PALADIN Energy and Cameco have been granted an exploration licence over the hotly contested Angela/Pamela uranium deposit.

Namibia-focused uranium miner Paladin Energy and its Canadian joint venture partner won the right to apply for the exploration licence early last year after West Australian prospector, Norm McCleary, lost his claim to the project in the Northern Territory Supreme Court.

Mr McCleary earned the nickname of “The Midnight Pegger” after he tried to beat more than 40 companies to the tenement by pegging it the moment it became available - rather than submitting documentation like the other contenders.

The uranium price was above $US70 per pound at the time, up from $US35 a pound a year earlier. It settled back down to $US53 a pound last week.

Cameco Australia regional director Jennifer Parks said a lot of work was done on the project in the 1970s and 1980s.

“But it will take several more years to complete the work needed to decide whether to apply to mine them,” Ms Parks said.

Cameco Australia, which is the manager of the exploration stage of the project, plans to begin drilling the Angela deposit in 2009, once all necessary approvals have been obtained.

The company said the licence included a condition that it obtain further regulatory authorisation under NT mining laws.

“Approval of the Aboriginal Areas Protection Authority is also required before work on the ground begins,” it said in a statement.

Multi-listed Paladin said the project strengthened its position in Australia.

“Paladin is cementing its position to become a significant contributor to the anticipated growth of the uranium mining industry in Australia,” the company said.

“Over and above its present substantial production, Australia is destined to further expand its uranium output and become one of the cornerstone uranium suppliers of the world.”

In afternoon trading, shares in Paladin were down 30c, or 7.87 per cent, to $3.51. The benchmark S&P/ASX200 was 2.96 per cent lower.