Mega Uranium Mining & Exploration in  Canada, Cameroon, Australia, Argentina, Bolivia, Columbia and Mongolia.

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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
M5B 1M4

Phone 416.643.7630
Fax 416.941.1090
 

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2006 News Releases

Mega Uranium Ltd. Drilling Update


August 30, 2006
  • First stage RC drilling results delineate targets for follow up drilling in the Patagonia Project, Argentina.
     
  • Drilling programmes commence in the Georgetown Project (Queensland, Australia) and the Baganurat Property (Mongolia)

Toronto, Ontario, August 30, 2006 – Mega Uranium Ltd. (“Mega”) (MGA:TSX-V) is pleased to report more drilling results from its Patagonia project in Argentina and to announce the commencement of drilling programmes in its Georgetown Project in Queensland, Australia. In addition, Mega reports that its Joint Venture partner in Mongolia, Red Hill Energy Inc. (“Red Hill”: RH-TSX-V), has commenced drilling in the Baganurat Property in the first stage of its 2006 drilling programme, which will also include drill testing of the Maikhan Tolgoi Property. Under a June 2005 agreement, Mega can earn an initial 50% interest in Red Hill’s uranium exploration properties in Mongolia through the expenditure of $US 1.5 million over a three year period.

Patagonia Project, Argentina

In its Patagonia Project in Chubut Province, Mega has delineated two targets for further, more detailed drilling, based on the downhole gamma probe/geochemical assay results of its first stage RC drilling programme (refer to the Mega news releases of May 2, 2006 and June 6, 2006). The drilling programme, comprising 26 widely-spaced, vertical RC holes of 42-144 metre lengths, 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).

A total of 427 samples of one metre intervals from the holes were submitted for geochemical analysis to the ALS Chemex and Alex Stewart S.A. laboratories in Mendoza, Argentina. The samples were initially analysed by multi-element ICP spectrometry. Any samples with >500 ppm uranium were then analysed by XRF. The best intersections were as follows:

 

 

Hole Interval (m) Width (m) %U3O8
RCU-03 87-89 2 0.11
RCU-07 42-47 5 0.02
RCU-09 56-57 1 0.21

As previously reported (Mega news release of May 2, 2006), the intersection in hole RCU-03, located some 4 km northeast of the Cerro Solo resource, occurs within tuffaceous rocks in the lower part of the Cretaceous Los Adobes Formation, which is the host stratigraphy to Cerro Solo. In the nearest hole on the mineralized trend, Mega’s RCU-05, located 1.8 km from RCU-03, there was insufficient material recovered from the hole for a meaningful geochemical analysis, but the downhole gamma probe (calibrated in CNEA’s radiometric calibration unit in Mendoza) returned an intersection of 1.35 metres @ 0.05% equivalent U3O8 at 88.55-89.9 metres depth. As a follow-up of these results, Mega intends to investigate the area around RCU-03 with a programme of more closely spaced RC holes later this year.

Follow-up drilling will also be conducted around RCU-09, which is located some 4 km from RCU-03.

Georgetown Project, (Australia)

In its Georgetown Project in northern Queensland, Australia, Mega has commenced an RC and diamond core drilling programme on its Maureen uranium deposit, which contains a historical resource of 6.5 million pounds U3O8 contained within 2.38 million tonnes @ 0.12% U3O8 and 0.07% Mo. (refer to the Mega news release of 27 March, 2006). The Maureen resource estimate was competently conducted in 1979 according to the standards of the day, and as such is regarded by Mega as a reasonable reflection of the magnitude and grade of the mineralisation. However, as it was conducted prior to the introduction of the JORC regulations in Australia, it must be reported as unreliable at this time according to the NI 43-101 guidelines.

Mega’s proposed drilling programme, comprising 51 holes of 50-200 metre lengths (total 4100 metres), is designed both to validate the resource and to seek resource extensions both along strike and down dip. Following the receipt of results from this programme, Mega will engage an Independent Qualified Person to establish a NI 43-101 compliant resource estimate for the Maureen deposit, based on the new results and the data from ~700 holes drilled in the late 1970s.

Baganurat Property, (Mongolia)

Mega’s joint venture partner in Mongolia, Red Hill, has commenced a 3000 metre aircore/RC drilling programme designed to investigate two prospect areas in its Baganurat Property in the East Gobi uranium district of Dornogovi Province, some 315 km. south-southeast of Ulaanbaatar. In Block 1 of the property, the drilling will investigate spatially related, but offset, areas of uranium and thorium anomalies, which were delineated by Red Hill ground radiometric surveys in April-May 2006. The anomalous areas, both of which are some 3 km long and 150-400 metres wide, occur within a Mesozoic aged shallow dipping conglomerate-sandstone-claystone sequence and are associated with prominent structural lineaments. In the early I980s, nine trenches excavated by the Mongolian Geological Surveying Expedition in a portion of the anomaly exposed black/dark grey clays and loam containing geochemical assays in the range 0.01-0.06% U3O8. Drilling in Block 1 will comprise approximately 70 holes, of 25-50 metres depth, located at 50-200m intervals on six lines 200-800 metres apart.

On Block 3, some 15 km north of Block 1, several widely spaced reconnaissance aircore/RC holes will investigate the uranium potential of an Upper Jurassic-Lower Cretaceous conglomeratic sequence underlying Cretaceous volcanics.

Maikhan Tolgoi Property, (Mongolia)

Following the drilling of Baganurat, Red Hill will conduct a drilling programme in its Maikhan Tolgoi Property, which is located some 580 km by road east of Ulaanbaatar at the border of Khentii and Dornod Provinces. Previous exploration of this property by the Mongolian Geological Surveying Expedition in 1977 focused almost exclusively on the uranium potential of the most prominent northwest-trending structure transecting the Cretaceous volcanics of the area. Red Hill’s planned drilling programme, comprising 7 diamond drill holes totaling 1500 metres, will concentrate instead on testing radiometric anomalies on east-west structures, which were delineated by its detailed ground radiometric work in 2005/2006.
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. Mega Uranium’s Australian uranium properties, including without limitation the Ben Lomond and Maureen properties, are subject to state policies which presently prohibit the mining of uranium in Australia.

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
info@megauranium.com
www.megauranium.com