Midwest Project Presentation to Engineering consulting firms

Areva Resources Canada Inc.

Midwest Project

Presentation to Engineering consulting firms

Vincent Lanièce, Director of Project Development September 2006

AREVA Resources Canada Inc.

> Titre de la présentation - Date - Références - 2> Midwest project – presentation to Engineering consulting firms, Sept 2006 2Areva Resources Canada Inc.

Midwest location

Cluff Lake

McClean Lake

Key Lake

McArthur River

Cigar Lake

Rabbit Lake

WollastonLake

Midwest

SASKATCHEWAN

ALBERTA

Athabasca Lake

N

AthabascaSandstone

Basin

Athabasca Basin

Saskatoon

Projects Operated by COGEMA Resources Inc.


Midwest site picture


Midwest Project and overall schedule

The Midwest project is divided in 4 parts 1. Mining (Open Pit) – done internally2. Transportation (dedicated haul road) – done with local

consultants/contractors3. Midwest water treatment system – looking for EPCM4. Milling - Midwest expansion Project (Increase the JEB Mill production

from 12 to 16 Mlbs/y U3O8) – looking for feasibility studyKey datesMine: dam and dewatering of Mink Arm starts in summer 2007 – mine

stripping starting in Apr 2008

Water treatment plant, pipeline, road and power line: operational for Apr 2008

Mill modifications: in production by Nov 2009


Preliminary Midwest site layout


Midwest and McClean road connection


Preliminary 3D picture of mill expansion

Tailings Neutralization

Solution Shipping

Oxygen Plant

Ore Receiving

CCC

Grinding Circuit Neutral Thickener

Yellowcake Storage

Molybdenum Recovery

SX AdditionMidwest WTP

cancelled – located at

Midwest


2 services requested from Engineering firm

1. Midwest water treatment plant system: Detailed Engineering, Procurement and Construction Management

2. McClean Lake JEB mill expansion: Feasibility Study, including detailed cost estimate and level 1 schedule


Midwest water treatment plant “System” - overview

Need to treat water, 25,000m3/day expected, released to the McClean Lake effluent system called “Sink reservoir” (20 km distant).

Current process contemplates: Combination of membranes and conventional water

treatment plants, with the treated water quality greater than the Sask Surface Water Quality Objectives (SSWQO)

Single wall pipe (20 km long) that would carry the treated water from Midwest to Sink Reservoir


Midwest water treatment plant “System” – Engineering status

Feasibility study in progress, including flow sheets, P&IDs, detailed cost estimate

The feasibility report should be available by end of November 2006 and will be used as the basis to tender the EPCM portion

Note that the Procurement of the EPCM will be supervised by the Areva Resources Project Contract Manager

Time line short (schedule driven project) as we need to use the 2007 fall season to start construction

System in operation (including commissioning) by early April 2008


Midwest Mill expansion - description

McClean Lake uranium mill (called “JEB”) currently expanded from 8 to 12 Mlbs/year – should be in operation by 1st quarter 2007

JEB expansion to mill Midwest ore: increase of annual production from 12 to 16 Mlbs contemplated, in operation by Nov 2009

Expansion scope described in the next slides


Mill expansion Project scope 16 Mlbs (1/4)Ore receiving:Existing ore pad large enough to receive additional MW ore.

Grinding:Capacity OK.

Pulp Density:An additional neutral thickener will increase the density up to 50% solid.

Pulp Storage:One additional pulp pachuca required

Leaching:3rd leach circuit located in current tailings neutralization vault O2 used as the oxydant with mild pressure leaching (2 bars in average)


Mill expansion Project scope 16 Mlbs (2/4)CCC-CCD: No modifications anticipated

Clarification: 1 additional sand filter requiredPregnant aqueous storage capacity fine

Solvent extraction:New extraction circuit (cells available recovered from other uranium

mill) Current extraction cells used as Arsenic scrub and water wash cellsStripping and regeneration are OK.

Mo, Ni and Co recovery circuits:Assessing potential process and cost/benefit analysis in progress


Mill expansion Project scope 16 Mlbs (3/4)

YC precipitation:

Addition of a second centrifuge and barren strip solution sand filter

Calcining/Packaging:

Addition of a yellow cake drum storage area (report currently exists)

Tailings Neutralization:New circuit – 2 mix tanks followed by 3 tailings neutralization tanks

Mill Water Treatment Plant:No change

Ferric Sulphate Plant:

Addition of a 3rd reactor, ferric sulphate storage tank and iron ore pad to expand


Mill expansion Project scope 16 Mlbs (4/4)

Acid Plant:Upgrade of the plant from 150 to 285 t/d H2SO4 (acid strength of 100%)

Reagents:Additional lime slurry storageAdditional ammonia storage tank

Ammonium Sulphate Crystallisation:No change

Utilities:No change

Electrical Substation:No change


Midwest Mill expansion – Engineering status

Pre-feasibility in progress, done internallyPre-feasibility report available by end of November

2006 – it will be the basis for tendering the feasibility study


Project organization

Engineering consulting firm in charge of design, cost estimate, schedule

Areva resources Canada Inc. bringing input and in charge of review

Procurement/Contracting: strong interface with Areva Resources Contract Manager

Very close and efficient relation expected


Key assets expected from Consulting firm

Engineering team based in Saskatoon, Saskatchewan so that the design control can be done efficiently

Experienced Engineers and project Manager during the entire life of the project with very limited turn-over

Quality system in placeGood understanding of the Uranium/Nuclear industryDocuments and Project cost tracking system availableTenders submitted in December 2006 with decision

made in January and start of work early February 2006

Midwest Project Presentation to Engineering consulting firms

Documents

Transcript of Midwest Project Presentation to Engineering consulting firms