an operating sulphuric acid ISR uranium mine, which produces an intermediate
(approximately 40% U) filter cake yellowcake (U3O8) product. Commercial operations
commenced on January 1, 2004, following a 2.25 year pilot plant testing program
conducted during the period from October 1, 2000 through December 31, 2003. The
total uranium extracted from the subsoil from the commencement of extraction to
September 30, 2011 is 8,319 tonnes U.
The Akdala process plant is operating and has been operating for a number of years.
The operating experience is considered to be a suitable demonstration of the process
and the process performance as opposed to any of the old metallurgical testing work.
In September 2011, the processing facilities treated 2,016 m3/h of pregnant solution
carrying an average uranium solution grade of 79.7 mg U/L. The 2011 year to date
(YTD) pregnant solution grade was 65.3 mg U/L. Overall uranium recovery in the
process plant from pregnant solution to finished product averaged 98.3% for the month
and 98.1% YTD. This production level and recovery performance exceeded plan for the
period.
Acid consumption at Akdala has averaged 10.5 kg of sulphuric acid per kg of uranium for
initial acidification of the production areas and 13.3 kg sulphuric acid per kilogram of
uranium for leaching.
Figure 13-1 illustrates the process flow sheet for the facility.
COMPARATIVE STATISTICS FOR URANIUM ONE OPERATIONS IN KAZAKHSTANUranium One has interests in six ISR uranium operations in Kazakhstan, for information
and for comparison between the operations, some comparative statistics for the
operations are shown in Table 13-1.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 13-2
TABLE 13-1 COMPARATIVE STATISTICS URANIUM ONE MINES INKAZAKHSTAN
Uranium One Inc. – Akdala Uranium Mine
SolutionFlow Rate
SolutionGrade Sept
2011 Acid Use (Kg) Solution Acidity
m3/h mg/L U Acidi fy Leach Total g/L (PTD)
South Inkai 3,368 56 15.3 36.3 51.6 6.5
Akdala 2,016 80 9.2 13.0 22.2 2.4
Zarechnoye 2,562 31 35.8 102.0 137.8 7.1
Kharasan 713 85 13.2 160.5 173.7 12.0
Akbastau 582 156 5.8 18.8 24.6 7.1
Karatau 1,836 150 5.7 28.4 34.1 6.8
Notes: Statistics are at September 30, 2011Solution acidity is period to date value
Acid consumption are period to date values
Acidification based on 90% of total U under leach at Sept 30 2011
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Uranium Precipitation Tank(Slurry)
Barren
SolutionPond(TWD)
Barren Solution
Productive Solution
Filter Press
or
DenitrificationTanks
StrippedResin
Rich Eluate
R
IX Columns (Absorption Tanks)
Pressure Press
Yellow Cake
Product
U-Shape Column(Desorption Tank)
3 in Circuit
Precipitated Slurry
CleanResin
U-Loa
dedResin
February 2012
Akd
Pr
U
1
3 - 3
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 14-1
14 MINERAL RESOURCE ESTIMATE
Mineral Resources at Akdala were originally estimated by Volkov Geological and Mining
Company (Volkovgeologia), the exploration arm of Kazatomprom, effective 2001, using
the system developed for Mongolia and CIS countries. In 2006, Scott Wilson RoscoePostle Associates Inc. (Scott Wilson RPA), a predecessor company to RPA, reviewed
the parameters and methodology for mineral resources and, based on the data density,
the demonstrated continuity of the mineralization, and the established high recoverability
of U from the mineralization, converted the CIS C1 and C2 category resources to
Indicated Mineral Resources and Inferred Mineral Resources, respectively.
Since that time, no further exploration drilling has been undertaken within the Indicated
Mineral Resource blocks. The Indicated Mineral Resource blocks in the Blizhniy deposithave subsequently been adjusted based on production drilling and depletion and
upgraded to Measured Mineral Resources. The Indicated and Inferred Mineral
Resource estimates are based on exploration drilling and remain unchanged since the
Scott Wilson RPA 2010 Technical Report (Valliant and Hendry, 2010).
RPA is of the opinion that the methodology used to estimate the original and updated
mineral resources is appropriate and is in accordance with industry standards. RPA has
reviewed the drill density, geological knowledge, and mineral resource versus productionreconciliation of producing wellfields and has reclassified the resources to conform to the
Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral
Resources and Mineral Reserves dated November 27, 2010 (CIM definitions). The
Mineral Resources estimate, effective December 31, 2011, is summarized in Table 14-1.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 14-2
TABLE 14-1 MINERAL RESOURCES - DECEMBER 31, 2011
Uranium One Inc. - Akdala Uranium Mine
Classification Area Tonnes Grade Contained U Grade Contained U3O8
(000 t) (% U) (tonnes) (% U3O8) (000 lb)
Measured Blizhniy 33,230 0.009 2,982 0.011 7,753
Letniy - - - - -
Total 33,230 0.009 2,982 0.011 7,753
Indicated Blizhniy - - - - -
Letniy 628 0.064 399 0.075 1,037
Total 628 0.064 399 0.075 1,037
Measured +Indicated Blizhniy 33,230 0.009 2,982 0.011 7,753
Letniy 628 0.064 399 0.075 1,037
Total 33,858 0.010 3,381 0.012 8,791
Inferred Blizhniy 911 0.046 415 0.054 1,079
Letniy 8,772 0.064 5,600 0.075 14,560
Total 9,683 0.062 6,015 0.073 15,639
Notes:1. Mineral Resources are based on CIM definitions.2. Mineral Resources based on 0.04 m% (grade x thickness) cut-off per hole and 0.10 m% per
resource block.3. Indicated Mineral Resources include 100% of C1 CIS resources.4. Inferred Mineral Resources include 100% of C2 CIS resources.5. Bulk density is 1.7 t/m
3.
6. Mineral Resources are inclusive of Mineral Reserves.7. Columns and rows may not add due to rounding.8. Measured Mineral Resources based on production drilling.9. Indicated and Inferred Mineral Resources based on exploration drilling.10. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
In RPA’s opinion, the classification of Mineral Resources as reported in Table 14-1 is
consistent with CIM definitions.
RPA COMMENTS ON CIS RESOURCE CLASSIFICATION
Mineral resources and reserves in Mongolia and the CIS countries are classified
accordingly to the 1981 system developed in the former Soviet Union (Diatchkov, 1994).
According to this system, mineral concentrations are divided into seven categories in
three major groups based on the level of exploration performed. A general comparison
with the CIM system is provided in Table 14-2.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 14-3
TABLE 14-2 CIS CLASSIFICATION OF MINERAL RESOURCESUranium One Inc. – Akdala Uranium Mine
CIS Classification CIS Categories Comparable CIM Classification
Explored Resources A and B Measured Resources
Explored Resources C1 Indicated/Measured Resources
Evaluated Resources C2 Inferred/Indicated Resources
Prognosticated Resources P1, P2 and P3 Exploration Data
The density of the exploration grid and continuity of the mineralization determines the
resource category of each geological block. This, in turn, is dependent on the
complexity of the deposit (size, shape, and thickness and grade variability). Resource
block classification is based on the degree of variability (coefficient of variation) of
tonnage and grade. Prognosticated Resources (P1, P2, and P3) are not recognized as
Mineral Resources under the CIM definitions but are equivalent to exploration data, and
estimations of tonnage and grade are considered conceptual or order of magnitude.
Note that under the CIS classification system, all of the categories set out in the above
table are referred to as “reserves”. To avoid confusion with the CIM definitions, in this
report, RPA has changed the terminology use for the CIS classification categories
throughout this report so that CIS system “reserves” are referred to as “resources”. The
resource and reserve categories under the CIM definitions are further distinguished from
the CIS classifications by being written with initial capital letters. Hence, “Mineral
Resources” and “Mineral Reserves” refers to categories under the CIM definitions, while
“resources” refers to categories under the CIS classification system.
