Cameco targets over 6000 tons of Uranium production in 2016 from Cigar Lake

Cameco expects the Cigar Lake operation to produce 16 million pounds of packaged uranium concentrate (U3O8) – equivalent to 6154 tU – in 2016, the company announced yesterday. Full achievement of the production outlook will depend on regulatory approvals to increase the production at the McClean Lake mill, where ore from Cigar Lake is milled and packaged.

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The mine achieved its initial 2015 production target range – 6 million to 8 million pounds U3O8 (2308 to 3077 tU) – during the third quarter of the year. Full 2015 production will be reported in the company’s fourth quarter results, due to be released on 5 February 2016.

With an average ore grade of 17.8% U3O8, Cigar Lake, in northern Saskatchewan, is claimed by Cameco as the highest-grade uranium mine in the world. Located at depths of 410 metres to 450 metres below the surface, the orebody is at the boundary between dry basement rock and water-bearing sandstone, meaning that the orebody must be frozen before mining to prevent water from entering the mine workings and to stabilize weak rock formations. A high-pressure water jet is then used to mine out cavities in the frozen ore in a technique called jet boring. Thickened ore slurry is pumped to the surface and transported in tanker trucks 70 kilometres to the McClean Lake mill where it is processed into uranium concentrate.

McClean Lake, majority owned and operated by Areva Resources Canada Inc, is currently licensed to produce up to 13 million pounds U3O8 (5000 tU) per year. A program to increase its total capacity to about 24 million pounds per year (9200 tU) has been funded by the Cigar Lake joint venture.

Underground tunnels at Cigar Lake (Image: Cameco)

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