2006 News Releases
Mega Commences Drilling in the Mount Kakoulima Copper-Nickel-PGM Project, Guinea
December 6, 2006
Toronto, Canada, December 6, 2006 – Mega Uranium Ltd. (MGA-TSX) (“Mega”) is pleased to announce that it has commenced a 5,000 metre diamond drilling programme to test several targets in the Mount Kakoulima copper-nickel-PGM project in Guinea, Africa. Mega also wishes to report that, FNX Mining Company Inc. (“FNX”) is no longer a partner in the project and Mega is now providing sole funding to acquire 100% of the project (subject to a 3% NSR royalty) through expenditure of US$2 million, or by completing a bankable feasibility study.
The 298 km2 Mount Kakoulima project area, located 35-50 km northeast of Conakry, the principal port and capital city of Guinea, contains a portion of the extensive, northeast-trending Kaloum ultramafic intrusive complex (“KIC”). In 1996 to 2001, drilling by Semafo Inc/Afcan Mining and Rio Tinto intersected several narrow high grade Cu-Ni-Co-PGM sulphidic intervals within a gabbro-pyroxenite unit in the upper part of the KIC, and delineated a 0.8 metre thick massive sulphide horizon over a 100 metre x 100 metre area with average grades of 2.78% Ni and 0.86% Cu.
In December 2003, FNX entered into an agreement with the then joint holders of the property, Semafo Inc. (47%) and Afcan Mining (53%), to earn a 100% interest (subject to a 3% NSR royalty) by incurring US$2.4 million in exploration expenditure within a five year period, then either completing a bankable feasibility study or expending an additional US$2 million on the property. FNX entered the property to investigate the potential for significant copper-nickel-PGM along the previously untested basal contact zone of the KIC, based on a conceptual model that the contact zone dipped inwardly at ~45o and therefore had potential for massive sulphides similar to the Jinchuan nickel–copper deposit in China.
In February 2004, Mega, under its previous name of Maple Minerals Corporation, entered into an agreement to acquire a 50% interest in FNX’s rights to the property by sole funding the first US$2.4 million of exploration expenditure over a five year period.
The initial FNX/Mega drilling programme, conducted in late 2004, proved FNX’s conceptual model to be correct, as the northern and southern contacts of the KIC were shown to dip inwardly at a shallow to moderate angle and disseminated copper-nickel sulphides were intersected along both contact zones. Prior to the current drill programme, the FNX/Mega partnership drilled a total of 9,303.5 metres on 23 diamond drill holes in three phases of exploration, comprising 16 holes testing the northern contact zone and 7 in the southern area. Drilling results included 14.7 metres @ 0.35% Ni, 0.39% Cu, 0.17 g/t Pt and 0.79 g/t Pd, and maximum values over one metre intervals of 0.45% Ni and 0.47% Cu.
Due to Afcan Mining’s purchase of Semafo Inc’s 47% interest in the property in December 2004, and the acquisition of Afcan Mining by Eldorado Gold Corporation (“Eldorado”) in September 2005, Eldorado currently holds 100% of the Mount Kakoulima property.
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.
Richard Patricio, VP Corporate and Legal Affairs
Telephone: (416) 643-7630