Cigar Lake

Cigar Lake
Name	Cigar Lake
Country	Canada
Province	Saskatchewan
Coordinates	58°34′N 105°39′W
Owner	Cameco, Orano, Idemitsu, TEPCO
Product	Uranium
Discovery	1981
Type	Underground high-grade uranium deposit

Cigar Lake Cigar Lake is a major high-grade uranium deposit and underground mine in northern Saskatchewan, Canada. It ranks among the world’s richest uranium sources and has driven significant activity involving Cameco, Orano, Idemitsu, Tokyo Electric Power Company, Canada Pension Plan Investment Board, and other stakeholders. The site has attracted attention from regulators and policymakers including Canadian Nuclear Safety Commission and provincial authorities in Saskatchewan, and has featured in debates over nuclear fuel supply chains involving International Atomic Energy Agency and global utilities.

Overview

The deposit represents one of the largest known concentrations of uranium ore, often compared with other prolific sites such as McArthur River mine, Athabasca Basin, Rössing uranium mine, Olympic Dam, and Bannockburn. The project’s significance is reflected in its involvement with major nuclear fuel companies like Areva (now part of Orano) and investor groups such as the Canada Pension Plan Investment Board. Its output has implications for reactor operators including Électricité de France, Korea Electric Power Corporation, China National Nuclear Corporation, and utilities in Japan and United States. The deposit’s geology and extraction challenges have made it a focal point for engineering firms such as SNC-Lavalin and contractors experienced in underground mining like SRK Consulting and Golder Associates.

Location and Geology

Located within the Athabasca Basin near communities and infrastructure such as Waterbury Lake and regional hubs like Saskatoon and Prince Albert, the deposit lies beneath shallow overburden above basement rocks that host zirconium- and uranium-rich mineralization similar to occurrences at McClean Lake and Key Lake. The orebody is a lens-shaped, hydrothermal, structurally controlled deposit associated with alteration zones comparable to those studied at Rabbit Lake and in literature by researchers from institutions like University of Saskatchewan and University of Toronto. Host rocks include altered sandstones and fault-bounded basement rocks, with significant pitchblende and uraninite mineral assemblages akin to descriptions from Eagle Point and classic studies published by geoscientists from Geological Survey of Canada.

History and Development

Discovered in 1981 during exploration campaigns by companies including predecessors to Cameco and Orano, the deposit’s history intersects with broader industry developments such as the uranium booms and downturns that affected players like Rio Tinto and Rio Algom. Early work involved drilling programs financed by investors including Jasper Securities and partnerships among firms similar to Denison Mines and Lakeland Resources. Development plans advanced through the 1990s and 2000s amid involvement from regulatory bodies like the Canadian Nuclear Safety Commission and provincial ministries in Saskatchewan. The site’s timeline features milestone agreements and contractual arrangements with utilities such as Tokyo Electric Power Company and state-owned enterprises including Kazatomprom in comparative international discussions.

Mining Operations and Methods

Operations at the site employ underground mining techniques tailored to extremely high-grade uranium zones, incorporating technologies used in similar projects like McArthur River mine and equipment supplied by contractors such as Sandvik and Normet. Methods include freeze-wall ground control pioneered in concert with engineering firms like Golder Associates and tunnelling practices akin to those at Diavik Diamond Mine and Voisey's Bay. Ore handling uses slurry pipelines and milling processes related to facilities at Key Lake mill and partnerships with milling operators such as Cameco's Key Lake mill. The project has required complex ventilation, dewatering, and remote-operated equipment comparable to systems employed by Barrick Gold and Newmont in challenging underground conditions. Research collaborations have involved technical institutes including Atomic Energy of Canada Limited and universities conducting radiological and metallurgical studies.

Environmental and Safety Issues

The site has been subject to scrutiny concerning tailings management, groundwater protection, and radiological safety overseen by regulators like the Canadian Nuclear Safety Commission and provincial environmental agencies in Saskatchewan. Historical incidents and floods prompted responses from emergency planners and engineering teams similar to those deployed by SRK Consulting and SNC-Lavalin, and prompted reviews informed by international standards from International Atomic Energy Agency and World Nuclear Association. Engagement with Indigenous communities, including consultation processes with groups represented in regional forums like Athabasca Basin Development Corporation and regional leadership similar to Métis Nation—Saskatchewan, has been part of environmental assessment and monitoring programs. Occupational health measures reference practices from organizations such as International Labour Organization and technical guidance produced by Health Canada and Canadian Nuclear Laboratories.

Economic and Ownership Aspects

Ownership has been held by a consortium structure with major interests by Cameco and Orano alongside stakeholders like Idemitsu and Tokyo Electric Power Company, and financial participants such as the Canada Pension Plan Investment Board in other Canadian mining ventures. Revenues link to global uranium markets influenced by factors involving World Nuclear Association reports, contracting with utilities including EDF and Kepco, and pricing dynamics tracked on exchanges and by analysts at firms such as UBS and Goldman Sachs. The mine’s development economics have been compared with other large-scale projects financed through arrangements similar to those used by Teck Resources and Glencore, and the site figures in national discussions on resource policy involving agencies like Natural Resources Canada and provincial entities in Saskatchewan.

Category:Uranium mines in Canada