Cameco sets production target for new Cigar Lake mine
Firm plans to produce 16 million pounds of uranium at Sask. mine
SASKATOON—Cameco Corp. has released its 2016 production target for its new Cigar Lake operation in northern Saskatchewan, which officially began production last fall.
As it ramps up to full production, the uranium company plans to produce 16 million pounds of packaged uranium at the mine throughout 2016. Cameco owns a majority stake in the project and will take slightly more than 50 per cent of production.
Once mined, the company will transport the uranium ore by truck to the McClean Lake operation, where it will be milled and packaged. McClean Lake is owned and operated by AREVA Resources Canada Inc., which also owns a 37.1 per cent stake in Cigar Lake.
Cameco noted one impediment to reaching its 16 million pound production target. The operating licence for the McClean Lake mill currently limits its annual production to 13 million pounds. However, AREVA plans to file a application to expand the limit with the Canadian Nuclear Safety Commission. Nonetheless, full production at Cigar Lake hinges on this regulatory approval.
The uranium miner previously said it hopes to ramp up the mine to full production of 18 million pounds by 2018.