VANCOUVER, BRITISH COLUMBIA–(EMWNews – July 15, 2008) – Midasco Capital Corp. (TSX VENTURE:MGC) –
The Company is pleased to announce that through its operating subsidiary, Midasco Uranium LLC, it has completed the acquisition of 100% of the mineral rights of the Silverbell Uranium Mine, a large uranium property immediately south and adjacent to the Company’s Calliham mine holdings near Summit Point in San Juan County, Utah.
The acquisition includes the control of the mineral rights for a term of 20 years, and consists of 960 acres of privately held mineral rights. Drilled areas that are 100% controlled by the Company have existing, un-mined historical resources of 1,469,000 pounds U3O8 and 9,856,080 pounds V2O5 at the Silverbell Mine and Calliham Mine, both located in the Salt Wash member of the Morrison Formation.
Specifically, the Silverbell Mine has an existing, un-mined historical resource of 794,320 pounds of U3O8 with an average grade of 0.20% U3O8 and 5,099,400 pounds of V2O5 with an average grade of 1.27% V2O5 (Uranium:Vanadium ratio of 1:6.35) according to a 1992 Umetco Minerals Corporation internal resource summary prepared after mine shutdown. The deposit was initially discovered by Homestake Mining Company in the late 1960’s and was developed by Atlas Minerals Corporation through the Silverbell Shaft and the adjacent Wilson Mine and Shaft, 1/4 mile to the northeast. Union Carbide Corporation (“Umetco”) took over operations at the mine in the mid-1980’s and operated up to January of 1991. Atlas and Umetco’s production records at the mine range from 1975 to 1990 for a total of 248,245 tons of ore with weighted average grades of 0.154% U3O8 and 1.058% V2O5 (total recorded production of 763,307 pounds of U3O8 and 5,250,055 pounds of V2O5).
Throughout the 30 years of exploration and mining in the vicinity of the Silverbell Mine, it became apparent that the Wilson, Silverbell, and Calliham Mines were all intercepting the same large ore-body. During the closing operations at the mines in 1990 and 1991, Umetco was developing through the northern extent of the Calliham Mine, to connect the Silverbell and Calliham Mines. Due to depressed uranium prices development ceased 1,200 feet before reaching the Silverbell Mine workings. For future operations, it is the intention of the Company to continue to connect the two mines into one large complex enabling the use of both decline and shaft access/mining methods. It is important to note that Umetco had over 75 operating mines at one time, and the Silverbell was one of only a few that remained in operation into the 1990s.
In the vicinity of Summit Point, the Company has leased over 7,500 acres of surface and minerals rights that surround drilled areas of the Wilson, Silverbell, Calliham, and Dunn Mines (see news release dated March 3rd, 2008). Much of the leased area was sparsely drilled or explored and the Company believes that the uranium resources of these mines as a whole could substantially increase with underground long-hole drilling and further surface drilling. All combined at Summit Point, the Company has historical resources of 1,813,924 lbs U3O8 and 12,343,635 pounds V2O5 as shown in the table below:
Summit Point Pounds Grade Pounds Grade Ratio of Uranium
Resource Area U3 O8 (%U3 O8) V2 O5 (%V2 O5) to Vanadium
Silverbell Mine(1) 794,320 0.20% 5,099,400 1.27% 1:6.35
(J.H. Ranch)(2) 676,000 0.20% 4,495,400 1.33% 1:6.65
Dunn Mine(3) 343,604 0.12% 2,748,835 0.94% 1.7.80
TOTALS/WT.AVERAGES 1,813,924 0.18% 12,343,635 1.21% 1:6.93
(1) 1992 Umetco Minerals Corporation internal resource summary, prepared
after mine shutdown
(2) Umetco Minerals Corporation's Reserve Summary report entitled
"Mineable Reserves; Western Colorado Eastern Utah, January 1, 1990"
(3) Atlas internal resource summary report entitled "Atlas Controlled
Uranium and Vanadium Ore Reserves as of June 30, 1984"
The Company possesses several datasets that support the historical resources, which were produced by Homestake Mining Company, Atlas Minerals Corporation, Union Carbide Nuclear/Umetco Minerals Corp., Energy Fuels Nuclear, and Truches Minerals, all of whom leased the properties from private parties through the 1960s to the 1990s.
The historical resource summaries prepared by the above Corporations have not been prepared in accordance with the requirements of the National Instrument (N.I.) 43-101 guidelines and the Company has not completed an independent review of the data and methodology employed. Each of the corporations were private entities with over 125 years of combined experience in uranium exploration and mining. For this reason the Company considers the historical resources as relevant for purposes of acquiring the property, but the historical resources may not be relevant for any other purpose. The Company will be moving forward with the completion of a N.I. 43-101 Technical Report defining the current status of the mineral resources as well as potential future resources.
The Company is also pleased to report that similar to the Calliham Mine, the Silverbell Mine is entirely located on private property and only requires permitting through the State of Utah and not through any Federal Land Management Agency, enabling a much shorter permitting timeline. The Company is currently drafting mine development plans and is moving forward to acquire mining and exploration permits.
Over the past six months the Company has worked diligently to build a portfolio of properties with historical resources that can support near-term production. Mike Thompson, Vice President of Exploration and Development comments, “The Silverbell mine is a very substantial near-term property and we are pleased to have finalized the six months of negotiations with over 45 individuals to secure 100% of the mineral rights. The hard work of the Midasco Uranium Staff has placed the Company into a strong position for near term production.” The Company is working diligently to acquire other properties with established resources and is exploring limited dilution financing alternatives, which may or may not include industry partners.
Mr. Terry Heard, P.Eng, is the qualified person with respect to this acquisition and he has reviewed the technical information contained in this news release.
We seek Safe Harbor.
Dustin Elford, President
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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