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CIGAR LAKE

Q1 2014 Update

Production

In the first quarter, we announced the start of mine production at Cigar Lake. The jet boring system is performing as expected and six ore cavities have been mined to date. The ore is routinely transported to the McClean Lake site where it is being stored for processing.

Operations update

AREVA has made good progress on modifications to the McClean Lake mill, and reports the following:

  • the ore receiving systems have been commissioned and more than 350 tonnes of ground ore slurry has been shipped from the Cigar Lake mine and loaded into storage tanks at the mill
  • an expanded ore slurry storage facility has been completed, including receipt of regulatory approvals
  • engineering work related to the mill modifications has been completed, all materials have been ordered and key long-lead items have been received, and a detailed commissioning plan has been prepared
  • contractors are on site and the construction is actively progressing

The necessary time to complete all related construction work (installing pumps, pipes, electrical and instrumentation), and commissioning of the new components and the process circuit with water to ensure the systems function as designed, has led AREVA to advise us that the mill will not begin processing ore by the end of the second quarter.

Additionally, AREVA has advised us that work is in progress at McClean Lake to double the mill's current capacity of 1 million pounds per month, in order to process Cigar Lake's full production, as it is expected to ramp-up to 18 million pounds per year by 2018.

We expect to produce 2 million to 3 million packaged pounds (100% basis) in 2014, depending on the mill startup and rampup, as well as the continued success of mining operations at Cigar Lake.

CIGAR LAKE PROGRESS

CIGAR LAKE PROGRESS

Construction of the Cigar Lake...

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