DECISION ON IN-PIT TAILINGS FACILITY FOR KEY LAKE MINE ANNOUNCED

Released on May 19, 1995

Environment and Resource Management Minister Berny Wiens today
announced approval of Cameco Corporation's proposal to establish an
in-pit tailings management facility at its Key Lake mine, 230 km north
of La Ronge.

The proposal will create a pervious surround tailings management
facility in the existing mined-out Deilmann Pit. Pervious surround
technology is now being used at Cameco's Rabbit Lake mine and has been
approved for use at Cogema's McClean Lake mine. A thorough technical
review of the pervious surround method of tailings management by a
federal environmental review panel has also confirmed that the
technology is sound. The Atomic Energy Control Board gave its approval
to this project on May 17.

Wiens said he is confident that the technology to be used will meet all
of the province's environmental protection regulations, is appropriate
for the long-term management of tailings, and can be successfully
applied at this site.

Wiens' decision follows the environmental impact assessment conducted
for the proposed facility, a stringent technical review, and a 30-day
public review period which ended on May 10.

Cameco's environmental impact statement (EIS) to construct an
additional tailings management facility was submitted in February,
1994.

The facility will provide additional disposal facilities for tailings
from the milling of the remaining Key Lake uranium ore.

The proponent has, in the EIS, identified mitigative and environmental
protection measures which will be implemented to eliminate or minimize
possible project-related environmental effects. The impact statement
describes those measures the proponent will implement to enhance
anticipated project-related benefits.

Wiens said that while he has given overall approval for the proposal to
proceed, each stage in the construction of the facility will be
reviewed in detail to ensure that the facility is constructed as
planned and that it can be safely licensed to operate. Final approval
to operate the facility will not be granted unless all necessary
federal and provincial environmental protection requirements are met to
the minister's satisfaction. Extensive monitoring programs will ensure
that the facility performs safely.

Wiens said that the conditions established by his approval will ensure
that the Saskatchewan environment is protected now and for future
generations.

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For more information, contact:

Malcolm Ross
Environment and Resource Management
Regina
Phone: 787-6190