Midasco Capital Corp.
TSX VENTURE : MGC

Midasco Capital Corp.

March 03, 2008 11:23 ET

Midasco Capital Corp.: Company Realigns Focus on Near Term Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - The Company is pleased to announce that through its operating subsidiary, Midasco Uranium LLC, it has acquired from J.H. Ranch Incorporated, a privately held Colorado company, two major Uranium properties within the Uravan Mineral Belt in San Juan County, Utah.

The acquisitions are both surface and mineral leases for a term of 20 years, and consist of 6,550 acres of private property, which have existing historical resources(i) of 1,019,604 pounds U3O8 and 7,244,235 pounds V2O5 from the Dunn and Calliham Mines, both located in the Salt Wash member of the Morrison Formation.

The Dunn Mine has an existing historical resource(i) of 343,604 pounds of U3O8 with an average diluted grade(ii) of 0.12% U3O8 and 2,748,835 pounds of V2O5 with an average diluted grade of 0.94% V2O5 (Uranium:Vanadium ratio of 1:7.8) according to an Atlas internal resource summary report entitled "Atlas Controlled Uranium and Vanadium Ore Reserves as of June 30, 1984", authored by Thomas Gillingham, P.Eng. The mine was developed by Atlas Minerals in the early 1980s by a 4,000 foot long decline that terminates at the western edge of the drilled-out ore body. Production was never carried out since the uranium market had crashed at the time of the development.

The J.H. Ranch portion of the Calliham Mine has an existing historical mineable reserve(i) of 676,000 pounds of U3O8 at a diluted grade(ii) of 0.20% and 4,495,400 pounds of V2O5 at a diluted grade of 1.33% V2O5 (Uranium:Vanadium ratio of 1:6.65), which is defined in Umetco Minerals Corporation's Reserve Summary report entitled "Mineable Reserves; Western Colorado Eastern Utah, January 1, 1990". Mine operations at the Calliham Mine were carried out from 1971 to 1991 (Atlas: 1971-1984, Union Carbide/Umetco: 1984-1990, Energy Fuels Nuclear 1991) produced over 1,000,000 pounds of U3O8. The advanced stage of mine development at the Calliham makes it a high priority target for substantial near-term production.

Segments of the Leased Property surround the drilled-out portions of the Dunn and Calliham Mines into areas that were sparsely drilled or explored. The Company believes that the uranium resources of these properties as a whole could substantially increase with underground long-hole drilling and further surface drilling.

Midasco Uranium possesses several datasets that support the historical resources, which were defined by Homestake Mining Company, Atlas Minerals Corporation, Union Carbide Nuclear/Umetco Minerals Corp., Energy Fuels Nuclear, and Truches Minerals, all of whom leased the properties from J.H. Ranch through the 1960s, 1970s, 1980s, and 1990s.

A qualified person has not done sufficient work to classify the historical resources as current mineral resources or mineral reserves as outlined under National Instrument (N.I.) 43-101. These historical estimates should not be relied upon. The Company considers the historical resources as relevant for purposes of acquiring the property, but the historical resources may not be relevant for any other purpose. The Company will be moving forward with the completion of a N.I. 43-101 Technical Report defining the current status of the mineral resources as well as potential future resources.

Aside from the significant mineral value, the Company considers the properties to be extremely advantageous since they are entirely located on private property. Mike Thompson, Vice President of Exploration and Development comments, "...these properties are both privately owned, which means that Midasco only has to acquire permits through the State of Utah and not through any of the Federal Land Management Agencies. Dealing exclusively with the State will essentially cut our exploration and mine permitting timelines in half; facilitating us in keeping on track with our near-term production goals..." The Company is currently making mine development plans and is moving forward to acquire mining and exploration permits.

Over the past year the Company has worked to build a portfolio of properties that are highly prospective for exploration. In 2008, the Company decided to realign its focus to support near-term production rather than strictly exploration and arms-length development. Staff onboard Midasco Uranium LLC, are working diligently to acquire other properties with established reserves and to select a highly qualified team of experienced mining professionals from the region, with the goal of making Midasco a producing company.

We seek Safe Harbor.

(i) The historical resource and mineable reserve calculations used by Atlas Minerals and Union Carbide/Umetco do not meet N.I. 43-101 standards and should not be relied upon.

(ii) Diluted grade refers to the calculated grade of total mineralization combined with wasterock and overburden dilution.

On behalf of the Board,

Dustin Elford, President

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Midasco Capital Corp.
    Dustin Elford
    President
    (604) 669-2901 or Toll Free: 1-888-669-2901
    (604) 669-8922 (FAX)