Rover90 wrote: Two reasons CCO price down after the 43-101 Technical Report with ACTUAL data as Cigar Lake is in operations....fyi not good news for underground mines imo.....
Thank goodnees FCU resource majority will be open pit.
1. Cigar Lake INFERRED resources Page 14 of 164 .... 103M lbs. HUGE RISK.
2. Risks associated with underground mines......
Pg 17 of 164 - Freezing is key to the success of mining the deposit, and results in several enhancements to mining conditions, including: (1) increasing the stability of the area being mined; (2) minimizing the risk of water inflows into the mine from the water-bearing rock above the unconformity; and (3) reducing the radiation resulting from radon dissolved in the water.
Pg 23 of 164 -
Mining and milling risks Cigar Lake is a challenging deposit to develop and mine. These challenges include, but are not limited to, variable or unanticipated ground conditions, ground movement and cave-ins, water inflows, performance of the water treatment system, variable dilution, recovery values, mining productivity, equipment reliability and other mining-related challenges. Additionally, the realization of risks associated with processing the ore at AREVA’s McClean Lake mill would adversely affect production at Cigar Lake.
Pg 25 of 164 -
JBS MINING METHOD AND RAMPUP Since the 2012 Technical Report, comprehensive JBS testing and commissioning was completed to advance three JBS units to full production successfully. Actual results since the start of production suggest the projections for jet boring productivity are realistic. It is recommended to continue process and equipment optimization to realize the full potential of this mining method. As Cameco ramps up to full production capacity, there may be some technical challenges which could affect Cameco’s production plan. See Section 24.2, Mining and milling risks for more information.
Pg 154 of 164 -
Material risks • an unexpected geological, hydrological, underground condition or an additional water inflow delays or disrupts production
• ground movements and cave-ins
• the necessary regulatory permits or approvals cannot be obtained or maintained
• natural phenomena, labour disputes, equipment failure, delay in obtaining the required contractors, equipment, operating parts and supplies or other reasons cause a material delay or disruption in production
• processing plants are not available or do not function as designed and sufficient tailings facility capacity is not available
•
mineral resource and mineral reserve estimates are not reliable • Cameco’s development, mining or production plans for Cigar Lake are delayed or do not succeed for any reason, including as a result of any difficulties with freezing the deposit to meet production targets, or any difficulties with the McClean Lake mill modifications or expansion, or milling of Cigar Lake ore
• the production increase approval at the McClean Lake mill is delayed or not obtained
• the current collective agreement between AREVA and unionized employees at the McClean Lake operation expires in May 2016. There is risk to the production plan for Cigar Lake if AREVA is unable to reach an agreement and there is a labour dispute
Read Technical Report at: https://s3-us-west-2.amazonaws.com/assets-us-west-2/technical-report/cameco-2016-cigar-lake-technical-report.pdf