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Buyer Community> Trade Intelligence> Metals & Mining> UPDATE 1-Cameco says has pumped out Cigar Lake mine
Source: Reuters

UPDATE 1-Cameco says has pumped out Cigar Lake mine

Published: 19 Feb 2010 20:17:15 PST

* Has accessed main working level at 480 metres

* Should have mine secure by October

* Stock climbs 1 percent on news

TORONTO, Feb 11 - Cameco Corp <CCO.TO> has pumped out its flooded Cigar Lake uranium mine and should have the project fully secure by October, the company said on Thursday, driving its shares up more than 1 percent.

The news suggests work on overhauling the unfinished mine -- which flooded in 2006 and suffered another flooding during repairs in 2008 -- is now progressing steadily after earlier setbacks.

Cigar Lake is owned 50 percent by Cameco and 37 percent by France's Areva <CEPFi.PA>, with 8 percent held by a unit of Japanese refiner Idemitsu Kosan <5019.T> and 5 percent by TEPCO Resources, a unit of the Tokyo Electric Power <9501.T>.

It is the world's largest undeveloped uranium deposit and should provide well over 10 percent of global mined uranium annually when it opens.

In a statement, Cameco said it has secured the workings down to the 420-metre (1,378-foot) level -- where the last inflow in 2008 occurred -- and has now accessed the main working level at a depth of 480 metres (1,575 feet).

Once the mine is fully secure, the company will work to restore the mine's infrastructure in preparation to restart construction.

Cameco, the world's No. 2 uranium producer, will release a further update on Cigar Lake when it releases its 2009 financial results on Feb. 24. A company spokesman said in December that it would update estimates on costs and production before the end of the first quarter.

Cameco shares were up 61 Canadian cents at C$29.28 on the Toronto Stock Exchange on Thursday morning.

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