SYDNEY, April 6 Canadian uranium giant Cameco
Corp (CCO.TO) will start an exploration programme at its
Kintyre uranium mine in western Australia in June, the group
said on Monday, after acquiring the site from Rio Tinto last
year for for $495 million.
"It is a fairly significant drill programme that will start
hopefully in June/July and run through to next year," said Ron
Matthews, whose appointment as managing director of the project
was also announced on Monday.
Cameco hopes to develop Kintyre as a low-cost open pit
operation that would diversify the company geographically.
"The project is a priority for Cameco in the exploration
and development stakes as they see it as a significant
deposit," said Matthews.
Rio Tinto sold the project to Cameco and its partner
Mitsubishi Corp (8058.T) as part of an asset divestment
programme aimed at reducing debt.
The deal saw Cameco take 70 percent and Mitsubishi 30
percent after a new state government in Western Australia
reversed a policy that had blocked uranium mining in the state
since the 1970s.
(Reporting by Bruce Hextall)