Majescor rallies on Otish uranium intercept (March 03, 2008)

VANCOUVER — Stepout drilling on Majescor Resources’ (MAJ-V, RSMJF-O) Lac Mantouchiche showing, at its Mistassini uranium property in the Otish Mountains of Quebec, has returned a wide interval of uranium mineralization.

Hole MIST-07-03, testing for extensions to the known showing, cut 17 metres (from 49.5 metres down-hole) grading 0.2% U3O8 and has a uranium-thorium ratio of 63:1. Majescor’s 2002 discovery hole at Lac Mantouchiche returned a 4.5- metre, near-surface interval averaging 0.2% U3O8.

Uranium mineralization on the project occurs in 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.

“(The intersection) confirms the Otish Mountains’ potential for unconformity- related, basement-hosted uranium mineralization similar to the Kiggavik group of deposits in Nunavut,” said Majescor president and chief executive Marc-Andr Bernier in a statement.

The company says further drilling is required to establish the orientation of the mineralized zone.

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

Late last year, 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), which, 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% diamond production royalty.

Majescor shares moved up 48% on the results to23 apieceon strong trading volume of more than 21.5 million shares. The stock has a 52- week trading range of 12-44.