April 2, 2010


Cameco's Recent Cigar Lake Project Report Can Be Accessed Below

213 Page Technical Report Released on Wed 31st March 2010
Covering all facets of Cameco's High Grade Cigar Lake Project

Requires Adobe Reader to access


* world's largest undeveloped high-grade uranium deposit.

* Remediation work is continuing to restore underground workings after water inflows in 2006 and 2008.

* proven and probable reserves of more than 226.3 million pounds U3O8 at an average grade of 20.7% (Cameco's share – 113.2 million pounds)
* construction began January 2005

* will employ up to 500 employees during construction.

* approximately 250 people will be employed permanently.

* just over half of Cigar Lake uranium will be trucked to Cameco's Rabbit Lake operation as a solution for final processing.

* expected to extend the life of Cameco's Rabbit Lake operation
* Cameco is the operator

Cameco Downgraded To Sell
Tuesday, April 06, 2010

The ongoing saga at Cigar Lake continues to haunt Cameco Inc. (CCO/TSX) investors.

Late on Thursday, the uranium miner released its long-awaited technical report on the Northern Ontario project, pictured below, revealing higher costs and a slower-than-expected rampup of production.

"While the company had recently disclosed a revised capital-cost estimate of around $1-billion and a revised startup timeline of 2013, the technical report disclosed higher than forecast life-of-mine cash operating costs of $23 per pound (up from $14/lb) and a relatively slow production ramp-up timeline (with full capacity not expected until 2017)," said Orest Wowkowdaw, a Canaccord Adams analyst.

Mr. Wowkodaw lowered his net present value for Cameco by 9.1%, resulting in a downgrade of the stock to "sell" from "hold." His new price target is $25, down from $28 previously. The stock rose 1% to $27.17 yesterday.

"While we remain bullish on the medium-to long-term fundamentals for uranium, we see limited upside in Cameco shares in the near term," he said.

UBS analyst Brian Mac-Arthur maintained his "buy" rating, but reduced his price target to $34 from $36. He said the extended mine rampup was expected, but cash costs were higher than his forecast.

Australian Uranium Investing

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