Magnum Uranium drills 105 ft of 0.028% eU3O8 in Utah

2008-11-12 15:28 ET - News Release

Mr. Craig Lindsay reports

MAGNUM DRILLS BULK TONNAGE MINERALIZATION AT MARYSVALE

Magnum Uranium Corp. has provided results of a recently completed exploration drilling program at its Marysvale uranium property, Piute county, Utah. Drilling was conducted from Oct. 22 to Oct. 31, 2008, to test a large 850-foot-wide by 1,570-foot-long, coherent, soil-gas radon anomaly delineated by StrataModel Inc. in August, 2007, and for the presence of bulk-tonnage, intrusive-hosted uranium mineralization (see Magnum news release in Stockwatch dated Oct. 18, 2007, for further details). Two of Magnum's three reverse-circulation-angle holes drilled across the southern portion of the anomaly were successful in intercepting thick zones of uranium mineralization hosted by quartz monzonite (see the table on drill results), thus verifying the presence of bulk-tonnage mineralization. The soil-gas radon anomaly covers an area of approximately 22 acres and lies in the central portion of Magnum's 782-acre claim block at the southern end of the core of the historic Marysvale uranium district. Approximately 1.8 million pounds of uranium contained in material averaging 0.075 per cent U3O8 have been produced from the district.

Drilling totals 1,730 feet of spread between three holes, the results of which are shown in the table. Drill hole MP-4-08 intercepted 105 feet of 0.028 per cent eU3O8, the thickest interval encountered in the program. Included within this interval is 27.5 feet of material grading 0.064 per cent eU3O8, which further contains 4.5 feet of material grading 0.159 per cent eU3O8. Drill hole MP-3-08 intercepted a 71-foot-thick interval grading 0.018 per cent eU3O8, which also includes 11.5 feet of material grading 0.029 per cent eU3O8. Numerous, additional one-foot- to four-foot-thick intervals of low-grade (0.010 per cent to 0.032 per cent eU3O8) were encountered in both holes. The northern portion of the radon anomaly as well as areas of the claim block located northwest and along the trend of the anomaly is covered by a layer of rhyolite and remain untested. Magnum geologists are currently reviewing the data, with possible additional exploration in the planning phases

Drilling was performed by Diversified Drilling LLC, Missoula, Mont., using a reverse circulation DLD 1000 track rig. Century Geophysical Corp. of Tulsa, Okla., conducted the downhole gamma-ray logging, resistivity and delineation survey work. The gamma portion of the downhole logging tool was calibrated to the uranium content by probing standardized test pits located in Grand Junction, Colo. Samples of the radioactive cuttings from the RC holes are being sent to Energy Laboratories Inc., Casper, Wyo., to define the equilibrium of equivalent uranium, as determined by gamma-ray logging, versus the chemical uranium content for the same interval. Magnum received permission to conduct the drilling from the United States Bureau of Land Management and the Utah division of oil, gas and minerals in October, 2008.

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

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