2006 News Releases
Mega Commences a Uranium Drilling Programme in Argentina
Toronto, Ontario, Canada, May 2, 2006 – Mega Uranium Ltd. (MGA-TSX-V) is pleased to announce that it has commenced an initial drilling programme in its Patagonia Uranium Project in the San Jorge Gulf Basin of Chubut Province, Argentina. The scheduled programme, comprising 21 vertical RC holes of 60-140 metres depth (total 2480 metres), will investigate the projected eastern extension of the Cretaceous palaeochannel that hosts the Cerro Solo uranium-molybdenum deposit, in five target areas located within 5-10 km of the deposit.
The Cerro Solo uranium-molybdenum deposit, held by the National Atomic Energy Commission of Argentina (CNEA), contains concordant uranium-molydenum mineralisation at several horizons within a Cretaceous palaeochannel containing fluvial sandstones and conglomerates of the Chubut Group. According to a 1997 prefeasibility study undertaken by Nuclear Assurance Corporation International on behalf of the CNEA, the deposit comprises a mineable reserve with an average grade of 0.3% U3O8 and contains a recoverable 10.3 million pounds U3O8. In addition, the study reported that the deposit contains an average grade of 0.3% molybdenum.
In three of the five target areas, located 5-7.5 km east of the Cerro Solo deposit, the drilling will investigate specific targets identified in Mega’s recently completed seismic reflection survey of the palaeochannel. In the other two targets, sited some 10.5-12.5 km east of the deposit, the planned holes will test the palaeochannel in the vicinity of previous shallow CNEA drill holes. Mega has the largest holding of prospective ground (total 2983 km2) in the two areas of Argentina acknowledged by the CNEA as having the country’s best uranium discovery potential – the San Jorge Gulf Basin of Chubut Province (referred to above), and the Sierra Pintada Uranium District in Mendoza Province, which contains the CNEA’s 30Mlb U3O8 Sierra Pintada resource. In both areas, Mega has acquired prime exploration ground, in the vicinity of the Cerro Solo and Sierra Pintada deposits, covering uranium occurrences, favourable geological settings for uranium, and radiometric anomalies detected by the CNEA in airborne surveys conducted in the 1960s and 1970s.
Stewart Taylor, Mega’s President and Qualified Person under NI 43-101, is responsible for this release and has verified the contents 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 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