NEW MINES ROUNDUP — Green light for uranium mines

The Cigar Lake uranium project in northern Saskatchewan’s Athabasca Basin — a joint-venture held 48.7% by Cameco (CCO-T) and 36.4% by French-owned Cogema Resources — has received conditional approval from a joint federal-provincial panel. Three Japanese firms hold minority interests in the high-grade deposit. The panel also gave a thumps-up to the nearby Midwest uranium project held 56% by Cogema, 20% by German-owned Uranerz Exploration & Mining and 19.5% by a unit of Denison Mines (DEN-T). OURD Canada holds a 4.5% stake in Midwest.

Cameco will operate Cigar Lake, which is expected to produce 18 million lbs. U308 annually at full production. Mining is scheduled to begin in 2001, subject to the timely receipt of various licences.

Meanwhile, Cameco aims to start production late next year at its 55.6%-owned McArthur River project nearby, now in the construction phase. Because the average ore grade at McArthur River is so high, at 15% U308, the deposit will be mined using non-entry methods to keep human contact with the ore at a minimum. The ore will be transported 80 km to Cameco’s existing Key Lake uranium operation for milling.

The McArthur River mine is targeted to produce 18 million lbs. annually at full production, which would make it the largest and lowest-cost uranium mine in the world. Both Cigar Lake and McArthur River have uranium grades almost 100 times the world average.