Cameco puts northern Sask. Millennium uranium mine on hold

Cameco is backing off on its application to license itsMillennium Mine uranium project, which was slated for a site 600 km north of Saskatoon.

A news release from Canadian Nuclear Safety Commission (CNSC) said the uranium giantdoesnot want to go ahead withlicensing the mine. The federal nuclear regulator says the company said it's hesitating to go through with licensing due to 'current economic conditions' in world uranium markets.

TheCNSCwas scheduled to begin public hearings next month as part ofCamecosapplication for a 10-year licence.

The mining company can request to apply for the licence again in the future.

Cameco acquired its initial 70 per centstake in the Millennium Mine project from Areva two years ago for $150 million.

The Millennium Mine was proposedapproximately 36 km north of Key Lake, Sask. Company fact sheets say the deposit is about 600 m below ground and that Cameco planned to operate mining on the sitefor 'severalyears'.

Cameco received provincial approval for its environmental plans for the mine in December.