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CIGAR LAKE

Q4 2013 Update

During the year, we:

  • completed construction and began commissioning of all infrastructure required to begin ore production
  • successfully tested the jet boring system in waste and began commissioning in ore
  • continued freezing the ground from surface to ensure frozen ore is available for future production years

Costs

As of December 31, 2013, we had:

  • invested about $1.1 billion for our share of the construction costs to develop Cigar Lake
  • expensed about $86 million in remediation expenses
  • expensed about $102 million in standby costs
  • expensed about $102 million to begin commissioning

In August 2013, we announced that our share of the total capital cost for Cigar Lake was expected to increase between 15% and 25% as a result of scope changes, increased costs at the mine and mill, and the inclusion of some capital costs that will be incurred subsequent to the mining of the first ore that were not included in our previous estimate. Our total share of the capital cost for this project is now estimated to be about $1.3 billion (previously $1.1 billion) since we began development in 2005. In order to bring Cigar Lake into production in 2014, we estimate our share of capital expenditures will be about $130 million, including $100 million on modifications to the McClean Lake mill. Additional expenditures of about $35 million will be required at McClean Lake mill in 2015 in order to continue ramping up to full production. Our share of standby charges until production is achieved this year are estimated to be about $15 million.

Licensing

The CNSC granted a uranium mining licence authorizing construction and operation of the Cigar Lake project. The licence term is from July 1, 2013 to June 30, 2021.

Planning for the Future

Production

In 2014, we expect to:

  • bring the mine into production in the first quarter of 2014
  • begin processing ore at AREVA‚Äôs McClean Lake mill by the end of the second quarter of 2014

For more information about future production at the Cigar Lake mine, please refer to our Q4 2013 MD&A

CIGAR LAKE PROGRESS

CIGAR LAKE PROGRESS

Construction of the Cigar Lake...

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