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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2008 News Releases
Removal Of The Uranium Mine Development Ban In Western Australia
September 15, 2008
- Mega’s 23.7 million pounds U3O8 Lake Maitland project is the most advanced in Western Australia.
- The project is on schedule to be in production at an initial rate of 1.65 million pounds U3O8 per year in 2011.
Toronto, Canada, September 15 , 2008 – Mega Uranium Ltd. (MGA-TSX) ("Mega") is pleased to report the favorable outcome of the Western Australia State election, which has resulted in the incumbent Labor Party government, which opposed uranium mining, being replaced by an alliance of the Liberal Party and National Party. As the two parties forming the new State Government both have policies that favor new uranium mine development, there is no longer any political impediment to the development of Mega’s 23.7 million pounds U3O8 Lake Maitland project.
Lake Maitland, located in the Eastern Goldfields region 108 kilometers southeast of Wiluna, is Western Australia’s most advanced uranium project. It is likely to be the first uranium resource to get into production in the State due to the following favorable factors:
- Its location in the vicinity of operating mines with good access to infrastructure including roads, airstrips and a major gas pipeline (Figure 1).
- As shown in Figure 2, the resource occurs in the form of a single, coherent layer, only 1-2 meters from surface, which is conducive to simple, low cost open pit mining. Due to the soft nature of the ore and overburden, drilling and blasting will not be required.
- Metalurgical testwork to date indicates satisfactory uranium recoveries >90%.
- There are no Native Title or environmental issues that would unduly delay development.
In its news release of April 7 2008, Mega provided an update on its prefeasibility studies of Lake Maitland. Since then, Mega has made considerable progress in resource infill and extension drilling, metallurgical testwork, environmental and radiological studies, evaluations of development and processing options and assessment of infrastructure requirements. The results of this work will be reported in news releases to be issued in the coming weeks.
Overall, Mega is on schedule to develop a mine and commission a plant in 2011 with an initial production capacity of 750 tonnes (1.65 million pounds) U3O8 per year.
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 Ben Lomond and Maureen uranium resources are subject to a Queensland State Government policy that presently prohibits 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 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.
FIG. 1 Location of the Lake Maitland Project
FIG. 2 North-South cross-section through the Lake Maitland resource showing the shallow
depth and simple, single layer configuration.