2009 News Releases
Mining Lease Granted For The Lake Maitland Project, Western Australia
October 19, 2009
- The first Mining Lease granted for a uranium project since the ban on uranium mining in Western Australia was removed in November 2008.
- Mega to progress its Definitive Feasibility Studies and test work activities on the site.
Toronto, Canada, October 19 , 2009 – Mega Uranium Ltd. (MGA-TSX) ("Mega") is pleased to report that the Western Australia Department of Mines and Petroleum has granted its subsidiary, Redport Exploration Pty. Ltd., a Mining Lease ("ML") for its Lake Maitland uranium project. The ML is the first mining lease to be granted for a uranium project in Western Australia since the newly elected State Government announced in November 2008 that it had removed the ban on uranium mine development in Western Australia.
The granting of the ML is a major step in the permitting process for the Lake Maitland project, which is now at the Definitive Feasibility Study stage and on schedule to commence uranium production in early 2012. With the ML now in place, Mega will increase its development and test work activities on the site, including trenching, bulk sampling for metallurgical studies, water studies and other project development work. The results of this work will be incorporated in the Definitive Feasibility Study, which is scheduled for completion by end of June 2010, and the Environmental Review and Management Program, which is scheduled for submission by end September 2010.
The calcrete-style Lake Maitland deposit is located close to infrastructure in the Eastern Goldfields region of central Western Australia, 108 kilometers southeast of Wiluna. At a 100ppm U3O8 cut-off, it contains a NI43-101-compliant Indicated Resource of 28.7 million tonnes grading 376 parts per million U3O8 (23.8Mlbs U3O8) and an Inferred Resource of 3.6 million tonnes grading 274 parts per million U3O8 (2.2Mlbs U3O8). The deposit is conducive to simple, low cost, open pit mining as it occurs in the form of a single, coherent, horizontal layer, 1-3 meters thick (average 1.7 meters), lying only 1-2 meters from surface. Due to the soft nature of the ore and overburden, drilling and blasting will not be required. Metallurgical test work to date indicates satisfactory uranium recoveries of >90% using atmospheric alkaline leaching.
Under agreements signed in June 2009, the Japan Australia Uranium Resources Development Company Ltd (JAURD), through its subsidiary JAURD International Lake Maitland Project Pty. Ltd., and ITOCHU Corporation, through its subsidiary ITOCHU Minerals and Energy of Australia Pty. Ltd., can acquire an aggregate 35% interest in the Lake Maitland resource through staged payments totaling $US49 million. For further details refer to Mega's news releases of February 27 2009 and June 18 2009.
Stewart Taylor, Mega's President and Qualified Person under NI43-101, is responsible for this news 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 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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