Mega Uranium Mining & Exploration in  Canada, Cameroon, Australia, Argentina, Bolivia, Columbia and Mongolia.

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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
M5B 1M4

Phone 416.643.7630
Fax 416.941.1090
 

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2007 News Releases

Update on Mega's Exploration Programmes


June 4, 2007
  • Validation drilling of the Maureen uranium-molybdenum resource in Queensland, Australia intersects 14 metres @ 1.61% U3O8 and 0.48% Mo.
  • Drilling of the FW5 Zone, 2.4 kilometres south-southwest of Maureen, intersects 20 metres @ 0.52% U3O8 and 0.30% Mo. 
  • New property interests acquired in Salta, Catamarca and Chubut Provinces in Argentina. 
  • Encouraging reconnaissance drilling results in the Cronje Dam Project, South Australia 
  • Exploration programmes underway in Australia, Mongolia, Argentina, Bolivia and Colombia.


Toronto, Ontario, Canada, June 4,2007 – Mega Uranium Ltd. (MGA-TSX) ("Mega")
is pleased to update progress and announce encouraging results in its various uranium exploration programmes worldwide.

AUSTRALIA

Georgetown Project (Queensland)

All of the assay results were received for the recent 50 hole reverse-circulation (RC) /diamond drilling programme undertaken on the Maureen uranium-molybdenum deposit and its immediate surrounding areas. Maureen contains a pre National Instrument 43-101 ("NI43-101") historical Indicated Resource1 of 2.36 million tonnes @ 0.12% U3O8 (6.5 million pounds contained U3O8) and 0.07% molybdenum. The resource occurs from surface to 120 metres depth and is amenable to low cost open cut mining.

In its news release of February 22, 2007, Mega announced that seven holes drilled into the Southern Zone of the Maureen deposit, which contains the bulk of the historical resource, had intersected 12-35 metre wide zones of >0.1%U3O8, thus validating previous drilling results reported by Getty Mining Pty. Ltd. in the late 1970s. In addition, the holes indicated that the average molybdenum grade of the resource could be higher than previously reported. New results received for two other holes drilled into the South Zone provide further confirmation of the quality of the resource and the higher molybdenum grades – Hole 9206 intersected 17 metres @ 0.06% U3O8 and 0.18% Mo from 110 metres downhole, while at 29 metres downhole, Hole 9248 made an intersection of 31 metres @ 0.79% U3O8 and 0.24% Mo, including an interval of 14 metres @ 1.61% U308 and 0.48% Mo from 32 metres. True widths of the mineralized zone transected by these holes are estimated to be 70-80% of the intersection width.

The attached tables summarise the assay results2 for holes drilled into the Northern and Central zones of the Maureen deposit, and two other mineralized zones, FW5 and FW7, which are located, respectively, 2.4 kilometers and 3.1 kilometers south-southwest of the Maureen resource.

In the two other portions of the Maureen historical resource, holes drilled into the Central Zone (9207, 9210, 9219, 9226 and 9227) and Northern Zone (9217 and 9218) all made uranium-molybdenum intersections which validate the known resource, but the holes drilled peripheral to the historical resource all intersected generally thinner intervals of lower grade uranium and molybdenum.

Encouraging uranium and molybdenum results were obtained in three of the four holes drilled in the FW5 Zone, including an intersection of 20 metres @ 0.52% U3O8 and 0.3% Mo from 29 metres in hole 9230. Due to insufficient information at this time, Mega is unable to provide an estimate of the true width of the mineralized zone intersected by these holes. Further drilling will be conducted in the FW5 Zone later this year. In contrast, the drill holes in the FW7 Zone intersected only thin intervals of low grade uranium and molybdenum mineralisation.

The 2007 field season exploration programme, now underway in the Georgetown Project, is focusing on geological mapping and ground radiometric surveys of radiometric anomalies and other areas of interest highlighted by Mega’s 3,528 km2 airborne magnetic-radiometric survey undertaken in late 2006. Several priority targets identified in this programme will be tested as part of a 10,000 metre drilling programme scheduled for later in the year.

