Saskatoon, Saskatchewan, Canada, January
25, 2001
Cameco Corporation announced today that reserves at McArthur River,
the world's largest, highest grade uranium mine, increased by more
than 50%.
Cameco's share of proven and probable reserves rose from 178 million
pounds U3O8
at an average grade of 17% U3O8
on December 31, 1999 to 275 million pounds at 21% U3O8
on December 31, 2000. (See table below for more details.)
"This substantial increase in McArthur River reserves reinforces
Cameco's already strong asset base and builds on our position as
a world leader in the uranium business," said Bernard Michel,
Cameco's chair and chief executive officer. "These additional
reserves will extend the life of the operation providing even more
long-term security to our customers and shareholders."
The reserves were revised by professional geoscientists at Cameco
after analyzing the underground drilling performed since 1994, particularly
during 1999 – 2000, and the results of the initial year of mine
production.
The McArthur River mine, owned 70% by Cameco and 30% by Cogema
Resources, Inc., produced in excess of 11 million pounds U3O8
during 2000 and is on track to ramp up to full production
of 18 million pounds by 2002.
The McArthur River mine is located 620 air kilometres north of
Saskatoon and about 80 kilometres northeast of the Key Lake operation.
As of December 31, 1999, the McArthur River uranium reserves and
resources were:
Additional reserves were derived from resources by re-estimate
after extensive underground drilling.
As of December 31, 2000, following the extension of the underground
drilled area into Zones 3 and 4, the re-estimate of Zones 1 and
2 and the removal of the mined material, the reserve and resource
figures are:
Technical Background
This revision has been conducted by J.F. Chauvet and A.G. Mainville,
professional geoscientists respectively director and chief geologist
of mining resources and methods, Cameco.
The mineralization, as identified from surface drillings from 1988
to 1991, extends along a fault called P2 North Fault over a distance
of 1,800 metres. This mineralization is of the “unconformity” type,
being at the contact between the older Wollaston Lake series of
various gneisses and the more recent Athabasca sandstones.
The uranium concentration is structurally controlled by the P2
Fault which runs N 45° E and dips 45 - 50° SE with a 70 metre average
vertical offset. It occurs in "zones" of variable importance hosted
either by the sandstones, the fault zone, or predominantly pelitic
gneisses.
The main characteristic of these zones is the very high ore grade
which can exceed locally 70% U3O8.
Average grades of 30% U3O8
over several metres are common in drill holes and were confirmed
during mining.
The McArthur mine was established in 1993 – 1994 and underground
drilling campaigns allowed the definition of mineralized zones in
the central part of the deposit, over a length of 550 metres. Some
370 underground exploration holes have been drilled so far, as well
as over 100 freeze holes and production pilot holes.
Ore production by the raise boring method began at the end of 1999
in the "Zone 2" area and has yielded in excess of 11 million pounds
of U3O8
in the first year. The 2001 production is expected to exceed 15
million pounds U3O8.
This production appears to be well in excess of the amount predicted
by the current resource models, a fact that may be due to the conservative
approach used by the estimators, as well as other factors which
are under study.
Estimates of resources are mostly from radiometric data collected
by probing of the underground holes. After a careful study of each
hole to eliminate the possible influence of radon, these data are
converted into grades on a 10 centimetre basis using a complex series
of formulas that take into account the physical characteristics
of the mineralization, the probe detectors and each drill hole.
All the probes are tested before each probing operation and the
quality of the results evaluated by several experienced geologists
and the qualified persons. After geological interpretation and delimitation
of the mineralized volumes, the resources are estimated by geostatistical
methods. Additional check estimates gave comparable results. Reserves
are then selected from the resource model, according to mineability.
Resources do not include reserves. Reserves are calculated without
inclusion of any external dilution for the grade of the ore is such
that dilution is deliberately added to allow mill processing in
compliance with operating license requirements. Reserves are also
exceptionally calculated without provision for mine recovery, the
first mining results showing a much higher uranium production than
anticipated by the models.
Mining methods other than the currently used raise boring method
will be employed in the future to recover parts of the ore body
that may have been left in situ through mining. This will be accomplished
as the grade of the material is exceptionally high being ten times
the grade normally extracted in the industry.
Cameco, with its head office in Saskatoon, Saskatchewan, is the
world's largest uranium supplier. The company's uranium products
are used to generate electricity in nuclear energy plants around
the world, providing one of the cleanest sources of energy available
today. Cameco's shares trade on the Toronto and New York stock exchanges.
- End -
For further information, please contact:
Bob Lillie
Manager, Investor Relations
Cameco Corporation
Phone:(306) 956-6639
Fax:(306) 956-6318
|
|
Lyle Krahn
Supervisor, Corporate Communications
Cameco Corporation
Phone:(306) 956-6316
Fax:(306) 956-6318 |
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