Magnum drills 2.0 feet of 0.587% eU308 at San Rafael

2008-10-03 09:22 ET - News Release

Mr. Craig Lindsay reports

MAGNUM URANIUM ANNOUNCES HIGH-GRADE DRILL RESULTS FROM THE DOWN YONDER DEPOSIT PORTION OF ITS SAN RAFAEL PROJECT

Magnum Uranium Corp. has released high-grade drilling results from the Down Yonder deposit portion of its San Rafael uranium project, Emery county, Utah. Magnum has earned an 80-per-cent interest in this joint venture property from its partner, Energy Metals Corp., a subsidiary of Uranium One Inc. (see Magnum news release issued in Stockwatch dated Feb. 12, 2008).

High-grade results from the drilling, generally greater than 0.100 per cent eU3O8, are listed in the attached table. The objective of the drill program was to step out on and fill the known mineralized horizon(s) at Down Yonder in order to add additional pounds of uranium to the existing National Instrument 43-101-compliant resource. A total of 32,732 feet in 30 holes was drilled between April 11 and Sept. 6, 2008, with spot coring conducted through the mineralized horizon(s). Of the 30 holes drilled, uranium mineralization grading greater than 0.010 per cent eU3O8 was encountered in 22 holes, with 10 holes containing high-grade intercepts grading greater than 0.100 per cent eU3O8. Some of the more notable intercepts include DY-24-08 with 3.5 feet of 0.338 per cent eU3O8 (includes 2.0 feet of 0.587 per cent eU3O8), hole DY-28-08 with 5.0 feet of 0.255 per cent eU3O8 (includes 3.5 feet of 0.348 per cent eU3O8), hole DY 30 08 with 2.5 feet of 0.279 per cent eU3O8, and hole DY-43-08 with 7.0 feet of 0.113 per cent eU3O8. The results will be used to update and further increase the National Instrument 43-101-compliant Down Yonder resource, which comprises an indicated mineral resource of 729,100 pounds of U3O8 contained in 199,100 tons at an average grade of 0.183 per cent 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 per cent eU3O8 (see Magnum news release dated March 25, 2008). The new resource estimate is forthcoming and will be released as soon as new specific gravity measurements, check assays performed on core by Energy Laboratories Inc. and QA/QC work, are completed

Drilling was conducted by Bob Beeman Drilling Company of Moab, Utah, and Century Geophysical, Moab, Utah, performed the downhole logging for gamma, spontaneous potential (SP) and resistivity. In situ uranium grade, expressed as equivalent U3O8 (eU3O8), was calculated using uranium industry standard techniques for gamma-log interpretation. Downhole gamma-log interpretation has historically been found to be an accurate representation of in situ grades for uranium mineralization in the San Rafael district as established by Atlas Minerals Corp. during its historic exploration and mining operations conducted there.

Magnums San Rafael uranium project is located approximately 10 miles west of Green River, Utah. The area was the site of mining and exploration for uranium and vanadium from the mid-1950s until the early 1980s. Mineralization comprising the Down Yonder deposit is typical of that found throughout the San Rafael district, which is classically known as the peneconcordant, channel-controlled, trend-type-hosted in upper salt wash member sandstone of the Upper Jurassic Morrison formation. Historically, the district produced over 4.0 million pounds of uranium and 5.4 million pounds of vanadium.

Dr. John R. Carden, PhD, PGeo, a qualified person (QP) as defined by National Instrument 43-101, is responsible for the technical information contained in this release.

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