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Saskatoon, Saskatchewan, Canada, April 3, 1998
Cameco Corporation today confirmed the Saskatchewan and Canadian governments have agreed that the Cigar Lake uranium project can advance to the next stage of the regulatory approval process.
The governments' decisions follow a report submitted November 13, 1997 by a joint federal-provincial panel which recommended conditional approval of the project.
"The Cigar Lake project has passed one more milestone on the road to production," said Bernard Michel, Cameco's chair, president and chief executive officer. "We expect production to begin in 2001 subject to the timely receipt of appropriate licences from the regulators."
Cameco holds a 48.75% interest in the project which is operated by the 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 would assume operating responsibility of the Cigar Lake mine following favorable decisions by the two governments.
Plans are to mill Cigar Lake ore 80 kilometres northeast at the McClean Lake site, which is now being developed by the McClean Lake joint venture and operated by Cogema Resources Inc. Cigar Lake tailings would be deposited in a mined-out pit at the McClean Lake site.
The federal and provincial governments generally support the panel's recommendations in their reports.
In granting ministerial approval for the project to proceed, the provincial government indicated the Cigar Lake project could be developed, operated and decommissioned in an environmentally acceptable manner.
The federal government is satisfied with the non-entry mining methods which are described as well developed and achievable by current industry standards. In addition they indicated many of the technical issues such as the placement of waste rock will be dealt with through the Atomic Energy Control Board licensing process.
Although the provincial and federal governments supported the panel's recommendations, they both differed with the panel on the condition related to the approval of the tailings facility at the McClean Lake site. The federal government is requiring ongoing laboratory studies, field investigations and modelling studies while the tailings are being deposited rather than a preliminary assessment of the performance of the facility based solely on theoretical modelling as the panel suggested. The provincial government also requires detailed monitoring, analysis and reporting on the performance of the tailings facility after it is in operation.
In addition, provincial government approval requires Cameco and Cogema, as the operators, to report on all construction, operation and environmental activities to ensure northern communities are informed as well as conduct research and evaluate options for improving environmental protection in: waste rock disposal, reduction of liquid effluent volumes and contaminant concentrations, reduction of process chemicals and recycling of mill effluent, and reduction of mine water inflows. They have also requested a study identifying acceptable locations to deposit waste rock including the two options previously outlined in the environmental impact statement.
"We continue to be confident that Cameco and Cogema can comply with all these requirements," said Michel.
During construction, an average of 400 employees and contractors will be employed on the Cigar Lake project including mine development and expansion of the McClean Lake mill to accommodate the Cigar Lake ore.
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.
The Cigar Lake project, located 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:
| Rita Mirwald Sr. VP, Human Resources Director, & Corporate Relations Cameco Corporation Phone: (306) 956-6313 Fax: (306) 956-6312 |
Alice Wong Investor & Corporate Relations Cameco Corporation Phone: (306) 956-6337 Fax: (306) 956-6318 |