Celebration marks opening of two mines

Ambassadors from France and Japan and representatives from Asian, European and North American electrical utilities joined officials of Cameco (CCO-T) and Cogema and local residents for celebrations marking the opening of the McLean Lake and McArthur River uranium mines, about 650 km northeast of Saskatoon, Sask.

Cameco operates and owns a 70% interest in McArthur River, the world’s largest high-grade uranium mine. Ore is transported to the company’s 83%-held Key Lake mill for processing. This year, production is expected to reach 11 million lbs. U3O8; most of that amount will be produced in the latter part of the year.

Production will then increase to 18 million lbs. annually, with costs among the world’s lowest. Because of the high grade, fewer than 150 tonnes per day will be mined by the raiseboring method. McArthur River has proven reserves of 505,000 tonnes averaging 22.15% U3O8, plus additional resources in other categories.

McArthur River has some unique features, including an ore-processing circuit built 640 metres below surface. The circuit is operated remotely using conventional technologies adapted to an underground environment and designed to provide increased radiation protection from the high-grade ore. After grinding and thickening underground, the slurry is brought to surface and loaded into specially designed containers for transportation to the nearby Key Lake mill by truck.

Cameco also operates the wholly owned Rabbit Lake mine and the 50%-owned Cigar Lake mine project in northern Saskatchewan. Cigar Lake is in the development phase and is expected to begin production in 2003. Through American subsidiaries, Cameco produces uranium from the Highland mine in Wyoming and the Crow Butte mine in Nebraska.

Cogema (Compagnie Gnrale de Matieres Nucleaires) is a company partly owned by the French government. In addition to operating mining and mining facilities at Cluff Lake in northern Saskatchewan. It also operates and is majority owner of the McClean Lake and Midwest uranium projects, in the same province, and owns part of Cigar Lake, McArthur River (17%) and Key Lake.

The McClean Lake uranium deposit was discovered in 1979. Its new mill was the first to be licensed in North America in the past 15 years. Subject to future approvals, it will eventually handle ore from the Midwest and Cigar Lake mines. Cogema’s partners in McLean Lake are Denison Mines (DEN-T), with a 22.5% interest, and OURD, a consortium of Japanese facilities that holds a 7.5% stake.