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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2007 News Releases
Encouraging Uranium Sample Results in the Patagonia Project, Argentina
May 9, 2007
- Results indicate significant potential for several shallow horizons of uranium mineralisation in the Sierra Cuadrada and Mirasol prospect areas
- Chip sample results of the mineralized horizons include 1 metre @ 1.89% U3O8, 0.5 metre @ 1.5% U3O8, 0.4 metre @ 1.18% U3O8 and 1 metre@ 0.6 % U3O8
Toronto, Canada, May 9, 2007 – Mega Uranium Ltd. (MGA-TSX) ("Mega") is pleased to announce encouraging exploration results in its Patagonia Project in the San Jorge Gulf Basin of Chubut Province, Argentina. In its Sierra Cuadrada and Mirasol concession areas, ground radiometric surveys, geological mapping and rock chip sampling have delineated several stratiform mineralized horizons containing significant uranium mineralisation over extensive areas in the lower part of the Cretaceous Chubut Group. The mineralized horizons occur within the stratigraphic package that hosts the Cerro Solo deposit, held by the National Atomic Energy Commission of Argentina (CNEA), which is reported to contain a resource of 10.3 million pounds U3O8 at an average grade of 0.3% U3O8 and a substantial 0.3% molybdenum credit.
In the Sierra Cuadrada prospect area, located some 140 kilometres southeast of the Cerro Solo uranium resource, a total of 217 reconnaissance chip samples* were collected from exposures of two 0.5-1.5 metre thick mineralised horizons hosted within a 20-30 metre thickness of volcaniclastic sediments in the lower part of the Chubut Group. Samples of the flat to very shallow-dipping mineralized horizons were taken from sporadic outcrops in gullies over an 8 kilometre (E-W) X 3-5 kilometre (N-S) area. Of the 217 samples taken, 103 returned assay values > 100 ppm U3O8 and 14 returned values > 0.2% U3O8.
The largest concentrations of the higher assay results in the Sierra Cuadrada area are in the Cerro del Medio, Quebrada Seca and Cerro Chato sectors. In the Cerro del Medio area, 20 of a total of 24 samples taken from two stratigraphically separate mineralized horizons within a 0.4 km2 area returned values >200 ppm U3O8, the highest being 1 metre @ 0.6% U3O8 and 1 metre @ 1.89% U3O8. In the Quebrada Seca sector, 10 of 27 samples taken from a single 0.5-1.5 metre thick mineralized layer returned values >200ppm U3O8. In the Cerro Chato sector, 114 chip samples were taken from a single mineralized layer along an 8 kilometre long east-west zone. Of these, 36 returned values >500 ppm U3O8, the best results being 0.5 metre @ 1.5% U3O8, 0.4 metre @ 1.18% U3O8, 1 metre @ 0.5% U3O8 and 1 metre @ 0.6% U3O8. Based on the results obtained to date, there is potential in the Sierra Cuadrada area for an extensive area of these mineralized horizons under ~25 metres of cover. There has been no previous drill testing of this area.
In the Mirasol prospect area, some 70 kilometres east of Cerro Solo, a programme of reconnaissance geological mapping and rock chip sampling was undertaken to investigate radiometric anomalies delineated by a CNEA airborne survey in the 1970s. The mapping outlined significant uranium mineralisation within three 0.5-2 metre thick horizons in a very shallow dipping (~4o east), 20 metre thick portion of the Lower Chubut Group, consisting of tuffs and fine conglomerates with abundant carbonaceous material. Of an initial 46 chip samples taken from widespread exposures of the mineralized horizons in gullies, 10 returned values > 200 ppm U3O8, the best being 0.9 metres @ 0.41% U3O8 and 1 metre @ 0.12% U3O8.
Interpretation of the Mirasol results to date indicate that the prospective stratigraphy that hosts the mineralized horizons is present under <30 metres of overlying younger sediments over an extensive area of some 8 km2. There has been no previous drilling in this area.
*All chip samples referred to in this release were collected from channels transecting bedding at a 90o angle and are thus representative of the true width of the mineralized horizons.
Stewart Taylor, Mega’s President and a qualified person for the purposes of NI 43-101, 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.
For further information, please contact:
Mega Uranium Ltd.
Richard Patricio, VP Corporate and Legal Affairs
Telephone: (416) 643-7630
CAUTIONARY NOTE – FORWARD-LOOKING INFORMATION
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 and drilling activities, including planned surveys, mapping and sampling, our expectations regarding the potential mineralization of our properties and anticipated exploration costs. 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 joint venture operations, uncertainties associated with the outcome of our current exploration activities, changes in project parameters as our plans continue to be refined, changes in environmental and other regulations in the jurisdictions in which we operate, delays in obtaining governmental approvals or financing, economic and market factors which would limit the availability of capital, competition for acquisitions, 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.