McArthur River project shapes up for Cameco

An environmental review panel has recommended that Cameco (CCO-T) be permitted to develop the McArthur River deposit in Saskatchewan.

The project, 620 km north of Saskatoon, is the largest, high-grade uranium deposit known to exist. Reserves and resources stand at 416 million lb. U3O8, with an average grade estimated at 15% U3O8.

Ownership is shared among Cameco with 56%, Uranerz Exploration & Mining with 28%, and French-owned Cogema Resources with 16%.

Owing to the deposit’s high grade, Cameco proposes using remote-controlled mining methods. Mined material will be hauled 80 km to the company’s Key Lake operation for processing, with wastes stored in one of the mined-out open pits there.

The joint federal-provincial panel approves of the proposed disposal method but recommends that waste be monitored for a longer period than initally proposed by Cameco.

The company hopes to start construction this summer for a 1999 startup.

Capital costs are projected at $400 million, with annual production pegged at 18 million lb. Cameco discovered the deposit in 1988 following a 9-year exploration program.