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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 "Down Yonder" deposit portion of its San Rafael Uranium Property, Emery County, Utah. The Down Yonder 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 JV with Energy Metals Corp. (a subsidiary of Uranium One Inc.) and which Magnum has recently earned an 80% interest in (see press release dated Feb. 12, 2008). The Down Yonder Mineral Resource Report covers only that portion of the Down Yonder deposit contained in the State Section 36 Mineral Lease Area, which comprises only about 10% 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. The Down Yonder Mineral Resource Report estimates an Indicated mineral resource of 729,100 pounds of U3O8 contained in 199,100 tons at an average grade of 0.183% eU3O8 and an additional Inferred mineral resource of 1,071,100 pounds of U3O8 contained in 292,900 tons at an average grade of 0.185% eU3O8. The following table is a summary of the Indicated and Inferred resource using a 0.25 GxT cutoff:
Category |
Pounds U 3O 8 |
Tons |
Average Grade
% eU 3O 8 |
Pounds/Ton |
Indicated Resource |
729,100 |
199,100 |
0.183 |
3.66 |
Inferred Resource |
1,071,100 |
292,900 |
0.185 |
3.70 |
|
1,800,200 |
492,000 |
0.184 |
3.68 |
The 43-101 table above provides an Indicated and Inferred resource estimate of 1,800,200 pounds at an overall average grade of 0.184% U308, which is within the range of the amount of uranium contained in seven historic NI 43-101 non-compliant resource estimates performed by the Atomic Energy Commission, Conoco, Union Carbide, and Atlas Minerals on the Down Yonder between 1970 and 1981. Furthermore, the average grade of 0.186% U308 of the seven historic estimates matches almost exactly the average grade calculated for Magnum's NI 43-101 compliant resource estimate.
The Down Yonder NI 43-101 Mineral Resource Technical Report was prepared by Laurence E. Pancoast, Prof. Geol. #790, State of Idaho, who is a Qualified Person under National Instrument Policy 43-101. Mr. Pancoast's experience spans a period of nearly 30 years, mostly pertaining to uranium and precious metals exploration and property evaluation and development. Mr. Pancoast is particularly experienced in uranium exploration and development, having been employed by Pan Ocean Oil/Marathon Resources and Cruson and Pansze.
Methodology and Mineral Resource Estimation
Mineralization on the Down Yonder deposit is typical of peneconcordant, channel-controlled trend type mineralization hosted in an upper Salt Wash Member sandstone of the Jurassic Morrison Formation. The new resource estimate is based on 32 historic exploration drill holes completed by senior mining companies, mostly Conoco, on the State Section 36 Mineral Lease Area of the Down Yonder deposit. Historically, it is estimated that approximately 160,000 feet of drilling, comprising both RC and core, mostly by Conoco and spread among 151 holes, was conducted on the Down Yonder deposit. This drilling consists of 119 holes placed in the State Section 36 Mineral Lease area, where the resource exists, and another 32 holes placed in adjacent Section 35, where a subsidiary and mostly unexplored part of the deposit exists. Magnum owns this exploration drilling data, which includes drill hole gamma logs, drill hole location maps, isopach maps, copies of original computerized printouts of mineralized zones broken out by 0.5-foot intervals, and numerous historical internal company memos and resource estimate reports. Also in Magnum's possession are Atlas Minerals in-house memos detailing underground mining costs and economic scenarios (in 1980 dollars) pertaining to sinking either a decline or shaft to mine the deposit. Historically, the San Rafael Uranium District was mined by conventional underground methods, producing some 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 GxT value of ≥ 0.25. 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. Mineralization occurring within 100 feet from the hole collar is considered Indicated, whereas mineralization between 100 and 150 feet from the hole is considered Inferred. Thickness and grade of the mineralized intercepts were assigned to each polygon for determining tonnage, with an assumed tonnage factor of 133.3 pounds per cubic foot or 15 cubic feet per ton. Previous estimates performed assumed a denser 14 cubic feet per ton. Historical drilling was mostly conducted on a 200 foot by 200 foot grid. In-fill drilling will be required to tighten the hole spacing in order to bring much of the Inferred portion of the resource into the Indicated category. Based on the above and as further indicated in the technical report, Mr. Pancoast writes, "the resource estimate given in this report is considered to be conservative."
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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