January 08, 2009 14:17 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 8, 2009) - Magnum Uranium Corp. ("Magnum") (TSX VENTURE:MM) is pleased to announce the commencement of a six to ten hole drill program at its San Rafael Project located near Green River in Emery County, Utah. The current drill program is targeted at the Jackrabbit Zone, an area of uranium mineralization that was identified during a Magnum drill program conducted in 2007 (see News Release dated August 10, 2007). Of the fifteen holes drilled in the area, seven of the holes intersected ore-grade mineralization, including SR-3-07 with 6.5 feet of 0.907% eU3O8, SR-13-07 with 5.0 feet of 0.212% U3O8, and SR-11-07 with 2.5' of 0.418% eU3O8. Collectively, the seven holes align to define a northeast-trending mineralized zone that currently is 2,600 feet long and open on both ends. The objective of the current drill program is to expand the known mineralization through step-out drilling on mineralized holes that are open-ended.
Additionally, Magnum is pleased to announce that it has now earned a 100% interest in both the San Rafael Uranium Project and the Wild Buck Uranium Project (the "Joint Venture") from its partner, Energy Metals Corp. ("EMC"), a subsidiary of Uranium One Inc. Under a Primary Option, Magnum earned an initial undivided 65% interest in Joint Venture by completing US$1.0 million in work expenditures comprising Phase I and Phase II drill programs at San Rafael in fiscal 2007 and by issuing 600,000 Magnum common shares. Magnum subsequently exercised a Secondary Option to earn an additional 15% interest in the Joint Venture by issuing an additional 250,000 common shares (see Magnum News Release dated February 12, 2008). During 2008, Magnum expended an additional sum of approximately US$1.6 million on exploration at San Rafael. EMC declined to participate and as a result their interest was diluted to under 10%, at which time their interest was automatically further reduced to a 2% royalty interest in both properties.
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.
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 Wyoming, Utah, Idaho, and New Mexico, and in Canada's Athabasca Basin.
ON BEHALF OF THE BOARD
Craig T. Lindsay, President & CEO
This news release does not constitute an offer to sell or a solicitation of an 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 is available.
The TSX Venture Exchange has neither approved or disapproved of the contents herein.
Magnum Uranium Corp.Craig T. LindsayPresident & CEO(604) 683-2507(604) 683-2506 (FAX)Email: firstname.lastname@example.orgWebsite: www.magnumuranium.com
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