Key Lake Map
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Each major step in the milling process is contained in separate buildings. Materials are transported from building to building in pipes as solution or slurry.
Key Lake ownership

2004   operating licence renewed, valid until 2008
2003   McArthur River and Key Lake ISO 14001 certified
2001   becomes the world's largest high-grade uranium mill, producing 18 million pounds
2000   Cameco and long-term contract employees achieved a record three years without a lost-time accident
2000   received, with McArthur River, the Canadian Institute of Mining's John T. Ryan trophy for the best safety record for metal mines in Canada in 1999
2000   began milling ore from the McArthur River mine in January 2000
1999      Cameco sold a 16.66% interest to AREVA Resources
1998 Cameco acquired the one-third interest held by Uranerz Exploration and Mining Limited
1997 mined out Deilmann open pit
1989 started mining Deilmann pit
1989 added molybdenum removal plant
1987 mined out Gaertner open pit
1984 added semi-autogenous grinding mill
1983 began production
1976 discovered Deilmann deposit
1975 discovered Gaertner deposit
1968 began exploration

Key Lake
The Key Lake mill - with its annual capacity of 18.7 million pounds U3O8, makes it the largest uranium mill in the world.

Milling

Key Lake is currently processing ore from the McArthur River mine and from stockpiles on site. The mill has an annual production capacity of 18.7 million pounds U3O8, the largest capacity in the world. In addition, ammonium sulphate fertilizer is produced by recycling reagents.

Each major step in the milling process is contained in separate buildings. Material is transported from building to building in pipelines as a solution or slurry. The major steps in the process include:

  • grinding, which breaks rocks into sand
  • leaching to dissolve uranium
  • separation of uranium solution from waste solids
  • solvent extraction to produce a purified uranium solution
  • yellowcake precipitation and calcining which recovers uranium as granular powder
  • crystallization which recovers ammonia reagent as ammonium sulphate fertilizer
  • bulk neutralization to treat waste from the solid-liquid separation and solvent extraction processes as well as water from the mine and tailings area

Robin Hovdebo
Radiation tests are ongoing in the bulk neutralization area of the Key Lake mill.

Worker Safety

  • Radiation doses for all workers at Key Lake are well below allowable limits.
  • Workers' cumulative gamma doses are recorded on radiation badges. Results are reported to the regulators and to Cameco employees.
  • Cameco also conducts an annual sampling program related to worker safety involving thousands of samples. The results of the sampling show that the workplaces are safe.

Tailings Management


 tailings management facility
Tailings are placed in an engineered tailings management facility built into the mined-out Deilmann pit.

The purpose of tailings management is to isolate and store the waste residue from the milling process so that people and the environment are protected. This involves containing the solids and treating the water to quality standards acceptable for release to the environment. The waste metals removed from the water are disposed of as solids in the tailings management facility.

From 1983 to 1996, waste from the Key Lake mill was deposited in a surface tailings management facility 600 metres by 600 metres and 15 metres deep.

Deilmann open pit
The mined-out Deilmann open pit is now used as a tailings facility.

The tailings facility was constructed five metres above the groundwater table and used a modified bentonite liner as a seal to line the bottom and isolate the tailings from the surrounding soil infrastructure.

The mined-out Deilmann open pit is now used as a tailings facility. It was commissioned in January 1996 to store the remainder of Key Lake tailings and McArthur River tailings.

This tailings facility is constructed in the basement rock of the mined-out pit.

Tailings are placed in a highly permeable envelope of crushed rock and sand in the mined-out pit. Residual water on the surface and the tailings is removed during tailings placement and collected for treatment. The consolidated tailings become a low-permeability mass contained in a permeable envelope. After decommissioning, groundwater will take the path of least resistance, around the tailings, rather than through them. Environmental impacts will be minimal.

Decommissioning

Key Lake landscaping and revegetation
Areas no longer in use at Key Lake are being landscaped and revegetated to return them as much as possible to their predevelopment state.

Cameco is committed to environmentally safe operations and is continually monitoring to ensure the environment is protected. Areas no longer in use are landscaped and revegetated to return them as much as possible to their predevelopment state.

When the Deilmann tailings management facility is ready to be decommissioned, it will be covered with clean material and groundwater will be allowed to rise to natural levels.

Safety, Health, Environment and Quality Policy


Employment

Cameco is committed to increasing benefits to northern residents from its mining operations. The company's hiring practices include giving preference to residents of northern Saskatchewan.

Cameco has a policy of purchasing goods and services from Saskatchewan, and in particular from northern Saskatchewan businesses, to the greatest extent possible.

Key Lake Employment

There are more than 350 people employed at the Key Lake operation, including on-site contractors - the majority of the workers are residents of northern Saskatchewan.

