Majescor rallies on Otish uranium intercept (February 05, 2008)

Vancouver – Step-out drilling by Majescor Resources (MAJ-V) on the Lac Mantouchiche showing at its Mistassini uranium property in the Otish Mountains of Quebec has returned a wide interval of significant uranium mineralization.

Hole MIST-07-03, testing for extensions to the known showing, cut 17 metres (from 49.5 metres downhole) grading 0.20% U3O8 and has a uranium-thorium ratio of 63-to-1. Majescor’s 2002 discovery hole at Lac Mantouchiche returned 4.5 metres of 0.20% U3O8 near surface.

Uranium mineralization on the project occurs within an altered intrusive breccia flanked by fine-grained migmatites that are locally magnetic and weakly chloritized. The breccia is strongly hematized and shows moderate-to-strong argillic and carbonate alteration. Majescor observed some secondary uranium mineralization (possibly carnotite) in the core.

“It confirms the Otish Mountains’ potential for unconformity-related, basement-hosted uranium mineralization similar to the Kiggavik group of deposits in Nunavut,” explained Majescor president and CEO Marc-Andr Bernier in a prepared statement.

The company states additional drilling is required to establish orientation of the mineralized zone.

The project area is located between the Lower Proterozoic Papaskwasati sedimentary outlier and the Otish Mountains basin.

In late-2007, the company signed an agreement giving Strateco Resources (RSC-T, SRSIF-O) the conditional option to earn 60% in uranium rights on Mistassini by spending $1.3 million in exploration over three years. With receipt of this set of drill results, Strateco now has a 30-day right of first refusal to enter into the agreement.

Majescor acquired 100% of the uranium rights on Mistassini under an early-2007 agreement with Superior Diamonds (SUP-V, SUPYF-O) that in exchange will hold 100% of the diamonds rights on the property. Superior retains a 2% royalty on any uranium production and Majescor has a 2% diamonds production royalty.

Shares of Majescor moved up 48% on the February 5th results, posting a 7.5 gain to 23 apiece on strong trading volume of more than 21.5 million shares. The stock has a 52-week trading range of 12-44.

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