Q3 2013 Update
NEW PRODUCTION AREAS
Production from the new zone...
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Production for the quarter and for the first nine months of 2013 was unchanged compared to the same periods last year. We expect our share of production this year to increase to 13.6 million pounds compared to our previous forecast of 13.2 million pounds U3O8.
At McArthur River, we began freezing zone 4 north and plan to begin mining this zone in late 2014.
This quarter, the CNSC granted approval for the use of two secondary extraction methods: blasthole stoping and boxhole boring. Test programs for each method were completed in the first half of the year, and shown to be viable, economic options for mining ore on the periphery of the orebody, as well as in smaller, lower grade areas. As a result, we expect that these extraction methods will only be used in those limited situations to complement our primary extraction method of raiseboring.
On October 29, 2013, the CNSC granted a renewal of our McArthur River operating licence. The licence term is from November 1, 2013 to October 31, 2023.
The current collective agreements with unionized employees at McArthur River and Key Lake will expire on December 31, 2013. Bargaining is expected to begin on November 1, 2013. There is risk to production if we are unable to reach an agreement and a work stoppage occurs.