PARAMETERS
The parameters of resource estimation at the Akdala deposit have been approved by the
Commission on Mineral Resources of the Republic of Kazakhstan, Protocol #158-02-K
dated May 23, 2003. These parameters include:
• The cut-off grade used for establishing ore widths is 0.01% U.
• The minimum metre % (m%) per hole used within the orebody outline is 0.040m%.
• The maximum thickness of individual barren/uneconomic ore zones included inthe resource estimation is 1.0 m.
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Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 14-4
• The minimum GT value used within the outline of a resource block is 0.1 m%.
• Overall thickness of barren interbeds included in one resource block is not toexceed 6 m.
• The minimum ore-to-barren ratio (a ratio between the number of positive holes to
the total number of holes within the outline of a resource block) is 0.75.
• The minimum area of an isolated resource block is 40,000 m2, and the maximumarea is 300,000 m2.
• The content of <0.05 mm silt-clay material per ore width is not to exceed 30%.
• Minimum permeability of host strata (a permeability rate) is 1.0 m/d.
• Accessory metal resource (Rh, Sc, Y, REE) is also estimated within the outline ofthe resource block.
Resource blocks located in the permeable strata are to be included in the low-grade
uneconomic resources. They are delineated using a minimum GT of 0.2 m% (without
limitations on the average m% per block), a maximum thickness of six metres for barren
interbeds, and all the other parameters as listed above for the economic resources. The
U resource in clay and clayey rocks (containing >30% of fine silt-clay material) is
included in the statistics based on a cut-off grade of 0.035 U and a GT cut-off of 0.035
m%.
RPA notes that the grade cut-off used is considered low by Western standards, but the
mineralized interval also has to meet cut-offs based on permeability and GT parameters.
In addition, production costs are low and the project has a positive cash flow. RPA is of
the opinion that the methodology is appropriate for the estimation of resources and
reserves. RPA is also of the opinion that the uneconomic resources should not be
reported under CIM definitions.
METHODOLOGY
Mineral resources are estimated utilizing a sectional method with resource blocks
outlined on the cross sections and the mineral resource volumes are estimated by the
product of the average ore width on a given section times the area of influence of that
section.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 14-5
Current Measured Mineral Resources are based on the production drilling either in a
hexagonal pattern with a 40 m radius or in-line patters with holes drilled on 25 m to 40 m
spacing on 25 m to 50 m sections. Indicated Mineral Resources (previously C1) have
been drilled on fences 200 m apart with holes on 50 m intervals. Inferred Mineral
Resources (previously C2) have been drilled on fences 800 m apart with drill holes on 50m to 100 m intervals.
The development of the resource model is based on the geological interpretation of the
structure and morphology of the mineralization. Correlation of the units includes
lithological characteristics and permeability rates.
The mineralized bodies were subdivided into fronts, limbs, and outliers. Overall,
correlation based on all of the above parameters gives reliable results. In some areas,
however, the thickness of six metres for barren interbeds was exceeded to make the
correlation possible. On sections, the lower and upper block boundaries are based on
the assay cut-off grade.
The delineation of mineralization and the resource blocks was carried out on plans with
scales of 1:2,000 and 1:10,000. The sections for the production zones have scales of
1:1,000 (horizontal) and 1:200 (vertical).
If a single hole showed a sudden decrease in mineralized width, the upper and lower
limits were extrapolated from adjacent holes, and the blocks included barren or low
grade intervals. In such cases, the overall thickness of a block was determined
graphically and, if low-grade or barren widths exceeded six metres, they were not
included in the calculation of the average parameters of the block.
In plan, the blocks were separated by straight lines connecting points identified by
means of interpolation between high-grade and low-grade or barren holes along the line.
The position of a hole on the plan was defined as a projection of hole intersection with
the footwall of the orebody. The points and the hole itself were projected onto a vertical
plane (along the line), and then the vertical limits of the block were identified.
In most cases, the roll fronts thin out abruptly within short distances. Therefore, the
interpolation used ¼ of the distance between holes.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 14-6
For the limbs, the interpolation used ¼ of the distance between high-grade and barren
holes, and ½ of the distance between high-grade and low-grade holes. If the thickness
of the mineralization in a high-grade hole exceeded significantly the thickness of the
mineralization in a low-grade hole, the interpolation was based on the accepted ¼
distance to avoid overestimation of the block area.
RESOURCE ESTIMATION
The resources were estimated using a sectional method. The following formula was
used:
P=S*Co*ρ,
where P is metal content, S is the area of block in plan, Co is an ore-to-barren
ratio, and ρ is an average productivity per block in kg/m2.
The average productivity is the product of an average GT per block and bulk density
(1.70):
ρ=m*c*d.
In addition to resource estimates, the assessment of the following parameters was
carried out:
Mo – overall thickness of the permeable strataM – average mineralized thicknessC – an average U grade based on a cut-off grade of 0.01%Vp – mineralization volumeϑp – ore tonnageVbl – the volume of a production unit before leaching
The C1 category resource blocks are plotted on 1:2,000 plans and the C2 resource
blocks and P1 resource blocks are plotted on 1:10,000 plans.
The plans show GT, mineralized widths, and U grades for each intercept. Theseparameters were used to estimate resource volume in each hole. A resource block
calculation spreadsheet contains the average parameters of the uranium mineralization,
as well as the average permeability of the rocks (the permeability rate) and carbonate
and clay (<0.05 mm silt and clay) contents.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 14-7
The permeable host strata are characterized by high permeability rates exceeding
significantly the limit of 1.0 m/d as per the parameters listed above. Therefore, all of the
mineralization located in the permeable strata is amenable to the ISR mining method.
The rocks of the Mynkuduk and Jalpak horizons were subdivided into similar rock types,which, along with the quantitative analysis of permeability, allowed estimation of an
average permeability rate per block. The statistics of resources shared between the
various rock types is also included. The resource by type calculation is proportional to
the summary thickness of a certain rock type included in a resource block. This statistic
allows one to assess the permeability pattern (whether uniform or not uniform) of a
block.
The production zone sections also show the outlines and parameters of mineralization,
and the widths for both permeable and impermeable ores. Along with the quantitative
and qualitative permeability estimates, the sections provided CO2 and clay content plots
for ores and host rocks. This provided additional information on blocks that can be used
in future during mine development and mining.
In RPA’s opinion, based on the data density, demonstrated continuity of the
mineralization, and established high recoverability of U from the mineralization, the
Akdala mineral resources as per the CIS classification system were correctly converted
to CIM equivalent Mineral Resources where C1 and C2 resources as per the CIS
classification system were treated as equivalent to Indicated and Inferred Mineral
Resources in the CIM classification system, respectively.
CURRENT MINERAL RESOURCE CLASSIFICATION
Mineral resources were revised based on data derived from the production drilling. All of
the geological blocks in the Blizhniy area have had production drilling and are currently
in production. No production drilling has been done in the Letniy area as it will require asatellite process plant which has yet to receive approval. From start-up to December 31,
2011 inclusive (including an estimate of fourth quarter 2011 production), Akdala
produced 8,658 t U. Based on the revisions due to production drilling and depletion, the
Blizhniy Measured Mineral Resources have been re-estimated effective December 31,
2011 as summarized in Table 14-3. For the Mineral Reserve estimation, RPA
considered the blocks with extraction in excess of 100% to be complete and deleted
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 14-8
them from the remaining Mineral Reserve. RPA recognizes that these blocks remain in
production and will continue to provide some uranium production, but there is no
reasonable manner in which to estimate this additional production.
TABLE 14-3 BLIZHNIY MEASURED MINERAL RESOURCES - DECEMBER31, 2011
Uranium One Inc. - Akdala Uranium Mine
Original Estimated Measured Extracted Remainder In Situ Measured
BlockNo.
