RE:Problems underground mine Cameco continueSASKATOON, SASKATCHEWAN--(Marketwired - Jul 16, 2014) -
ALL AMOUNTS ARE STATED IN CDN $ (UNLESS NOTED)
Cameco (TSX:CCO)(NYSE:CCJ) today provided an update on recent developments at the Cigar Lake uranium mine in northern Saskatchewan.
The Cigar Lake uranium deposit occurs at depths ranging from 410 to 450 metres below the surface where the water-saturated Athabasca sandstone meets the underlying basement rocks. To prevent water from entering the production areas of the mine and to help stabilize weak rock formations, the ore zone and surrounding ground is being frozen by circulating a brine solution through cased holes drilled from both surface and underground.
As part of the ongoing commissioning process, Cameco has been assessing the current state of ground freezing at Cigar Lake. We have determined that freezing has not advanced as quickly as expected in some localized areas of the mine. Given that the McClean Lake mill has not yet started processing Cigar Lake ore, we have decided to temporarily stop jet-boring at Cigar Lake to allow the ore body to freeze more thoroughly in these areas. The additional freezing will allow more continuous production at the mine once the mill is operational.
Based on early indications from our assessment we expect the production schedule could shift by a couple of months. Although a minor change to the schedule, it means ore that was expected to be milled at the end of the year, will shift into early 2015 thereby affecting our 2014 production target. Cameco will provide an update to its 2014 production target in its second quarter MD&A on July 31 when the assessment is complete.
The company's long-term annual production target of 18 million pounds U3O8 by 2018 will not be impacted.
The Cigar Lake mine is owned by Cameco (50.025%), AREVA Resources Canada Inc. (AREVA) (37.1%), Idemitsu Canada Resources Ltd. (7.875%) and TEPCO Resources Inc. (5.0%) and is operated by Cameco. Ore from Cigar Lake will be processed at the McClean Lake mill, which is majority owned and operated by AREVA.