McClean Lake Mill To Be Put in Care and Maintenance in Mid-2010
Saskatoon, December 15, 2009 – AREVA Resources Canada Inc. announced today that the uranium mill at McClean Lake, located about 700 km northeast of Saskatoon, will be put in a care and maintenance mode. The mill will continue to operate until July 2010, processing stockpiled ore and production is estimated to be 1,860,000 pounds U3O8.
"Unfortunately, this situation will result in the reduction of about 140 positions from both McClean Lake and our Saskatoon office in the summer of 2010", says AREVA Resources CEO Vincent Martin. "These are our friends and colleagues on whose behalf we will do everything we can to mitigate the effects of the layoffs."
McClean Lake, operated and 70% owned by AREVA, has been mining and milling uranium since 1999. Denison Mines Inc. and OURD Canada Co. Ltd. own 22.5% and 7.5%, respectively. This is the only uranium mill in the world designed to process ore grades of up to 30% uranium. The mill has been processing ore from several open pit mines at the site, but has used stockpiled ore since mining ceased in late 2008. The Midwest and Caribou mining projects have been postponed due to market conditions, but are proceeding through the regulatory process, to be ready when market conditions improve. An underground mine at McClean is in the planning stage.
In addition to these potential ore sources, the main future mill feed will be from the high-grade Cigar Lake project, operated by Cameco and 37% owned by AREVA, which has been delayed by water inflows. Once operational, Cigar Lake, in addition to other sources of ore, will supply the McClean Lake mill for several decades.
The mill re-start date will depend on market conditions and the Cigar Lake mine schedule.
About 270 AREVA employees are presently employed at McClean Lake and about 200 at the Saskatoon office.
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AREVA Resources Canada Inc. is the operator and majority owner of the McClean Lake Uranium Operation located about 700 km northeast of Saskatoon. About half of the workers at McClean Lake are residents of northern Saskatchewan. The company also owns and operates the Cluff Lake Mine (now decommissioned and under monitoring), operates the Midwest and Kiggavik (Nunavut) uranium projects, and owns shares of the McArthur River and Key Lake uranium mines and the Cigar Lake Project. AREVA Resources Canada Inc. is part of the AREVA group of companies.
All over the world, AREVA provides its customers with solutions for carbon-free power generation and electricity transmission. With its knowledge and expertise in these fields, the group has a leading role to play in meeting the world’s energy needs. Ranked first in the global nuclear power industry, AREVA’s unique integrated offering covers every stage of the fuel cycle, reactor design and construction, and related services. In addition, the group is developing a portfolio of operations in renewable energies. AREVA is also a world leader in electricity transmission and distribution and offers its customers a complete range of solutions for greater grid stability and energy efficiency. Sustainable development is a core component of the group’s industrial strategy. Its 75,000 employees work every day to make AREVA a responsible industrial player that is helping to supply ever cleaner, safer and more economical energy to the greatest number of people.
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