2007 News Releases
Mega and Titan to Partner on Thelon Basin Project
February 26, 2007
Toronto, ON, and Saskatoon, SK., Canada February 26, 2007 – Mega Uranium Ltd. (“Mega”) (TSX: MGA) and Titan Uranium Incorporated. (“Titan”) (TSX-V: TUE) are pleased to announce that they have entered into a binding letter of intent whereby Mega will acquire an option to earn a 51% legal and beneficial interest in Titan’s entire leasehold land position in the Thelon Basin in the Nunavut Territory, Canada (the “Properties”) with a view to the creation of a joint venture partnership on future exploration and exploitation of uranium assets in the Thelon Basin.
The under explored Thelon Basin is regarded as a highly prospective analogue of the prolific Athabasca Basin of Saskatchewan, as it is geologically comparable in terms of age, size, lithologies and unconformity-style uranium mineralisation. The largest known uranium deposit in the Thelon Basin, AREVA Resources Canada Inc.’s 40 million pound U3O8 Kiggavik resource, indicates the potential for discoveries of large uranium deposits similar to those of the Athabaska Basin.
The Properties comprise an option held by Titan to acquire a 100% interest in eight mining leases totalling 684km2 in the Thelon Basin, Nunavut Territory. Since 2005, Titan has completed two phases of exploration on the properties. In 2005 Titan compiled historical exploration information, then conducted prospecting and boulder sampling to identify specific drill targets. In the2006 field season, Titan had to reduce its planned drilling program due to extreme weather conditions, but one of the seven holes drilled intersected 3.9 metres averaging 0.16% U308.
Proposed exploration programs for 2007 and 2008 build on past work. Targets include highly enriched boulder trains associated with geophysical and geochemical anomalies, which are thought to be coincident with their source areas. A 30-hole, 3,000-metre drill program has been proposed and is permitted for 2007. A comparable, results-predicated program is anticipated for 2008.
Current ground tenure and projected expenditure levels for Nunavut clearly signal that the Territory is Canada’s emerging exploration frontier. “Although its absolute potential remains unknown, recent developments attest to the region’s rich mineral potential,” commented Phil Olson, Titan’s President and CEO.
President of Mega, Stewart Taylor, stated, "We are excited to join Titan in their Thelon Basin project. For Mega, this venture represents a continuation of its strategy of acquiring attractive uranium exploration projects in under-explored, yet geologically promising areas. We are currently reviewing similar high quality uranium exploration opportunities elsewhere in Canada."
Terms of the Acquisition
Under the terms of a binding letter of intent, Mega and Titan have agreed, subject to completion of diligence by Mega, receipt of requisite approvals and the completion of a formal agreement, that Mega will acquire a 51% interest in all of Titan’s owned and to be owned claims in the Thelon Basin. In order to earn the Interest, Mega has committed to expend an aggregate of C$5,000,000 on the Properties on or before December 31, 2008 on exploration work programs. Any work program undertaken in 2007 will be operated by Titan, and any work programs in 2008 will be operated by Mega, with the other party contributing one full time geologist to the operator in each year.
On Mega earning the Interest, the parties have agreed that they will form a joint venture for the purposes of future exploration on the Properties.
Philip E. Olson, P. Geo., is the Qualified Person (as defined by National Instrument 43-101) for Titan’s uranium projects and is responsible for the technical information contained in this release.
About Mega Uranium
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Bolivia, Colombia and Canada. Further information on Mega can be found on the company’s website at www.megauranium.com.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Titan and Mega’s periodic filings with Canadian Securities Regulators. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Neither Titan nor Mega assume the obligation to update any forward-looking statement.
For further information, please contact:
Mega Uranium Ltd.
Richard Patricio, Vice President Corporate and Legal Affairs
Telephone: (416) 643-7630