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Vancouver, B.C. -- Magnum Uranium Corp. ("Magnum") is pleased to announce that it has completed, and filed with SEDAR, a National Instrument Policy 43-101 ("NI 43-101") Mineral Resource Technical Report for the "Deep Gold" deposit portion of its San Rafael Uranium Property, Emery County, Utah. The Deep Gold Mineral Resource Report estimates an indicated mineral resource of 1,536,900 pounds of U3O8 contained in 282,600 tons at an average grade of 0.272% eU3O8 and an additional inferred mineral resource of 78,200 pounds of U3O8 contained in 24,000 tons at an average grade of 0.163% eU3O8. Ownership percentages of the Deep Gold Resource are subject to the terms of the joint venture agreement outlined in the NI 43-101 document. The following table is a summary of the Indicated and Inferred resource using a 0.20 G x T cutoff (2.5 feet of 0.008% eU3O8):
|
Category |
Pounds U3O8 |
Tons |
Average Grade % e U 3O 8 |
Pounds/Ton |
|
Indicated Resource |
1,536,900 |
282,600 |
0.272 |
5.44 |
|
Inferred Resource |
78,200 |
24,000 |
0.163 |
3.26 |
|
|
1,615,100 |
306,600 |
0.263 |
5.27 |
The NI 43-101 table above provides an Indicated and Inferred resource estimate of 1,615,100 pounds at an overall average grade of 0.263% eU308. Average grades of historic NI 43-101 non-compliant resource estimates performed by Atlas Minerals in 1984 and 1985 using Pioneer Uravan drilling results from 1979-1981 and Atlas follow-up and expansion drilling results from 1984 and 1985 are close to those given in the table above, generally in the 0.25% to 0.30% range. The reader is cautioned that these historic grade estimates are not qualified under and do not meet current NI 43-101 guidelines, and Magnum is not treating them as such; they are mentioned here for historic information and reference purposes only.
The Deep Gold NI 43-101 Mineral Resource Technical Report was prepared by Steve R. Sturm, A.I.P.G. Cert. Prof. Geol. #08776, who is a Qualified Person under National Instrument Policy 43-101. Mr. Sturm's experience spans a period of nearly 30 years, mostly pertaining to uranium and coal exploration, as well as ground water evaluations. Mr. Sturm is particularly experienced in uranium exploration having been employed by Cotter Corporation as an exploration and uranium mine geologist; and coal exploration and mine development with BHP, Rio Tinto, Cyprus Minerals, and Arch Coal Company where he served as consulting exploration and mine geologist.
The Deep Gold is one of a number of known uranium deposits contained within Magnum's larger 6,000 acre San Rafael Uranium Project area that comprises a joint venture with Energy Metals Corp. (a subsidiary of Uranium One Inc.) and which Magnum has earned an 80% interest in (see press release dated Feb. 12, 2008). The Deep Gold Mineral Resource Report covers that portion of the deposit as it is known to exist in Section 23, T21S, R14E, where it occurs as the probable down-dip extension of Atlas Minerals' historic Snow Mine. The Snow produced 650,292 pounds of U3O8 from 173,330 tons of material at an average grade of 0.188% U3O8 between 1973 and 1982 (Wilbanks, 1982). The Deep Gold deposit area comprises approximately 5% of Magnum's entire San Rafael land holdings, the western part of which constitutes the core of the historic San Rafael Uranium Mining District near Green River, Utah.
Methodology and Mineral Resource Estimation
Mineralization at the Deep Gold deposit is typical of peneconcordant, channel-controlled trend type mineralization hosted in Salt Wash Member sandstone of the Jurassic Morrison Formation. The new resource estimate is based on historic exploration drill holes completed by senior mining and/or exploration companies, Pioneer Uravan and Atlas Minerals. Historically, it is estimated that approximately 288,000 feet of drilling, comprising all rotary holes, was conducted on the Deep Gold deposit, with 235,788 feet in 247 holes drilled by Pioneer Uravan and 52,295 feet in 52 holes drilled by Atlas Minerals during the late 1970's through mid 1980's. Magnum owns this exploration drilling data, which includes drill hole gamma logs and drill hole location maps that report and detail mineralized zones broken out by 0.1-foot intervals. Also in Magnum's possession are numerous historical Atlas Minerals internal company memos, resource estimate reports and resource spreadsheets, and in-house memos detailing underground mining costs and economic scenarios (in 1984 dollars) pertaining to sinking either a shaft to mine the deposit or accessing it through Atlas' nearby Probe Mine shaft. Historically, the San Rafael Uranium District was mined by conventional underground methods, producing over 4 million pounds of uranium and 5.4 million pounds of vanadium.
In the Mineral Resource Report, uranium grade is expressed as weight percent eU3O8, which is defined as a radiometric equivalent calculated from calibrated natural gamma geophysical logs. Radiometric equilibrium was assumed based on the history of the district. For the mineral resource estimates, polygons were constructed around every hole containing mineralization with a G x T value of ≥ 0.20. Polygons were constructed so that their sides were half the distance to the nearest hole. Resulting individual polygons define the area of influence surrounding each hole. For indicated mineral resources, drill spacing between holes is about 100 feet. For inferred resources, the mineralized trend is not fully defined or bracketed by drilling, but is reasonable given the transmissivity of the host rock and the amount of drilling performed, that mineralization extends beyond the portion of the last hole defined by assays.
John R. Carden, Ph.D., P. Geo., a Qualified Person as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this news release.
ABOUT MAGNUM
Magnum is a Vancouver-based minerals exploration company focused on the acquisition and development of uranium assets in North America. Currently, Magnum's primary property holdings are located in the Western United States, specifically Utah, Wyoming, New Mexico, and Idaho, and in Canada's Athabasca Basin.
ON BEHALF OF THE BOARD
"Craig T. Lindsay"
President & CEO
For additional information please contact:
Tel: 604.683.2505 Fax: 604.683.2506
E-mail: info@magnumuranium.com
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN
This new release does not constitute and offer to sell or a solicitation of any offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act). Or any state securities laws and may not be offered or sold within the United States or to U. S. Persons unless registered under the U.S. Securities Act and applicable state securities, laws, or an exemption from such registration.
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