Magnum Files Amended 43-101 Technical Report on its Deep Gold Deposit, San Rafael Property and Restates Resource Estimate
The original resource estimate regarding the Deep Gold deposit in its entirety, and as described in Magnum's September 18, 2008 news release and detailed in the original 43-101 Technical Report entitled "Deep Gold Uranium Deposit, Emery County, Utah" by Steve R. Sturm C.P.G., March 28, 2008, comprises an Indicated resource of 1,536,900 pounds of U3O8 contained in 282,600 tons at an average grade of 0.272% eU3O8 and an Inferred resource of 78,200 pounds of U3O8 contained in 24,000 tons at an average grade of 0.163% eU3O8. This original estimate comprises a total Indicated and Inferred resource of 1,615,100 pounds U3O8 at an overall average grade of 0.263% eU3O8.
The amended estimate for the entire Deep Gold deposit now comprises an Indicated resource of 1,646,700 pounds of U3O8 contained in 302,800 tons at an average grade of 0.272% eU3O8 and an Inferred resource of 266,100 pounds of U3O8 contained in 37,450 tons at average grade of 0.355% eU3O8. The amended 43-101 estimate provides a revised total resource of 1,912,800 pounds contained in 340,250 tons @ 0.281% U3O8. Most importantly, Magnum's share of this total amended resource, which for estimation purposes is assumed to reside only within the Deep Gold West portion of the deposit and is 100% Magnum-owned, comprises an Indicated resource of 144,600 tons @ 0.229% eU3O8 for 663,400 pounds of U3O8 and an Inferred resource of 37,450 tons @ 0.355% eU3O8 for 266,100 pounds U3O8. This amended estimate comprises a total Indicated and Inferred resource of 929,500 pounds U3O8 contained in 182,050 tons at an overall average grade of 0.255% eU3O8, again all contained within Magnum's 100%-owned Deep Gold West portion of the Deep Gold deposit. Magnum's amended total resource now comprises 929,500 lbs of U3O8 compared to the total resource of 925,000 lbs U3O8 reported in the original March 28th NI 43-101 report, for an increase of 0.5%.
The change in the resource ownership presented in the Report is twofold in nature. First, due to uncertainty with respect to the application of the terms of the original underlying Magnum/EMC JV agreement regarding the San Rafael Property the author of the Report has assumed that Magnum does not own any of the Deep Gold East (Hollie Claims) portion, instead of owning 40% as previously presented. Second, 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 a 2% NSR and Magnum's interest increased from 80% to 100% of the Deep Gold West. As a result of the above, Magnum's total ownership/share of the Deep Gold Deposit now comprises 100% of the Deep Gold West resource (outside the Hollie Claims) and is assumed to be none of the Deep Gold East resource (within the Hollie Claims).
Another factor in changing the resource, as detailed in Sturm's amended Deep Gold 43-101 Technical Report, is the decrease in the tonnage factor from 15 ft3/ton to 14 ft3/ton. The tonnage factor of 14 was used in the calculation based on direct specific gravity measurements of 91 mineralized Salt Wash sandstone plugs from the adjacent Down Yonder deposit. The average specific gravity is 2.37 g/cm3, which translates to a tonnage factor of 13.5. However, a slightly more conservative tonnage factor of 14 was used in the resource calculation. The Down Yonder's host rock and stratigraphic position are the same as those found at the Deep Gold, and as such support using this tonnage factor for the amended Deep Gold resource calculation.
The last factor in changing the resource is the identification of an inferred block of mineralization that was inadvertently omitted from the original 43-101 Technical Report. This oversight has been corrected as this block is now included in the amended resource estimate.
John R. Carden, Ph.D. Lic. Geo., a Qualified Person as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this news release.
The Company
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
For additional information please contact:
Tel: 604.683.2507 Fax: 604.683.2506
E-mail: info@magnumuranium.com
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN
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.
1By virtue of a takeover dated August 10, 2007, Uranium One is now the parent company of EMC (now a wholly owned subsidiary of Uranium One).
Energy Fuels and Magnum Uranium Announce Merger Agreement
The combined entity will retain the "Energy Fuels, Inc." name and trading symbol (EFR) on the Toronto Stock Exchange, and will have the following assets:
- Cash (estimated at CAD$13.5 million) which will significantly enhance the balance sheet of Energy Fuels and allow the Company to weather the current downturn in the uranium market.