Tonnes GradeContained
U3O8 U3O8 Tonnes GradeContained
U3O8
(000 t) (% U3O8) (000 lb) (000 lb) (000 t) (% U3O8) (000 lb)
3+4+5 1,855 0.048 1,947 1,875 1,855 0.002 73
13 2,364 0.035 1,836 1,568 2,364 0.005 268
14 3,039 0.025 1,682 1,284 3,039 0.006 398
23 2,486 0.050 2,751 1,984 2,486 0.014 76716 1,664 0.016 575 551 1,664 0.001 23
17 2,184 0.017 837 590 2,184 0.005 247
24 2,362 0.043 2,215 1,394 2,362 0.016 822
25 1,072 0.011 257 231 1,072 0.001 26
26 995 0.012 265 237 995 0.001 29
27 938 0.016 333 234 938 0.005 99
31 1,986 0.049 2,155 1,100 1,986 0.024 1,056
28 822 0.018 320 161 822 0.009 159
18 2,722 0.016 936 468 2,722 0.008 468
19 1,626 0.015 538 294 1,626 0.007 24420 1,447 0.012 398 62 1,447 0.011 335
32 1,561 0.038 1,300 159 1,561 0.033 1,141
104 1,874 0.018 728 16 1,874 0.017 712
13a 2,233 0.018 887 - 2,233 0.018 887
Total 33,230 0.027 19,960 12,207 33,230 0.011 7,753
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 15-1
15 MINERAL RESERVE ESTIMATE
The estimated Akdala Mineral Reserves are shown in Table 15-1. The low grades,
especially of the Proven Mineral Reserves reflect the deduction of uranium extracted to
date. The Proven Mineral Reserves are in the Blizhniy deposit while the ProbableMineral Reserves are in the Letniy deposit.
TABLE 15-1 MINERAL RESERVES – DECEMBER 31, 2011Uranium One Inc. – Akdala Uranium Mine
Category Tonnes(000)
Grade(%U)
RecoverableU (t)
Grade(%U3O8)
Recoverable U3O8 (M lb)
Proven 28,600 0.009 2,690 0.011 6.99
Probable 1,300 0.028 360 0.033 0.94
Proven & Probable 29,900 0.010 3,050 0.012 7.93
Notes:1. CIM definitions were followed for Mineral Reserves.2. Mineral Reserves are estimated at a cut-off grade of 0.01% U.3. Mineral Reserves are estimated using an average long-term uranium price of US$65 per
pound U3O8.4. A minimum mining thickness of four metres was used.5. Bulk density is 1.7 t/m
3.
6. Mineral Reserves assume 90% extraction of Mineral Resources.7. Numbers may not add due to rounding.8. Uranium quantities and grade are net of extraction.
Proven Mineral Reserve estimates were based upon the ore developed for extraction
and Probable Mineral Reserves are based upon the conversion of the remaining
Measured and Indicated Mineral Resource estimates. The Mineral Reserve estimates
include dilution and an estimate of the uranium extraction. The estimates are based
upon production to September 30, 2011 plus an estimate of the fourth quarter 2011
production. The Mineral Reserve estimates are for the 100% joint venture interest and
not the amounts attributable to the individual Betpak Dala partners.
CUT-OFF GRADERPA has generated a breakeven cut-off grade estimate for the Akdala Mineral Reserves
based upon the operating costs projected in the budget for 2011 to 2014. The approach
was to determine the processing costs per cubic metre of process flow and the average
liquid:solid (L:S) ratio considered necessary for extraction of the uranium. The L:S ratio
is the weight of leach solutions (taken as one tonne per cubic metre) divided by the ore
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 15-2
(rock) tonnage. This is a measure of the number of leach cycles that a given tonnage of
rock will be subjected to.
From the review of the technological block operations, the L:S ratio for the planned
extraction was estimated to be three. While some blocks already have an L:S ratio inexcess of three there may be blocks that attain the planned extraction at a lower L:S
ratio. RPA has used an L:S ratio of three as the basis for the cut-off grade calculation as
shown in Table 15-2. Other ratios are included in Table 15-2 for comparison.
Metal prices used for Mineral Reserve estimates are based on consensus, long term
forecasts from banks, financial institutions, and other sources.
RPA is of the opinion that a breakeven cut-off grade of 0.01% U exceeds the calculated
cut-off grade and is suitable for the Akdala deposit and that with a four metre minimum
thickness, the minimum GT is 0.04 m% U.
The full cost breakeven cut-off grade for the solution is estimated to be 18 mg/L U.
TABLE 15-2 BREAKEVEN CUT-OFF GRADEUranium One Inc. – Akdala Uranium Mine
Description Unit 2012 2013 2014
Total Operating Costs US$(M) 44.79 42.74 40.85
Flow m3/h m
3/h 1,700 1,700 1,700
Cost per m3 of solution US$ 3.01 2.87 2.74
U3O8 Price US$/lb 65.00 65.00 65.00
U price $/kg US$/kg U 168.99 168.99 168.99
Solution cut-off grade g/t 17.8 17.0 16.2
Extraction % 90 90 90
Block grade cut-off (kg of U)L:S = 3 kg U/m
3 0.059 0.057 0.054
L:S = 4 kg U/m3 0.079 0.075 0.072
L:S = 5 kg U/m3 0.099 0.094 0.090
Bulk Density kg/ m3 1,700 1,700 1,700
L:S = 3 %U 0.003 0.003 0.003
L:S = 4 %U 0.005 0.004 0.004
L:S = 5 %U 0.006 0.006 0.005
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 15-3
An incremental cut-off grade estimate was calculated and is shown in Table 15-3. The
incremental cut-off grade for the solution is estimated to be 8 mg/L U.
TABLE 15-3 INCREMENTAL CUT-OFF GRADE ESTIMATEUranium One Inc. – Akdala Uranium Mine
Description Unit 2012 2013 2014
Total Operating Costs US$(M) 20.91 19.73 18.69
Flow m3/h m
3/h 1,700 1,700 1,700
Cost per m3 of solution US$ 1.40 1.33 1.25
U3O8 Price US$/lb 65.00 65.00 65.00
U price $/kg US$/kgU 168.99 168.99 168.99
Solution cut-off grade g/t 8.3 7.8 7.4
Extraction % 90 90 90
Block grade cut-off (kg of U)
L:S = 3 kg U/m3 0.028 0.026 0.025
L:S = 4 kg U/m3 0.037 0.035 0.033
L:S = 5 kg U/m3 0.046 0.044 0.041
Bulk Density 1,700 1,700 1,700
L:S = 3 %U 0.002 0.002 0.001
L:S = 4 %U 0.002 0.002 0.002
L:S = 5 %U 0.003 0.003 0.002
EXTRACTION
The subsoil contract for Akdala requires the extraction of 90% of the uranium reserve.
There are a number of technological (mining) blocks that had attained extraction in
excess of 90%. RPA has estimated the average extraction at Akdala to be 90%.
DILUTION AND ORE LOSS
In the technological blocks, the dilution is included in the block calculation as the volume
is based upon the effective thickness of the production zone.
For the conversion of Indicated Mineral Resources, dilution is added to the Mineral
Resource estimate. Considering the technological block grades as compared on
average to the resource grades, RPA has assigned a 100% dilution factor to the
Indicated Mineral Resources in the conversion to Probable Mineral Reserves.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 15-4
In the ISR fields, the dilution represents a cost in that additional material must be
acidified and will contribute to acid consumption and time to attain the desired L:S ratio
for the extraction of the uranium. The dilution is applied to the resource tonnage at zero
grade.
RPA has assigned no loss of uranium in the conversion from Mineral Resources to
Mineral Reserves. RPA recommends a detailed reconciliation between the Mineral
Resource estimates and Mineral Reserve estimates calculated from the technological
(wellfield) drilling to assess the conversion factors and to develop more accurate
conversion factors.
GRADE ESTIMATION
The Mineral Reserve grades are estimated with the same method as for the Mineral
Resource grade estimates described in Section 14 of this report, but with the addition of
the mine dilution and as modified for extraction to the date of the Mineral Reserve
estimate. For Mineral Resource blocks being converted to Probable Mineral Reserves,
the reserve grades are calculated from the Mineral Resource grades. For the Proven
Mineral Reserve blocks, the tonnage and grade is taken from the technological block
calculations which use the same method as the Mineral Resource grade estimates but
are based upon geophysical and radiometric data from the technological (production and
injection) well drilling.
