Water Inflows Halt Cigar Lake Uranium Project Yet Again

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The problems which have plagued Cameco's Cigar Lake uranium project since October 2006 are not quite finished as the company temporarily suspended remediation work again due water inflow concerns.

The problems which have plagued Cameco's Cigar Lake uranium project are not quite finished as the company temporarily suspended remediation work again to water inflow concerns.

Flooding at the world's largest undeveloped high-grade uranium project began in October 2006. Cameco has been dewatering, assessed underground conditions and incorporated them into new mine development and production plans.

Earlier this year, Cameco CEO Gerard Grandey told analysts that the company still anticipated no production underground at Cigar Lake until 2011 at the earliest. The company estimates proven and probable reserves of more than 226.3 million pounds U3O8 at an average grade of 20.7% at Cigar Lake with Cameco's share estimated at 113.2 million pounds. In a news release issued Tuesday, Cameco COO Tim Gitzel said the increase in the rate of water inflow into the mine "is disappointing but our remediation plan, as approved by our joint venture partners, recognized the risk and included specific actions to be taken at various levels of inflow."..

The world's largest uranium producer, Cameco, operates and owns just over 50% of the Cigar Lake project. The other ownership is by Areva Resources Canada (37.1%) and Idemitsu Uranium Exploration Canada Ltd (7.875%).

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