Magnum Uranium begins San Rafael drilling

2009-01-08 14:26 ET - News Release

Mr. Craig Lindsay reports

MAGNUM INITIATES DRILL PROGRAM AND ANNOUNCES EARN-IN OF 100% INTEREST IN SAN RAFAEL PROJECT

Magnum Uranium Corp. is beginning a six-to-10-hole drill program at its San Rafael project located near Green River in Emery county, Utah.

The current drill program is targeted at the Jackrabbit zone, an area of uranium mineralization that was identified during a Magnum drill program conducted in 2007 (as reported in Stockwatch on Aug. 10, 2007). Of the 15 holes drilled in the area, seven of the holes intersected ore-grade mineralization, including SR-3-07 with 6.5 feet of 0.907 per cent eU3O8, SR-13-07 with five feet of 0.212 per cent U3O8 and SR-11-07 with 2.5 feet of 0.418 per cent eU3O8.

Collectively, the seven holes align to define a northeast-trending mineralized zone that currently is 2,600 feet long and open on both ends. The objective of the current drill program is to expand the known mineralization through step-out drilling on mineralized holes that are open-ended.

Additionally, Magnum is pleased to announce that it has now earned a 100-per-cent interest in both the San Rafael uranium project and the Wild Buck uranium project from its partner, Energy Metals Corp., a subsidiary of Uranium One Inc. Under a primary option, Magnum earned an initial undivided 65-per-cent interest in the joint venture by completing $1-million (U.S.) 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-per-cent interest in the joint venture by issuing an additional 250,000 common shares (as reported in Stockwatch on Feb. 12, 2008). During 2008, Magnum expended an additional sum of approximately $1.6-million (U.S.) on exploration at San Rafael. EMC declined to participate and as a result its interest was diluted to under 10 per cent, at which time its interest was automatically further reduced to a 2-per-cent royalty interest in both properties.

Dr. John R. Carden, PhD, PGeo, a qualified person as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this news release.

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