Midasco Capital Corp.
TSX VENTURE : MGC

Midasco Capital Corp.

March 12, 2008 11:04 ET

Midasco Enters Option Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 12, 2008) - Midasco Capital Corp. (TSX VENTURE:MGC) -

The Company is pleased to announce that through its operating subsidiary, Midasco Uranium LLC, it has entered into an Option Agreement with Bluebird Mining, a Colorado Sole Proprietorship, to lease 95 mining claims covering 1,900 acres, known as the Blue Bird Uranium Property in Montrose County, Colorado.

The Blue Bird Uranium Property is located directly west and in the path of the projected extension of the Eula Belle channel which produced over 1,485,500 pounds of U3O8 and 5,234,300 pounds V2O5 between 1961 and 1974 from the Eula Belle Mine, operated by Union Carbide Nuclear (To see location map of property, please click on the following link: http://media3.marketwire.com/docs/0312mgc.jpg).

Historical drilling(i) at the Blue Bird Property by members of Blue Bird Mining was completed in 1979 and identified significant ore-grade mineralization over a strike-length of nearly 5,000 feet in the Salt Wash member of the Morrison Formation. Although the majority of the dataset is unavailable, several drill logs have been located and indicate the following results: 3.0 ft (1.0m) of 0.52% eU3O8 contacting 4.3 ft (1.3m) of 0.38% eU3O8 (combined zones equate to 10.0 ft (3.0m) 0.32% eU3O8), and 6.5 ft (2.0m) 0.20% eU3O8.

(i) A qualified person has not done sufficient work to clarify these historical results in accordance with NI 43-101. These historical results should not be relied upon. The Company considers the data as relevant for purposes of entering the Option Agreement, but the information may not be relevant for any other purpose.

Under the terms of the Option Agreement, Midasco Uranium has paid to Bluebird Mining the sum of US$50,000 for which Bluebird Mining has granted Midasco Uranium 45 days, after the receipt of a drilling permit, to drill 6 exploratory and confirmation holes within the property boundaries before exercising the Option Agreement.

Mike Thompson, Vice President of Exploration and Development comments, "The acquisition of the Blue Bird strongly reinforces Midasco's status on the Colorado Plateau, and fits perfectly into our portfolio of exceptional Uravan Belt properties. We believe the Blue Bird could give security and longevity to Midasco and support near-term production with long-term sustainability."

Exploration Permit applications are being drafted by Midasco Uranium staff and will be submitted to the Colorado Division of Reclamation Mining and Safety and the U.S. Bureau of Land Management in the next few weeks.

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)