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« Uranium: Dependent on Oil? | Main | Portfolio Update 21 May 2008 »

Cameco falls on leak!

Cameco Chart 22 May 2008

Cameco fell 5.4 percent, to C$40.52 yesterday on the Toronto Stock Exchange its biggest one-day drop for some time. The drop is attributed to a theoretical leak of arsenic and uranium into Lake Ontario.

The possibility of this leak is based on ‘modelling’ which indicates that there could be some trace elements finding their way into Port Hope harbour.

Lyle Krahn a spokesman for Saskatoon, Saskatchewan-based Cameco, said that the company were taking this possibility very seriously. He went on to say that “Cameco discussed the results at a hearing last week conducted by the Canadian Nuclear Safety Commission”

Operations were suspended at Port Hope in July 2007 after contaminated soil was found on the site. However it should be noted that there is an adjacent complex that also produces uranium dioxide and is currently operational.

Taking a wider view of this problem, which doesn’t bode well for Cameco, it has wider implications for all potential uranium mines that are on the drawing board at the moment. This sort of news will have a negative impact on those currently seeking regulatory approvals and those trying to negotiate a way through the various objections raised by interested parties. For all of the uranium miners and especially Cameco we need Cameco to assess this problem and implement a fix as soon as possible.

On the 21st July 2007 we reported this incident and said:

“This is not only unfortunate for Cameco, it will have a knock on effect across the uranium sector as this sort of problem serves to galvanise the environmentalists into action. We think that it is in everyone’s interest that this leak is indeed contained and that Cameco can rectify this problem quickly.”

To still be in the ‘investigative’ phase almost a year later reflects badly on the management team at Cameco who in our humble opinion should have implemented remedial action as a top priority and put a halt to this sort of negative press.

We now need to see some proactive moves by Cameco followed by some positive news flow.

Have a good one.

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Reader Comments (2)

Interesting stuff Bob, thanks.
Port Hope map
A quick search using Google suggests that plenty of Port Hope residents are concerned. This Govt site has a map with localities of old "low level waste", no scale I can see, who would produce a map without a scale ? Only the Govt.
I can not find any data from actual monitoring of analyses (of lakewater ?) over the decades. Anybody else know if these data exist ?
Constant bad publicity is the last thing the industry needs and many must question plants remaining on a lake front so near Toronto. in view of the presumed large expansion of the entire industry as the 21st C unrolls.

May 22, 2008 | Unregistered CommenterWarwick Hughes

I’ve spent most of my life in Engineering and Construction and if there is anything I hate it is a drawing with NTS stamped on it. NTS = Not To Scale - so is it a drawing or is it a comic? That’s my rant for the day.

May 22, 2008 | Unregistered CommenterUranium Stocks

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