The Athabasca Basin in northern Saskatchewan is the world's largest producer of uranium, accounting for about one third of the world's uranium mine output.
The Athabasca Basin is host to the largest high grade uranium deposits in the world. The extremely high-grade nature of the deposits and the low discovery costs make it the most prospective exploration region in the world. The Athabasca Basin has been identified as the "global hotspot" for high-grade unconformity-related uranium deposits accounting for more than 32% of global uranium supply.
Since 1968, 18 deposits totaling over 1.4 billion pounds of uranium have been discovered in the region. The Athabasca Basin occupies an area of about 100,000 sq km in northern Saskatchewan. After 2007 Canadian production is expected to increase further as more new mines come into production.
The Eastern Athabasca Basin is home to the largest and richest uranium deposits in the world. These include the operating McArthur River Mine with reserves of 436 million lbs U3O8 with an average grade of approximately 25% and the Cigar Lake Mine with reserves and resources 350 million pounds with an average grade of approximately 19%.
Magnum Land Position:
Magnum has acquired a 100% interest in exploration permits covering 416,000 acres in the Athabasca Basin. The permits, located in the northeastern portion of the Athabasca Basin, are adjacent to claims controlled by, among others, Cogema, Pitchstone Exploration Ltd., Purepoint Uranium Group, and International Uranium Corporation. Magnum's property portfolio provides significant exposure to the world's most prolific uranium region.
2006 Work Program:
During the summer of 2006, Magnum successfully completed an airborne electromagnetic geophysical survey covering a substantial portion of its land holdings. The survey consisted of a 5,600 line kilometers at 400 metre spacings, and was implemented by Fugro Airborne Surveys Corp. using their state-of-the-art MEGATEM II system, under the direction of Jerry Roth of Stratagex Ltd.
The purpose of the survey was to identify conductive graphitic horizons in the early Proterozoic basement complexes which constitute favourable environments for the location of uranium mineralization at or near the base of the Athabasca Basin sedimentary rocks, whose thickness ranges from approximately 200 to 400 metres on this large property.
Initial analysis of the EM data generated by the survey identified six favourable conductive anomalies associated with magnetic lows of probable to definite basement origin warranting follow-up analysis, including detailed ground electromagnetic surveys to more fully delineate priority geophysical targets. In addition, several linear magnetic lows which have associated conductivity on adjacent claims extend across Magnum claims, comprising additional favourable environments for subsequent exploration contingent on the results of evaluating the priority conductors.
A more complete interpretation of the survey data is ongoing, to include integration of prior airborne survey data, structural interpretation of the magnetic data, computer modeling of key magnetic and electromagnetic features, and evaluation of all available historic drill data.
