Uranium Shortage Feared

Source:

"From the point of view of the world, we will be desperately short of this stuff if Cigar Lake doesn't come on stream," said Salman Partners analyst Raymond Goldie.

The ore in Cameco Corp.'s Cigar Lake uranium mine is so highly coveted that the Saskatoon-based company has no choice but to fix the flooding that has hampered the project for years, an analyst said yesterday.

Cameco first reported flooding at Cigar Lake in October 2006 and has since been working on pumping water out of the North Saskatchewan mine, which holds the world's largest undeveloped high-grade uranium deposit.

On Tuesday the company temporarily suspended its work because higher volumes of water were found to be flowing into the mine.

Cigar Lake contains some of the world's highest grade uranium and could produce close to 10 per cent of the world's supply...

"From the point of view of the world, we will be desperately short of this stuff if Cigar Lake doesn't come on stream," said Salman Partners analyst Raymond Goldie.

...The prospect of yet another delay for the world's largest uranium producer is likely to push prices in that commodity up, Goldie said.

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