Cameco (CCJ +2.6%) says ore production has begun at its Cigar Lake uranium mining operation in Saskatchewan.
The mining system and underground processing circuits are operational and ore is being transported to the McClean Lake mill, which is expected to begin processing the ore to uranium concentrate by the end of Q2.
CCJ expects to produce 2M-3M lbs. of uranium concentrate in 2014 and ramp up to its full production rate of 18M lbs. by 2018.
The uranium market is over-supplied right now, but CCJ believes Cigar Lake will be needed in the future as China and other countries build more nuclear reactors.