Cameco’s Cigar Lake uranium project now in commercial operation

by Keith Powell — June 04, 2015

Cigar Lake operations is expected to produce 6 million to 8 million pounds of uranium oxide this year. — Photo courtesy Cameco

Mining at Cigar Lake began in March 2014, and the first processed product packaged in October 2014. The operation is expected to produce 6 million to 8 million pounds of uranium oxide (2308 to 3077 tU) this year, ramping up to full annual production rate of 18 million pounds per year (6920 tU) by 2018.

After some difficulties reaching its operating targets at the Cigar Lake mine in Northern Saskatchewan, Cameco (TSX:CCO,NYSE:CCJ) recently announced that the operation was in commercial production as of May 1.

While the news could be considered business as usual, it’s worth recognizing given all the challenges Cameco has overcome as operator of the mine, which President and CEO Tim Gitzel has dubbed one of “the most technically challenging mining projects in the world.”

One of the reasons Cigar Lake is so challenging is that the deposit is located between 410 and 450 meters below the surface in the Athabasca Basin, where water-saturated sandstone meets with the underlying basements rocks.

Cigar Lake is owned by Cameco (50.025%), Areva Resources Canada Inc (37.1%), Idemitsu Canada Resources (7.875%) and TEPCO Resources Inc (5.0%) and is operated by Cameco. Ore from Cigar Lake is processed at the McClean Lake mill, 70 km northeast of the mine site and operated by Areva Resources Canada.

Source: Cameco press release