Cameco signs deal with Aboriginal landholders

12th October 2012 By: Esmarie Swanepoel - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) - Uranium miner Cameco has secured the support of the Martu people for the development of its Kintyre project, in Western Australia.

The TSX-listed miner said that the Kintyre mining development Indigenous land use agreement, signed on Friday, supported the development of the Kintyre project, which is a joint venture between Cameco and Mitsubishi Development.

The mining development agreement was developed over a three-year period and was ratified by Martu community members at a special general meeting held in Parnngurr in September this year.

“We've developed a strong relationship with the Martu leadership and are pleased that the community supports this agreement," said Cameco Australia MD Brian Reilly.

“Securing the social licence to operate in the region is an important step since it allows us to continue to work in the area as we assess the feasibility of the Kintyre project.”

Cameco is carrying out further work to advance the Kintyre project toward a development decision.

In July this year, Cameco warned that it would wait on market economics to improve before taking a decision to develop the project, saying that a prefeasibility study (PFS) had indicated that the project economics were not as favourable as had been hoped.

The project’s PFS was based on an openpit mine with an estimated mine life of around seven years, producing 40-million pounds of uranium, sourced from a 55-million-pound resource estimate, at a grade of 0.58%.