Cigar Lake Operation Cigar Lake is the world’s highest grade uranium mine. Commercial production was declared in May 2015 following a decade of development. • Cumulatively from the beginning of commissioning in 2014 to the end of 2015, Cigar Lake produced sufficient ore slurry to package11.6 million pounds of U308 (Cameco’s share was 5.8 million pounds) The mine continues to ramp up to its annual licensed capacity of • Bulk freezing of orebody 18 million pounds. • Cigar Lake shipped its first ore slurry on March 13, 2014 • Production method uses 3 jet boring machines unique to the mining world cigar lake operation facts Location • 660 km north of Saskatoon Ownership • A joint venture of Cameco (50%), Areva Resources Canada (37%), Idemitsu Canada (8%) and TEPCO Resources (5%) Workforce • At year-end 2015, Cigar Lake employed about 400 Cameco employees and around 110 permanent and project-related contractors, 53% of whom are Residents of Saskatchewan’s North History • Deposit discovered in 1981 • Construction period 2005-2013, interrupted by water inflows in 2006 and 2008 • First ore slurry shipped to McClean Lake on March 13, 2014 • First Cigar Lake uranium oxide packaged in October 2014 • Commercial production declared May 1, 2015 Outlook for 2016 Cigar Lake’s environmental monitoring program confirms the operation’s environmental performance is meeting all regulatory criteria • The ramp-up phase at Cigar Lake continues • So far in 2016, an average of about 11 truckloads of slurry each day are delivered to the McClean Lake mill from Cigar Lake mining operations Jet boring progress key to Cigar Lake ramp-up success As Cigar Lake ramps up to full production, the focus remains on achieving consistent and reliable operation of the three jet boring machines in place underground at Cigar Lake. The jet boring system (JBS) involves purpose-built machines that travel on rails within a production tunnel. The machines use piping to deliver high pressure jets of water to carve out frozen ore located about 30 to 40 metres above the production tunnel. u Facts about jet boring at Cigar Lake • Water coming out of the jetting tool travels at supersonic speed • Breaking up frozen rock, ore and clay requires a controlled jet of water at 15,000 pounds per square inch and a flow rate of 260 gallons a minute • Each JBS requires the combined pumping power of four 800-horsepower electric motors • Process produces so much kinetic energy that ore and rock previously frozen to -5C to -15C reaches a temperature of 10 to 15C by the time it enters the JBS storage tank Jet boring is a non-entry mining method that allows frozen ore to be mined from a production tunnel located about 30 to 40 metres beneath the orebody Barge drilling operates on Cigar Lake A summer drill program which began in July of 2016 is operating from a barge on Cigar Lake, the narrow body of water that provided the name to this world-class uranium mine. The barge drilling program is being undertaken by Team Drilling, a northern joint venture company. The purpose of the program is to better understand the Phase 2 resources identified as holding potential for a longer mine life at Cigar Lake. Summer 2016: barge set up for drilling on Cigar Lake u Based on current mineral reserves of 221.6 million pounds (Cameco’s share 110.9 million pounds), Cigar Lake’s mine plan will take the operation to 2028. However, there are additional resources not yet part of mine plan that could extend the mine life. Most of these resources are in the Phase 2 area, distinct from the Phase 1 ore now being mined. Environmental safeguards used in the barge drilling program include • Absorbent booms installed around the barge perimeter to capture any fuels or lubricants that might leak • Silt curtains ensure sediment disturbed by drilling remains within the footprint of the barge community liaison representatives www.cameconorth.com 306.425.4144 (La Ronge) 306.956.6200 (Saskatoon) 08/2016 Freddie Throassie Black Lake Darlene Gazandlare Hatchet Lake FN/Wollaston
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