Reuters reported that Cameco Corporation signed a new milling arrangement with its JV partners which will help it cut operating cost at its Cigar Lake project.

Canada's top uranium producer said that it signed a non binding MoU with its JV partners AREVA Resources Canada Inc, Idemitsu Resources Canada Inc and Tepco Resources Inc to mill all Cigar Lake ore at the McClean Lake mill.

Cigar Lake located about 660 kilometers north of Saskatoon is the world's largest undeveloped high-grade uranium deposit. The company estimated average cash operating cost would drop to about USD 18.60 per pound from USD 23.14 per pound due to the new milling arrangement.

(Sourced from Reuters)