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Saskatoon, Saskatchewan, Canada, October 21, 1998
Cameco Corporation is pleased to announce that the Kumtor gold mine has achieved a production milestone of one million ounces.
The milestone was reached today at the site, located at an altitude of 4,000 metres in the Tien Shan mountains in Kyrgyzstan, Central Asia.
"This is a milestone in the history of any mining operation but it is especially gratifying as we reflect upon the events and the circumstances that have brought us to this day," said Bernard Michel, Cameco's chair, president and chief executive officer, in a letter of congratulations to employees.
"Because of the pioneering spirit, commitment and dedication of Kumtor's employees, we have overcome many obstacles and transformed a mountain plateau into a hub of economic activity that unites different cultures, languages and political views toward a common goal."
Kumtor is owned two-thirds by Kyrgyzaltyn, an entity of the Kyrgyz government, and one-third by Cameco and is operated by Kumtor Operating Company, a wholly owned subsidiary of Cameco. The operation employs about 1,400 people, almost 90% of which are local residents of Kyrgyzstan.
Kumtor is the largest western-managed mining project in the former Soviet Union and began commercial production in May 1997. Production in 1997 totalled 500,000 ounces. Production for 1998 is expected to exceed 600,000 ounces. Average cash costs this year are about $175 (US) per ounce and the company has used an effective gold hedging program to protect revenue during a time of reduced gold prices.
Cameco is the largest uranium producer in the world and a growing gold producer.
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For further information, please contact:
| Alice Wong Director, Investor & Corporate Relations Cameco Corporation Phone: (306) 956-6337 Fax: (306) 956-6318 |
Elaine Kergoat Manager, Media & Public Relations Cameco Corporation Phone: (306) 956-6315 Fax: (306) 956-6318 |