2010 News Releases
Mega Uranium Provides Update on Canadian Exploration
January 12, 2010
Toronto, Canada, January 12, 2009– Mega Uranium Ltd. (TSX:MGA) (“Mega”) is pleased to provide an update on its exploration programs in Canada.
- Bruce River property, Labrador – uranium mineralized zone at the Noseman showing expanded to 200 m by 75 m within a 300 m wide alteration zone.
- Aillik East property, Labrador - A channel sample yielded 4.75 m grading 0.11% U3O8 on the Priority One showing. Three priority drill targets defined.
- Byron Bay property, Labrador – Discovery of REE mineralization; Grab sample with 5.2% TREO (Total Rare Earth Oxide).
- Greenwich Lake property, Ontario – Discovery of gabbro to peridotite suite assemblages, similar to lithologies present at Magma Metal’s PGM (platinum group metals) deposit.
CENTRAL MINERAL BELT - LABRADOR
Geological mapping focused on advancing two areas within the Bruce River property, the Noseman showing and the Anderneill boulder field. The Bruce River property is being explored through a joint venture with Virginia Energy Resources (TSXV:VAE, formerly Santoy Resources Ltd.). Mega is the operator.
At the Noseman showing a program of mapping and prospecting increased the size of the mineralized zone to approximately 200 m long by 75 m wide, situated in the core of a 300 m long by 100 m wide alteration zone. A total of 16 grab samples of altered granite collected during the 2009 prospecting program returned assay results ranging from 0.001% to 0.095% U3O8. Three channel samples returned a best result of 0.092% U3O8 over 2.0 m. Mineralization is within a cataclastic fault zone and consists of granite clasts in a fine grained black to green matrix dominated by hematite and chlorite. The mineralized zone and alteration are open to the southwest.
The Anderneill boulder field is a glacial dispersion train containing uranium mineralized boulders located on the Bruce River property, 2.5 km southeast of Crosshair Exploration and Mining Corp’s C-Zone deposit. Combined assay results from 2008 and 2009 of 17 grab samples of the radioactive boulders ranged from 0.01% to 2.47% U3O8 and contained 10 samples with >0.1% U3O8.
The Aillik East project continues to provide encouraging results. The grade of uranium mineralization in grab and channel samples is consistently high for the Central Mineral Belt. The geological setting and style of mineralization are similar to Aurora Energy Resource Inc’s Michelin deposit.
On the Aillik East property, channel samples were completed on the Priority One and NB showings. The Priority One channel sample yielded a result of 4.75 m of 0.11% U3O8 which included 1 m of 0.39% U3O8. The channel sample on the NB showing yielded a best result of 0.57 m of 0.039% U3O8. Uranium mineralization in both showings is hosted within felsic volcanic rocks of the Aillik Group and is associated with magnetite and hematite alteration.
Prospecting was conducted on the remaining 232 radiometric and geochemical anomalies identified in surveys conducted in 2007 and 2008. No significant new mineralization was discovered. All significant radiometric and geochemical anomalies have now been ground-checked and future work on the Aillik East Project will focus on the key target areas in the western portion of the property.
Exploration between 2006 and 2009 has lead to the discovery of 13 significant uranium showings, 12 of which are new discoveries on the Aillik East Property. The priority drill-ready target zones are summarized below:
- Priority One target
This showing consists of two discrete target zones, approximately 250 by 75 m and 105 by 11 m, which are NE-striking and steeply dipping, parallel to the regional primary volcanic foliation. Target zones are defined by anomalous radioactivity, mineralization in grab samples and iron oxide alteration. Analyses of 11 grab samples taken in 2007 and 2008 range from 0.03% to 0.72% U3O8. A channel sample in 2009 yielded 4.75 m grading 0.11% U3O8.
- Harbinger target
This zone is approximately 15 by 80 m as defined by anomalous radioactivity, mineralized grab samples and Fe-oxide alteration. Areas of continuous bedrock exposure within the Harbinger target zone exhibit good qualitative continuity of mineralization and alteration. A total of 15 grab samples taken in 2007 and 2008 range from 0.06% to 0.38% U3O8.
Cape Harrison, Byron Bay and Michael’s River properties
Prospecting was completed over the Cape Harrison, Byron Bay and Michael’s River properties as a follow up to an airborne radiometric and magnetic survey completed in 2008. These properties are located to the southeast of the Aillik East property in coastal Labrador. Four zones of anomalously radioactive migmatite and associated granitoids were identified. The most significant discovery is the Lushman-Williams Zone on the Cape Harrison Property, which comprises several outcrops of anomalously radioactive granite over an area of approximately 380 m by 260 m. The best grab sample from this zone returned 0.029% U3O8. Mineralization is associated with magnetite and hematite alteration of the migmatites.
