2006 News Releases
Mega Completes Acquisition of Future Metals and Energy Ltd.
Toronto, Canada, June 20, 2006 – Mega Uranium Ltd. (“Mega”) (MGA:TSX-V) is pleased to announce that it has completed its acquisition of the private Australian company, Future Metals and Energy Ltd. (“FME”), which holds historical resources totaling 6.4 million pounds U3O8 (2.34 million tonnes) adjacent to Mega’s Georgetown Project, in North Queensland, Australia (refer to Mega’s press release of March 27, 2006). The acquisition was obtained for a total consideration of 1 million Mega shares.
Through this acquisition, Mega has acquired rights to all the principal known uranium resources in the Georgetown region within 30km of its 6.5 million pounds U3O8 Maureen resource (2.38 million tonnes @ 0.12 % U3O8).
FME’s 11 exploration permits, totaling 4,874 km2, 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 NI 43-101 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, 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 August 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, 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.
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