Mega Uranium Mining & Exploration in  Canada, Cameroon, Australia, Argentina, Bolivia, Columbia and Mongolia.

2016 News Releases

2015 News Releases

2014 News Releases

2013 News Releases

2012 News Releases

2011 News Releases

2010 News Releases

2009 News Releases

2008 News Releases

2007 News Releases

2006 News Releases

2005 News Releases

2004 News Releases

2003 News Releases

2002 News Releases

2001 News Releases

Investor Resources

TSX: MGA
(15-20 min delay)

[Chart]

>> view stock information

Contact

Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
M5B 1M4

Phone 416.643.7630
Fax 416.941.1090
 

Signup for email alerts

2008 News Releases

Update on Georgetown Uranium Project, Queensland, Australia


July 7, 2008
  • NI43-101 compliant resource estimate established for the Maureen deposit
  • Drilling underway on the Lineament Fault Zone, 30 kms south of Maureen

Toronto, Canada, July 7, 2008 – Mega Uranium Ltd. (MGA-TSX) ("Mega") wishes to provide an update on progress in its Georgetown Project in Queensland, Australia.

Maureen Uranium Resource

A revised NI43-101 compliant ore resource estimate for the Maureen deposit was received from Mining Associates Pty. Ltd. of Brisbane. At a 0.02% U3O8 cut-off, and with no grade capping, the Maureen deposit is reported to contain an Indicated Resource of 7.19 million pounds (Mlbs) U3O8 and an Inferred Resource of 0.41 Mlbs U3O8, as summarized in Table 1 (note: figures are rounded).

Table 1: Uncut Ore Resource Estimate

Category
   Tonnes
%U3O8
%Mo
Mlbs U3O8
Mlbs Mo
Indicated
 3,124,000
 0.10
0.07
7.195
4.580
Inferred
    154,000
 0.12
0.15
0.414
0.499

When grade capping is applied, using a top cut of 0.55% U3O8 and 0.32% Mo, Maureen is reported to contain an Indicated Resource of 5.95 Mlbs U3O8 and an Inferred Resource of 0.38 Mlbs U3O8, as listed in Table 2.

Table 2: Cut Ore Resource Estimate

Category
   Tonnes
%U3O8
%Mo
Mlbs U3O8
Mlbs Mo
Indicated
 3,124,000
 0.09
0.06
5.949
3.875
Inferred
    154,000
 0.11
0.10
0.382
0.347

Mining Associates recommend that the latter Ore Resource Estimate, with grade capping, be adopted as an NI43-101 compliant resource, and that the Uncut Ore Resource Estimate be regarded as upside potential. The total contained uranium in the new NI43-101 resource estimate of 6.33 million pounds U3O8 is a mere 2.2 % lower than the historical resource estimate of 6.47 million pounds U3O8 (2.38 Mt @ 0.12% U3O8) established by Getty Mining Pty. Ltd. ("Getty") in 1979.

The new resource estimate is based on 997 historical percussion and diamond core holes drilled by Australian company Central Coast Exploration NL and Getty in 1972-1979, and 94 RC/diamond core holes drilled by Mega Uranium in 2006 and 2007, including the previously unreported results of 26 holes from the latter part of the 2007 program, which are listed in Table 3 below1.

Further details on the Maureen deposit and the ore estimation method can be found in the report, "Vigar, A.J. and Jones, D.G., 2008, A Review and Resource Estimate of the Maureen Uranium-Molybdenum Deposit, North Queensland, Australia held by Mega Uranium Ltd; Mining Associates Pty. Ltd., Brisbane", which will be posted on www.megauranium.com and www.sedar.com

Fieldwork

Following the cessation of the wet season, fieldwork has resumed in the Georgetown Project, with a focus on drilling a number of prospects to locate additional uranium resources in the vicinity of Maureen.

On the east-west trending Lineament Fault Zone, some 25 kilometers south-southwest of Maureen, a 1400 meter drilling program is underway on the 300 meter strike length of known mineralization in the Central 50 prospect, to test for extensions of the mineralization to 200 meter depth. The drilling is a follow-up of an RC drilling program in the last quarter of 2007 in which three holes (LMRC201, 205 and 207 – Table 4) intersected significant mineralization, but where other holes deviated off the planned target. To date, three diamond core holes have been drilled at Central 50 for a total of 671.5 meters. Preliminary spectrometer and geological assessment of the core indicates that all three holes have successfully transected the full width of the mineralised fault zone - assay results are awaited. The historical resource at Central 50, as reported by Esso Exploration and Production Australia Inc. ("Esso") in 1981, comprises 1.3 Mlbs U3O82 at a grade of 0.16% U3O8, based on a 0.045% U3O8 cut-off.

Other drilling planned for the 2008 field season is as follows:

  • An initial five RC/diamond core holes (total 810 meters) to investigate the Two Gee prospect, which is located on the northeast–trending Apollo Fault zone some 30 kilometers southeast of the Maureen deposit. The drilling will test for down-dip extensions of the known fault-hosted mineralization below 150 meters depth, and also investigate the potential for Maureen-style mineralization in Devonian metasediments east of the Apollo Fault. Four other RC holes (total 320 meters) are planned to test other radiometric targets in the vicinity of Two Gee, but if the initial five hole test of Two Gee produces significant results, these holes will be postponed in favor of additional drilling on the prospect itself. In the last quarter of 2007, Mega’s hole 2GRC201 (Table 5) intersected 7 meters @ 0.02% U3O8 and 51 meters @ 0.03% U3O8 in Two Gee.

