2006 News Releases
Encouraging Initial Results in Mega's Drilling Programme in Argentina
June 6, 2006
The third hole in a 26 hole programme intersects 2 metres @ 0.11% U3O8 some 4km northeast of the Cerro Solo uranium-molybdenum deposit.
Follow-up drilling is planned
Toronto, Canada, June 6, 2006 – Mega Uranium Ltd. (“Mega”) (MGA-TSX-V) is pleased to announce that it has received encouraging results in the first batch of assay data received to date for two holes in its recently completed drilling programme in its Patagonia Project in the San Jorge Gulf Basin of Chubut Province, Argentina. The drilling programme, comprising 26 widely-spaced, vertical RC holes of 42–144 metre lengths (total 2029 metres), tested several localities on the mineralized trend projected eastwards from the 10.3 million pounds U3O8 Cerro Solo resource, which is held by the National Atomic Energy Commission of Argentina (CNEA) – refer to Mega’s news releases of May 2 2006, March 3 2006 and May 19 2005.
Hole RCU-03, located some 4km northeast of the Cerro Solo resource, intersected 2 metres @ 0.11% U3O8 at a depth of 87-89 metres within dark grey tuffaceous rocks in the lower part of the Cretaceous Los Adobes Formation, which is the host stratigraphy to the Cerro Solo deposit.
Stewart Taylor, Mega’s President, commented, “ This is a very encouraging early result from our first pass drilling of the area east of the Cerro Solo deposit. The intersection occurs in the stratigraphy which hosts Cerro Solo, and as the nearest hole on the mineralized trend (Mega’s hole RCU-05 for which results are awaited) is located 1.8 km. from RCU-03, there is good size potential around the hole. We look forward to receiving the results of RCU-05 and the other holes, which should be available by the last week of June. Follow-up drilling around RCU-03 and other targets will be undertaken when weather conditions improve in 2-3 months time”.
RCU-01, the other hole for which assay results are available, intersected nothing of significance in its test of another target located 1.5 km. south of RCU-03.
Representative samples of one metre intervals of the holes were submitted for geochemical analysis to the ALS Chemex laboratory in Mendoza, Argentina. The samples were initially analysed by multi-element ICP spectrometry (lab. method ME-MS61). Any samples with >500ppm uranium were then analysed by XRF spectrometry (lab. method U-XRF10).
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, Bolivia 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.
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For further information, please contact:
Mega Uranium Ltd.
Sheldon Inwentash, CEO
Telephone: (416) 643-7630