Mega has increased its interests in the Georgetown Project through a farm-in agreement on properties held by the Australian public company, Queensland Gold and Minerals Ltd.("QGM"). The properties, comprising four granted Exploration Permits and two Exploration Permit Applications totaling 471 km2, cover radiometric anomalies and other areas of uranium potential delineated in Mega’s recent Georgetown airborne magnetic-radiometric survey. Under the agreement, Mega can acquire an 80% interest in the uranium content of the properties by funding all expenditure to the definition of a NI43-101-compliant uranium resource. When this is achieved, QGM can maintain its 20% interest through the pro rata funding of future expenditure, or can convert its interest to a 1% NSR. QGM retains the rights to the precious metals and base metals content of the properties and remains responsible for maintaining the titles in good standing. Mega’s minimum annual expenditure commitment on the total property package is $A50,000.

Aura Energy JV (Western Australia)

In the Gunbarrel Basin of Western Australia, Mega’s Joint Venture partner, ASX-listed Aura Energy ("Aura"), has commenced an airborne radiometric survey over a palaeochannel in its Junction Project, the northernmost of its 3,750 km2 package of tenements in the area. The work is being funded by Mega, which can earn an initial 50% interest through total expenditure of $A3 million within three years.

The Gunbarrel Basin, located east of the Archaean Yilgarn Block, contains a large endowment of sediment-hosted uranium, but is significantly less explored than the other major uranium provinces of Australia. The combined uranium resources of the two largest known deposits in the region, Mulga Rock and Ponton, are reported to exceed 100 million pounds U3O8. Aura’s properties cover extensive portions of three of the four main palaeochannels in the region, including large areas upstream from the Ponton and Mulga Rock deposits.

Kintyre Rocks (Western Australia)

In the Kintyre Rocks Project, the required procedures are underway to obtain approval from the Martu Native Title landowners and from the State Mines Department for drill testing of targets located some 6 kilometres west-southwest of Rio Tinto Ltd’s Kintyre uranium resource (79 million pounds U3O8). A survey of the area is being undertaken by representatives of the Martu people, anthropologists and Mega’s geologists to determine the location and significance of any aboriginal heritage sites within the area proposed for drilling. This will be followed by a vegetation survey in July in order to obtain approval for new access tracks into the area. All work and planning in the area are being conducted in accordance with the wishes ofthe Martu Native Title landowners.

Cronje Dam (South Australia)

In South Australia, Mega has obtained encouraging results from a programme of widely spaced, reconnaissance rotary mud drill holes in its exploration for sediment-hosted uranium in its Cronje Dam Project. The project area, located on the northern margin of the Murray Basin, covers Tertiary sediments immediately south of the Proterozoic Curnamona Craton, which hosts the Radium Hill and Crocker Well uranium deposits. In previous drilling of the area in the 1970s, uraniferous palaeochannels were detected with a best drill intersection of 3 metres @ 507ppm U3O8 at 105-108 metres depth in the Kinlock Tank area.

Mega’s reconnaissance drilling has intersected uraniferous palaeochannels in two other areas in the tenement. In the Olary Creek area, several widely spaced holes intersected anomalous uranium values in palaeochannel sand horizons spatially associated with lignite. In Hole RMCD40, downhole gamma radiometric logging delineated a 5.1 metre interval of anomalous sands from 98 metres. Geochemical assay3 results for this interval returned 4 metres @ 236ppm U3O8. One kilometre to the north-northwest of RMCD40, Hole RMCD48 contained a 10.7 metre thickness of radiometrically anomalous sand, which assayed 73ppm U3O8 in the 2 metre interval from 82 metres. Five kilometers north of RMCD40, a 3.6 metre thickness of radiometrically anomalous sand in Hole RMCD34 included 2 metres @ 105ppm U3O8 from 98 metres depth.
In another palaeochannel in the Gairloch Dam area some 32 kilometres west of RMCD40, Hole RMCD56 returned 2 metres @ 400 ppm U3O8 from 104 metres.