Work Schedule and Commuting

Key Lake's mine and mill operations run 24 hours a day, 365 days a year. Employees work 11 hours per day on a seven-day-in/seven-day-out schedule.


Cameco Production

 
Cameco's
Three Months Ended Six Months Ended  
 
Share
Jun 30/08 Jun 30/07 Jun 30/08 Jun 30/07  
   
Uranium production (in thousands lbs U3O8)  
  McArthur River 69.8%     3,240 3,899 6,383  6,591   
  Rabbit Lake 100.0%     1,513 989 1,513  2,118   
  Crow Butte 100.0%     131 192 287  381   
  Smith Ranch Highland 100.0%     289 515 676  1,001   
 
  Total 5,173 5,595 8,859  10,091   
 
   
Fuel services (tU) (ii) 100.0%     1,843 3,954 3,907  9,282   
   
Gold (troy ounces)  
  Kumtor 100.0%     111,000 83,000 186,000  149,000   
  Boroo 100.0%     47,000 70,000 93,000  137,000   
 
  Total 158,000 153,000 279,000  286,000   
 
   
(ii) Includes toll conversion supplied by Springfields Fuels Ltd.  

Uranium Operating Highlights
(100% basis except where noted otherwise)
        McArthur River/Key Lake*          Rabbit Lake
  2007 2006 2005 2007 2006 2005  
Tonnes milled 211,806 219,039 212,285 272,966 313,101 311,908  
Production (million lbs U3O8) 18.7 18.7 18.7 4.0 5.1 6.0  
Cameco's share 13.1 13.1 13.1 4.0 5.1 6.0  
Recovery (%) 98.4 98.8 98.9 96.9 96.6 97.0  
Average mill head grade (% U3O8) 4.07 3.91 4.00 0.69 0.78 0.88  
           Smith Ranch/Highland       Crow Butte  
  2007 2006 2005 2007 2006 2005  
Tonnes milled n/a n/a n/a n/a n/a n/a  
Production (million lbs U3O8) 2.0 2.0 1.3 0.7 0.7 0.8  
Cameco's share 2.0 2.0 1.3 0.7 0.7 0.8  
Recovery (%) n/a n/a n/a n/a n/a n/a  
Average mill head grade
(% U3O8)
n/a n/a n/a n/a n/a n/a  

* McArthur River ore is milled at Key Lake. Due to licence conditions, stockpiled low-grade ore at Key Lake is used to dilute the grade of McArthur River ore.


Uranium Recycle Project

Cameco is seeking approval for remilling two recyclable products from the Blind River refinery and Port Hope conversion facilities in Ontario, at its Key Lake operation in northern Saskatchewan. This approval would constitute a change to the mill feed component of the Key Lake operation. The purpose of remilling is to recover the uranium content of the uranium bearing products which are in a dry powdered form similar to the material that is fed into a stage of the milling process called the leach circuit. The recyclable products contain approximately 4% uranium. The majority of the uranium in these recyclable products is from Saskatchewan mines.

No changes to the mill circuit, other than an addition point in the leach circuit, are required and no expansion of the Key Lake capacity is being sought for this project. The maximum annual production of recyclable product (about 1500 tonnes) represents approximately 0.7% of the average annual Key Lake mill feed, by weight, and in total corresponds to approximately 2.5 days of normal Key Lake milling per year. The material would be blended in with McArthur River ore along with existing blend material, resulting in a small net gain in uranium production without an increase in the overall rate of effluent production. Based on the predicted life of the McArthur River mine (about 20 years), this recycling proposal could be considered to increase the life of the McArthur River by an equivalent of only two months production.

Recycling Between Facilities

Cameco presently recycles material within each of its facilities and believes that recycling between facilities will:

  • maximize resource use and recovery,
  • ensure proper management of its activities to prevent pollution and limit environmental impacts to levels as low as reasonably achievable, and
  • improve the overall environmental performance and economic viability of its operations in Canada.

Recyclable products from Cameco's fuel services have been milled in northern Ontario and in the United States for over 20 years with no reported occupational health or environmental concerns. The material represents the concentration of the uranium in the yellowcake that is not captured during refining and processing at the Blind River refinery and Port Hope conversion facilities.

At present, the trucks hauling yellowcake to Ontario return either empty or with reusable yellowcake drums. In this plan, Cameco proposes to first fill a portion of those drums to be backhauled to Key Lake. Shipments would receive the same care, and be regulated in the same manner, as present day yellowcake shipments. On average, fewer than two trucks per week would return with recyclable product rather than with empty drums.


Cameco Web Site

August 21, 2008

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