2007 News Releases
Mega Uranium and Red Hill Energy to Drill Test Multiple Surface Uranium Anomalies on the Emeelt Property in Southeastern Mongolia
June 28, 2007
Mega Uranium Ltd. (MGA-TSX) (“Mega”) and Red Hill Energy Inc. (TSX-V:RH) (collectively the “Joint Venture”) are pleased to announce that 3 important areas of strong uranium anomalies have been discovered from detailed work underway on the Emeelt uranium exploration property in southeastern Mongolia. A minimum 1,200-meter diamond drill program is planned for early July 2007 to test each of these 3 promising anomaly clusters, which may represent leakage along faults and fractures of significant uranium accumulations at depth.
The Emeelt property comprises 61 km2 of uranium-bearing felsic volcanic and crystalline basement terrane located in southeastern Mongolia, about 350 kilometres from Mongolias capital Ulaanbataar. Detailed surface work, consisting of mapping and gamma-spectrometer and radon surveys, has identified strong surface anomalies related to the NE-SW trending Ulaan Nuur Fault zone. This large regional fault zone hosts two historic uranium occurrences discovered 9 to 15 km northeast of the Emeelt property by Russian and Mongolian geologists in 1979. Rocks associated with the fault zone are intensely altered and mineralized with fluorite and pyrite. The Joint Ventures current work on the Emeelt property has identified 3 distinct clusters of uranium anomalies over 30 to 100 hectare sized areas, apparently localized at or near the intersections of major northwest-trending faults with the Ulaan Nuur Fault zone. These areas of fracturing, which are significantly radioactive (3 to 5 times background) and associated with numerous point anomalies of 16 to 21 ppm uranium, may represent leakage of uranium from large accumulations at depth.
Ground magnetic and electrical profiling surveys totaling 36 line-kilometres are being completed to examine the 3 uranium anomaly cluster areas prior to initiating a minimum 1,200-metre diamond drill program. The geophysical survey results will help in the targeting of drill hole locations. Drilling is expected to start in the second week of July 2007 with at least 6 drill holes, each 100 to 300m in depth, planned to examine each area of clustered uranium anomalies. Targets include pebbly sandstone layers interbedded at depth with either impermeable clay layers or volcanic rock units, the objective being to define uranium deposits possibly amenable to low-cost, fast-track In-Situ Leaching (ISL) mining methods. If the results of this initial drill program are encouraging, the program will be immediately escalated.
The Mega-Red Hill Uranium Joint Venture is actively exploring for uranium in Mongolia in 8 properties. The Joint Venture continues to seek further uranium exploration and development opportunities in Mongolia.
Stewart Taylor, Megas 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, Argentina, Mongolia, Colombia, Bolivia and Canada. Further information on Mega can be found on the companys website at www.megauranium.com. Mega Uraniums Australian uranium properties, including without limitation the Ben Lomond and Maureen properties, 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
T: (416) 643-7630