Uranium miner Cameco (TSE) has been given the green light to bring three new deposits into production at its Rabbit Lake operation, 420 km north of La Ronge, Sask.
The federal natural resources minister has advised the company that full production can commence at the Eagle Point mine and that development of the Collins A and D zones may proceed, subject to certain conditions. The conditions include full compliance with the licensing process of the Atomic Energy Control Board (AECB) and submission of information concerning waste rock management and mine decommissioning.
Earlier this year, the three projects received conditional approval from a federal environmental assessment panel.
Confident that the company will address all the issues to the satisfaction of the AECB, Cameco President Bernard Michel said, “We plan to proceed with full-production underground mining at Eagle Point as soon as a production licence can be obtained from the AECB.”
Reserves at Eagle Point total 64 million lb. U3O8 at an estimated grade of 1.5% U3O8. Reserves at the A and D zones combined are 22 million lb. U3O8 at an average grade of 2.5% U3O8.
The decision comes as good news for Cameco, as the viability of the Rabbit Lake operation depends on the timely development of all three orebodies as one economic unit. The company says the operation could not have continued past 1994 without approval to mine the new deposits.
The decision also gives a boost to the Saskatchewan economy, since the Rabbit Lake project provides about 400 direct and indirect jobs and pays about $500 million in federal and provincial taxes and royalties.
The federal government has also recommended the establishment of a public environmental committee to ensure the regulatory process is responsive to public concerns.
Rabbit Lake is owned two-thirds by Cameco and one-third by Uranerz Exploration and Mining.
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