Midasco Capital Corp.
TSX VENTURE : MGC

Midasco Capital Corp.

June 11, 2008 11:07 ET

Midasco Capital Corp.: Mine Acquisition Moves Company Closer to Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2008) - Midasco Capital Corp. (TSX VENTURE:MGC) -

The Company is pleased to announce that effective June 4th 2008, its operating subsidiary, Midasco Uranium LLC, entered into an Option Agreement with B-Mining Company ("BMC"), a Colorado Corporation, to purchase the Centennial Sun-Cup Mine Complex ("CSC Project") along with 27 mining claims encompassing 540 acres in San Miguel County, Colorado. The mine is located in the Salt Wash Member of the Morrison Formation, and is on the northeast limb of the Dolores Anticline, located in the southern portion of the Uravan Mineral Belt.

North American Uranium Corporation initially discovered the Sun-Cup deposit in the late 1960s, and mining commenced in 1970. The nearby Centennial deposit to the southwest of the Sun-Cup Mine was discovered by Minerals Recovery Corporation ("MRC"), a division of Wisconsin Public Service, in the mid-1970s. Surface and underground exploration showed that the mines intercepted the same deposit and further mining connected the workings into one of the largest and most productive Salt Wash mines in the region.

Due to depressed uranium prices, MRC's large-scale operations at the mine ceased in the early 1980s, whereby B-Mining Company (BMC) of Nucla, Colorado acquired the CSC Project in the early 1980s and mined periodically until 1998. Production to date is estimated to have exceeded 1 million pounds of uranium and 10,000,000 pounds of vanadium. The last recorded 5,000ton shipment of ore from the CSC Project averaged 0.22% uranium and 1.73% vanadium (uranium to vanadium ratio of 1:8). BMC estimates significant tonnage of U3O8 and V2O5 is immediately accessible from active headings, long holes and stope perimeters. With very little exploration work having been performed outside of the mine area management believes there is excellent growth potential for the CSC Project.

The Company possesses a significant historical dataset compiled from MRC's and BMC's mining and exploration operations, from which 86 existing, un-mined mineralized intercepts at the property have been identified, including 1.0 ft. (0.3 m) 0.98% eU3O8, 1.5 ft. (0.5m) 0.96%, 1.0 ft. (0.3m) 0.85% eU3O8, 3.0 ft (0.9 m) 0.42% eU3O8, 1.5 ft. (0.5 m) 0.41% eU3O8, and 9.3 ft. (2.8m) 0.20% eU3O8. A scope and budget has been completed to bring the CSC Project back into production and meet the Company's required US$500,000 work commitment in the first year. The work completed by MRC and BMC pre-dates the National Instrument 43-101 policy and therefore may or may not meet the requirements of the NI 43-101 guidelines.

Beginning January 2008, the company realigned its focus from strictly exploration to becoming a near-term uranium producer. The CSC Project represents one of the nearest-term uranium production properties in Colorado and Utah due to the fact that the site has active state and federal mining permits and existing underground infrastructure is in excellent condition warranting immediate operations.

The Company has an exclusive option to purchase the property until January 15th, 2009, at which point the company is required to pay to BMC US$160,000 as advanced royalty each year for five years.

Mike Thompson, Vice President of Exploration and Development comments, "The CSC Project is our Fourth high-profile Uravan Mineral Belt acquisition in 2008 and we will be concentrating our efforts to make it our earliest production property. With our continued acquisition of mineable pounds we view the CSC Project as being the catalyst that brings Midasco towards being a viable uranium producer in the United States."

We seek Safe Harbor.

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)