Cameco opens Alice Springs office, invests in Niger exploration (October 27, 2008)

Cameco (CCO-T, CCJ-n), the world’s largest uranium company, has opened an office in Alice Springs in Australia’s Northern Territory to help advance the Angela and Pamela uranium projects nearby. A joint venture of Cameco Australia and Paladin Energy (PDN-T, PALAF-o) has been granted an exploration licence by the Northern Territory government.

The licence stipulates that Cameco must obtain further regulatory authorization, as well as approval of the Aboriginal Areas Protection Authority. Drilling is planned for the Angela project in 2009, once those approvals are in place.

In a release, the company said that the two projects had seen exploration in the 1970s and ’80s, and that several more years of exploration are required to establish whether mining is feasible. The company intends to work closely with the community and traditional owners.

The release continues: “Comprehensive environmental and social impact studies will be required should an application be made to mine the deposit. These would include detailed hydrogeological studies to ensure the geology and hydrology of the area are well understood.”

Cameco also owns the Kintyre uranium project in Western Australia, which it bought in August for US$346 million.

Cameco has also formed a joint venture with Govi High Power Exploration (GoviEx), a uranium explorer focused on Niger, acquiring an 11% stake in GoviEx for US$28 million.

GoviEx holds 2,300 sq. km near Arlit, which includes the Madaouela properties. The project was explored in the 1960s, and the company is analyzing the historical data, and has started a drilling program. GoviEx also holds about 2,400 sq. km near Agadez, and has started an early-stage exploration program there. The strategic alliance will provide Cameco with access to all of GoviEx’s initiatives in other African countries.

Cameco can acquire another 10% interest in GoviEx for US$31 million following completion of a due-diligence review expected by yearend. Cameco has the right to increase its ownership stake to a maximum of about 48% over the next four years for US$145-212 million.

The joint venture is Cameco’s second foray into Africa, after a joint venture in Gabon last year.