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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2008 News Releases
Encouraging Drilling Results in the Gunbarrel Basin, Western Australia
July 2, 2008
Mega Uranium Ltd. (MGA-TSX) ("Mega") is pleased to announce that its joint venture partner, Aura Energy Ltd. (AEE-ASX) ("Aura") has reported encouraging results in its initial reconnaissance drill testing of buried palaeochannels in the Gunbarrel Basin of Western Australia.
In the Kirgella Rocks tenements, in the southwestern part of the joint venture area, 33 air core holes were drilled at 800 meter intervals on eight northeast-trending lines transecting the interpreted palaeochannel at a spacing of some 5–10 kilometers. Two of the holes, KRAC006 and KRAC017, intersected elevated uranium values1 in carbonaceous sands and gravels upstream from the Ponton uranium deposit, as follows (refer to the figures below):
KRAC006: 0.26 meters @ 143 ppm eU3O8 from 66.44 meters
KRAC017: 0.24 meters @ 112 ppm eU3O8 from 72.05 meters
0.12 meters @ 139 ppm eU3O8 from 74.95 meters
0.12 meters @ 229 ppm eU3O8 from 88.15 meters
Mega regards the results of this first pass drilling program as very encouraging as the widely-spaced holes have successfully delineated the palaeochannel and intersected anomalous uranium within favorable carbonaceous host rocks. The areas of interest will be investigated in a follow-up program of more closely spaced holes.
The Gunbarrel Basin, located east of the Achaean Yilgarn Block, contains a large endowment of sediment-hosted uranium mineralization, but is significantly less explored than the other major uranium provinces of Australia. The combined resources of the two largest known deposits in the region, Mulga Rock and Ponton, are reported to exceed 100 million pounds U3O82. Aura’s properties comprise a total area of 3750 km2 and cover extensive portions of three of the four main palaeochannels in the region.
Under a December 2006 agreement, Mega can earn a 50% interest in Aura’s properties through expenditure of $A3 million within three years. Mega will then have the option to increase to 70% through additional expenditure of $A3 million over a further 18 month period.
1. Equivalent grades U3O8, based on downhole gamma logging conducted by Downunder Surveys of Perth, Australia, using an Auslog A75 total count gamma tool. Assay results for 1 metre samples from these intersections are awaited. Calibration was undertaken in Adelaide, South Australia at the Department of Water, Land and Biodiversity Conservation, in calibration pits constructed under the supervision of the CSIRO. The gamma ray readings were converted to equivalent U3O8 readings by 3D Exploration of Western Australia using the calibration factors derived in the Adelaide calibration pits.
2. In the Prospectus of Energy and Minerals Australia (EMA-ASX), Dated April 10 2008, the Mulga Rock uranium deposit is reported to contain 46,500 tonnes (102 million pounds) U3O8 . No resource figure is available for the Ponton deposit.
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
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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.
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