During the course of uranium exploration, routine analyses of pathfinder elements has led to the discovery of rare earth element (REE) mineralization in granitoid rocks on the Byron Bay property, Labrador. Three grab samples returned elevated Rare Earth Element concentrations. The best sample returned 5.2% TREO (Total Rare Earth Element Oxide), including 1.17% La2O3 (Lanthanum Oxide), 2.41% Ce2O3 (Cerium Oxide), 0.27% Pr2O3 (Praseodymium Oxide), 0.92%Nd2O3 (Neodymium Oxide), 0.15% Sm2O3 (Samarium Oxide) and 0.16% Y2O3 (Yttrium Oxide). All other REE oxide amounts range from 0% to 0.09%. The discovery of Rare Earth Elements on the Byron Bay property enhances the value of Mega’s Eastern Labrador properties.
Exploration of these properties was funded in part by the Department of Natural Resources of the Province of Newfoundland & Labrador through its Junior Exploration Assistance (JEA) Minerals Incentive Program. Mega wishes to acknowledge this important financial support particularly during a period of economic downturn.
THELON BASIN – NUNAVUT
No exploration was conducted on this property during 2009, though maintenance and clean up of a camp site was completed. Mega wishes to confirm that it has now earned a 51% interest in the JV Thelon Project (Mega 51% : Titan Uranium 49%).
The underexplored Thelon Basin is regarded as a highly prospective analogue of the Athabasca Basin, as it is geologically comparable in terms of age, size, lithologies and presence of unconformity-related uranium mineralization. The largest known uranium deposit in the area, AREVA’s Kiggavik deposit (reported resource of 134 million pounds U3O8 - Nunavut Geoscience Overview 2009) attests to the potential for discoveries of large uranium deposits similar to those of the Athabasca Basin.
ATHABASCA BASIN - SASKATCHEWAN
No exploration work was carried out on the Maurice Point property (Forum option) or the Keefe Lake property (Geomode option) in 2009.
GREENWICH LAKE PROPERTY – ONTARIO
At Greenwich Lake the target is gabbro-peridotite intrusives similar to the host rocks at Magma Metals Limited's platinum group metal (PGM) discovery at Current Lake, which is an advanced platinum group metal exploration project with significant widths, a 1:1 ratio of platinum to palladium as well as significant copper and nickel credits. The Greenwich Lake property is located approximately 45 km northeast of Thunder Bay and 5 km to the east of Magma Metals Current Lake property. The Greenwich Lake property was originally acquired for its uranium potential and the focus has shifted to PGM’s. It is held 100% by Mega, subject to royalties on certain claims.
In early 2009 an airborne electromagnetic and magnetic survey flown over the property lead to the delineation of north-south striking magnetic anomalies, similar to those of the Magma Metal’s PGM deposit. The most promising result from field checking of these anomalies in 2009 was the discovery of fine-grained and unaltered gabbro to melagabbro outcrops co-incident with north-south striking sinuous magnetic anomalies. Several key magnetic and EM anomalies have been delineated as potential drill targets. A total of 27 grab samples of mafic intrusive boulders and outcrop yielded results ranging from 0 to 0.143 g/t Pt+Pd+Au.
Preliminary field observations indicate the presence of fine grained and relatively fresh gabbroic rocks similar to lithologies present at Magma Metal’s PGM deposit.
SAMPLING AND ANALYTICAL PROCEDURES
Sampling was conducted in accordance with NI 43-101 as well as the Mineral Exploration Standards implemented by the Nunatsiavut Government of Labrador where applicable. Mega includes regular uranium standards, and locally obtained blanks in its sample submissions. All samples were analyzed by Actlabs of Ancaster, Ontario. Actlabs is an ISO/IEC17025 and CAN-P-1579 accredited laboratory. Samples were analyzed for uranium using the Delayed Neutron Count (DNC) method. Rare Earth Elements were analyzed with the 4-LITHOQUANT fusion-ICP and ICP-MS lab package. Au, Pt, and Pd samples were analyzed using the 1C-Exp - ICPOES-Fire Assay lab package. Comprehensive procedures are in place to ensure that no contamination of the environment occurs and strict protocols have been established to maintain the health and safety of all program participants.
Mega Uranium Ltd. is in the process of approving the 2010 budgets for these projects.
Michael Downes Ph.D., P.Geo., Vice President North America and Qualified Person for Mega, has reviewed the technical content of this news release.
ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada, Argentina, 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
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Mega Uranium are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Mega Uranium‘s expectations are exploration risks detailed herein and from time to time in the filings made by Mega Uranium with securities regulators.