2010 News Releases
Lake Maitland Uranium Project Update
June 23, 2010
• Environmental Scoping Document released for public review
• Sterilization drilling program completed
• Test Pit program planned for this year
TORONTO, Ontario – June 23, 2010 - Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to provide an update on the development of its Lake Maitland Uranium Project ("Project") in Western Australia. The Environmental Scoping Document ("ESD") for the Project has now been released for public review which is a significant milestone in the approvals process.
The ESD will be available for public review until 5 July during which period any interested persons will be able to make comments about it to the Western Australian Environmental Protection Authority ("EPA").
The ESD describes Mega’s proposal to develop its Project in the Eastern Goldfields region of Western Australia over an anticipated mine life of 10 years, producing up to 1,000 tonnes per annum of uranium peroxide concentrate. The ESD identifies the key potential environmental impacts in connection with the Project and defines the scope of the environmental investigations and studies that will be carried out to address those impacts.
Mega is required to respond to comments made during the public review period before the ESD is finalised with the EPA. Once finalised, the ESD will provide direction to Mega in preparing the Environmental Review and Management Programme ("ERMP"), which is the next stage in the assessment and approval process.
An ERMP level of assessment has been set by the Western Australian Environmental Protection Authority (EPA) for the Project and is the highest level of assessment in Western Australia. The public review period for the ERMP has been extended from 10 to 14 weeks, which is consistent with the review period for the other uranium projects in close proximity to Lake Maitland.
The ESD can be viewed at www.lakemaitlandproject.com.
Submissions on the ESD are to be made to the EPA and a submission form can be obtained from www.epa.wa.gov.au/submissions.asp.
A sterilization drilling programme consisting of 42 holes for 1,203 meters over the proposed locations for processing and potential tailings disposal facilities was completed in April 2010. The results are pending downhole gamma logging.
Mega will be applying to the Western Australian Department of Mines and Petroleum to undertake a Test Pit program during the year to enable further evaluation of mining methods and associated groundwater aspects. The proposed program will consist of two 40m by 25m excavations and will take 6 weeks to complete. Mega is also in the final stages of preparation for the groundwater exploration program on Miscellaneous Licence L53/152.
Work is progressing on other aspects of the Definitive Feasibility Study for the Project including metallurgical testwork, engineering and infrastructure design, water management and tailing storage management. Ethnographic, archaeological and non-indigenous heritage surveys over the area of the uranium deposit identified to date have found no sites of significance that would delay development. Further heritage surveys are planned to be undertaken as the Project progresses. The socio-economic impact assessment and community consultations are continuing.
ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineral resources company with interests in uranium properties in Australia, Canada 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.
EVP Corporate Affairs
T: (416) 643-7630
Note 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 our plans regarding future acquisitions and property development, our expectations regarding the uranium market, global growth and the use of nuclear power, our drill results, commodity prices and core intersection lengths, in that they constitute estimates, based on certain assumptions of mineralization that may be encountered if a deposit were to be mined.
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: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; and other risks and uncertainties related to the Company’s prospects, properties and business strategy.
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.
Note Regarding Disclosure for Mineral Projects
This press release contains disclosure regarding our mineral resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources may never be converted into reserves. Furthermore, inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Further exploration will be required to upgrade the inferred resources to a higher resource category.