Cameco to miss 2013 target for Cigar Lake uranium project due to startup delays

SASKATOON – Cameco Corp. (TSX:CCO) says it won’t be able to meet its 2013 production target for the Cigar Lake uranium mining project, due to delays in starting up ore production and mill processing.

It’s the latest setback for Cigar Lake, which is operated by Cameco on behalf of several uranium companies.

The major new mine has been delayed several times in past years due to flooding and other technical issues.

The Saskatoon-based company owns about half of Cigar Lake and had previously forecast the mine would produce 300,000 pounds of U3O8 this year but now expects production won’t begin until 2014.

Cameco says construction of the mine is 97 per cent complete but it has identified additional work that will be required in the underground ore handling facilities.

In addition, French uranium company Areva — which owns 37.1 per cent of the project — has advised Cameco that additional modifications will be required at a processing mill.

As a result of the additional work, Cameco expects ore production to begin at Cigar Lake in the first quarter of 2014 and processing of the work will begin by the end of the second quarter.