Magnum Uranium Acquires Historic Uranium Resource in New Mexico
VANCOUVER, BRITISH COLUMBIA, Aug 17, 2006 (CCNMatthews via COMTEX News Network) --
Magnum Uranium Corp. ("Magnum") (TSX VENTURE:MM) is pleased to announce that it has recently secured, by claim staking, the Yeso Uranium Property (the "Yeso Property") located in Rio Arriba County, New Mexico. The property comprises 50 claims covering approximately 1,000 acres. Based on references to several United Nuclear internal reports, and historic drilling information, the Yeso Property contains a historic potential resource of approximately 2.18 million pounds of uranium as described in a United Nuclear report of 1972. The reader is cautioned that Magnum is not treating the historic estimate as a current mineral resource as it has not been verified and therefore should not be relied upon.
In the late 1960's and early 1970's, several predecessors, including United Nuclear and Anaconda Mining, staked large tracts of land along the south flank of the Chama Basin and jointly drilled approximately 900 holes in the region between 1968 and 1980. United Nuclear drilled over 100 holes along a three-mile-long mineralized trend contained within the Yeso Property.
The target horizon is the Jackpile and Brushy Basin members of the Jurassic Morrison Formation which crop out along the southern end of the Chama Basin and has been intermittently prospected for uranium since 1950. United Nuclear conducted a wide-spaced drilling program in the late 1960's and early 1970's and determined what they interpreted to be a paleo-channel approximately 3 miles long. The uranium deposit occurs in four pods in long, sinuous rolls or solution fronts within the channel. The pods are relatively near surface, and depending on the depth of the water table, may be amenable to ISL recovery techniques. Magnum considers the Yeso Property to be a high quality uranium target that warrants additional drilling to confirm the historically reported resource and fill in the area between the pods to increase the potential resource.
Dr. John Carden, Ph.D., P.Geo., a Director and Consulting Geologist for Magnum Uranium Corp., and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
ON BEHALF OF THE BOARD
Craig T. Lindsay, President & CEO
SOURCE: Magnum Uranium Corp.
Magnum Uranium Corp. Craig T. Lindsay President & CEO (604) 683-2507 (604) 683-2506 (FAX) info@magnumuranium.com www.magnumuranium.com
