Cameco to assess gold prospect in Kirghizstan

A gold deposit in the southeastern, mountainous region of the Republic of Kirghizstan has drawn the attention of Cameco (TSE).

The Saskatoon-based company says it signed an agreement with the prime minister of the former Soviet republic in early December providing for the evaluation and possible development of the Kumtor gold project. Cameco says exploration work, which began in the 1970s, indicates probable in situ gold reserves of about 15 million oz. The grade averages about 0.12 oz. gold per ton (4 grams per tonne).

Kumtor sits about 13,000 ft. above sea level, is accessible by road and is some 500 miles from a railroad system, the company says. Cameco will have a one-third interest in the project, and the government of Kirghizstan the other two-thirds.

Cameco estimates it will be spend about $10 million to acquire its one-third interest and undertake a feasibility study. Cameco would be responsible for the first $45 million worth of development costs.

Kirghizstan is a producer of uranium. Cameco is one of the world’s major uranium producers.