2005 News Releases
Mega Acquires Maureen Uranium-Molybdenum Deposit
November 18, 2005
Mega has entered into an Agreement to acquire the Maureen uranium-molybdenum
deposit in Queensland, Australia (historical resource 6.5 Mlbs. U3O8).
The Agreement also gives Mega rights to all uranium-molybdenum mineralization in the surrounding properties, totalling some 1,580 sq. km.
The properties contain untested radiometric anomalies and favourable geological
settings for uranium mineralization.
Toronto, Ontario, Canada, November 18, 2005 – Mega Uranium Limited ("Mega") ("MGA":TSXV) is pleased to announce that it has entered into an Agreement with Georgetown Mining Ltd. ("GML") and O’Rourke Geological Contractors Pty Ltd. (“OGC”), two private Australian companies, to acquire 100% of the uraniummolybdenum-fluorite mineralization contained within GML's properties in the Georgetown area of Queensland, Australia (the Georgetown Project), including the Maureen uranium-molybdenum-fluorite deposit, which contains a pre-43-101 historical resource of 2.38 million tonnes @ 0.12 % U3O8 ( 6.5 Mlbs. contained U3O8) and 0.07% molybdenum. The deposit is located 340km northwest of the Ben Lomond uranium-molybdenum resource (Indicated Resource 7.9 Mlbs. U3O8 +Inferred Resource 2.8 Mlbs. U3O8) which Mega has agreed to acquire from the Cogema subsidiary, Afmeco Mining and Exploration Pty. Ltd. (see the Press Releases of January 25, 2005 and August 9, 2005 at www.megauranium.com or www.sedar.com).
GML's properties, covering a total area of some 1,580 sq. km., comprise 15 granted Exploration Permits and two granted Mining Leases, plus 10 Mining Lease Applications, which are expected to be granted in due course.
Under the Agreement, Mega can acquire rights to 100% of the uranium-molybdenum-fluorite mineralization in the properties through payments to GML and OGC comprising a total of $A1.1 million, 2.1 million Mega shares, and a 0.75% NSR royalty on any uranium-molybdenum production. Such payments are apportioned two-thirds to GML and one-third to OGC. Of the cash component, GML and OGC have received an initial non-refundable $A100,000 deposit and will receive the balance of $A1 million when certain conditions are
met, including receipt of TSX Venture Exchange approval of the transaction. GML will retain title to the properties and rights to all commodities other than uranium, molybdenum and fluorite, will be responsible for meeting the statutory requirements of the titles, and will now focus on the exploration of the properties for gold and base metal mineralization. As part of the Agreement, Mega and GML have agreed to notify each other of their proposed exploration programmes to ensure that they are compatible and that they meet the statutory requirements of the titles. In addition, the parties will provide each other with results of their exploration programmes which indicate potential for their respective target minerals.
The outcropping Maureen uranium-molybdenum deposit was detected in 1971 in an airborne magnetic - radiometric survey conducted by the Australian company Central Coast Exploration NL. Drill testing commenced in 1972, then in 1974 Getty Mining Pty. Ltd., the Australian mineral exploration arm of Getty Oil, farmed-in to the property. Over a five year period Getty evaluated the deposit with a detailed drilling programme culminating in a 1979 Indicated Resource estimate of 2.38 million tonnes @ 0.12% U3O8 and 0.07% molybdenum, based on a cut-off grade of 0.035% U3O8. Total drilling of the deposit and its immediate surrounds, from 1972 to 1980, comprised 881 percussion holes (total 78550m) and 137 diamond core holes (total 8368m).
The delineated resource occurs from surface to 140m depth and is conducive to open cut extraction at a favourable stripping ratio.
The 1979 Indicated Resource estimate was competently conducted according to the standards of the day, and as such is regarded relevant by Mega as a reasonable reflection of the magnitude and grade of the mineralization. However, as it was conducted prior to the introduction of the JORC regulations in Australia, it must therefore be reported as unreliable at this time according to the 43-101 guidelines. At this time there are no more recent estimates or data available to Mega. Mega will engage an Independent Qualified Person to establish a resource that is 43-101 compliant.
The Maureen deposit is located along an E-W trending fracture zone, within sandstones and shales, in the lowermost 60m of the Upper Devonian/ Lower Carboniferous Gilberton Formation, straddling the latter's unconformable contact with the Proterozoic basement of metasediments and granitoids. The primary uranium-molybdenum mineralization occurs in the form of both discordant and stratabound zones, and consists predominantly of uraninite and molybdenite, accompanied by abundant fluorite and pyrite. Haematitic alteration is prominent.
In the vicinity of Maureen, and elsewhere in the properties, are radiometric anomalies, uranium occurrences and favourable geological settings for uranium, within both the Proterozoic basement and overlying Upper Devonian/Lower Carboniferous ediments/volcanics, which were either untested or inadequately examined by previous explorers.
Mega plans to focus initially on confirming and extending the Maureen resource and to conduct an airborne magnetic/radiometric survey of the whole ground package to highlight other targets.
Stewart Taylor, President, is acting as Mega’s Qualified Person for the Georgetown Project.
This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Mega’s results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof. Mega Uranium disclaims any intent or obligation to update these forward-looking statements and cautions investors from placing undue reliance on forward-looking statements. Mega does have an ongoing obligation to disclose material information as it becomes available.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please contact:
Mega Uranium Ltd.
Sheldon Inwentash, CEO
Telephone: (416) 643-7630