2006 News Releases
Mega to Acquire Additional Uranium Resources in Queensland, Australia
Toronto, Ontario, March 27, 2006 – Mega Uranium Ltd. (“Mega”) (MGA:TSXV) is pleased to announce that it has entered into an Agreement to acquire the private Australian company, Future Metals and Energy Ltd (“FME”), which holds historical uranium resources totaling 6.4 million lbs U3O8 (2.34 million tonnes) in exploration permits adjacent to Mega’s Georgetown Project, in North Queensland, Australia (refer to the Mega’s press release of November 18, 2005). Upon completion of this Agreement, Mega will have acquired rights to all the principal known uranium resources in the Georgetown region within 30km of Mega’s 6.5 million lbs U3O8 Maureen resource (2.38 million tonnes @ 0.12 % U3O8).
Under the Agreement, Mega can acquire FME for a total consideration of 1 million Mega shares. The deal is subject to Mega’s completion of satisfactory due diligence on the FME properties, and to TSX Venture approval.
FME’s 11 exploration permits, totaling 4,874 km2, cover Upper Devonian to Lower Carboniferous sediments/volcanics and their unconformable contact with underlying Palaeoproterozoic metasediments, and granitoids of Proterozoic and Silurian to Early Devonian ages. The properties contain numerous uranium occurrences and several small uranium resources, which were delineated by Minatome Australia Pty. Ltd. (“Minatome”) and Esso Exploration and Production Australia Inc.(Esso)in the 1970s to early 1980s. The Minatome and Esso uranium resource estimates, reported below, were competently conducted according to the standards of the day, and, as such, are regarded by Mega as a reasonable reflection of the magnitude and grade of the mineralisation. However, as they were conducted prior to the introduction of the JORC regulations in Australia, they must therefore be reported as unreliable at this time according to the NI43-101 guidelines. At this time there are no more recent estimates or data available to Mega. Mega will engage an Independent Qualified Person to establish resources that are 43-101 compliant.
The largest concentration of uranium resources in the FME ground is the Dagworth–Quartz Blow NE-trending zone in the Fiery Creek area, located some 30km southeast of the Maureen deposit, where uranium mineralisation occurs in steeply dipping NE-trending vein systems within dykes and fault zones straddling the unconformity between Lower Carboniferous sediments/volcanics and underlying Palaeoproterozoic metasediments. Within this 8km long zone are the Four Geo, Two Gee and Quartz Blow deposits, which were reported by Minatome in 1983 to contain a total of 5.1 million pounds U3O8 at an average grade of 0.09% U3O8, based on a 0.059% U3O8 or 0.035% U3O8 cut-off. Potential exists in this NE-trending zone to delineate additional uranium resources in the projections of the three known resources at depth or along strike, and in inadequately tested uranium prospects elsewhere.
The other area of the FME ground in which a uranium resource has been delineated is the east-west trending, 5-6 metres wide, Lineament Fault Zone, some 30km south of the Maureen deposit, where there are several high-grade uranium occurrences over a 9km strike length. The largest uranium deposit discovered to date in this area, Central 50, was reported by Esso in 1981 to have a resource of 1.3 million pounds U3O8 at a grade of 0.16% U3O8 based on a 0.045% U3O8 cut-off. There is potential to discover additional uranium resources along the Lineament Fault Zone and its vicinity. For example, Esso’s exploration of the Somerset prospect in the 1970s included drill intersections up to 4 metres true width @ 0.13% U3O8 and trench exposures with up to 4 metres @ 0.06% U3O8.
The FME ground will be included in a detailed airborne magnetic-radiometric survey of Mega’s Georgetown Project ground, which is scheduled to be flown in June 2006.
Stewart Taylor, President, Mega’s Qualified Person under NI 43-101, is responsible for the contents of this release and has verified the data disclosed.
Mega Uranium Ltd. is a Toronto–based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia and Canada. Further information on Mega can be found on the company’s website at www.megauranium.com
This news release contains forward-looking statements within the meaning o the “safe harbour” provisionsof 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 o differ materially from expectaions. These include risks relating to market flucuations, property performance and other risks. These forwad-looking statements speak only as of thedate hereof. Mega Uranium disclaims any intent orobligation to update these forward-looking statements and cautions investors from placing undue reliance on forwardlooking statements. Mega does have an ongoing obligation to disclose material information as ibecomes available.
THE TSX VENTURE EXCHANGEHAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITYFOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please contact:
Mega Uranium Ltd.
Sheldon Inwentash, CEO
Telephone: (416) 643-7630