October 6, 2011 / 2:17 AM / 6 years ago

UPDATE 1-Cameco signs MoU to cut operating costs at Cigar Lake project

* Signs deal to mill all Cigar Lake ore at the McClean Lake mill

* Says project’s production startup date remains mid-2013 (Follows alerts)

Oct 5 (Reuters) - Cameco Corp said it signed a new milling arrangement with its joint venture partners which will help it cut operating cost at its Cigar Lake project.

Canada’s top uranium producer said it signed a non-binding memorandum of understanding with its joint venture partners -- AREVA Resources Canada Inc, Idemitsu Resources Canada Inc and Tepco Resources Inc-- to mill all Cigar Lake ore at the McClean Lake mill.

Cigar Lake, located about 660 kilometres north of Saskatoon, is the world’s largest undeveloped high-grade uranium deposit, according to Cameco’s website.

The company said estimated average cash operating cost would drop to about $18.60 per pound from $23.14 per pound due to the new milling arrangement.

Cameco, which owns a 50 percent stake in the Cigar Lake project, said it continues to expect production to start in mid-2013. (Reporting by Swetha Gopinath in Bangalore; Editing by Muralikumar Anantharaman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below