The historical resource2 at Two Gee, reported by Minatome Australia Pty. Ltd. in 1983, comprises 1.6 Mlbs U3O8 in 642,000 tonnes @ 0.12% U3O8.

  • 15 holes (total ~800 meters) to investigate the shallow resource potential of the east-west trending Far West 7 Zone, located some three kilometers south-southwest of Maureen.
  • Three holes to test the V05 radiometric anomaly, which was identified in the 2007 airborne survey of the project area. The anomaly, which is covered by alluvium, is thought to be underlain by Precambrian basement close to the unconformity with overlying Devonian metasediments/metavolcanics.

Work has resumed on the follow-up of radiometric anomalies detected in the 2006/2007 airborne surveys of the project area by means of geological mapping, ground radiometrics and geochemical sampling. Drill testing of ten such anomalies (V35 etc, Table 5) in the last quarter of 2007 failed to intersect anything of interest

Notes:

  1. Tables 3-5 list drill hole intersections at cut-offs of either 200 ppm U or 200 ppm Mo. Assays for uranium and molybdenum were undertaken on one meter intervals of drill core or material recovered from RC holes, at the laboratory of ALS Chemex in Brisbane, using the pressed pellet XRF method (Lab. Code XRF-05). The results were reported in ppm U by ALS Chemex then converted to %U3O8 by Mega.
  2. The Central 50 and Two Gee uranium resource estimates reported, respectively, by Esso in 1981 and Minatome in 1983, are historical and not NI43-101 compliant. As the resource estimates were reported prior to the introduction of the JORC regulations in Australia, they must therefore be regarded as unreliable at this time according to the NI43-101 guidelines.

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: 

Investor Relations
Mega Uranium Ltd.
Richard Patricio
VP Corporate and Legal Affairs
T: (416) 643-7630
info@megauranium.com
www.megauranium.com

Table 3: Maureen Resource Drilling Results

Hole
Angle
 From (meters)
   To (meters)
 Width (meters)
%U3O8
%Mo
9286
90o
 NSM
 
 
 
 
9287
90o
   138
 149
    11
 0.12
 0.09
 
 
   154
 158
      4
 0.01
 0.03
9288
90o
 NSM
 
 
 
 
9289
90o
     18
    31
    13
 0.14
 0.01
9290
90o
     25
    38
    13
 0.10
 0.14
9291
90o
       0
      1
      1
 0.02
NSM
9292
90o
     27
    34
      7
 0.05
 0.06
9293
90o
       0
    33
    33
 0.09
 0.09
9294
90o
       6
    10
      4
 0.02
 0.02
 
 
     19
    22
      3
 0.04
 0.03
 
 
     34
    41
      7
 0.02
 0.01
9295
90o
       6
    10
      4
 0.02
 0.01
9296
90o
     37
    45
      8
 0.02
 0.01
9297
90o
     20
    24
      4
 0.43
 0.03
 
 
     31
    49
    18
 0.14
 0.13
9298
90o
     35
    46
    11
 0.23
 0.08
9299
90o
     13
    18
      5
 0.08
 0.01
 
 
     21
    33
    12
 0.39
 0.74
 
 
     33
    43
    10
 0.01
 0.03
9300
90o
     15
    20
      5
 0.04
 0.04
9301
90o
       1
    14
    13
 0.05
 0.02
 
 
     30
    36
      6
 0.09
 0.02
9302
90o
       2
      6
      4
 0.03
 0.02
 
 
     25
    37
    12
 0.02
 0.04
9303
90o
 NSM
 
 
 
 
9304
90o
       6
    19
    13
 0.06
 0.02
9305
90o
   151
 156
      5
 0.07
 0.08
 
 
   162
 168
      6
 0.04
 0.10
9306
90o
   152
 158
      6
 0.04
 0.10
9307
90o
   150
 156
      6
 0.02
 0.27
 
 
   168
 180
    12
 0.01
 0.10
9308
90o
   160
 169
      9
 0.01
 0.04
9309
90o
       0
    14
    14
 0.04
 0.02
 
 
     14
    17
      3
 0.02
 0.03
9310
90o
     11
    14
      3
 0.01
 0.04
9311
90o
       0
      8
      8
 0.01
 0.03
 
 
     18
    24
      6
 0.03
 0.04

Note: NSM = no significant mineralization intersected

Table 4: Lineament Central 50 Prospect Drilling Results

Hole
Angle
 From (meters)
   To (meters)
 Width (meters)
%U3O8
LMRC201
-60o
 111
 114
     3
 0.092
 
 
 117
 129
   12
 0.096
LMRC202
-60o
 NSM
 
 
 
LMRC203
-60o
 150
 151
     1
 0.036
LMRC204
-60o
 141
 145
     4
 0.048
LMRC205
-60o
 167
 174
     7
 0.090
 
 
 194
 196
     2
 0.031
LMRC206
-60o
 NSM
 
 
 
LMRC207
-60o
 109
 111
     2
 0.092
LMRC208
-60o
 NSM
 
 
 

Table 5: Other Georgetown Project Drilling Results

Click here to view table

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.

All forward-looking information contained in this release is expressly qualified by this cautionary note.