Cameco Reports Progress on Remediation of Cigar Lake Project
SASKATOON, SASKATCHEWAN--(CCNMatthews - Jan. 25, 2007) - Cameco Corporation (TSX:CCO) (NYSE:CCJ) is making progress with a phased plan to restore the underground workings at Cigar Lake after a water inflow on October 23, 2006 flooded the underground development.
The first phase of the remediation plan involves drilling holes down to the source of the inflow and to a nearby tunnel where reinforcement may be needed, pumping concrete through the drill holes, sealing off the inflow with grout and drilling dewatering holes. Subsequent phases include dewatering the mine, ground freezing in the area of the inflow, restoring underground areas and resumption of mine development. Regulatory approval is required for each phase of the remediation plan.
Six of the 14 drill holes planned for reinforcing and sealing off the water inflow area are now complete.
Concrete will be poured in two locations - one near the rock fall to seal off the inflow area and another in a nearby tunnel to provide reinforcement. About 200 cubic metres of concrete has been poured in the reinforcement area. (See the diagram posted with this news release on Cameco's website at cameco.com). The concrete mixture is designed to harden under water and will be poured in successive layers.
Experience gained through drilling the initial holes is reducing the time required for subsequent holes. Cameco expects to complete the work necessary to seal off the water inflow in the second quarter of 2007. This is a forward-looking statement. If any part of the following assumptions prove to be incorrect, it is possible that the water inflow may not be sealed off in the second quarter of 2007:
- The two drill rigs on site maintain the current pace of drilling, and
- The concrete hardens as planned to provide reinforcement and prevents or reduces water inflow to enable mine dewatering.
"We are overcoming the challenges related to drilling through the Athabasca sandstone and are now making steady progress toward sealing the inflow area," said senior vice-president Terry Rogers. "There are two drill rigs on site working around the clock and in February a third drill will be brought in for drilling the dewatering holes."
An additional four drill holes are planned for dewatering the mine. After some experience is gained with drilling the larger dewatering holes, we will be able to provide an estimate for their completion. This part of phase one is subject to regulatory approval and our application has been filed with the regulator.
Cameco is preparing a technical report for Cigar Lake to meet requirements under National Instrument 43-101 of the Canadian Securities Administrators, which regulates public company exploration and mining disclosure. The company expects to complete and publicly release the technical report in late March 2007. A technical report is required to support the disclosure of Cigar Lake remediation.
The content of Cameco's Cigar Lake technical report is prescribed by National Instrument 43-101. The report will include information relating to the geology of the deposit, resource and reserve estimates, the remediation plan including projected timelines, the mining method, a new capital cost estimate (including an estimate of remediation costs) to bring the deposit into commercial production and a projected production ramp up. With the detailed information from this report, we will be able to determine if any Cigar Lake reserves will need to be reclassified from proven to probable as previously discussed. The report is being prepared under the supervision of Cameco technical experts who are qualified persons under National Instrument 43-101.
Cameco had previously planned to provide preliminary capital cost estimates and timelines for the remediation in February 2007. However, the information will now be available in late March 2007 in order to incorporate the more detailed information compiled in the technical report.
"Cigar Lake is an extremely valuable deposit that is expected to play a significant role not only in Cameco's future but as part of the world's uranium supply," Rogers said. "Given its importance, we believe taking extra time to develop our remediation plans and estimate costs is prudent."
There are about 280 people working on site including drilling personnel working on the remediation program. Work on surface facilities including water treatment plant, mine ventilation fan foundations and an electrical substation continues.
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