CLASSIFICATION OF MINERAL RESERVES
RPA considers the Mineral Reserves currently in production to be Proven Mineral
Reserves and the Mineral Reserves estimated from the conversion of Mineral Resource
blocks to be Probable Mineral Reserves.
ESTIMATION OF MINERAL RESERVES
For the purpose of this report, the Mineral Reserves have been estimated at December
31, 2011, using the September 30, 2011 project to date (PTD) production (8,319 t U)
plus an estimate of the fourth quarter 2011 production (339 t U) for a total of 8,658 t U
extracted to December 31, 2011. The estimate of production is based upon continued
extraction at the September 2011 rate.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 15-5
There have been 13 technological blocks that have demonstrated extraction in excess of
90%. As of September 30, 2011, there were 1,071 t U produced from these blocks in
excess of the 90% extraction estimated for these blocks.
The extraction from the blocks currently under leach is summarized in Table 15-4.
TABLE 15-4 TECHNOLOGICAL WELL EXTRACTIONUranium One Inc. – Akdala Uranium Mine
BlockNo.
Ore U Reserves U Extracted Extraction
(000t) (t U) (t U) Factor (%)
1+2 702 503 829 165.0
3+4+5 1,855 749 721 96.3
6 673 155 189 121.9
7 874 150 152 101.5
8 1,037 336 446 132.8
9 1,000 190 215 112.8
10+11 1,988 410 436 106.3
12+11а 2,168 557 657 117.8
13 2,364 706 603 85.3
14 3,039 647 494 76.3
23 2,486 1,058 763 72.1
30 1,297 178 213 119.7
22 1,222 272 307 112.9
15 1,152 151 178 117.9
16 1,664 221 212 96.217 2,184 322 227 70.6
24 2,362 852 538 63.1
25 1,072 99 89 90.4
26 995 102 91 89.0
27 938 128 90 70.2
31 1,986 829 423 51.0
28 822 123 62 50.6
18 2,722 360 180 50.1
19 1,626 207 113 54.8
20 1,447 153 24 15.6
32 1,561 500 61 12.3104 1,874 280 6 2.0
13а 2,233 341
Total 45,344 10,578 8,319 78.6
For the Mineral Reserve estimation, RPA considered the blocks with extraction in excess
of 90% to be complete and subtracted them from the remaining mineral reserve. RPA
recognizes that these blocks remain in production and may continue to provide some
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 15-6
uranium production but there is no reasonable manner in which to estimate this
additional production.
RPA has estimated the remaining Proven Mineral Reserves in the Blizhniy deposit, as
the original tonnage of uranium adjusted for the production from blocks in excess of 90%and adjusted for production estimated to the end of 2011 (Table 15-5). Subtracting the
tonnage of technological blocks that already have extraction in excess of 90% leaves a
total of 28,600 tonnes of Proven Mineral Reserves. Therefore, the Proven Mineral
Reserves are estimated to be 28,600 tonnes grading 0.009% U and containing 2,690 t
U.
TABLE 15-5 BLIZHNIY RESERVE ESTIMATIONUranium One Inc. – Akdala Uranium Mine
Descrip tion t U
Technological wells total inventory 10,578
Production to Sep 11 8,319
Deduct for blocks over 90% 1,071
Net production to Sep 11 7,248
Three months production to Dec 31 339
Tons U removed 7,587
Remaining 2,99190% extraction 2,692
Rounded Proven Reserve 2,690
The Letniy deposit has not been developed for mining and contains Indicated Mineral
Resources. These Mineral Resources were converted to Probable Mineral Reserves as
shown in Table 15-6.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 15-7
TABLE 15-6 LETNIY RESERVE ESTIMATEUranium One Inc. – Akdala Uranium Mine
Tonnes(000)
Grade(%U)
TonnesU
Mineral Resources 628 0.064 399
Dilution (100%) 1,256 0.032 399
Extraction (90%) 359
Production - -
Total Mineral Reserve 1,256 0.029 359
Probable Mineral Reserve 1,300 0.029 360
COMAPRISON TO PREVIOUS MINERAL RESERVE ESTIMATE
The 2010 Mineral Reserve estimate by Scott Wilson RPA was based upon the
conversion of Indicated Mineral Resources to Probable Mineral Reserves. A comparisonof the contained uranium in that previous Mineral Reserve estimate as depleted for
production is shown in Table 15-7.
TABLE 15-7 COMPARISON TO PREVIOUS ESTIMATE
Uranium One Inc. – Akdala Uranium Mine
Calculated by subtraction from last report
Production(t U)
ExtractionOver 90%
(t U)Net(t U)
March 2010 6,795 857 5,938
September 2011 8,319 1,071 7,248
Net production to September 30, 2011 1,310
Estimated production for fourth quarter 2011 339
Net production since 2010 estimate 1,649
Scott Wilson RPA estimate 4,613
Less net production 1,649
New Mineral Reserve 2,964
RPA notes that there is a discrepancy in the extraction to March 31, 2010 and the
current RPA estimate is 294 tonnes U higher than the Scott Wilson RPA report value of
6,501 t U.
RPA is of the opinion that the 2011 estimate is appropriate.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 15-8
KAZAKH MINERAL RESERVE ESTIMATION
Mineral reserves in Kazakhstan are approved by the State Committee on Mineral
Reserves and are completed by consultants for the licence holders. The consultants
typically handle all of the sampling, drilling, testing, and estimation and the final result is
then shared with the licence holder and subsequently submitted to the State Committeefor approval. The process is lengthy, the consultants do not release data to the licence
holder on an ongoing basis, and the licence holder is not “involved” in the estimation
procedure. The procedures for the evaluation of mineral resources and mineral reserves
are dictated by the State guidelines and the consultants follow these guidelines.
RPA considers the process to be unwieldy and inconsistent with the North American
public company requirements for continuous disclosure of material information. In some
regards the methods may, through a focus on resource extraction, be inconsistent withthe Mineral Resource and Mineral Reserve estimation standards of CIM in which the
proof of economic viability is paramount to resource extraction. Furthermore, the lack of
involvement of site personnel may mean that ongoing experience at a site is not
available or being used in the estimation of the Mineral Reserves. RPA recommends
that Uranium One consider and implement procedures to obtain all of the exploration
and technological estimation data on a timely basis and complete Mineral Resource and
Mineral Reserve estimates independently of the joint venture.
RPA OPINION
RPA is of the opinion that the Mineral Reserve estimate as stated is consistent with the
CIM guidelines for the estimation of Mineral Reserves.
RPA notes that the timing of the estimation of Mineral Reserves in Kazakhstan may be
inconsistent with the ongoing reporting required of North American listed public
companies. Uranium One will be required to state its Mineral Reserves annually and will
require an annual estimate of the Mineral Reserves. RPA recommends that UraniumOne establish a practical system for Mineral Resource and Mineral Reserve estimation
consistent with CIM standards on an annual basis.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 16-1
16 MINING METHODS
The Akdala Mine is a producing ISR uranium operation. To September 30, 2011, the
operation has extracted 8,319 tonnes of uranium for subsequent treatment.
MINING METHOD
The Akdala Mineral Reserves are located in permeable sandstones some 200 m below
surface. In light of the depth of the deposit, the sand host rock, and the low grades, RPA
concurs that ISR mining is the appropriate method for the deposit. The general layout of
the Blizhniy deposit is shown in Figure 16-1.
MINING OPERATIONS
Operations at the Mine include the wellfield operations and the process plant. The
Akdala property comprises two deposits, Blizhniy which is located adjacent to the
processing plant and is the sole producing deposit, and Letniy which is located
approximately 30 km from the plant site. Betpak Dala is the operator of the Mine.