MONGOLIA

In Mongolia, joint venture partner Red Hill Energy Inc. has commenced the 2007 field season activities with a programme of geological mapping, truck-borne radiometric surveys and AlphaCard radon gas surveys in the Ganga property in Dornogovi Province.

ARGENTINA

Mega has increased its ground tenure position in Argentina through applications for exploration permits (cateos) in the Provinces of Salta and Catamarca and a new farm-in agreement with a private vendor covering properties in the Patagonia Project in Chubut Province. The ground acquired in these initiatives covers radiometric anomalies and prospective geological settings identified in recent reconnaissance surveys of these areas.
The applications comprise three tenements with a total area of 206km2 in Salta Province and four properties covering a total of 375km2 in Catamarca Province. In the Patagonia Project area, the farm-in agreement covers six tenements with a total area of 414km2. Under the agreement, Mega can earn a 100% interest in these tenements through exploration expenditure of $US150,000 and total cash payments of $US55,000 within three years of the date of the agreement.

BOLIVIA


In Bolivia, where Mega is earning 75% of the uranium-molybdenum content of exploration concessions held by Intrepid Mines Ltd (TSX:IAU), processing and interpretation of the available airborne magnetic-radiometric data of Intrepid’s ground in the eastern Precambrian belt has identified several interesting radiometric anomalies and prospective geological settings with potential for unconformity-related uranium and other uranium deposit styles. Field checking of areas of interest is underway.

COLOMBIA

In Colombia, reconnaissance geological mapping, rock/stream sediment sampling and ground radiometric surveys were undertaken in the Betulia concession in the Zapatoca Uranium District of Santander Province. The work focused on radiometric anomalies and uranium occurrences delineated by the Colombia National Institute of Nuclear Affairs in the Las Lajas and Cascada members of the Jurassic-aged Giron Formation in the 1970s and 1980s. Initial results have highlighted a 2km x 2km east-west trending corridor containing radiometric anomalies associated with two, 0.9-2 metre thick horizons of the Giron Formation. In 17 rock chip samples collected from these horizons, the best results were 1.2 metres @ 0.06% U3O8 and 0.9 metres @ 0.08% U3O8. A more detailed follow up programme is now underway in this area, together with reconnaissance work elsewhere in Mega’s exploration tenements.

GUINEA

In the Mount Kakoulima Cu-Ni-Co-PGM Project in Guinea (refer to Mega’s news release of December 6, 2006), Mega’s proposed 9 hole/5,000 metre drilling programme was suspended in late February after only three holes due to political instability, civil unrest and a country-wide strike. Mega is planning to resume operations later in the year after the rainy season, provided the situation is stablerin Guinea. The three holes completed (total 1,275 metres), testing the northern basal contact of the Kaloum mafic-ultramafic igneous complex, intersected only sporadic blebs and disseminations of pyrite, chalcopyrite and pyrrhotite.
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.

  1. The Maureen uranium-molybdenum resource estimate referred to in this release was reported in 1979 by Getty Mining Pty. Ltd. As this resource estimate was competently conducted according to the standards of the day, it is regarded by Mega as a reasonable reflection of the magnitude and grade of the mineralisation. However, as the resource estimate was conducted prior to the introduction of the JORC regulations in Australia, it must therefore be reported as unreliable at this time according to the NI43-101 guidelines. As reported in this news release, Mega has received all the assay results from its recently conducted validation drilling of the Maureen resource. Mega intends to engage an Independent Qualified Person to establish resources that are NI43-101 compliant, based on the historical data and the new assays results reported in this news release and the news release of February 22, 2007.
  2. The tables list drill hole intersections at cut-offs of either 200 ppm U and 200 ppm Mo. Assays for uranium and molybdenum were undertaken on one metre intervals of split core and material recovered from RC holes at the laboratory of ALS Chemex in Brisbane, using the pressed pellet XRF method (Lab. Code XRF-05). The results were reported in ppm U by ALS Chemex then converted to %U3O8 by Mega.
  3. The Cronje Dam assays were conducted at the AMDEL laboratory in Adelaide using inductively coupled plasma emission spectroscopy (Lab. Code IC3E)

