Underground Mining Project Overview

AREVA Resources Canada is proposing to commence underground mining to access a series of ore deposits located on the existing McClean Lake Property. Mining and milling operations at McClean Lake have been on-going since 1995. Underground mining at McClean Lake was approved in the 1991 McClean Lake Environmental Assessment.

Mine access will be located at the bottom of the mined-out Sue B pit and a 2 km decline excavated to the North deposits. Water inflows to the mine will be minimized by means of probe hole drilling ahead of the development, and cover grouting as required based on the inflows measured from the test-holes. Artificial ground freezing will be used, where required, to develop a frozen wall around the ore pods to be mined. The ore will be mined using an underhand cut and fill mining method, with ramp access provided to the ore zone for personnel/equipment/materials movement and to allow trucking of ore and waste rock to surface.

Mine ventilation is provided by vent raises from surface excavated using blind boring methods. Mine dewatering systems are based on a dirty water system and are designed to handle significantly higher flows than expected. A second independent system of the same capacity is on stand-by to handle any potential estimated uncontrolled water inflows. All mine water will report to the existing SUE Water Treatment Plant. The nearby mined-out SUE C open pit provides emergency water storage if required.

Ore will be transported to the existing JEB Mill where no modifications are required to process the ore. Tailings and waste will be disposed of in the existing JEB Tailings Management Facility. Construction of additional infrastructure is minimal due to the re-use of existing facilities.

This new mining project will offer several contracting opportunities including construction, mining and others to develop and maintain the new underground mining facilities. We anticipate that about 75 positions, including AREVA employees and contractors, will be needed to operate the underground mine for 6 to 10 years. It is our aim that the majority of employees and contractors for this project will be from northern Saskatchewan.