The uranium ISR operation uses a sulphuric acid leach. Sulphuric acid leaching solutionis pumped into the mineralized zone through a network of injection wells (boreholes) and
extracted by production wells. The wells are typically 200 mm in diameter in the upper
portions reducing to 100 mm lower in the hole. At the Mine, the wells are approximately
200 m deep and are generally placed in a hexagonal pattern with a 40 m radius or in line
patterns with wells 25 m to 40 m apart on lines that are 25 m to 50 m apart.
The leaching process begins with the acidification of the technological blocks. In this
phase, an acid solution is injected into the ore zones and recirculated with acid additionuntil the desired acid concentration in the groundwater is achieved. After a block is
acidified, the acid content of the injected solution is reduced and the production solutions
are sent to the process plant for the recovery of uranium and the barren solution from the
plant is returned to the injection wells.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 16-2
As of September 30, 2011, the process plant was operating at a rate of 1,700 m3/h using
a resin for the recovery of uranium, producing a precipitate which is filtered to reduce
water content and then shipped off site for further processing.
WELLFIELD PRODUCTION
As of September 30, 2011, the wellfield had 1,346 wells in total (398 production and 948
injection), with 958 wells in operation (242 production wells and 716 injection wells).
Production solutions are mainly pumped to surface using submersible pumps. The
average grade of the production solution was 79.7 mg/L U for September 2011 and
105.1 mg/L U for the project to date. Acid consumption for the project to date has
averaged 10.5 kg acid per kilogram of uranium for acidification and 13.1 kg acid per
kilogram of uranium for leaching.
The Blizhniy deposit is being leached and the work in the wellfield involves working over
the existing wells to maintain good flow rates.
WELL OPERATIONS
At Letniy, there are no production wells in place. Wells will be drilled by contractors and
are subject to detailed specifications including less than one metre of deviation per 100
m over the length of the hole. Holes are drilled, surveyed, and subjected to testing as
they are drilled. A drill rig can drill 2.5 to three wells per month. A plan showing typical
wellfield patterns is shown in Figure 16-2.
After drilling, a network of pipes and cables is required for the field. Power is required for
submersible pumps and is provided from local substations installed in the wellfield.
Piping is required for the acid feed to the wells, production solutions from the wells, and
barren solutions to the wells. The piping consists of a system of larger main lines fed by
small lines from the production areas. Well houses are built from sea containers and
contain the injection and production well manifolds and valves for a given block. Flow
meters are employed at all well houses to provide operating information. Drip samplers
are used to collect solution samples at the well houses.
A sectional view of typical wells is shown in Figure 16-3.
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C1 Resource Block
C2 Resource Blocks
Technological blocks in production
Area of Subsoil Use Contract
Below cut-off limits
ProcessingPlant
0
N
February 2012 Source: Uranium One Inc., 2010.
GeneraResou
U
Ak
1
6 - 3
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7Hp
2Hp
1Hp
4HH
5HB
10HH
3-8-2
3-8-11-2-12
3-6-2
3-
3-6-1
3-4-1
3-4-2
6Hp
3Hp
8Hp
9Hp
1-1-2
1-3-2 1-3-3 1-3-4 1-3-5 1-3-7 1-3-9 1-3-11 1-3-12 1-3-131-3-101-3-81-3-6
1-1-3 1-1-4
1-1-1
1-3-1
1-2-111-2-101-2-91-2-8
1-2-5 1-2-6
1-2-7
1-2-41-2-31-2-21-2-1
1-1-5 1-1-61-1-7
1-1-8
1-1-9 1-1-10 1-1-11 1-1-12 1-1-13 3-7-1
3-7-3
3-7-5
3-7-6
3-7-4
3-7-2
3-9-5
3-9-4
3-9-3
3-9-2
3-9-1
3
3-3-3
3-3-23-3-1
3-5-5
3-5-4
3-5-3
3-5-2
3-5-1
Block No.1(60x30m Pattern)
Block No.2 (50x25m Pattern)
Injection Wells
Legend:
Monitor Wells
Production Wells
February 2012 Source: Uranium One Inc., 2010.
Akd
Typi
U
1
6 - 4
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Extraction Injection and Monitoring
Cement
Cement
PVC
Settler 11 m long
Ø 118 mmØ 118 mmFilter or ScreenFilter or Screen
Cement
Cement
PVC
Settler 11 m long
Ø 295 mm
Ø 161 mm
Ø 90 mm
Ø 195 mm
Ø 100 mm
PVC
Source: Uranium One Inc., 2010.February 2012
Akdala Uranium Mine
Typical Well Cross Section
Uranium One Inc.
Kazakhstan
Figure 16-3
16-5
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 16-6
The average production solution grades have ranged from 54 mg/L U to 80 mg/L U
through 2011 as shown in Figure 16-4 and Table 16-1. New blocks that have been
brought on line at Akdala have had very high productive solution grades (>400 mg/L U)
immediately after leaching commences.
FIGURE 16-4 2011 PRODUCTIVE SOLUTION GRADE
TABLE 16-1 PRODUCTIVE SOLUTION GRADESUranium One Inc. – Akdala Uranium Mine
Monthly(mg/L U)
Project to Date(mg/L U)
Jan-11 62.3 111.2
Feb-11 65.1 110.3
Mar-11 64.4 109.6
Apr-11 69.7 108.8
May-11 66.8 108.1
Jun-11 57.6 107.2
Jul-11 54.9 106.3 Aug-11 65.6 105.6
Sep-11 79.7 105.1
0
10
20
30
40
50
60
70
80
90
Jan Feb Mar Apr May Jun Jul Aug Sep
P r o d u c t i v e S o l u t i o n G r a d e ( m g / l U )
Months 2011
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 16-7
GEOMECHANICS
The key geotechnical aspect related to the deposit is the permeability of the mineralized
horizon and the presence (or absence) of impermeable zones above, below or within the
mineralized zones. The permeability is determined in the course of drilling and the ability
of the ore zone to permit the transmission of water is demonstrated by the ongoingoperation.
LIFE OF MINE PLAN
RPA has prepared a production schedule which is based upon the extraction of the
estimated Mineral Reserves using management’s plan as a basis for the schedule. The
plan includes ongoing production through processing at the plant with 90% extraction
and 97.5% recovery of the uranium extracted. There are no Inferred Mineral Resources
included in the Life of Mine (LOM) plan.
The proposed production schedule used for this report is shown in Table 16-2.
TABLE 16-2 LIFE OF MINE PRODUCTION PLAN
Uranium One Inc. – Akdala Uranium Mine
Blizhniy LetniyU produced from
Subsoil U3O8 equivalent Sales of U3O8
(t U) (t U) (t U) (000 lb) (000 lb)
2012 950 50 1,000 2,601 2,498
2013 800 200 1,000 2,601 2,498
2014 700 100 800 2,081 1,999
2015 240 10 250 650 625
Total 2,690 360 3,050 7,934 7,620
The LOM plan production for Akdala is 7.62 million pounds of U3O8 sold from mine
production. The LOM plan includes production from the Letniy deposit.
There are Inferred Mineral Resources at Akdala which may, with additional exploration
work, be converted to Measured and Indicated Mineral Resources and then to Mineral
Reserves to extend the life of the project. There can be no assurance that any such
Inferred Mineral Resources will be converted to Measured and Indicated Mineral
Resources. There are no Inferred Mineral Resources included in the LOM Plan.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 16-8
MINE EQUIPMENT
There is little major equipment associated with the operation. All of the well drilling and
installation is done by contractors. The operation has the rework equipment, light
vehicles, and small forklifts for handling concentrate bins, supplies, and reagents.
In the wellfields, there are pump and flow control units generally built from sea
containers and there are pumps in each production well and the associated electrical
power distribution and motor controls.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 17-1
17 RECOVERY METHODS
Uranium rich solutions (pregnant solutions) are pumped from the wellfields and delivered
via a series of pipelines into the pregnant solution pond. This lined pond allows
accumulation and drawdown of the solutions and provides a buffer between wellfieldoperations and process plant operations. Pregnant solution is recovered from the
pregnant solution pond via pumps located adjacent to the processing plant facilities.
