Cameco "cautious and prudent" on Cigar Lake

12 July 2007

A start up of 2011 rather than 2010 is looking likely at the Cigar Lake uranium mine in Canada. Steady progress is being made on the first phase of remediation at the mine, flooded by water inflow in October 2006, but revised production forecasts are not likely before the second phase is well underway.

Cigar Lake should be the largest uranium mine in the world when it reaches full operation, producing 18 million pounds U3O8 per year.

The first phase of the flood remediation work involves drilling holes to the source of the water inflow and to a nearby tunnel where reinforcement is needed, pumping concrete through the drill holes, sealing the inflow and drilling dewatering holes. The tunnel reinforcement work is now completed, the holes for pouring the concrete to seal off the inflow have been drilled and four large-diameter dewatering holes are 90% complete, according to Cameco. Regulatory approval has been given to plans to flush away sand and fine material from the inflow area and to pour successive layers of a concrete mixture designed to harden underwater and form a plug. However, the effectiveness of the plug will not be known until dewatering starts.

The second remediation phase involves dewatering the underground works, verifying that the water inflow has been sufficiently sealed and installing surface piping. Completion of this phase had been expected by the end of the third quarter of 2007, but Cameco now expects the sealing and dewatering to require "a number of additional months."

Regulatory approvals are still needed for the second and subsequent phases of the remediation project, and Cameco is preparing regulatory submissions for dewatering and other work. The company is also preparing to submit an application to state regulator the Canadian Nuclear Safety Commission to extend the Cigar Lake construction licence which is due to expire at the end of 2007.

Also being examined is whether an alternative route out of the mine is required before excavations begin in areas at elevated risks of water inflow, and whether a second shaft needs to be completed for ventilation. Cameco anticipates a decision on the second shaft by the end of the year. Revised production forecasts will not be made until the second shaft decision is reached, the mine has been dewatered and the condition of the underground infrastructure assessed.

"The remediation work at Cigar Lake is technically challenging and our approach has been cautious and prudent," said Cameco chief operating officer Tim Gitzel. He noted that the company was taking "concrete steps" towards improving the company's quality culture, an area flagged up for attention by regulators.

Cigar Lake is in Canada's northern Saskatchewan and is being developed by a consortium led by Cameco partnered by Areva Resources of Canada, Idemitsu Canada Resources and Tepco Resources.

Further information

Cameco

WNA's Canada's Uranium Production & Nuclear Power information paper

WNN: Camecoreveal Cigar Lake failures
WNN: Camecodetails Cigar Lake remediation

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