GEORGETOWN PROJECT DRILLING RESULTS


Southern Zone

Hole Type Angle From (m) To (m) Width (m) %U3O8 %Mo
9206 DDH -80o  58  63  5 0.08 0.05
      110 127 17 0.06 0.18
9248 RC -60o  2  17 15 0.07 0.04
       29  60 31 0.79 0.24
    incl.  32  46 14 1.61 0.48

Northern Zone

Hole Type Angle From (m) To (m) Width (m) %U3O8 %Mo
9211 RC -90o  88 104 16 0.04 0.06
9212 RC -90o  94  99  5 0.03 0.10
      103 107  4 0.04 0.02
9215 RC -90o  63  65  2 0.04 0.03
9216 RC -90o  33  35  2 0.06 0.01
       37  39  2 0.04 0.01
9217 RC -90o  0  15 15 0.05 0.04
       22  34 12 0.10 0.05
9218 RC -90o  40  55 15 0.05 0.06

Note: Holes 9213, 9214 and 9250 in the Northern Zone did not intersect significant mineralisation.

Central Zone

Hole Type Angle From (m) To (m) Width (m) %U3O8 %Mo
9207 RC -90o 87 88  1 0.20 0.08
9208 RC -90o 76 78  2 0.05 0.02
      86 87  1 0.04 0.02
9209 RC -70o 47 49  2 0.03 0.02
      66 68  2 0.03 0.01
      71 73  2 0.04 0.02
9210 RC -90o  1 6  5 0.03 0.01
      35 41  6 0.10 0.01
9219 RC -90o  0 14 14 0.07 0.03
9220 RC -90o  9 14  5 0.02 0.03
9221 RC -90o  7 12  5 0.05 0.02
9222 RC -90o 39 42  3 0.04 0.01
      46 50  4 0.03 0.03
9223 RC -90o  9 13  4 0.04 0.04
      44 51  7 0.03 0.01
9225 RC -90o  2 8  6 0.02 0.05
      14 19  5 0.02 0.04
9226 RC -90o 47 57 10 0.03 0.04
      66 70  4 0.16 0.04
9227 RC -90o 25 31  6 0.07 0.13
      40 54 14 0.06 0.06
9249 RC -60o 13 15  2 0.05 0.01

Note: Central Zone Hole 9224 did not intersect significant mineralisation

FW5 Zone

Hole

Type

Angle

From (m)

To (m)

Width (m)

%U3O8

%Mo

9228

RC

-90o

51

78

27

0.03

0.14

 

 

 

 

 

 

 

 

9230

RC

-90o

19

49

30

0.18

0.12

 

 

incl.

29

49

20

0.52

0.30

9231

RC

-90o

23

27

 4

0.05

0.10

Note: FW5 Zone Hole 9229 did not intersect significant mineralisation

FW7 Zone

Hole

Type

Angle

From (m)

To (m)

Width (m)

%U3O8

%Mo

9232

RC

-90o

10

24

14

0.02

0.04

 

 

 

30

34

 4

0.01

0.03

9233

RC

-90o

 6

 7

 1

0.03

0.05

9234

RC

-90o

34

35

 1

0.04

0.34

 

 

 

38

43

 5

0.03

0.02

 

 

 

48

51

 3

0.03

0.02

 

 

 

53

57

 4

0.03

0.01

9235

RC

-90o

16

23

 7

0.01

0.05

9238

RC

-90o

30

31

 1

0.06

0.01

 

 

 

47

48

 1

0.01

0.06

9240

RC

-90o

17

23

 6

0.01

0.06

 

 

 

26

30

 4

0.02

0.06

 

 

 

36

39

 3

0.02

0.03

 

 

 

64

65

 1

0.03

0.05

9241

RC

-90o

18

19

 1

0.02

0.01

 

 

 

32

35

 3

0.01

0.08

Note: FW7 Zone Holes 9236, 9237 and 9239 did not intersect significant mineralisation

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 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.

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,