Athabasca Basin Mining News
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By Melissa Pistilli-Exclusive to Uranium Investing News
Cameco Corp: Cigar Lake Update
Cameco Corp [TSX: CCO] reported last week that it expects development work on its Athabasca Basin Cigar Lake uranium mine to resume this year.
The Saskatchewan-based miner had originally planned to start production at the mine in 2008, but a rock fall brought on a flood in late 2006, stopping development. In June 2008, Cameco began pumping water out, but unfortunately the mine flooded again in August. In November 2009, the miner successfully stopped the inflow of water and by December workers were able to re-enter the main shaft.
Now, Cameco CFO Kim Goheen says the company should pump out enough water to restart its development program between April and October of this year.
“Crews have safely re-entered shaft one and are working to restore the ladder way, mechanical and electrical systems, including additional pumping to provide further assurance,” said Goheen. Refurbishment of the main shaft is three-fourths complete and the water is down to the 475-to 480-metre level. “We’re very cautious but very optimistic things are working out.”
Last month, the company sold its stake in Centerra Gold [TSX: CG] for $871 million and plans to use those proceeds to fund the mine’s completion.
A full updated report is expected at the end of the first quarter and will include a timeline for production start-up and an updated capital cost estimate. The miner’s most recent production start-date is 2011, but analysts are anticipating that will be pushed back to 2013. Annual production at the mine is expected to be 18 million pounds.
Cameco owns a 50 per cent interest in the project and the other half is held by France’s Areva Group (37 per cent), Idemitsu Canada Resources Ltd (8 per cent) and Tepco Resources Inc (5 per cent).
Monday morning, shares of Cameco on the TSX were trading at $30.39.
Denison Mines: Wheeler River
Denison Mines [TSX: DML] has reported that results from its fall 2009 drill program on the Phoenix discovery at the Wheeler River property in the Athabasca Basin have confirmed the potential of “an economically significant, high-grade uranium deposit.” Results show intersections of 32.80 per cent U3O8 over 7.6 metres, 16.80 per cent U3O8 over 9.0 metres, 12.74 per cent U3O8 over 3.0 metres and 8.02 per cent U3O8 over 5.0 metres.
One of the drilling zones shows the potential to contain between 40 million and 80 million pounds of uranium and another shows potential for between five million and 15 million pounds. The Wheeler River project also boasts the most recent large uranium discovery in the Athabasca region with a drill hole that intersected 6 metres of 62.2 per cent U308.
Denison holds a 60 per cent interest in the joint-venture along with Cameco (30 per cent) and Japan-Canada Uranium Exploration (10 per cent). The $6 million 2010 drill program on the Phoenix Zone begins this month.
Monday morning, shares of Denison on the TSX were trading at $1.56.
Delta Uranium: Wheeler River
Delta Uranium Inc. [TSX: DUR] has announced the results of its fall 2009 exploration work on its C5 and C6 properties located in the Wheeler River area of the Athabasca Basin. The data collected helps to confirm the existence of alteration systems that may be related to uranium mineralization. The properties adjoin Denison’s joint-venture Wheeler River property.
“We are very pleased with the confirmation of the existence of alteration systems and the likelihood of mineralization at the unconformity. We are further convinced that we may be looking at a similar mineralization as seen at the Phoenix discovery zone,” said Delta CEO Wayne Isaacs.
The junior is currently planning a winter program of ground and airborne geophysics and a spring diamond drilling program. Delta has the option to earn a 75 per cent interest on C4, C5 and C6 as well as 80 per cent interest in C3 from Solitaire Minerals Corp. “We are eager to commence our winter exploration and I believe that with such continued consistency in positive results, we may be able to quickly advance our drilling program at the C5 and C6 properties,” said Isaacs.
Monday morning, shares of Delta on the TSX were trading at 0.06 cents.
Tags: Athabasca basin, Cameco, Centerra Gold, cigar lake, Delta Uranium, Denison mines, u308, Uranium, uranium deposit, uranium mine, uranium miner, uranium mineralization, uranium mining
February 14th, 2010 at 2:51 pm
Keep me up todate on uranium mining companies. Thank you