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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2007 News Releases
Mega Commences Mine Development Studies of its Ben Lomond Uranium-Molybdenum Resource, Queensland, Australia
March 29, 2007
Toronto, Ontario, Canada, March 29, 2007 – Mega Uranium Ltd. (TSX: MGA) ("Mega") is pleased to announce that Golders Associates Ltd has commenced a pre-feasibility study of its Ben Lomond uranium-molybdenum resource in Queensland, Australia, with a view to determining the project economics, the preferred mining and processing options and the key steps in mine development.
Ben Lomond, located some 50 kilometres west-southwest of the city and port of Townsville, contains a NI 43-101 compliant resource of 10.7 million pounds U3O8, comprising an Indicated Resource of 7.9 million pounds U3O8 at an average grade of 0.27% U3O8, and an Inferred Resource of 2.8 million pounds at a grade of 0.21% U3O8. The resource is also reported to contain a substantial molybdenum credit of 0.15% Mo*. The credit was defined in a 1982 internal feasibility study by Minatome Australia Pty. Ltd. (the "Minatome Study").
The Ben Lomond resource occurs at low elevation in remote, sparsely populated hill country at an easily accessible site, and is favourably located with respect to mine development, as it is close to power, water and essential services. There are no landowner, Native Title or significant environmental issues that would inhibit advancement of the project. The Minatome Study concluded that 70% of the delineated resource was mineable by open pit at a 5:1 stripping ratio and that the remainder of the resource was conducive to extraction by underground workings from the pit. In 1984, an Environmental Impact Study was accepted by the relevant Federal and State authorities, but in 1985 the planned mine development was halted by the imposition of the "Three Uranium Mines Policy" by the then Australian Federal Labor Government.
Mine development at Ben Lomond is currently prevented by the Queensland State Labor Government’s policy banning new uranium mines in the State. However, in an interview in the March 23, 2007 edition of Australia’s national newspaper, "The Australian", the Queensland State Premier, Mr Peter Beattie, confirmed that, subject to certain conditions, he would support the removal of the Federal Labor Party’s ban on new uranium mine development at the Party’s forthcoming National Conference on April 27-29, 2007. As delegates at the Conference are widely expected to vote in favour of new uranium mine development, it is anticipated that the Queensland State Government will soon move to overturn its anti-uranium mine policy.
Stewart Taylor, Mega’s President and Qualified person under NI43-101, is responsible for this release and has verified the contents disclosed.
ABOUT MEGA URANIUM
Mega Uranium Ltd is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada, Argentina, Bolivia, Colombia and Mongolia. 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 Ben Lomond, Maureen and Lake Maitland, are subject to State policies which presently prohibit the mining of uranium.
* The reported average molybdenum grade in the Ben Lomond uranium resource is not NI 43-101 compliant as it is based on insufficient geochemical analyses and a regression comparison with the uranium values. Mega intends to undertake work in 2007 to establish a molybdenum grade that is NI 43-101 compliant.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources may never be converted into reserves. Furthermore, inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Further exploration will be required to upgrade the inferred resources to a higher resource category.
This press release contains disclosure that constitutes "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements in the press release other than statements of historical fact, may be "forward-looking". Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "possible", "targeting", "could", "might", "should", "believe", and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this press release include, but are not limited to, those with respect to our exploration activities, including our expectations regarding the discovery potential of our properties, the potential mineralization and resources of our properties, and government regulation of our mining operations, including expectations regarding changes to the Australian government’s uranium mining policy.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Mega to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and factors include, but are not limited to, risks related to our international operations and joint venture operations, uncertainties associated with the outcome of our current exploration activities, changes in project parameters as our plans continue to be refined, uncertainties associated with estimating mineral resources, changes in environmental and other regulations in the jurisdictions in which we operate, including the absence of change to the current Australian uranium mining policy, delays in obtaining governmental approvals or financing, economic and market factors which would limit the availability of capital, the availability of technical expertise and equipment, and fluctuations in commodity prices, as well as those other risks and factors discussed in the section entitled "Description of the Business – Risks" in our annual information form for our fiscal year ended September 30, 2006 and in our other filings with certain of the Canadian securities regulatory authorities, which are available to the public at www.sedar.com. Although we have attempted to identify for the reader important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. We believe that the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements. Forward-looking statements speak only as at the date on which they are made and we do not undertake to update any forward-looking information that is in this press release or otherwise contained in our public disclosure documents as a result of new information or the occurrence of future events or circumstances, except as required by law.
For further information, please contact:
Mega Uranium Ltd.
Richard Patricio, VP Corporate and Legal Affairs
T: (416) 643-7630