Cameco's McArthur River Uranium Deposit an Absolute "Gold Mine"

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Cameco's flagship McArthur River mine -- which is also 30 percent owned by France's state-owned nuclear group Areva -- holds 367 million pounds of reserves and should produce 18.7 million pounds this year, about 17 percent of global supply and enough to meet about 7 percent of U.S. electricity demand, the company says.

You could say Cameco Corp. is sitting on a veritable gold mine these days, but such a compliment would actually undersell the value of the high-grade uranium buried in its flagship McArthur River mine in northern Saskatchewan.

With spot uranium prices around $135 a pound and the mine producing an industry best 21 percent pure uranium ore, the product piped up from the half-kilometre deep deposit is far more valuable than anything you'd find in a typical gold mine.

The mine -- which is also 30 percent owned by France's state-owned nuclear group Areva -- holds 367 million pounds of reserves and should produce 18.7 million pounds this year, about 17 percent of global supply and enough to meet about 7 percent of U.S. electricity demand, the company says.

"It is the single most unique mine of any mineral commodity in the world," Cameco Chief Executive Jerry Grandey told reporters at the company's head office in Saskatoon this week.

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