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 Reports on Exploration Progress


November 24, 2006
  • Georgetown, Australia: Airborne magnetic-radiometric survey nearing completion. Maureen resource drilling completed.
  • Patagonia, Argentina: Farm-in agreement secured for additional 724 km2 of properties; Widespread uranium mineralisation delineated in the Sierra Cuadrada prospect area.
  • Cariewerloo, South Australia: Reconnaissance drilling programme completed. IOCGU target identified.
  • Cronje Dam, South Australia: Reconnaissance drilling commenced.
  • Mongolia: Low grade uranium drill intersections in the Baganurat property.

Toronto, Canada, November 24, 2006 – Mega Uranium Ltd. (MGA-TSX) (“Mega”) is pleased to announce the following progress in a number of its exploration projects.

Georgetown Project, Queensland, Australia

A detailed airborne magnetic-radiometric survey is nearing completion over a 3,520 km2 portion of the Georgetown Project, which contains the 6.5 million pounds U308 historical Maureen resource and additional historical resources of 6.4 million pounds U3O8. The survey, being conducted by Universal Tracking Systems Pty. Ltd., comprises a total of 40,270 line kms at a line spacing of 100 metres and sensor height of 50 metres.

The drilling programme to validate the Maureen resource and test for possible resource extensions has been completed as planned. A total of 3895 metres was drilled on 6 diamond core holes and 44 RC holes, of 90-198 metre lengths. Results are awaited. A NI43-101 compliant resource estimate will be established based on the new drilling results and historical data.

The Maureen resource is a pre-NI43-101 historical Indicated Resource of 2.38 million tonnes @ 0.12% U3O8 (6.5 Mlbs. contained U3O8) and 0.07% molybdenum. In addition, the other Georgetown Project historical resources of 2.9 million tonnes @ 0.10% U3O8 (6.4 Mlbs. contained U3O8) are also pre-NI43-101. These resource estimates were competently conducted in the 1970s and 1980s according to the standards of the day, and as such are regarded as relevant by Mega as a reasonable reflection of the magnitude and grade of the mineralization. However, as they preceded the introduction of the JORC guidelines in Australia, they must therefore be reported as unreliable at this time in accordance with the NI43-101 regulations.

Cariewerloo Project, South Australia

In its Cariewerloo Project, Mega’s wholly owned subsidiary, Hindmarsh Resources (“Hindmarsh”), has completed a programme of ten widely spaced RC holes to test the uranium potential of the unconformity between the Mesozoic Pandurra Formation and the underlying Mesoproterozoic Gawler Range Volcanics. The ten holes were of 114-193 metres depth and totaled 1,250 metres. A spectrometer scan of the material recovered from the holes indicated anomalous uranium levels only. Geochemical results are awaited. The South Australian Government funded $A50,000 of the direct drilling costs of this programme as part of its PACE (Plan for Accelerating Exploration) initiative to encourage innovative exploration in the State.

Elsewhere in the Cariewerloo Project, a gravity survey comprising 1,274 stations at 1 x 1 km spacing, with local infill at 500 x 500 metres spacing, has delineated an iron oxide-copper-gold-uranium (“IOCGU”) target represented by an anomaly with an interpreted source of 2.4 milligals, width of 500 metres and length of 2-8 km. Further gravity work will be undertaken, followed by drilling.

Cronje Dam Project, South Australia

In its Cronje Dam Project, Hindmarsh has commenced a 5,000 metre reconnaissance rotary mud drilling programme, comprising approximately 40 holes of 100-150 metre depths. The holes will test Miocene fluviatile sandstones in the vicinity of widely spaced 1970s drill holes, which intersected values to 0.05% U3O8.

Patagonia Project, Chubut Province, Argentina

In the Patagonia Project in Chubut Province, Mega has entered into an agreement with a private vendor to acquire 100% of 8 exploration permits (“cateos”), totaling 724 km2, through an initial cash payment of $US5,000, total expenditure of $U150,000 over a three year period and a final cash payment of $US50,000. One of the cateos is located some 20 km west of Cerro Solo, the 10.3 million pounds U3O8 resource, which is held by the Argentina Atomic Energy Commission (CNEA). The other 7 cateos, located in the northeast part of Chubut Province outside the area previously flown by the CNEA airborne radiometric surveys, cover previously unknown radiometric anomalies detected in Mega’s recent reconnaissance examination of the region.

