2006 News Releases
2006 Mongolian Uranium Field Activities Commenced by UGL-Mega Joint Venture
Toronto, Ontario, March 28, 2006 – Mega Uranium Ltd. (“Mega”) (TSXV: MGA) announced today that, as part of its joint venture with UGL Enterprises Ltd. (“UGL”) (TSXV: UGS) (the “UGL-Mega Joint Venture”), the UGL-Mega Joint Venture has commenced its 2006 uranium field season. Field activities in Mongolia will be directed at examining the uranium potential of a number of priority target areas on 5 of the UGL-Mega Joint Venture’s 14 Mongolian uranium properties. Detailed records of previous Russian exploration on the UGL-Mega Joint Venture’s uranium properties were obtained from official sources in Irkutsk, Russia in the last quarter of 2005. This material was extensively studied by UGL’s Russian, Mongolian and Canadian geologists, as well as by two Russian consultants (respectively Irkutsk and Vancouver based) who are highly experienced in uranium exploration and project development in Russia and Mongolia. Based on their review, five properties have been selected for detailed investigation in 2006: the Jargalan, Baganurat, Maikhan Tolgoi, Shorvog Gol/Adag Usni Khudag and Ganga properties. With the exception of Maikhan Tolgoi, these properties all contain radiometric anomalies, uranium showings and favorable geological settings within Cretaceous stratigraphy, with potential for flat lying stratabound sandstone-hosted uranium bodies at shallow depths, generally less than 100 metres. On the Maikhan Tolgoi property the target is shallow structurally-controlled uranium within Cretaceous volcanic host rocks.
The 2006 field season will see specific identified target areas in the five priority properties studied and advanced through the use of ground-based radiometric surveys, Vertical Electrical Sounding (VES) surveys, Induced Polarization (IP) surveys, (AlphaCard – patented) radon surveys, and soil & rock sampling. The UGL-Mega Joint Venture has budgeted to drill test the most favourable anomalies and showings later this year.
All programs will be overseen by UGL’s Exploration Manager, Mr. Glenn S. Griesbach. On-site field operations will be managed by Russian uranium expert, Grigory Kislyuchenko, who previously worked for 19 years with the Sosnovgeologia Uranium Company in Mongolia and Siberia.
Mega has an option to earn up to a 60% interest into UGL’s 100% interest in its 14 Uranium Properties (including future uranium acquisitions) by expending up to US $3.5 million. During the current 2006 uranium field and drill programs it is anticipated that a total of US $1 million will be spent. The uranium portfolio consists of 16 exploration licenses covering a total area of 2,325 sq. km2. Uranium license applications are currently being prepared for other exploration areas where Mr. Kislyuchenko, as a result of his research in Irkutsk archives, has identified additional uranium anomalies and mineralization.
The Qualified Person responsible for summarizing the technical material presented in this news release is Mr. Glenn S. Griesbach, P. Geo. Mr. Griesbach has acted as UGL’s Geological Manager in Mongolia for over three years and has 28 years of international geological experience including previous experience in uranium exploration.
UGL Resources Ltd. has in addition to its uranium interests in Mongolia, a 136.4 million tonne hard high-volatile bituminious coal resource and 3 gold & copper properties inside Mongolia.
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 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