2006 News Releases
Strong Uranium Anomalies Confirmed in Southeastern Mongolia; 4,500 Meter Drill Program Planned
Toronto, Ontario, June 19, 2006 - Mega Uranium Ltd. (“Mega”) (MGA:TSX-V) announced today that promising results have been obtained from field work on Mega’s and Red Hill Energy Inc.’s (“Red Hill”) (RH:TSX-V) Mongolian uranium exploration program. A 6-week program on the Baganurat property, located in Dornogovi Province in southeastern Mongolia, was completed on May 31. Three areas on the property were explored in detail. The program included mapping, gamma-spectrometer surveys, and resistivity surveys using the vertical electric sounding (VES) method. A reconnaissance magnetic survey was also conducted on Block 3. Results are promising with a number of partly to completely overlapping uranium and thorium anomalies identified. These include one strong, resistivity-defined, structural lineament with a series of three perfectly coincident, elongated uranium anomalies oriented parallel to the lineament. The anomalies along this particular lineament on Block 1 will be the prime targets of a planned 4,500 meter rotary air blast (RAB) drilling program to be conducted within the next few months. Approximately 100 holes will be drilled to depths ranging from about 30m to 60m. (If necessary, the RAB drill can drill to about 150 meters depth). Most of the holes will be drilled at intervals along fence lines that will cross a number of structures and roughly coincident uranium-thorium anomalies. Additional drilling will be conducted on several other Block 1 uranium anomalies that are proximal to strong structural lineaments. A small amount of RAB drilling, totaling about 1,000 meters, is also planned for Block 3. Three holes will be drilled on each of 3 north-south lines located in the west, center, and east part of the block. The holes will test for uranium mineralization within Lower Jurassic-Upper Cretaceous sedimentary rocks immediately overlying Paleozoic granites.
While based at Baganurat, the exploration team conducted a 2-day reconnaissance gamma- spectrometer survey of the Khashaat property located in Dundgovi Province, about 100 km west of Baganurat.. The work indicated that the previously reported “Ore Body #4” is probably not the only significant uranium mineralized occurrence in the Khashaat property. Ore Body #4 is a fault-related U-P-Mo deposit located at the NE-SW trending fault contact between Cretaceous sandstones and Proterozoic marbles, granites and gneisses. This fault, which extends for about 500 meters within the property, has been previously investigated by trenching but remains untested by drilling.. Visual observations made by one of Red Hill Energy’s Russian uranium geologists suggest that significant hydrogene, sandstone-hosted, uranium mineralization similar to that found in the Baganurat property, as well as hydrothermal (Olov type) uranium mineralization, are present in the Khashaat property.
On June 6, exploration work recommenced on Mega’s and Red Hill’s Maikhan Tolgoi property. The program of work to be conducted this year is designed to follow up on the favourable results of last year’s program. Newly developed technologies are being used that have already improved Mega’s and Red Hill’s understanding of the property. It is known that uranium mineralization at Maikhan Tolgoi is associated with at least two prominent fault zones. Early survey indications are that a third such zone lies under a valley which is covered by deep unconsolidated sediments. In 1976 this zone was drilled in one location, however our Russian geologists believe that the 49 meter depth of the deepest hole was not deep enough to test the prospective target zone.
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 Red Hill’s Geological Manager in Mongolia for over three years and has 28 years of international geological experience including previous experience in uranium exploration.
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Bolivia and Canada. Mega Uranium has had an option to earn up to a 60% interest in Red Hill's Mongolian uranium portfolio and future uranium acquisitions in Mongolia. 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