- Significant addition of NI 43-101 compliant resources:
|
NI 43-101 Compliant Resource |
|||
COMPANY |
Measured & Indicated |
Inferred |
Measured & |
Inferred |
Energy Fuels |
2.7 million |
2.3 million |
504,586 |
497,600 |
Magnum Uranium |
1.4 million |
1.1 million |
334,200 |
316,900 |
NEW TOTAL |
4.1 million |
3.4 million |
838,786 |
814,500 |
% INCREASE |
52% |
48% |
66% |
64% |
Importantly, Magnum Uranium's NI 43-101 compliant resources are located at a single property, the San Rafael Property, which is in close proximity to the planned Piņon Ridge mill. Subject to a final feasibility study, the 838,786 tons of Measured & Indicated (M&I) resources have the potential to supply mill feed material for the Piņon Ridge mill at a 500 tpd rate (175,000 tpy) for almost 5 years. Should the 814,500 Inferred tons be converted to economically feasible M&I tons, it would represent an additional 5 years of mill supply. The San Rafael Property also contains additional historic resources which may be converted to NI 43-101 compliant resources in the future. (The Reader is cautioned that a feasibility study has not been completed and there is no certainty the operations would be economically viable.)
- Two fully-permitted conventional uranium mines in the Colorado Plateau and an implemented plan to build a 1,000 ton per day uranium milling complex that is currently in the licensing stage.
- Historic uranium resources totaling 26.6 million lbs (although considered relevant, the Reader is cautioned that this resource estimate is historical in nature, does not comply with the guidelines of National Instrument 43-101 and should not be relied upon. Further, this estimate has not been verified by Qualified Persons of either Magnum Uranium or Energy Fuels).
- Approximately 55,000 acres of prospective uranium properties in Colorado, Utah, Arizona, Wyoming, Idaho, and New Mexico, including three properties in close proximity to Cameco's Smith Ranch ISL mine in the Powder River Basin of Wyoming.
- Exploration properties in Saskatchewan's Athabasca Basin, totaling approximately 50,000 acres and located northwest of operating uranium mines at McClean Lake and Rabbit Lake. The primary target, known as the Stony Road Property, is currently being drilled by Magnum Uranium's joint venture partner, Triex Minerals Corp.
Full details of the offer will be included in the formal Arrangement Agreement and Management Information Circular to be filed with the regulatory authorities and mailed to Magnum Uranium shareholders in accordance with applicable securities laws.
George Glasier, Energy Fuels' President and CEO commented that, "I am excited and optimistic about this acquisition. Combining with Magnum Uranium creates a much bigger platform to implement our business plan, and allows the combined entity to be stronger for longer. Energy Fuels continues to actively pursue our strategy, even in these down times, and continues to deliver on our goal of becoming the next fully integrated conventional uranium producer in the US. This is the first acquisition in the Company's strategy to leverage its strong management team and its strong cash position to consolidate the US conventional uranium business."
Craig Lindsay, Magnum Uranium's President and CEO, added: "The combination of our portfolio of exploration and development properties with Energy Fuels' permitted uranium mines and advanced-stage milling strategy will significantly enhance the ability of the enlarged entity to capitalize on the strengthening global nuclear power sector".
In connection with the proposed business combination, Evans & Evans, Inc. has been retained to provide a fairness opinion to the special committee of the Board of Directors of Magnum Uranium. Legal advice to the Board of Directors of Magnum Uranium is being provided by DuMoulin Black LLP. Legal advice to the Board of Directors of Energy Fuels is being provided by Beach, Hepburn LLP.
Stephen P. Antony, P.E., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the content of this press release as it pertains to Energy Fuels. John R. Carden, Ph.D., P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the content of this press release as it pertains to Magnum Uranium.
Energy Fuels Inc. is a Toronto-based uranium and vanadium mineral development company actively rehabilitating and developing formerly producing mines. With more than 46,000 acres of highly prospective uranium and vanadium property located in the states of Colorado, Utah and Arizona, the Company has a full pipeline of additional development prospects. Energy Fuels, through its wholly-owned Colorado subsidiary, Energy Fuels Resources Corporation, has assembled this property portfolio along with a first class management team, including highly skilled technical mining and milling professionals based in Lakewood and Nucla, Colorado and Kanab, Utah.
