Mining has resumed about a month earlier than expected at
The mine shut down in early April when flooding caused a 10-metre-long portion of the roof to cave in. At the time, drifting was under way on the 510 level. There were no injuries, but the flooding totally submerged a semi-autogenous grinding (SAG) mill on the 640 level.
Cameco has plugged the development tunnel with concrete and is pumping excess water into an inactive part of the mine before sending it to the surface. The water inflow has stabilized, and the affected area should be sealed off by mid-August.
Meanwhile, the company has covered all sales contracts with existing inventory and other supply sources. Layoffs among the 275 workers at the mine and mill were avoided.
Cameco activated two raise-boring machines underground at the end of June, and a third will be added. As a result, the mine should soon be operating at full capacity (18.7 million lbs. per year). The Key Lake mill, 80 km to the southwest, has also resumed operations.
The mine is expected to produce 12-13 million lbs. (8-9 million lbs. toward Cameco’s own account) of U3O8 in 2003. At full steam, the mine’s capacity is 18.7 million lbs. Reserves stand at 473 million lbs. U3O8 contained in 930,000 tonnes grading 23% U3O8.
The shutdown is expected to take a $4-to-5-million bite out of second-quarter earnings for each month of lost production. The capital cost of the repairs has yet to be determined.
Situated 620 km north of Saskatoon, McArthur River is the richest uranium mine in the world. It is held 70% by operator Cameco and 30% by France’s Cogema Resources.
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