No Surprise, But ...

Cameco's Cigar Lake uranium start-up may be delayed until 2011

Completion of the second phase to seal the water inflow, which flooded the underground project on October 23, 2006, was originally planned for completion during the third quarter of this year. Cameco said it now expects "it will require a number of additional months to seal the inflow and dewater the mine."

"In addition, in order to ensure a more conservative approach, we and our partners are examining whether an alternative route out of the mine is required prior to beginning excavation in areas at elevated risk of water inflow, and whether the second shaft needs to be completed to provide additional underground ventilation," the company said in a news release. "Completing the second shaft as a priority item and the delay in completing phase two...would set back the planned production startup date from late 2010 to 2011."

XX My take -- this is no big surprise. However, it should be bullish for uranium prices. Combined with the fact that China is pulling out of uranium exploration in Niger after one of its executives was kidnapped, uranium fundamentals are getting more bullish.

We are seeing bottoming action in uranium stocks, but it's a rocky bottom. Stay tuned.

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