Magnum Uranium 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.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements and forward looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia, Alberta and Ontario Securities Commissions.
FOR FURTHER INFORMATION PLEASE CONTACT:
Energy Fuels Inc.
Gary Steele
Investor Relations
(303) 974-2147
Toll free: 1-888-864-2125
Email: investorinfo@energyfuels.com
Website: www.energyfuels.com
Magnum Uranium Corp.
Craig Lindsay
President & CEO
604-683-2507
Email: info@magnumuranium.com
Website: www.magnumuranium.com
ON BEHALF OF THE BOARD
"Craig T. Lindsay"
President & CEO
For additional information please contact:
Tel: 604.683.2507 Fax: 604.683.2506
E-mail: info@magnumuranium.com
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN
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.
Magnum Initiates Drill Program And Announces Earn-In Of 100% Interest In San Rafael Project
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.
The Company
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
For additional information please contact:
Tel: 604.683.2507 Fax: 604.683.2506
E-mail: info@magnumuranium.com
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN
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.
Magnum Drills Bulk Tonnage Mineralization At Marysvale
Drilling totals 1,730 feet spread between three holes, the results of which are shown in the table below. Drill hole MP-4-08 intercepted 105 feet of 0.028 % eU3O8, the thickest interval encountered in the program. Included within this interval is 27.5 feet of material grading 0.064% eU3O8, which further contains 4.5 feet of material grading 0.159% eU3O8. Drill hole MP-3-08 intercepted a 71-foot-thick interval grading 0.018% eU3O8, which also includes 11.5 feet of material grading 0.029% eU3O8. Numerous, additional, 1-foot- to 4-feet-thick intervals of low-grade (0.010 - 0.032% eU3O8) were encountered in both holes. The northern portion of the radon anomaly as well as areas of the claim block located northwest and along the trend of the anomaly are covered by a layer of rhyolite and remain untested. Magnum geologists are currently reviewing the data, with possible additional exploration in the planning phases.
Drill Results
Drill Hole |
From |
To |
Thickness |
Grade |
Drill Hole Depth |
MP-3-08 |
440.5' |
511.5' |
71.0' 11.5' |
0.018% 0.029% |
530' |
MP-4-08 |
457.5' |
562.5' |
105.0' 27.5' 4.5' |
0.028% 0.064% 0.159% |
600' |
MP-5-08 |
N/A |
N/A |
N/A |
None |
600' |
Drilling was performed by Diversified Drilling LLC, Missoula, Montana using a reverse circulation DLD 1000 track rig. Century Geophysical Corporation of Tulsa, Oklahoma conducted the down-hole gamma-ray logging, resistivity, and delineation survey work. The gamma portion of the down-hole logging tool was calibrated to the uranium content by probing standardized test pits located in Grand Junction, Colorado. Samples of the radioactive cuttings from the RC holes are being sent to Energy Laboratories Inc., Casper, Wyoming to define the equilibrium of equivalent uranium, as determined by gamma-ray logging, versus the chemical uranium content for the same interval. Magnum received permission to conduct the drilling from the U.S. Bureau of Land Management and the Utah Division of Oil, Gas and Minerals in October 2008.
John R. Carden Ph.D., P. Geo., a Qualified Person (QP) as defined by National Instrument 43-101, is responsible for the technical information in this release.
About Magnum
Magnum is a Vancouver-based 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, as well as in Canada's Athabasca Basin.
ON BEHALF OF THE BOARD
"Craig T. Lindsay"
President & CEO
For additional information please contact:
Tel: 604.683.2507
Fax: 604.683.2506
E-mail: info@magnumuranium.com
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.
