Millennium
Millennium is a uranium deposit in northern Saskatchewan that we expect will use our excess milling capacity. We are the operator.
| Location | Saskatchewan, Canada |
| Ownership | 69.9% |
| End product | Uranium concentrates |
| Mine type | Underground |
| Estimated resources (our share) |
47.7 million pounds (indicated), average grade U3O8: 4.16% 15.6 million pounds (inferred), average grade U3O8: 5.29% |
Background
The Millennium deposit was discovered in 2000, and was delineated through geophysical survey and drilling work between 2000 and 2007.
2012 Update
This year we:
- continued work on the environmental assessment
- completed a summer drill program, which increased our indicated and inferred mineral resource estimate
- carried out additional studies and design work to advance the project
In June, we closed an agreement with AREVA Resources Canada Inc. to purchase AREVA's 27.94% interest in the Millennium project for $150 million. With the closing, our interest in the Millennium project increased to 69.9%. The remaining 30.1% is owned by JCU (Canada) Exploration Co.
The purchase agreement provides AREVA with a 4% royalty on revenue from 27.94% of any production that exceeds 63 million pounds U3O8 from the project.
We have received comments from the regulators on our draft environmental impact statement and are working to address the questions and issues they have raised.
Highway 905 to 914 connector
In cooperation with several uranium industry partners in Saskatchewan, we have been working with the provincial government on a plan to connect our McArthur River and Cigar Lake mine sites by completing Highway 914 in the Athabasca Basin. This crucial connection will expand access to milling infrastructure across the northern part of the province and provide additional options for the milling of Millennium and other regional sources of ore. It will also enhance transportation efficiency and offer an alternate route in and out of northern Saskatchewan. The Government of Saskatchewan has agreed to fund half of the cost of the final road subject to the decision to develop the Millennium deposit. The industry partners will share the remaining cost.
Planning For the Future
Our plan for 2013 is to:
- submit the final environmental impact statement to regulators
- complete an exploration drill program to test targets near the deposit
- continue to advance the project toward a development decision at a pace aligned with market opportunities, using our stage gate process
Managing Our Risks
The English River First Nation (ERFN) has selected surface lands covering the Millennium deposit in a claim for Treaty Land Entitlement (TLE). The Saskatchewan government has rejected the selection, but the ERFN has challenged the government’s decision in the courts and this litigation continues. The TLE process does not affect our mineral rights, but it could have an impact on the surface rights and benefits we ultimately negotiate as part of the development of this deposit.
Environment Canada has brought forward a national recovery plan for woodland caribou that has the potential to impact economic and social development in northern Saskatchewan. Additional research work is being conducted so that a determination can be made on the sustainability of the species within the region. The research could result in measures being taken to further limit habitat disturbance in order to improve the health of the woodland caribou population in northern Saskatchewan and it could have an impact on our ability to develop this deposit.
We also manage the risks listed here.