Boston, MA 07/22/2014 (wallstreetpr) – Cameco Corporation (USA) (NYSE:CCJ) updated the recent development such as ground freezing, mining and processing of the ore at the Cigar Lake uranium mine, situated in northern Saskatchewan.
The Cigar Lake uranium mine
Cameco is the major stakeholder of the Cigar Lake mine and owns 50.025% of the ownership. In addition, AREVA Resources Canada Inc. (Areva) owned 37.1% stake and followed by Idemitsu Canada Resources Ltd. with 7.875% stake and TEPCO Resources Inc. with 5.0% stake.
Cameco operates the entire mine and uses non-entry method jet boring system to remove the high-grade uranium ore from Cigar Lake and then shift the mined ore for grinding. Finally, the products go for processing through Areva’s McClean Lake mill.
Recent development
The mine deposit uranium below the surface that range from 410 to 450 metres and require freezing state for further mining. Cameco temporarily stopped the mining process in the mining areas as the ore body is yet to freeze completely than the usual time. Therefore, it delays the processing of the ore through McClean Lake mill.
Based on the continuous assessment of mine, Cameco anticipates that the production schedule will shift to couple of months (early 2015). As a result, Cameco Corporation (USA) (NYSE:CCJ) will witness production pressure that affects the production target of 2014. But, the Company expects that additional freezing will help in more production once the mill starts their operation.
Cameco will update the production target and their processing schedule in 2Q2014, but, the long-term production target remains constant, and the Company expects to generate 18 million pounds of uranium ore (U3O8) by 2018.
Conclusion
Cameco considers as one of the largest uranium producers in the world and majorly controls the world’s largest reserves that produce high-grade and low-cost uranium ores. Cameco Corporation (USA) (NYSE:CCJ)’s product mostly uses in the nuclear power plant to generate clean energy around the world.