Elsewhere in the Patagonia Project, Mega’s mapping, sampling and ground radiometrics programme in the Sierra Cuadrada prospect area has delineated widespread uranium mineralisation in the basal portion of the Cretaceous Chubut Formation over a 10km (north-south) x 15 km (east-west) area. The mineralisation occurs within four separate, 3-7 metres thick, shallow dipping horizons of volcaniclastic sandstones and conglomerate containing abundant organic matter and numerous fossilized tree trunks. In a 1.9 km2 tenement adjacent to Mega’s ground, previous CNEA drilling is reported to have delineated a shallow resource of 2.4 million pounds U3O8 at an average grade of 0.03% U3O8. Within its ground, Mega estimates that, from surface to 100 metres depth, the prospective uraniferous horizons extend over an area of 7.2 km2. Further work will be undertaken to delineate drilling targets.

Bolivia

In Bolivia, Mega’s uranium interests in the Sevaruyo Uranium district in the Altiplano have been increased to 10 claim blocks totaling 70.5 km2, following the recent staking by Intrepid Mines of 7 claim blocks based on reconnaissance field work and data from previous exploration conducted by the Bolivian Government nuclear agency COBOEN. The Mega-Intrepid Mines JV (see press release dated March 8, 2006) now holds the largest ground position in the Sevaruyo Belt, which contains Miocene ignimbritic volcanics with fracture-controlled uranium mineralisation similar to the Macusani Belt of southern Peru.

Available airborne magnetic-radiometric data from selected portions of the Precambrian Belt of eastern Bolivia have been purchased and forwarded to Australia for processing. In this region the Mega-Intrepid Mines JV holds 117 km2 of ground in 13 claim blocks with potential for unconformity-related uranium mineralisation similar to the Athabaska Basin in Canada.

Mongolia

In Mongolia, where Mega is earning an initial 50% interest in uranium properties held by Red Hill Energy Inc., results were received for a 3001 metres aircore/RC drilling programme conducted over three prospect areas within Cretaceous sediments in the 134 km2 Baganurat property in Dornogovi Province.

On Block 1, shallow vertical drill holes, at 50-200 metre intervals on lines 400-800 metres apart, intersected shallow dipping siltstone horizons with low grade uranium mineralisation over 0.13-2.3 metre widths at 5-7 metre depths. Based on downhole gamma logging results, the grade of these mineralised intervals ranges from 0.01 to 0.03% equivalent U3O8. In Block 2,which is contiguous to the west of Block 1, three lines of vertical drill holes to 36 metres depth (total 820 metres) intersected thin intervals (0.23-2.24 metres) of low grade uranium mineralisation within argillaceous sediments at 7-12.5 metres depth. Downhole gamma logging results indicated average grades in the range 0.016-0.032% equivalent U3O8. In Block 3, located in the northern part of the Baganurat property, eight deeper holes of 44-120 metre lengths failed to intersect anything of significance within sediments and volcanics of Upper Jurassic-Upper Cretaceous age.

In the Maikhan Tolgoi property in Khentii Province, a 1499 metres diamond drilling programme was completed on seven steep angled holes of 65-73 metres depth. The downhole gamma logging delineated only narrow intervals of low equivalent uranium grades (maximum 0.04% U3O8) associated with fracturing, argillic alteration, and local disseminations and stringers of molybdenite and chalcopyrite. Geochemical assay results are awaited for other zones of molybdenite and chalcopyrite mineralisation. 

Stewart Taylor, Mega’s President and Qualified Person under NI43-101, 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, Columbia, 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.

For further information, please contact:

Mega Uranium Ltd.
Sheldon Inwentash, CEO
Telephone: (416) 643-7630
info@megauranium.com
www.megauranium.com