Cameco Signs Agreement to Improve Cigar Lake Econo
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SASKATOON, SASKATCHEWAN -- (Marketwire) -- 12/19/11 --
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Cameco (TSX:CCO) (NYSE:CCJ) announced today that agreements have been signed with the owners of the Cigar Lake project and McClean Lake mill to process all Cigar Lake ore at McClean Lake.
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Under the previous toll-milling agreements, both the McClean Lake mill and Cameco's Rabbit Lake mill would process uranium from Cigar Lake. Under the new milling arrangement, the McClean Lake operation will process and package 100% of Cigar Lake uranium. Cameco's Rabbit Lake mill will continue to process ore mined on the site and has the flexibility to process ore from other sources.
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Cameco expects the new milling arrangement to decrease the estimated average cash operating cost of the Cigar Lake project to about $18.60 per pound from $23.14 per pound.
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The Cigar Lake project is 50% owned and operated by Cameco. The other Cigar Lake joint venture partners are AREVA Resources Canada Inc. (37%), Idemitsu Resources Canada Inc. (8%) and Tepco Resources Inc (5%).
The McClean Lake joint venture is 70% owned and operated by AREVA. The other McClean Lake joint venture partners are Denison Mines Corp. (22.5%) and OURD (Canada) Co. Ltd. (7.5%).
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Cameco plans to file an updated Cigar Lake technical report with, or prior to, its February 2012 Annual Information Form to reflect the impact of this new milling arrangement and other developments since the March 2010 Cigar Lake technical report.