14 Mar (NucNet): Ore production has begun at the Cigar Lake uranium mining operation in northern Saskatchewan, Canada, Cameco announced.
The mining system and underground processing circuits are operational and ore is being transported to the McClean Lake mill operated by Areva Resources Canada Inc. The mill is 70 kilometres northeast of the mine.
The McClean Lake mill is expected to begin processing the ore to uranium concentrate by the end of the second quarter of 2014. The mill is expected to produce between two million and three million pounds of uranium concentrate in 2014 and ramp up to its full production rate of 18 million pounds by 2018.
Construction of Cigar Lake began in 2005, but development was delayed due to water inflows in 2006 and 2008.
As of 31 December 2013, the total capital cost of the Cigar Lake project was estimated at 2.6 billion Canadian dollars (2.3 billion US dollars, 1.6 billion euros).
The Cigar Lake deposit was discovered in 1981. The project was operated by Cigar Lake Mining Corporation from 1985 until 2001. Cameco replaced CLMC as operator on 1 January 2002.
