Cameco stopping some work at Cigar Lake uranium mine in Saskatchewan

SASKATOON – Cameco (TSX:CCO) is stopping some work at its Cigar Lake uranium mine in northern Saskatchewan after discovering that ground freezing used to prevent water from entering the mine has not advanced as quickly as expected in some areas.

The company said Wednesday that it has decided to temporarily stop jet-boring at the mine to allow the necessary areas to freeze more thoroughly.

Cameco said the decision means ore that was expected to be milled at the end of the year will shift into early 2015, affecting the mine’s 2014 production target.

Ore production started at Cigar Lake earlier this year after years of delays due to flooding at the mine.

The company said it will provide an update to its 2014 production target when it reports second-quarter results on July 31.

Cameco is the majority owner and operator of Cigar Lake, with a 50.025 per cent stake. Areva Resources Canada Inc. owns 37.1 per cent, Idemitsu Canada Resources Ltd. holds 7.875 per cent and TEPCO Resources Inc. owns 5.0 per cent.