The projects acquired consist of 427 claims in Montrose County and 80 claims in San Miguel County both of which lie along the Uravan mineral belt in Colorado. The Uravan mineral belt is the oldest uranium mining area in the United States and is historically the most productive uranium and vanadium region in Colorado. The Uravan belt has about 1,200 historic mines that produced over 63 million pounds of uranium and 330 million pounds of vanadium from 1948 to 1978. Colorado ranks third among states for uranium reserves, behind Wyoming and New Mexico

Montrose County lies within the Uravan mineral belt and is the most important producing county in the belt and the state. Production in this county from February 1, 1948 to January 1, 1978 was 7,369,000 tons of ore mined at a grade of 0.25% Uranium producing 36,428,000 lb of Uranium. Of the ore mined 7,321,000 tons were processed for Vanadium, producing 187,104,000 lb of Vanadium at a grade of 1.28%.

History
The Uravan mineral belt in the Colorado Plateau has a lengthy mining history, with the first ore shipment made to France in 1898. World War II brought increased attention to the uranium ores in the Uravan area. During WWII, Uravan provided part of the uranium needed by the Manhattan Project for the first atomic bomb. Because of wartime secrecy the Manhattan Project would only publicly admit to purchasing the vanadium, and did not pay the uranium miners for the uranium ore (in a later lawsuit, many miners were able to reclaim lost profits from the U.S. government). By the 1950's this district was one of the world's foremost producers of both uranium and vanadium. Throughout the 30 years of mining history at the Uravan Belt (1948 Ð 1978), over 63 million pounds of uranium and 330 million pounds of Vanadium have been produced which was contributed to by more than 1,200 individual mines. Production continued uninterrupted until 1984 when low uranium prices forced the closure of all operations. Production resumed in 1987, but closed again in 1990.

The majority of the uranium-vanadium deposits in this region are hosted in the upper Jurassic Salt Wash Member of the Morrison Formation and the Triassic Moss Back Member of the Chinle Formation. All three properties are located in lithologically favorable zones of the Salt Wash Member.

Significant Drilling has occurred at each property by previous operators. Multiple drilling efforts have occurred at Carpenter Ridge with the latest from 1976 to 1977 with up to 90 drill holes.

Carpenter Ridge demonstrates the greatest mineral potential of the three properties, due in part to the possibility of mineralization extending from existing mines on the property.

Uranium had its last boom in the 1970's when the price peaked at over $40 per pound in 1979. Uranium entered into a long bear market with the price falling all the way to $7.10 in Dec. 2000. Since then the price has advanced to the $120 per pound range with most analysts predicting much higher prices in the next few years.

New acquisitions
Midasco has also acquired four additional properties encompassing 406 claims within the Uravan mineral belt. A map is available that shows all of the company's Uravan mineral belt properties, including the four new properties (SP, DV, FH and DV).

The newly acquired SP and DV groups are located in the Little Gypsum Valley, which is the northwestern extent of the Big Gypsum Valley salt-cored anticline. Both properties cover numerous historic mines and prospects in the Salt Wash member, which occurs at the surface. Company geologists are currently completing preliminary scintillometer surveys to identify near-surface mineralization. Little Gypsum and Big Gypsum valleys are famous for several historical producing mines such as the American Eagle, Raven mine and Morning Star mine. Big Gypsum Valley is host to the Sunday complex, the only actively producing uranium mine in the Uravan belt, and is located 6.6 miles southeast of the DR claim group.

Midasco also recently acquired the FH and DV claims which both occur on the northern limb of the Dolores anticline. Both properties are positioned to intercept mineralization associated with the Centennial-Sun Cup mines, which produced over one million pounds of U3O8 from the Salt Wash member. The FH claims are located approximately 1.4 miles east of the Centennial complex. The Salt Wash is not exposed at the properties and will be a 500-to-1,000-foot-deep target depending on the location of drilling. The company is working to acquire geological data to formulate and implement an effective drilling strategy.