Magnum Uranium Announces High-Grade Drill Results from the Down Yonder Deposit Portion of its San Rafael Project
High-grade results from the drilling, generally greater than 0.100% eU3O8, are listed in the table below. The objective of the drill program was to step out on and in-fill the known mineralized horizon(s) at Down Yonder in order to add additional pounds of uranium to the existing NI 43-101 compliant resource. A total of 32,732 feet in 30 holes was drilled between April 11 and September 6, 2008, with spot coring conducted through the mineralized horizon(s). Of the 30 holes drilled, uranium mineralization grading greater than 0.010% eU3O8 was encountered in 22 holes, with 10 holes containing high-grade intercepts grading greater than 0.100% eU3O8. Some of the more notable intercepts include DY-24-08 with 3.5 feet of 0.338% eU3O8 (includes 2.0 feet of 0.587% eU3O8), hole DY-28-08 with 5.0 feet of 0.255% eU3O8 (includes 3.5 feet of 0.348% eU3O8), hole DY-30-08 with 2.5 feet of 0.279% eU3O8, and hole DY-43-08 with 7.0 feet of 0.113% eU3O8. The results will be used to update and further increase the NI 43-101 compliant Down Yonder Resource, which comprises an Indicated mineral resource of 729,100 pounds of U3O8 contained in 199,100 tons at an average grade of 0.183% eU3O8 and an additional Inferred mineral resource of 1,071,100 pounds of U3O8 contained in 292,900 tons at an average grade of 0.185% eU3O8 (see Magnum news release dated March 25, 2008). The new resource estimate is forthcoming and will be released as soon as new specific gravity measurements, check assays performed on core by Energy Laboratories, Inc., Casper, Wyoming, and QA/QC work are completed.
DOWN YONDER URANIUM PROJECT
Significant High-Grade Drill Results
Drill Hole |
From |
To |
Thickness |
Grade |
U308 |
DY-22A-08 |
970.5' |
971.5' |
1.0' |
0.259% |
5.18 |
DY-23-08 |
968.5' includes |
972.5' includes |
4.0' 2.5' |
0.063% 0.092% |
1.26 1.84 |
DY-24-08 |
963.5' includes |
967.0' includes |
3.5' 2.0' |
0.338% 0.587% |
6.76 11.74 |
DY-26-08 |
963.5' |
965.5' |
2.0' |
0.200% |
4.00 |
DY-27-08 |
965.5' |
966.5' |
1.0' |
0.101% |
2.02 |
DY-27A-08 |
954.0' |
955.5' |
1.5' |
0.143% |
2.86 |
DY-28-08 |
973.0' includes |
978.0' includes |
5.0' 3.5' |
0.255% 0.348% |
5.10 6.96 |
DY-29-08 |
963.0' |
964.0' |
1.0' 2.0' |
0.189% 0.205% |
3.78 4.10 |
DY-30-08 |
976.5' includes |
980.5' includes |
4.0' 2.5' |
0.141% 0.279% |
2.82 5.58 |
DY-40-08 |
976.0' includes |
987.5' includes |
11.5' 4.0' |
0.056% 0.093% |
1.12 1.86 |
DY-43-08 |
980.0' includes |
987.0' includes |
7.0' 3.5' |
0.113% 0.172% |
2.26 3.44 |
DY-45-08 |
968.0' |
969.5' |
1.5' |
0.125% |
2.50 |
Drilling was conducted by Bob Beeman Drilling Company of Moab, Utah, and Century Geophysical, Moab, Utah, performed the down-hole logging for gamma, spontaneous potential (SP), and resistivity. In situ uranium grade, expressed as equivalent U3O8 ("eU3O8"), was calculated using uranium industry standard techniques for gamma log interpretation. Down-hole gamma log interpretation has historically been found to be an accurate representation of in situ grades for uranium mineralization in the San Rafael District as established by Atlas Minerals Corp. during their historic exploration and mining operations conducted there.
Magnum's San Rafael Uranium Project is located approximately 10 miles west of Green River, Utah. The area was the site of mining and exploration for uranium and vanadium from the mid-1950's until the early 1980's. Mineralization comprising the Down Yonder Deposit is typical of that found throughout the San Rafael District, which is classically known as the peneconcordant, channel-controlled, trend-type hosted in upper Salt Wash Member sandstone of the Upper Jurassic Morrison Formation. Historically, the District produced over 4.0 million pounds of uranium and 5.4 million pounds of vanadium.
John R. Carden, Ph.D., P. Geo., a Qualified Person (QP) as defined by National Instrument 43-101, is responsible for the technical information contained in this release.
About Magnum
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, as well as in Canada's Athabasca Basin.
ON BEHALF OF THE BOARD
"Craig T. Lindsay"
President & CEO
For additional information please contact:
Tel: 604.683.2507 Fax: 604.683.2506
E-Mail: info@magnumuranium.com
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN.
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.