Within the processing facility, the pregnant solutions are passed through a series of 50
m3 ion exchange columns loaded with a uranium-selective resin. Within these column
reactors, the uranium is adsorbed from the solutions onto the resin. Resin loading of 20
kg U per m3 is targeted in this process. The solution exiting the column reactors has
been stripped of its uranium content and is returned to the barren solution side for pH
adjustment and eventual re-injection at the wellfield.
The uranium-bearing resin is transferred from the column reactors to 100 m3 desorption
columns where uranium is stripped from the resin with ammonium nitrate solution,
returning the uranium back into solution. The stripped resin is recycled back to the
column reactors for reloading. The strip solution contains approximately 55 g U/L to 70 g
U/L and is transferred to a precipitation vessel where hydrogen peroxide is used to
precipitate the uranium out of solution. The precipitate is dewatered using a belt filter
producing a solid product containing approximately 40% U and 12% moisture. Thismaterial is the final product generated at the Akdala operation, which is then shipped in
sealed containers to South Inkai for drying and then to off-site converters for upgrading
to international market quality yellowcake. The off-site refining process is carried out at
one of two alternative sites; Oskemen (formerly Ust-Kamenogorsk), Kazakhstan, and
Kara Balta, Kyrgyzstan.
The process plant capacity was increased in 2011 and plant throughput rose from 1,378
m
3
/h in January, 2011 to an average of approximately 1,860 m
3
/h for the next eightmonths.
WELLFIELD RECOVERY
The extraction of uranium from the wellfield is demonstrated in Figures 17-1 and 17-2.
In Figure 17-1, the extraction shown versus months of leaching. The graph is based on
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 17-2
the nine months of 2011 to September 2011 and has all of the technological blocks
included.
FIGURE 17-1 AKDALA EXTRACTION VERSUS MONTHS LEACHING
FIGURE 17-2 AKDALA EXTRACTION VERSUS LIQUID:SOLID RATIO
Figure 17-1 demonstrates that the technological blocks generally attain 90% extraction
in less than 40 months, but some are taking longer and some may not reach the 90%
goal.
0
20
40
60
80
100
120
140
160
180
0 20 40 60 80 100 120 140
U E x t r a c t i o n ( % )
Months Leaching
0
20
40
60
80
100
120
140
160
180
0 1 2 3 4 5 6 7 8
U E x t r a c t i o n ( % )
L:S Ratio
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 17-3
Figure 17-2 demonstrates that the extraction is generally attained with a L:S ratio of less
than three.
The Akdala LOM plan is based on an estimated 90% extraction of in-situ uranium
resources being recovered in solution and delivered to the processing plant. Productionexperience to date indicates that this rate of extraction may in fact be conservative
relative to the estimated reserves. As outlined above, a number of production blocks
have shown well above 100% extraction of the estimated resource. Other blocks have
not yet achieved the 90% target, however, they remain under leach so indications are
that on average the 90% level is likely to be exceeded. RPA is of the opinion that these
results are indicative of conservative estimation methodology.
Process recovery of the uranium delivered to the plant in solution is forecast to average
approximately 97.5%. Current operating experience indicates that this performance
level is achievable.
RPA notes that there are a comprehensive set of data reports related to the wellfield
operations, process solution chemistry and process plant operation which are collected
and reported on a monthly basis; however, there does not appear to be a focus on
analysis of the data. RPA is of the opinion that such analysis may indicate the potential
causes for better or worse than expected performance and it would provide a better
tracking of the wellfield performance.
RPA recommends that more effort be placed on analysis of the physical and chemical
data related to the well fields, process solutions and plant operations to assist in the
evaluation of the operations and to possibly determine the cause of better or worse than
planned operating results.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 18-1
18 PROJECT INFRASTRUCTURE
The Mine has a number of support facilities including:
• Connection to the electrical grid.
• Hot water heaters for plant heat supply.• Shops and supplies storage area.
• Acid storage tanks.
• Offices, change rooms and dining room.
• Fenced plant area with security at the gate.
• Employee housing.
CAMP
The camp is located outside the plant security fence and is situated approximately 500 m
from the plant yard. Kazakh regulations do not allow the camp to be located immediately
adjacent to the plant.
The cook house is located within the administration building.
POWER
Electrical power is supplied from the grid and emergency back-up is only able to providepower for critical plant operations in the event of a failure of the grid power supply. The
electrical power use is approximately 3.4 MW.
TRANSPORTATION AND LOGISTICS
The site is accessed by a combination of hard surface roads and highways. The Letniy
deposit is located on each side of a paved road and a power line crosses the deposit.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 19-1
19 MARKET STUDIES AND CONTRACTS
MARKETS
SALES CONTRACTS
Generally, Uranium One sells its uranium production to major nuclear utilities in North
America, Europe, and Asia under long term supply agreements and, in limited
circumstances, to third parties such as trading companies, in small quantities. Uranium
One has entered into market-related sales contracts with price mechanisms that
reference the market price in effect at or near the time of delivery. In addition, Uranium
One has negotiated floor price protection in many of its sales contracts.
Customers take delivery of U3O8 at conversion facilities and Uranium One ships the
U3O8 produced at its mines to converters in time for scheduled deliveries to customers.
Depending on the location of the conversion facility, shipping times from Kazakhstan can
be up to four months and the lead time between production of U 3O8 and sales has a
significant impact on the inventory levels at any given time. Uranium One has entered
into a uranium logistics agreement with JSC Atomredmetzoloto, the Russian state-
owned uranium mining company, which allows both parties to enter into location swaps
and spot sales in order to facilitate deliveries of uranium to customers, and to better
manage shipping logistics.
URANIUM PRICE
RPA notes that the market for uranium fluctuated during the past four years. Figure 18-
1, copied from the Ux Consulting Company, LLC (UxC) website, shows the trend in
uranium pricing over the past three years.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 19-2
FIGURE 18-1 UXC U3O8 HISTORICAL URANIUM PRICES
Source: The Ux Consulting Company, LLC available at http://www.uxc.com
The spot quote listed by UxC on February 13, 2012 was US$52.00/lb U 3O8. For
economic analysis, RPA has used a spot price of US$55.00/lb in 2012, US$65.00/lb in
2013, US$70.00/lb in 2014, and US$65.00/lb U3O8 thereafter.
Metal prices used for Mineral Resources and Mineral Reserves are based on
consensus, long term forecasts from banks, financial institutions, and other sources.
Uranium One did not complete any market studies or analysis for this report.
CONTRACTS
Akdala has contracts in place for the major services and supplies including:
• Sulphuric acid.
• Processing of product.
• Shipping of the product to a refiner.
• Well drilling.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 19-3
The contracts are generally for annual periods and include the usual provisions for
documentation, material specifications, and events such as force majeure.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 20-1
20 ENVIRONMENTAL STUDIES,PERMITTING, AND SOCIAL OR COMMUNITYIMPACT
ENVIRONMENT, HEALTH AND SAFETY
The operation has systems in place for ISO 9001, ISO 14001, and ISO 18001 standards
and management indicated that the ISO status was confirmed in 2010.
Initial observations were that the site was well kept, clean, and with good housekeeping
practices. Staff appeared to be knowledgeable in their job areas, and designs appeared
to be adequate for the nature of the work at the facility. Conventional health and safety
programs exist with respect to acid management (a key health safety and environment
program element) as well as other conventional health and safety elements.
A radiation protection program also exists that is based on international standards for
exposure (IAEA) that monitors worker health and safety. Key elements of the program
include good housekeeping, and monitoring of gamma radiation exposures through the
use of worker thermoluminescent dosimeters (TLDs) (reported and posted quarterly) and
periodic radon measurements at selected areas of the plant.
Small quantities of sand may accumulate in the process ponds. This material may
contain radioactive materials and is planned to be disposed of in an approved waste
disposal area off site.
No material issues of concern became evident and no fatal flaws from an environmental
perspective were identified.
