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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2007 News Releases
Mega Uranium Doubles Land Holdings and Provides Update on its Exploration Activities in Labrador, Canada
July 30, 2007
Toronto, Canada, July 30, 2007 – Mega Uranium Ltd. (MGA-TSX) (“Mega”) is pleased to announce that it has entered into an agreement to acquire Northern Lorena Resources Ltd., a private company based in Nova Scotia, Canada, which holds options on seven mineral properties in Labrador (the “Acquisition”). This Acquisition doubles the total property area being explored for uranium by Mega in Labrador, to a total of 6,077 claims covering 151,925 hectares.
Details of the Northern Lorena properties are as follows. Three of the properties, CMB West, Nash and Aillik collectively cover about 492 square kilometers and are situated in the Central Mineral Belt. CMB West (1,140 claims - 28,500 ha) is in the western part of the Belt, 20 km west of Silver Spruce Resources Inc.’s Two Time uranium discovery and Santoy Resources Ltd.’s Anomaly 7 property. Nash (165 claims - 4,125 ha) is situated in the northeast part of the Belt, in the general vicinity of uranium occurrences called Nash, Gear and Inda, presently being explored by Aurora Energy Resources Inc. The Aillik property (191 claims - 4,775 ha) is adjacent to Mega's Aillik East property in the eastern part of the Belt, and covers prospective Aillik Group stratigraphy.
The other properties include Double Mer (670 claims - 16,750 ha, 100 km NE of Goose Bay) which occurs in Grenville Province granitoids and surrounds Silver Spruce Resources Inc.’s ground and which covers uranium lake sediment anomalies above the 95th percentile, close to several uranium showings. Straits (472 claims - 11,800 ha in southern Labrador) is underlain by Grenville granitoids, metasediments and felsic volcanics, with uranium lake sediment anomalies above the 98th percentile. The Hunt River property (300 claims - 7,500 ha, 55 km west of Hopedale) occurs in a peralkaline granite of the Flowers River complex and has associated uranium lake sediment anomalies. Trough (335 claims - 8,375 ha) occurs in the southern part of Labrador Trough in an area with elevated lake sediment uranium values.
Aeroquest International has been contracted to fly a combined electromagnetic, magnetic and radiometric survey over all the newly acquired properties. This survey is scheduled to commence in August.
Under the Agreement, Mega will acquire Northern Lorena for a total consideration of 500,000 common shares of Mega. The deal is subject to Mega’s completion of satisfactory due diligence on the Northern Lorena properties, and to TSX approval. Following the Acquisition, Northern Lorena will continue as a wholly-owned subsidiary of Mega, and Mega will assume Northern Lorena’s obligations under the option agreements with the original optionors.
Mega is also pleased to provide an update on its other properties in the Central Mineral Belt.
On the wholly-owned Aillik East property, which was acquired through the amalgamation with Monster Copper Corp., Fugro Airborne Surveys has commenced a 3,750 line kilometre magnetic/radiometric survey. Reconnaissance work in 2006 led to the discovery of five new showings with grab sample assay values ranging from 0.011 to 2.09% U3O8 (14 samples). Seven samples were also taken on the historic B-22 showing, with results ranging from 0.032 to 0.50% U3O8. A program of geological mapping and prospecting is planned as a follow-up to the current geophysical survey. The property covers the eastern part of the Aillik Group, the same geological package which hosts the Michelin and Jacques Lake deposits (Aurora Energy Resources Inc.) and the Mustang Lake property.
On the Mustang Lake property (also acquired from Monster Copper and part of a 50:50 joint venture with Santoy Resources Ltd.), archeological and baseline environmental surveys have been completed. Drill permit applications have been submitted and Cartwright Drilling has been contracted to complete an initial 2,000 metre program, aimed at testing extensions of the mineralized zone intersected in hole SP-06-10 (9.11 m grading 0.12% U3O8). The Mustang Lake property is 8 km northeast of and along strike from Aurora Energy Resources Inc.’s Michelin deposit.
Bruce River, Gravelly River, West Michelin and West Micmac
An extensive water sampling program is underway on the Bruce River, Gravelly River, West Michelin and West Micmac properties. The Bruce River property was acquired from Monster Copper and is also part of a 50:50 joint venture with Santoy Resources Ltd. The Gravelly River, West Michelin and West Micmac properties are wholly-owned and were acquired from Santoy Resources Ltd. Approximately 4,000 water samples will be collected from narrow streams, seepage zones and small ponds. This type of geochemical survey has been found to be effective at providing evidence of subcropping uranium mineralization in other areas of eastern Canada.
This survey will be augmented by lake sediment sampling in selected areas to complete work initiated by Santoy Resources Ltd. and locally by prospecting/geology. The properties are in the core of the Central Mineral Belt adjacent to Crosshair’s Moran C deposit. On the West Micmac property, previous lake sediment sampling returned uranium anomalies of 260, 380 and 910 ppm over a background of less than 20 ppm.
The technical information in this release was prepared under the direction of Michael Downes, Ph.D., P. Geo., Vice President Exploration for Mega Uranium Ltd, a Qualified Person as defined by National Instrument 43-101.
ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Columbia, Bolivia and Canada. 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 the Ben Lomond, Lake Maitland and Maureen properties, are subject to state policies which presently prohibit the mining of uranium in Australia.
For further information, please contact:
Mega Uranium Ltd.
Richard Patricio, VP Corporate and Legal Affairs
T: (416) 643-7630