Federal panel approves Cameco mine

Production at Cameco’s (TSE) Eagle Point mine in Saskatchewan could begin as early as this summer, following approval from a federal environmental assessment panel.

“All we’re waiting for now is federal government approval,” said Rita Mirwald, Cameco’s director of corporate affairs and investor relations. The panel approved full underground production at Eagle Point (situated 420 km north of La Ronge) but recommended further studies be carried out on two other deposits known as the Collins Bay A and D zones. The panel requested more information concerning waste rock management and eventual mine decommissioning of the zones.

The three projects are part of the Rabbit Lake operation, 67% of which is owned by Cameco and 33% by Uranerz Exploration and Mining.

Although the panel’s recommendations are not expected to affect Cameco’s development schedule, Mirwald emphasized that the continued viability of the Rabbit lake operation depends on the development of all three orebodies as one economic unit.

Reserves at Eagle Point total 64 million lb. U3O8 at an estimated grade of 1.5% U3O8. Combined reserves in the A and D zones are 22 million lb. U3O8 at an average grade of 2.5% U3O8.

Mirwald said development of these reserves is crucial if Cameco’s uranium supply contracts are to be met. The Rabbit Lake mill is processing stockpiled material from the mined-out Collins Bay B zone and is operating at about 50% capacity. It is expected the stockpiled ore will be exhausted by May. For the project to proceed, approval is required from the federal ministers of the environment and natural resources. There has been no indication of when the government will respond to the panel’s recommendations, which are in no way binding.

To date, partners Cameco and Uranerz have spent about $100 million on development of Eagle Point and the Collins Bay A and D zones.