Current Kazakhstan regulations regarding development are being followed. For this
operation, the environmental issues relative to start-up can be expected to be minimized.
In view of the depth of the zones being mined and the relative isolation of the aquifer,
there is no aquifer remediation planned as part of the closure. The surface disturbances
will be reclaimed and process facilities will be removed.
The environmental risk is currently perceived to be low.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 20-2
PROJECT PERMITTING
The Akdala Mine is operating and has obtained the necessary permits for the operation.
SOCIAL OR COMMUNITY REQUIREMENTS
The community of Kyzymshek is approximately 45 km south of the Akdala site. There
are no residents in the immediate Mine area.
MINE CLOSURE REQUIREMENTS
In view of the depth of the zones being mined and the relative isolation of the aquifer,
there is no aquifer remediation planned as part of the closure. The surface disturbances
will be reclaimed and process facilities will be removed.
As of December 31, 2011, the Uranium One portion of the asset retirement obligations
(on an undiscounted basis) has been estimated at US$4.0 million for the successful
decommissioning, reclamation and long term care of the surface and well field facilities.
The total asset retirement obligation is estimated to be $5.7 million.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 21-1
21 CAPITAL AND OPERATING COSTS
CAPITAL COST ESTIMATE
The Akdala Mine is in operation and the planned expenditures are for the ongoing well
field development and, in particular, the Letniy field and satellite plant plus sustaining
capital. The LOM plan capital cost for the Akdala Mine has been prepared based upon
management’s budgets but reflects the LOM plan in this report.
The capital expenditures are estimated to be $49 million over the LOM and are
summarized in Table 21-1.
TABLE 21-1 CAPITAL EXPENDITURE ESTIMATEUranium One Inc. – Akdala Uranium Mine
2012 2013 2014 2015 Total
US$ (M) US$ (M) US$ (M) US$ (M) US$ (M)
Wellfield Development 9.14 6.76 3.00 18.91
Exploration drilling 1.22 1.51 1.62 1.66 6.01
Expansion/Upgrade 15.87 0.89 0.92 - 17.68
Sustaining Capital 1.04 4.45 5.49
Social Sphere Spending 0.56 - - - 0.56
Total 27.84 13.62 5.53 1.66 48.65
The following is excluded from the capital cost estimate:
• Project financing and interest charges.• Owner’s costs.• Escalation.• Environmental impact studies.• Value added taxes.• Import duties and custom fees.• Working capital.• Sunk costs.
• Costs of fluctuations in currency exchanges.• Future expansion.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 21-2
OPERATING COSTS
The September 2011 YTD operating costs are shown in Table 21-2. Akdala Mine is an
established operating mine and the operating costs are effectively on budget while
production is approximately 8% over budget.
TABLE 21-2 SEPTEMBER 2012 OPERATINGCOST VERSUS BUDGET
Uranium One Inc. – Akdala Uranium Mine
Sept Sept Variance
Actual Budget
Production YTD YTD
Tons U 760 705 (55)
lb U3O8 1,976,576 1,833,708 (142,868)
Cash Operating Costs(US$000) (US$000) (US$000)
Mining 7,192 7,275 83
Processing 3,528 3,700 171
Auxiliary 2,303 2,559 256
Mine Site Services 1,127 1,273 145
Mine Administration 731 652 (79)
MET 3,796 3,728 (68)
Other Fines fees and taxes 29 12 (17)
Other Administration 0 1 1
Contract Processing 3,460 3,569 109
Regional Office Allocation 2,255 2,025 (229)
Total Operations 24,422 24,793 371
Other Expenses
Selling Expenses 1,694 1,484 (210)
Total Other Expense 1,694 1,484 (210)
Total 26,115 36,401 10,286
The LOM estimated operating costs are summarized in Table 21-3. The LOM operating
costs have been taken from management’s budgets but modified for the production
forecast in this report.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 21-3
TABLE 21-3 LOM OPERATING COST ESTIMATEUranium One Inc. – Akdala Uranium Mine
2012 2013 2014 2015 Total
US$ (M) US$ (M) US$ (M) US$ (M) US$ (M)
Mining 13.62 14.40 15.45 3.90 47.38
Processing 6.04 6.26 6.70 1.68 20.68
Auxiliary 5.53 6.10 6.33 1.58 19.53
Administration 2.36 2.53 2.71 0.68 8.27
Contract Processing Services 4.17 4.46 4.78 1.19 14.61
Betpak Office Allocation 2.98 3.27 3.48 0.87 10.60
Selling expenses 3.07 2.89 2.93 3.00 11.89
Subtotal 37.77 39.91 42.37 12.90 132.96
Social Cost 0.16 0.16 0.16 0.16 0.64
Training 0.38 0.40 0.42 0.13 1.33
Reclamation 0.38 0.40 0.42 0.13 1.33Subtotal other costs 0.92 0.96 1.01 0.42 3.30
Total operating costs 38.69 40.87 43.38 13.32 136.26
MET 6.27 6.58 6.58 1.74 21.17
Total operating costs 44.96 47.45 49.96 15.06 157.43
Cost per lb U Sold 21.24 22.41 29.50 28.45 24.38
Cost per kg U Sold 46.82 49.40 65.03 62.72 53.75
Cost per lb U3O8 Sold 18.00 18.99 25.00 24.11 20.66
MANPOWER
The site manpower for Akdala consists of approximately 314 persons. The 2012 plan is
for the manpower level to increase from 314 in January to 339 by year end, with the
start-up of activity at the Letniy site.
The average manpower by department for 2012 is shown in Table 21-4.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 21-4
TABLE 21-4 2012 MANPOWERUranium One Inc. – Akdala Uranium Mine
Area 2012 Average
Management 18
Technical 7
Geology 6Wellfields 94
Process Plant 60
Plant maintenance 5
Instrumentation 18
Laboratory 14
Electrical/mechanical 12
Safety 14
Administration 40
Logistics 6
Motor Transport 34
Total on Site 328
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 22-1
22 ECONOMIC ANALYSIS
Under NI 43-101 and Form 43-101F1, producing issuers may exclude the information
required for Section 22 (Economic Analysis) for properties that are currently inproduction, unless the Technical Report includes a material expansion of current
production. RPA notes that Uranium One is a producing issuer, Akdala Mine is currently
in production, and a material expansion is not being planned. RPA has performed an
economic analysis of Akdala Mine as part of its estimate of Mineral Reserves using the
estimates presented in this report and concluded that the outcome is a positive cash
flow.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 23-1
23 ADJACENT PROPERTIES
There are no adjacent properties as defined by NI 43-101.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 24-1
24 OTHER RELEVANT DATA ANDINFORMATION
No additional information or explanation is necessary to make this Technical Reportunderstandable and not misleading.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 25-1
25 INTERPRETATION AND CONCLUSIONS
Based on the site visit and review of the available data, and field observations RPA
concludes that:
• The uranium mineralization is a sandstone-hosted, roll front type deposit.
• The December 31, 2011 Mineral Resources are estimated to be:
o Measured and Indicated Mineral Resources of 33.9 million tonnes grading0.010% U (0.012% U3O8) and containing approximately 3,381 t U (8.8 Mlb U3O8).
o Inferred Mineral Resources of 9.7 million tonnes grading 0.062% U(0.073% U3O8) and containing approximately 6,015 t U (15.6 M lb U3O8).
• The December 31, 2011 Mineral Reserves as estimated by RPA consist of 28.6million tonnes of Proven Mineral Reserves grading 0.009% U (0.011% U3O8) andcontaining 2,690 t of extractable U (6.99 M lb U3O8) and 1.3 million tonnes ofProbable Mineral Reserves grading 0.028% U (0.033% U3O8) and containing 360t of extractable U (0.94 M lb U3O8).
• The extraction of the Mineral Reserves is estimated to be 90%.
• The Akdala deposit is being successfully exploited using ISR techniques.
• The production to date is from the Blizhniy deposit while future production is
expected to include production from the Letniy deposit as well.
