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Cameco says dewatering of flooded Cigar Lake uranium project has resumed

From The Canadian Press, October 23, 2009 - 11:24 a.m.

Cameco says dewatering of flooded Cigar Lake uranium project has resumed

By The Canadian Press

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SASKATOON - Uranium giant Cameco Corp. (TSX:CCO) says it has resumed efforts to drain water from the troubled Cigar Lake mine, which has been flooded for three years.

Cameco stopped pumping in August 2008 when it discovered that water was still flowing in, although the source of the problem wasn't known at the time.

But Cameco said Friday the inflow was stopped by placing an inflatable seal between the shaft and the source of the inflow and then backfilling and sealing with concrete and grout.

The level where the flooding occurred is "not part of future mine plans," the company said.

Cameco said it will take six to 12 months to dewater and secure the mine, and it will provide an estimated production start date after the water has been pumped out and the condition of the underground development has been assessed.

Cameco operates and owns 50 per cent of the project, which has the potential to be one of the world's biggest uranium mines.

Shares in the company lost six cents to $32.60 in Friday morning trading on the Toronto Stock Exchange.