From ASX thread posted by StolwykBy The Canadian Press20 Jul...

From ASX thread posted by Stolwyk

By The Canadian Press
20 Jul 2007 at 05:41 PM GMT-04:00


SASKATOON (CP) -- Canadian uranium producer Cameco announced today that it has suspended its operations at a processing plant in Port Hope, Ontario, after it discovered uranium and chemicals in soil at the facility. Uranium producer Cameco Corp. [NYSE:CCJ; TSX:CCO] has suspended operations at a processing plant in Port Hope, Ont., after uranium and chemicals were found in soil at the facility.

''The chemicals are in a contained area, so public health and worker safety are not affected,'' the Saskatoon-based company said Friday in a statement.




Cameco, which is the world's biggest uranium producer, said it discovered the contamination when it was excavating within the building for the installation of new equipment.

The plant handles uranium hexafluoride, a chemical form of uranium used during its enrichment process.

The company said the plant will be shut down for at least two months but no layoffs are planned. There are approximately 420 employees at the Port Hope conversion facility.

Further investigation to determine the source of the chemicals and the area affected are ongoing.

''Cameco and third-party experts are investigating to determine the source of the chemicals,'' the company said.

''In addition, holes are being drilled around the area and the soil and ground water are being tested to ascertain the area affected. All regulatory authorities have been notified.''

Due to the nature of the soil at the plant, Cameco said it expects the ground water flow rate to average 40 to 60 metres a year.

Since the perimeter of the plant is about 70 metres from the edge of the property, Cameco said it feels it has ample time to contain and mitigate the affected area, the company said in a statement.

Samples taken in April from wells in the area were not contaminated, and the company has arranged for additional samples to be taken.

Uranium dioxide conversion and other activities at the site are not affected.

Cameco will provide a revised production forecast in its second quarter report. Cost estimates of the leak are not available at this time.

Shares in the company closed down 43 cents at C$49.32 in Friday trading on the Toronto Stock Exchange. They were halted briefly after the close.

The company's stock has been under pressure in recent months after it reported flooding at the Saskatchewan Cigar Lake project, which has delayed its planned production startup to 2011.

It also reported Thursday that Toronto-based subsidiary Centerra Gold Inc. [TSX:CG] has lowered its 2007 gold production estimates for the Kumtor mine in the former Soviet republic of Kyrgyzstan by one-third of the previous level.

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