2007 News Releases
Mega Obtains Native Title Approval to Conduct Exploration in the Vicinity of Rio Tinto Ltd's Kintyre Uranium Resource in Western Australia
January 10, 2007
Toronto, Canada, January 10, 2007 – Mega Uranium Ltd. (MGA-TSX) (“Mega”) is pleased to announce that its wholly-owned subsidiary, Redport Ltd. (“Redport”), has signed a Land Access Agreement (“LAA”) and Land Exploration Agreement (“LEA”) under Native Title Legislation with the Western Desert Lands Aboriginal Corporation (“WDLAC”) in Western Australia. The LAA covers Redport’s Kintyre Rocks Project exploration tenement applications, which are located adjacent to tenements over Rio Tinto Ltd’s Kintyre uranium resource (79 million pounds U3O8), and other ground held by Cameco Australia Pty Ltd. (refer to the attached figures also available on www.sedar.com and www.megauranium.com).
The Agreements paves the way for Mega to commence ground investigations of its Kintyre Rocks Project tenements, which contain geological settings similar to the Kintyre deposit. Initially the investigations will focus on large uranium radiometric anomalies located some 6 kilometres west-southwest of the Kintyre deposit. Exploration activities are scheduled to begin in early 2007, and it is anticipated that drill testing of specific targets will be undertaken in May-July 2007.
Rio Tinto Ltd.’s Kintyre, discovered in 1985, is an unconformity-related uranium deposit similar to those typical of the Athabaska Basin of Saskatchewan and the East Alligator River Province of the Northern Territory, Australia. With a total resource of 79 million pounds U3O8 at a 500 ppm U3O8 cut-off, it is one of the largest undeveloped uranium deposits in the world. Uranium mineralisation occurs in the form of pitchblende veins and disseminations hosted by Lower Proterozoic metasediments of the Rudall Metamorphic Complex, just below the unconformity with overlying sandstones of the Yeneena Group.
Under the LAA and LEA, the WDLAC has given consent to the granting of Exploration Licences E45/2690 and E45/2691 (“the Tenements”) to Redport’s subsidiary Boxcut Mining Pty. Ltd. and to the forthcoming exploration activities to be undertaken in the Tenements by Redport.
The Agreements were negotiated by Peter McNally, Redport’s Executive Director, and Mega’s Vice President, who has developed an excellent working relationship with the Martu Native Title Landowners and the WDLAC Executives, and is now progressing cooperative working arrangements for the commencement of exploration activities on the Tenements. Mr. McNally has considerable uranium project experience in Australia, including 12 years in various senior management roles for Energy Resources of Australia Ltd. at the Ranger Mine in Northern Territory and as General Manager of the Jabiluka Uranium Project. He has particular expertise in mine development and the implementation of environmental, safety, indigenous affairs and community relations programmes.
The terms of the LAA and LEA include a commitment to make payments to the WDLAC as follows:
- On grant of the Tenements, payment of $A25000 per Tenement.
- An annual fee of $A25000 while Mega is actively exploring the Tenements. The amount is first payable on the grant of the Tenements and thereafter on the anniversary of the grant.
- An annual payment of $A25000 to meet the costs of engaging a Martu Heritage Officer undertake surveys of aboriginal heritage sites in the Tenements.
- An annual payment based on 5% of Mega’s exploration expenditure on the Tenements in the preceding 12 months.
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.
Richard Patricio, VP Corporate and Legal Affairs
Telephone: (416) 643-7630