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Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2009 News Releases
Discovery Of Uranium-Bearing Palaeochannel In Western Australia
August 10, 2009
- A reconnaissance drill test of the interpreted Junction palaeochannel in the Gunbarrel Basin has intersected 2 meters @ 147ppm eU3O8.
- The hole was drilled close to the margin of the palaeochannel. Most of the interpreted 1-2 kilometer width of the palaeochannel remains to be tested.
Toronto, Canada, August 10, 2009 – Mega Uranium Ltd. (MGA-TSX) ("Mega") is pleased to announce that its Joint Venture Partner, Aura Energy Ltd. (AEE-ASX) ("Aura), has intersected a uranium-bearing palaeochannel in its initial, widely spaced, reconnaissance drill testing of the Junction tenements in the Gunbarrel Basin of Western Australia (Figure 1).
The drilling program comprised 30 aircore holes (total 2225 meters), drilled at 300-400 meter intervals on six lines transecting the interpreted location of the palaeochannel, as shown in Figure 2. At the northern end of line 5, hole JUAC020 (Figure 3) intersected 14 meters of elevated uranium values in reduced carbonaceous sands, gravels and clays, including three intervals, each of one meter thickness, containing >100ppm eU3O81. The best intersection was 2 meters @ 147ppm eU3O81. Samples from the hole have been submitted for geochemical assay.
As the position of the palaeochannel is approximately two kilometers northeast of the interpreted location based on topography and a 2007 airborne EM survey, no access lines for the drill rig were cleared north of hole JUAC020, hence it was not possible to drill further holes to test the whole width of the palaeochannel at this location during the drill program. A follow-up detailed drilling program is planned to investigate the palaeochannel in the vicinity of hole JUAC020.
The nearest drill traverses transecting the whole palaeochannel, line 4 and line 6, are, respectively, 7 kilometers up channel, and 20 kilometers down channel, from hole JUAC020. In line 4, the drilling intersected a well-developed palaeochannel in the Proterozoic basement. However, the palaeochannel is broad (~1800 meters in width), is incised to depths of only ~40 meters into the basement, consists predominantly of clays and contains only weakly anomalous uranium.
Stewart Taylor, Mega’s President, commented "This is an excellent result from a first pass reconnaissance drill test of the Junction palaeochannel in view of the large extent of the target area. We look forward to investigating the economic potential of the palaeochannel in the vicinity of hole JUAC020 and elsewhere along this extensive palaeochannel development."
The Gunbarrel Basin, located east of the Archaean 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 largest known deposit in the region, Mulga Rock, held by the ASX-listed Energy and Minerals Australia Ltd, is reported to contain 54 million pounds U3O8 at a 200ppm U3O8 cut-off 2. Aura’s properties comprise 11 granted Exploration Licences with a total area of 2476 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. Through its funding of the drilling programme reported above, Mega will fulfill the expenditure requirement to earn 50%. Mega then has 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. 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. Reported in the Energy and Minerals Australia Ltd news release of 13.1.09
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.
Executive VP, Corporate Affairs
T: (416) 643-7630
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Figure 1: Location of Aura Energy’s properties in the Gunbarrel Basin, Western Australia
Gunbarrel Area - Junction Project
Figure 2: Location of the drill traverses investigating the Junction palaeochannel
Junction Project - Line 5
Figure 3: Cross-section of drill holes on line 5, showing the uranium intersections in hole JUAC020