2008 News Releases
Mega and Canalaska Define Uranium Targets at Poplar Project, Athabasca Basin, Saskatchewan
May 27, 2008
Toronto, Canada, May 27, 2008 – Mega Uranium Ltd. (TSX:MGA) (“Mega”) is pleased to report the completion of a helicopter-borne magnetic and high powered transient electromagnetic survey (VTEM) on the Poplar Project located on the northern rim of the Athabasca Basin, Saskatchewan. The survey has successfully identified a large number of unconformity-related conductors and structural breaks in areas which have lacked detailed prior exploration. These areas of interest will be the focus of a detailed shallow seismic survey to be carried out using CanAlaska’s proprietary marine seismic unit in order to better define targets for drilling in the winter of 2008/09.
Mega can earn a 50% interest in the Poplar property (see Figure 1) by spending $6 million and by issuing 100,000 Mega shares to CanAlaska over three years. Mega has a $2 million expenditure commitment in the first year of the option and CanAlaska is the operator during the option period. Mega can earn a further 5% interest (total 55% interest) by paying CanAlaska $2 million and issuing an additional 100,000 Mega shares.
Figure 1 - Click here to view >
The Athabasca Basin is widely considered as being the richest and one of the largest uranium producing regions in the world. The 1,103 square km Poplar property covers 70 kilometres of the northern margin of the Athabasca Basin in northern Saskatchewan, at the eastern end of Lake Athabasca, stretching from Poplar Point in the east to Uranium City and the Gunnar uranium mine in the west. Geological targets in this area are unconformity style uranium deposits and their basement hosted root zones at the Athabasca unconformity, which in this area lies at relatively shallow depths (100-300 metres). Previous exploration by E&B Exploration Limited in 1979 included airborne and marine geophysics, however this work was hindered by equipment limitations and though targets were generated, none were followed up.
The following images have been prepared to show investors some of the detail of these targets. Summer exploration work will commence in June, 2008.
Figure 2 - Click here to view >
Figure 3 - Click here to view >
Figures 2 and 3 show the regional magnetics previously available for the Poplar Project area. Of note is the large 30 km x 20 km area which the Government surveys did not cover . Figure 2 shows the detail of the magnetics from the 2008 VTEM survey. In this image, there is clear evidence of major structural breaks, several edge effects of the north extent of the Athabasca Sandstone cover, and a large number of small isolated spot anomalies, each of which has significance in the search for unconformity style uranium mineralization.
Figure 4 - Click here to view >
Figure 4 focuses on the central portion of the VTEM survey, and figure 5 details a portion of the total VTEM survey and shows conductive formations in red and less conductive zones in shades of blue and green. Again, there are a number of sharp linear targets, as well as disruption and bending of these features related to structural disturbances. These zones are of additional importance for locating uranium mineralization in the Athabasca Basin. Of particular note is the apparent definition of the edge of the Athabasca sandstone associated with a major east-west trending fault structure. Previous work in this area has located isolated sandstone remnants much further north and the current survey provides significant control on the geology of the Athabasca sandstone along the north edge of the basin as a critical step towards the definition of drill targets at shallow depths in this area.]
Figure 5 - Click here to view >
Summer Work Program
Figure 6 - Click here to view >
Figure 7 - Click here to view >
The 2008 summer program is designed to provide additional structural and geochemical data in the area of the main VTEM targets to aid in defining drill targets. The principal tool is shallow seismic surveys, (see Figures 6 and 7 for examples of shallow marine survey profiles from CanAlaska’s adjacent Lake Athabasca Project). This will be complemented by lake bottom geochemistry and selected IP-Resistivity and Gravity geophysical surveys designed to directly detect clay alteration associated with the conductors and structural features.
All of the unconformity related uranium targets in the Athabasca have significant clay alteration and epithermal style alteration halos extending well into the overlying sandstone horizons, and most are associated with conductors, such as is seen in the current surveys. The association of fault structures with these conductors is considered to be very significant, and these are immediate exploration targets for the Company
Michael Downes, Ph.D., P.Geo., V.P. North America, Mega Uranium Ltd. stated, “Mega is pleased to see that the VTEM survey has provided very prospective targets in a part of the Athabasca basin where the depths to the “unconformity” are anticipated to be relatively shallow, between 100 and 300 metres. The shallow lake depths and the other perceived exploration and development challenges, are well within the feasibility limits of modern exploration and the economics of the Athabasca high-grade style uranium deposits. The Poplar property has seen limited past exploration due mainly to the technical limitations of historic geophysical survey methods, but the current program allows Mega to take advantage of CanAlaska’s highly experienced technical team in focusing on high quality targets.”
Michael Downes Ph.D., P.Geo., Vice President North America and Qualified Person for Mega has reviewed the technical content of this news release.
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 which presently prohibit the mining of uranium.
For further information, please contact:
Mega Uranium Ltd.
VP Corporate and Legal Affairs
T: (416) 643-7630
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Mega Uranium are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Mega Uranium‘s expectations are exploration risks detailed herein and from time to time in the filings made by Mega Uranium with securities regulators.