Recovery work underway at Cigar Lake: Cameco

Shares of uranium miner Cameco Corp. gained almost five per cent on Tuesday after the company said work is underway to recover its Cigar Lake mine project in northern Saskatchewan.

Cameco's stock rose $1.78to finish at $39.08on the TSX.

The Cigar Lake project flooded on Oct. 23 when a bulkhead door failed to shut properly.

The company said Monday evening that it is currently in the process of drilling holes down to the access tunnel near the source of the incoming water. Concrete will be pumped down the drill holes to create a plug. When the concrete is in place it will be grouted by pumping cement under high pressure into cracks in the rock and concrete.

Plans are in the works for the next stages, including pumping out the water, checking the integrity of the plug, restoring underground pumping capacity and repairing the bulkhead doors.

Cameco said about 250 people are currently working on the site.

The company said capital cost estimates and timelines for the redevelopment of the mine are expected to be ready in February 2007.