VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 14, 2007) - Magnum Uranium Corp. ("Magnum") (TSX VENTURE:MM) is pleased to announce that it has received the results of a 39 hole, 2,794-foot reverse circulation ("RC") drilling program conducted at its Lye Uranium Project, Fremont County, Wyoming. The program was successful in stepping-out on the historic deposit, as 19 of the 39 holes drilled encountered significant uranium intercepts. Results of the drilling program increase the dimensions of the deposit to 2,500 feet in length, with an average width of 350 feet and thickness of 18 feet. These dimensions expand those as determined by the historic drilling of 141 holes performed by Atlantic Richfield Company ("ARCO"), who held the property from 1967 to 1978 (see Magnum Press Releases dated January 23, 2006 and September 22, 2006). Furthermore, the results indicate that the deposit remains open in several directions, most importantly along its northeast end where the drilling has encountered intercepts up to 40-feet thick, the thickest found on the property to date. Magnum geologists are in the process of evaluating and comparing gamma-ray probe equivalent uranium values, chemical assay values, historic ARCO gamma-ray probe and chemical uranium values, and disequilibrium drill hole information to determine the deposit's true average grade.
Detailed cross sections of the deposit have been constructed employing the previous ARCO drilling and the new Magnum drill holes. Geometry of the mineralized envelopes show Lye to be a classic Wyoming roll-front type uranium system hosted by permeable nearly flat-lying Eocene Wagon Bed Formation sandstone underlain by an impermeable shale unit. Mineralization found in all of the drilling is in reduced material, suggesting that the nose of the roll system, the oxidation-reduction interface (redox boundary), and the roll's altered core all lay northeast of Magnum's holes, the direction the deposit is thickening. Mineralization is shallow, mostly beginning at the surface to 20 feet, resulting in a possible stripping ratio of less than 1:1.
Based on the success of this initial round of drilling, application has been made to the Wyoming State Department of Environmental Quality for a planned 80 hole, 7,500 foot, Phase II follow-up drill program. Timing of this drilling is planned for April through July of this year. Also included to be drill tested during the Phase II program is a new and sizeable radiometric anomaly located roughly 900 feet east of the existing deposit, which was discovered during a detailed ground scintillometer survey performed over the property during 2006. Upon completion of the Phase II drilling and receipt of all assay results, Magnum will be completing a NI 43-101 report summarizing the results of all its work on the project.
Magnum currently views Lye as one of its higher priority projects, with potential to expand the resource and possibly develop it into a near-term, shallow, open-pit heap-leach or ISL producer. The Company is currently in the process of initiating a detailed scoping study to look at potential deposit economics, mineability, and various possible mining scenarios. Magnum has extended its claim block to incorporate additional ground having the possibility of hosting additional mineralization.
John R. Carden Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, is responsible for the technical information in this release.
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
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Magnum Uranium Corp.
Craig T. Lindsay
President & CEO
(604) 683-2506 (FAX)