Cameco drills off more reserves at McArthur River

A recent underground drilling program at the McArthur River uranium deposit operated by Cameco (TSE) has allowed the company to revise its estimated in situ reserves to 416 million lb. U3O8.

The project, owned 54% by Cameco, 30% by Uranerz Exploration and Mining and 16% by Cogema Resources, is about 80 km north of the Key Lake uranium mine in northern Saskatchewan.

Previous published reserves of 260 million lb., with average grades of 5% U3O8, have been revised upward to 416 million lb. at an average grade of 15% U3O8, including a minable reserve of 457,000 tonnes grading 18.8% U3O8 (containing 189 million lb.). Cameco expects geological reserves to be upgraded to the minable category as work continues.

The company is currently preparing an environmental impact statement for regulatory authorities and incorporating a plan to ship ore directly to the Key Lake mill. This means the McArthur River mine would not need its own mill or waste-management facility. Cameco expects a decision from the Saskatchewan government within 18 months of filing the statement. Approval would allow the project to begin production in mid-1999.