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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2008 News Releases
Mega Uranium Provides Update on Colombia Properties
May 12, 2008
38 Million Pounds U3O8 Historical Resource In The Berlin Deposit; Acquisition Of Additional Uranium Interests In The Central Cordillera
- Historical drilling of part of the Berlin uranium deposit in Colombia indicates an historical resource of 38 million pounds U3O8 at a grade of 0.13% U3O81
- Mega signs a farm-in agreement to earn a 75% interest in the uranium content of 5975 km2 of properties held by AngloGold Ashanti in the Central Cordillera of Colombia
- Mega makes applications for an additional 118 km2 of ground in the Chaparral and Abejorral areas of the Central Cordillera
Toronto, Canada, May 12, 2008 – Mega Uranium Ltd. (MGA-TSX) ("Mega") wishes to provide further information on the historical uranium resource of the Berlin deposit in Colombia,2 the main asset involved in its recently completed acquisition of Energentia Resources Inc. (refer to the Mega news releases of March 7 2008, and May 6, 2008). In addition, Mega is pleased to announce a substantial increase in its uranium interests in Colombia, through a farm-in agreement with AngloGold Ashanti Colombia SA, and applications for additional tenements in the Chaparral area of Tolima Province and the Abejorral area of Antioquia Province.
Berlin Uranium Deposit
As previously reported by Mega (news release of March 7 2008), the Berlin deposit in Caldas Province comprises a 1-3 metres thick, concordant layer of uranium mineralisation within Lower Cretaceous carbonaceous and phosphatic shales in a north-trending syncline, of 12 kilometres length and 0.5-2 kilometres width. In the 1978-1981 period, the French company Minatome investigated the southernmost 5 kilometre length of the syncline by means of 20 trenches, 4 adits and 11 widely spaced diamond drill holes (total 2136 metres). Using a simple cross sectional area method, Minatome estimated that the area investigated had a resource potential of 12.9 million tonnes @ 0.13% U3O8 (38 million pounds U3O8)1.
Farm-In Agreement with AngloGold Ashanti
Mega has signed a farm-in agreement with AngloGold Ashanti Colombia SA ("AngloGold"), a subsidiary of AngloGold Ashanti Ltd, to earn a 75% interest in uranium deposits discovered within AngloGold's tenements, and any current or future tenement applications, in three areas of the Central Cordillera – Murillo (87 km2), Quinchia (13km2) and Saldana (11,828km2). The areas were chosen by Mega geologists following a detailed review of the multi-element analyses of 4870 rock and stream sediment samples collected by AngloGold in its comprehensive geochemical survey of the Central Cordillera. Currently AngloGold holds a total of 5975 km2 in these three areas in the form of granted concessions (120 km2) or concession applications (5855 km2).
Under the agreement, Mega can earn a 75% interest in any uranium deposit discovered in the properties by delineating a NI43-101 compliant resource within three years from the date of the agreement and meeting minimum expenditure requirements of $US500,000 within the first six months and an additional $US1 million over the succeeding 12 month period. Should the exploration results not justify further participation, Mega can retire from the agreement at the end of the first six month period. In the event that Mega earns a 75% interest, AngloGold has the option to maintain its 25% interest by funding future expenditure pro rata or to dilute according to the standard dilution formula. Should AngloGold's interest dilute to 10%, it will revert to a 2% NSR.
Chaparral Concession Applications
Mega has applied for four concessions covering 78.3 km2 of ground in the Chaparral area of the Central Cordillera in Tolima Province. The applications cover ground in which Minatome ground radiometrics and trenching in the 1976-1981 period delineated three separate, 1-1.5 metre thick, concordant layers of Berlin-style uranium mineralisation within Cretaceous carbonaceous/phosphatic shales. The mineralized zones have not been investigated by drilling.
Abejorral Concession Applications
Mega has made applications for two concessions covering 39.7 km2 in the Abejorral area of the Central Cordillera in Antioquia Province. In the 1976-1981 period, Minatome discovered Berlin-style uranium mineralisation in the Cretaceous black shales of the area.
1The Berlin resource estimate is historical and is reported in Castano, R. (1981), Calcul provisoire des reserves geologiques de Berlin, sur la base des resultats des sondages, unpublished Minatome report, 15p. Recent independent verification of the historical data has not been performed and sufficient exploration work has not been completed to verify the historical estimate. Mega is not treating the historical estimate as current mineral resources and it should not be relied upon. As the 38 million pound U3O8 estimate is based only on 11 widely spaced drill holes, it is regarded by Mega as merely an indication of the magnitude of the uranium resource potential of the southernmost 5 kilometre long portion of the syncline containing the Berlin uranium mineralization.
2Under an agreement between Energentia and Sociedad Kedahda SA ("Kedahda"), a wholly owned subsidiary of AngloGold Ashanti Ltd, Energentia can acquire the tenements over the Berlin uranium deposit through cash payments of $US250,000 on signing of the agreement (already done), $US250,000 on transfer of the tenements and $US500,000 on the commencement of uranium production. Kedahda retains a 2% NSR on uranium production.
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.
For further information, please contact:
Mega Uranium Ltd.
VP Corporate and Legal Affairs
T: (416) 643-7630
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 Mega's plans and expectation for its Columbian properties,
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 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.
All forward-looking information contained in this release is expressly qualified by this cautionary note.