• There has not been a project to date reconciliation between the production andthe original Mineral Reserve estimate for the producing areas.
• The estimated operating cost for the Akdala Mine is $20.66 per pound U3O8 sold.
• The LOM plan includes the extraction of 3,050 tonnes U from the estimatedMineral Reserves. The remaining mine life as of December 31, 2011, and basedon current Mineral Reserves, is 3.5 years.
• The maximum annual production is estimated to be 1,000 tonnes U.
• The capital cost for the life of mine is $48.7 million including plant construction,production and exploration drilling, sustaining capital and contingency.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 26-1
26 RECOMMENDATIONS
Based on the site visit and review of technical data, RPA recommends that Uranium
One:
• Continue production at the Blizhniy deposit, development of the Letniy depositand exploration to upgrade Inferred Resources.
• Pursue the implementation of reconciliation procedures that are maintained on aregular basis and include block by block reconciliation of the productioncompared to the Mineral Reserve estimate.
• Direct more effort to the analysis of the physical and chemical data related to thewellfields, process solutions and plant operations to assist in the evaluation of theoperations and to possibly determine the cause of better or worse than plannedoperating results.
• Consider and implement procedures to obtain all of the exploration andtechnological estimation data on a timely basis and complete Mineral Resourceand Mineral Reserve estimates independently of the joint venture for reporting asa Canadian issuer.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 27-1
27 REFERENCES
Canada NewsWire, 2007, Uranium One Completes Acquisition of UrAsia Energy, file onSEDAR, Uranium One Inc., April 20, 2007.
Diatchkov, S.A., 1994, Principles of Classification of Reserves and Resources in the CISCountries: Mining Engineering, pp. 214-217.
Pool, T.C., 2006, Technical Report on the Akdala Uranium Mine, Kazakhstan, preparedfor Urasia Energy (BVI) Ltd., by Roscoe Postle Associates Inc., October 3, 2005,Revised March 21, 2006.
Shashkova, Z., 2010, 100408_2009_nudget vs actually_Akdala.xls, April 8, 2010.
Shindler, K., 2010, Life of Mine Plan.xls, April 14, 2010.
Uranium One Inc., Annual Information Form Year Ended December 31, 2009, March
312010.
Valliant, W.W., and Hendry J.W., 2010, Technical Report on the Akdala Uranium Mine,Kazakhstan, prepared by Scott Wilson Roscoe Postle Associates Inc. for UraniumOne Inc., dated May 27, 2010.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 28-1
28 DATE AND SIGNATURE PAGE
This report titled ”Technical Report on the Akdala Uranium Mine, Kazakhstan” and dated
February 17, 2012 as amended May 2, 2012, was prepared and signed by the followingauthors:
(Signed & Sealed) “ Wayne W. Valliant”
Dated at Toronto, ONMay 2, 2012 Wayne W. Valliant, P.Geo.
Principal Geologist
(Signed & Sealed) “ R. Dennis Bergen”
Dated at Vancouver, BCMay 2, 2012 R. Dennis Bergen, P.Eng.
Associate Principal Mining Engineer
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 29-1
29 CERTIFICATE OF QUALIFIED PERSON
WAYNE W. VALLIANT
I, Wayne W. Valliant, P.Geo., as an author of this report entitled “Technical Report onthe Akdala Uranium Mine, Kazakhstan” prepared for Uranium One Inc. and datedFebruary 17, 2012 as amended May 2, 2012, do hereby certify that:
1. I am Principal Geologist with Roscoe Postle Associates Inc. of Suite 501, 55University Ave Toronto, ON, M5J 2H7.
2. I am a graduate of Carleton University, Ottawa, Ontario, Canada in 1973 with aBachelor of Science degree in Geology.
3. I am registered as a Geologist in the Province of Ontario (Reg.# 1175). I haveworked as a geologist for a total of 37 years since my graduation. My relevantexperience for the purpose of the Technical Report is:
• Review and report as a consultant on more than fifty mining operations andprojects around the world for due diligence and resource/reserve estimation
• General Manager of Technical Services for corporation with operations and minedevelopment projects in Canada and Latin America
• Superintendent of Technical Services at three mines in Canada and Mexico• Chief Geologist at three Canadian mines
4. I have read the definition of "qualified person" set out in National Instrument 43-101(NI 43-101) and certify that by reason of my education, affiliation with a professionalassociation (as defined in NI 43-101) and past relevant work experience, I fulfill therequirements to be a "qualified person" for the purposes of NI 43-101.
5. I visited the Akdala Mine on October 17, 2011.
6. I am responsible for Sections 2 through 12 inclusive, 14, 23, and share responsibilitywith my co-author for Sections 1, 25, and 26 of the Technical Report.
7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.
8. I prepared a Technical Report on the Akdala Mine dated May 27, 2010.
9. I have read NI 43-101, and the Technical Report has been prepared in compliancewith NI 43-101 and Form 43-101F1.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 29-2
10. At the effective date of the Technical Report, to the best of my knowledge,information, and belief, the Technical Report contains all scientific and technicalinformation that is required to be disclosed to make the Technical Report notmisleading.
Dated this 2nd day of May, 2012
(Signed & Sealed) “ Wayne W. Valliant”
Wayne W. Valliant, P. Geo.
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Uranium One Inc. – Akdala Uranium Mine, Project #1744
Technical Report NI 43-101 – Amended May 2, 2012 Rev. 0 Page 29-3
RAYMOND DENNIS BERGEN
I, Raymond Dennis Bergen, P.Eng., as an author of this report entitled “Technical Reporton the Akdala Uranium Mine, Kazakhstan”, prepared for Uranium One Inc., datedFebruary 17, 2012 as amended May 2, 2012, do hereby certify that:
1. I am an Associate Principal Mining Engineer engaged by Roscoe Postle Associates
Inc. of Suite 501, 55 University Ave Toronto, ON, M5J 2H7.
2. I am a graduate of the University of British Columbia, Vancouver, B.C., Canada, in1979 with a Bachelor of Applied Science degree in Mineral Engineering. I am agraduate of the British Columbia Institute Technology in Burnaby, B.C. Canada, in1972 with a Diploma in Mining Technology.
3. I am registered as a Professional Engineer in the Province of British Columbia (Reg.#16064) and as a Licensee with the Association of Professional Engineers, Geologistsand Geophysicists of the Northwest Territories (Licence L1660). I have worked as anengineer for a total of 29 years since my graduation. My relevant experience for thepurpose of the Technical Report is:
• Practice as a mining engineer, production superintendent, mine manager, VicePresident of Operations and a consultant in the design, operation and review ofmining operations.
• Review and report, as an employee and as a consultant, on numerous miningoperations and projects around the world for due diligence and operationalreview related to project acquisition and technical report preparation, including NI43-101 technical report preparation.
• Mining engineer in underground gold and base metal mines.• Consulting engineer working on project acquisition and project design.• Mine Manager at three different mines with open pit and underground operations• Review of uranium ISR projects in the USA, Australia and Kazakhstan.
4. I have read the definition of "qualified person" set out in National Instrument 43-101("NI 43-101") and certify that by reason of my education, affiliation with a professionalassociation (as defined in NI 43-101) and past relevant work experience, I fulfill therequirements to be a "qualified person" for the purposes of NI 43-101.
5. I visited the Akdala Mine on October 17, 2011.
6. I am responsible for Sections 13, 15 through 22 and 24 and contributed to sections 1,25, 26, and 27 of the Technical Report.
7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.
8. I have had no prior involvement with the property that is the subject of the TechnicalReport.
9. I have read NI 43-101, and the Technical Report has been prepared in compliancewith NI 43-101 and Form 43-101F1.
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10. To the best of my knowledge, information, and belief, the Technical Report containsall scientific and technical information that is required to be disclosed to make thetechnical report not misleading.
Dated this 2
nd
day of May, 2012
(Signed & Sealed) “ R. Dennis Bergen”
Raymond Dennis Bergen, P.Eng.