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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2008 News Releases
Update on Progress on Mega's Uranium Resource Development Projects
April 7, 2008
Toronto, Canada, April 7, 2008 – Mega Uranium Ltd. (MGA-TSX) ("Mega") wishes to provide an update on ongoing prefeasibility studies of its Ben Lomond and Lake Maitland uranium resource projects in Australia. Ben Lomond, located some 60 kilometres WSW of the port of Townsville in Queensland, contains a total of 10.7 million pounds U3O8 in a NI43-101 compliant Indicated Resource of 1.33 Mt @ 0.27% U3O8 and an Inferred Resource of 0.6Mt @ 0.21%U3O8. Around 70% of the resource is reported to be mineable by open pit. The remainder is conducive to extraction by underground workings from the pit. Lake Maitland, situated close to infrastructure in the Eastern Goldfields region of Western Australia, comprises a NI43-101 compliant Inferred Resource of 32.7Mt @ 0.03% U3O8 (23.7 million pounds U3O8). The resource is amenable to low cost open pit mining as it occurs as a single, coherent, flat-lying, 1 to 3 metre thick, calcrete/clay layer, lying only 1 to 2 metres from surface.
In both projects feasibility studies and site work are well advanced and on schedule to prepare them for uranium production in 2010 (Lake Maitland) and 2011 (Ben Lomond), subject to State and Federal Government approval and the granting of a uranium export licence. Progress on the two projects is summarized below.
Major aspects of progress on the Ben Lomond project are as follows:
- A Project Manager and team dedicated to the development of the project were appointed.
- A project office was opened in Townsville.
- A 21.9km2, helicopter-borne, detailed magnetic-radiometric survey was flown over the project area at a line spacing of 50 metres and nominal sensor height of 40 metres. This was undertaken to establish a baseline radiological dataset prior to site development work.
- An aerial photography survey was conducted over the project area to provide high resolution data for project design and environmental monitoring.
- Environmental monitoring equipment was installed on site under the supervision of Australasian Resource Consultants (AARC). Baseline environmental studies are scheduled to commence in April 2008.
- Australian Radiation Services Pty. Ltd. was engaged to conduct a radiation baseline survey of the site and to develop a radiation management plan.
- Approval was received from the Queensland Environmental Protection Agency (EPA) for site activities, including upgrading the current access road and construction of drill access tracks and pads.
- A Project Concept Study by Golder Associates Pty. Ltd. and GRD Minproc is scheduled for completion in the second quarter of 2008. The Bankable Feasibility Study and Environmental Impact study will commence early in the third quarter of 2008.
- A first pass financial model, incorporating the results of the Concept Study, is scheduled for completion in mid April 2008.
Work on the Lake Maitland project, which is managed from Mega's Perth office, has involved the following:
- On site construction of accommodation blocks, test work facilities and workshops.
- Infill drilling of the resource to a 100 x 100 metre spacing, and locally to 50 x 50 metres, by means of 532 aircore holes (total 6377 metres).
- The drilling of 42 sonic holes (total 618 metres) for detailed geochemical analyses, validation of downhole radiometrics and confirmation of the orebody density. Six of these holes were fitted for ongoing dewatering and groundwater monitoring studies.
- The commencement of first stage metallurgical studies on the leaching characteristics of the ore by Independent Metallurgical Operations Pty. Ltd. and Ammtec Ltd. Second stage metallurgical studies, due for completion in the third quarter of 2008, will comprise comprehensive studies on sizing, ore sorting, scrubbing, gravity and magnetic separation and leaching options.
- The completion of preliminary scoping studies by Milestone Engineers and Project Managers. Design work is now underway on infrastructure requirements including access roads, power and water supply and communication systems. In addition, work has commenced on plant design and residue management options.
- Baseline environmental studies.
- A first pass financial modeling study, which is due for completion in May 2008.
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, Mongolia and Cameroon. 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 that presently prohibit the mining of uranium.
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Cautionary Statement Regarding Forward-Looking Information
Certain information contained in this press release constitutes "forward-looking information", which is information regarding possible events, conditions or results of operations that is based upon assumptions about future economic conditions and courses of action. All information other than matters of historical fact may be forward-looking information. In some cases, forward-looking information can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is not limited to, statements about the proposed acquisition of Energentia by Mega, the continuation of its business following completion of the acquisition and our expectations regarding Energentia's properties and the Columbian region generally.
By its nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to differ materially from those expressed or implied by such forward-looking information. Some of the risks and other factors that could cause actual results to differ materially from those expressed in the forward-looking information contained in this release include, but are not limited to: the possibility that the necessary shareholder and regulatory approvals will not be obtained in a timely manner or at all, and that other conditions to completion of the acquisition will not be satisfied; and risks related to the inherent uncertainty of mineral exploration and development activities generally, including political and regulatory risks.
Although we have attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking information, readers are cautioned that this list is not exhaustive and there may be other factors that we have not identified. Readers are cautioned not to place undue reliance on forward-looking information contained in this release. Forward-looking information is based upon our beliefs, estimates and opinions as at the date of this release, which we believe are reasonable, but no assurance can be given that these will prove to be correct. Furthermore, we undertake no obligation to update or revise forward-looking information if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
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