The company said crews had completed pouring a concrete barrier in the area of the inflow and reinforcing a tunnel adjacent to the rockfall. This included injection of cement into the rock around the area of the inflow to seal off the area. Recently completed testing on the effectiveness of the underground seal gave positive results, demonstrating that the seal is effective with no indication of plug deterioration throughout a six-day testing period. Additional testing will be conducted as the company prepares to dewater the mine.

Cameco said there are a number of activities that must take place before it can begin dewatering the underground development, starting with completion of an assessment to determine if depressurization, reinforcement or other precautionary measures are necessary in two other areas of the mine. It anticipates results from this assessment in the first quarter of 2008. The company said it also is preparing a regulatory application to allow dewatering of the underground development and all other remediation activities leading up to, but not including the restart of mine construction, and plans to submit this application to the Canadian Nuclear Safety Commission in the first half of the year. If the application is approved Cameco anticipates dewatering to begin in the second half of 2008.

Cameco is also conducting an assessment of the partially completed second shaft to gather more detailed images of the structures and geology to facilitate mine remediation and future mine planning. Installation of the ventilation fans on surface, slurry load-out facilities and surface pipelines is currently under way at the site.

The company continues to anticipate production startup by 2011 at the earliest, and noted it would be able to provide a firmer production date after the mine has been dewatered, the condition of the underground development has been assessed, and the findings incorporated in the new mine development and production plans.