please have a look at this article that talks about the cigar lake and jet boring mining system. ( i presume it is the same and BHM) .they mention something about sandstone in there too.
Cameco (TSX:CCO) (NYSE:CCJ) provided an update today on the Cigar Lake uranium mining project in northern Saskatchewan.
The Cigar Lake project is owned by Cameco (50.025%), 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 Resources Canada Inc. (AREVA).
Construction of the Cigar Lake mine is 97% complete and commissioning of mining systems is well advanced. During commissioning of the underground ore handling facilities in the mine, Cameco identified additional work that will delay jet boring in ore. Based on current information, Cameco expects to begin ore production during the first quarter of 2014.
In addition, AREVA has advised Cameco that it has determined that further mill modifications are required and that the mill is expected to begin processing Cigar Lake ore by the end of the second quarter of 2014.
As a result of these developments, Cameco will not meet its forecast production of 300,000 pounds U(3) O(8) from Cigar Lake during 2013. Cameco plans to revise its five-year production forecast as part of its annual reporting for 2013 when further progress on commissioning of the mine and mill is made.
"Cigar Lake is among the most technically challenging mining projects in the world and we continue to make solid progress," said Tim Gitzel, Cameco's president and CEO. "Cameco and AREVA are fully committed to bring this exceptional orebody into production in a safe and sustainable way."
The capital cost of the Cigar Lake project will not be materially impacted by the additional work required at the mine. Based on preliminary information, the capital cost of the mill modifications is not expected to be material. Cameco will provide updates as further information becomes available.
Background Information
The Cigar Lake deposit occurs at depths ranging between 410 to 450 metres below the surface where water-saturated Athabasca sandstone meets the underlying basement rocks. Due to geological conditions, it is necessary to freeze the deposit and surrounding rock to improve the ground stability and prevent groundwater inflows to the mine. This has proven to be effective.
The jet boring mining method was selected for the Cigar Lake deposit after extensive testing. Operated from tunnels in the basement rock below the orebody, the jet boring mining system (JBS) will use high-pressure water jets to mine out cavities in the orebody. A mixture of ore and water will be piped away from the cavities to underground processing circuits where it will be ground and thickened and pumped to the surface for transportation to the McClean Lake mill for processing to uranium concentrate.
Conference Call
Investors and media are invited to join a conference call to discuss progress on the Cigar Lake project with Cameco's president and CEO Tim Gitzel, Cameco's senior vice-president and chief operating officer Robert Steane, and AREVA Resources Canada Inc.'s vice-president, operations and projects Jim Corman on Monday, September 9, 2013 at 11:00 a.m. Eastern time.
To join the call, please dial (866) 223-7781 (Canada and US) or (416) 340-8018. An operator will put your call through. A live audio feed of the conference call will be available from a link on our website at cameco.com.
A recorded version of the proceedings will be available on our website, shortly after the call, and on post view until midnight, Eastern time, October 9, 2013 by calling (800) 408-3053 (Canada and US) or (905) 694-9451 (passcode 6512390#).
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