Total production of uranium by non-Communist countries decreased in 1987 compared with the year before, with three of the top four producing nations — Australia, South Africa and the U.S.A. — showing a decline in output, Nuexco reports.
The fourth member of the group, Canada, increased its total production in 1987, accounting for more than one-third of the global output of U3O8.
According to Nuexco, non- Communist production of uranium in 1987 amounted to about 94.9 million lb (43,000 tonnes), down 2.5% from the year before.
Canada has been the world leader in uranium production the past four years; in 1987, it boosted its output by 6% to 32.3 million lb. Within the country, the province of Saskatchewan turned out about two-thirds of the national production.
Top producer in the prairie province was the Key Lake project, which is owned by Saskatchewan Mining Development (50%), Uranerz Exploration and Mining (33.3%) and Eldorado Resources (16.7%). The Key Lake mine increased its production in 1987 by close to one million lb, to more than 13.5 million lb.
Another Saskatchewan producer, Eldorado’s Rabbit Lake project, hiked its output last year to 5.7 million lb, while the Amok Ltd. project at Cluff Lake saw its production drop slightly to 2.15 million lb. Test period
On the exploration side, the province’s Cigar Lake prospect, reported to be the largest high grade uranium deposit in the world, is undergoing a 2-year test period starting this year which in part will involve the sinking of a 1,600-ft exploratory shaft. A maximum 5,500 tons of ore are to be mined during the test period. The target date by the owner, Cigar Lake Mining, for commercial production is 1993.
Other exploration projects in the province include Eldorado’s Eagle South deposit, and the joint-venture Eagle North deposit involving Eldorado, SMDC and Noranda Minerals. Denison Mines (TSE) and Minatco, a subsidiary of the French firm Total Compagnie Miniere, also have projects on the go in Saskatchewan.
In Ontario, total uranium production in 1987 was down, with a 3-week strike in the Elliot Lake area contributing to the decrease. Denison’s output dropped 10% to 4.7 million lb, while Rio Algom (TSE) saw a production decline of 15% to 6.2 million lb.
Total uranium reserves (all classes) in Canada at the end of 1986 were estimated by the federal government to be 1.5 billion lb (567,000 tonnes). Northern prospect
In other Canadian exploration news, Urangesellschaft Canada, an affiliate of the West German firm Metallgesellschaft AG, is reported (N.M., April 4/88) to be negotiating with prospective partners for the development of the Kiggavik deposit located 50 miles west of Baker Lake, N.W.T. Production at the northern site could be under way by 1994.
Internationally, Australia’s share of the world uranium market dropped from 11.2% to 10.3% last year, with production declining about one million lb from the 1986 total, to 9.8 million lb. Australia counted on two uranium producers for its 1987 output.
In South Africa, uranium production fell 14.2% last year to about 10.3 million lb. A strike by mine workers contributed to the lower total. And in the U.S., output dropped about 10% last year to 12.5 million lb.
In Europe, Nuexco reports a rise in uranium production in 1987 of about 2% to 8.6 million lb.
The owner of a closed gold mine in El Salvador is hoping to be able to raise enough money to reopen the mine by offering gold to its Wisconsin shareholders in the U.S. at a price below the world level.
Metals Week reports Commerce Group will offer to the shareholders gold at $350(US) per oz, with early investment earning a discount of up to $50 per oz.
Gold was recently trading in London above $450.
The company will sell the gold for future delivery in minimum amounts of 20 oz per purchaser.
The open-pit San Sebastian mine was closed in 1979. Commerce estimates that upon reopening the mine, production could reach almost 40,000 oz in the first year, 86,400 oz in the second year and almost 130,000 oz during the third year.
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