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Saskatoon, Saskatchewan, Canada, November 13, 1997
Cameco Corporation today confirms it has received the report of the joint federal-provincial panel reviewing the proposed development of the Cigar Lake uranium deposit. Cameco holds a 48.75% interest in the project, which is presently operated by Cigar Lake Mining Corporation (CLMC), a joint venture formed by the owners in 1985 to develop the project. According to an agreement among the joint venture participants, Cameco will assume operating responsibility of the Cigar Lake mine at the time of a favorable government decision.
The panel recommends approval of the Cigar Lake mine, subject to the resolution of two issues.
The first is that the operator must identify an environmentally acceptable location to dispose of mine waste rock. Of the three options identified by CLMC, the panel rejected one and recommended a comparative evaluation of the remaining two.
The second relates to the tailings management proposal submitted by Cogema Resources Inc. Plans are to mill Cigar Lake ore 80 kilometres northeast at the McClean Lake uranium site, which is now being developed by the McClean Lake joint venture and which is operated by Cogema. Tailings resulting from milling would be deposited in a mined-out pit at the McClean Lake site. Although the panel endorsed the concept of the proposed in-pit tailings disposal, it identified a number of conditions, including further assessment and monitoring, that should be addressed.
"We are confident the operators can work with the regulators to successfully resolve these issues," said Bernard Michel, Cameco's chair, president and chief executive officer.
Cigar Lake is one of the largest, high-grade uranium orebodies in the world. Mineable reserves are estimated at more than 350 million pounds with an average grade of 14% U3O8. At full production, the site is expected to produce 18 million pounds annually.
Test mining completed in 1992 demonstrated the deposit can be mined in a manner which is safe for workers and the environment. Plans are for the orebody to be mined using remote-control methods. In its report, the panel stated that it "is satisfied that the proponent (CLMC) has adequately addressed the technical challenges of mining the high-grade Cigar Lake ore."
The panel's recommendations have been submitted to the provincial and federal governments, which are expected to announce their decisions in the coming months.
"Assuming a favorable response from the federal and provincial governments, and the timely receipt of appropriate licences from the regulators, it is anticipated Cigar Lake could begin production in 2001," Michel said.
The Cigar Lake project, located about 660 kilometres north of Saskatoon, is owned by:
| Cameco Corporation | 48.750% | |
| Cogema Resources Inc. | 36.375% | |
| Idemitsu Uranium Exploration Canada Ltd. | 7.875% | |
| TEPCO Resources Inc. | 5.000% | |
| Korea Electric Power Corporation | 2.000% |
Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest publicly traded uranium company and a growing gold producer. Its uranium products are used to generate electricity in nuclear power plants around the world, providing one of the cleanest sources of energy available today.
For further information, please contact:
| Elaine Kergoat Manager, Media & Public Relations Cameco Corporation Phone: (306) 956-6315 Fax: (306) 956-6318 |
Alice Wong Director, Investor & Corporate Relations Cameco Corporation Phone: (306) 956-6337 Fax: (306) 956-6318 |