Cameco Expects Strong Output Despite Flood

14 March 2010 (Last Updated March 14th, 2010 18:30)

Cameco Corp said its Cigar Lake uranium mine is estimated to produce a total of 18 million pounds a year at full production even though its mine was flooded twice. Cameco Corp CEO Jerry Grandey told Reuters the mine's expected annual output following the start of production will be th

Cameco Corp said its Cigar Lake uranium mine is estimated to produce a total of 18 million pounds a year at full production even though its mine was flooded twice.

Cameco Corp CEO Jerry Grandey told Reuters the mine's expected annual output following the start of production will be the same as projected targets prior to the flood.

Cigar Lake, the world's largest unmined uranium deposit, was flooded while under construction in 2006 and in 2008.

The company said last month it had pumped out the mine and expects to start production in 2013.

The mine has proven and probable reserves of more than 226.3 million pounds U3O8 at an average grade of 20.7%.

Cameco owns 50% of the project, Areva owns 37% while the rest is owned by Idemitsu Canada Resources.