2010 News Releases
Mega Commences Drilling Near Cameco-Mitsubishi's Kintyre Uranium Resource
September 22, 2010
Toronto, Canada, September 22, 2010 – Mega Uranium Ltd. (MGA -TSX) ("Mega") is pleased to announce that a 3,000 meter, 12 hole diamond core drilling program is underway at its wholly owned Kintyre Rocks project in Western Australia. Drilling is on a tenement adjoining the lease containing the Cameco-Mitsubishi joint venture’s 79 million pounds U3O8 Kintyre uranium resource, which is currently in prefeasibility.
This diamond drilling follows up on Mega’s two previous reconnaissance drilling programs on the tenement which contributed to the identification of three buried uranium targets, all within a six kilometer radius of the Kintyre deposit (see figure below). The current core drilling program is supported by a co-funded grant of AUD$131,150 from the Western Australian Department of Mines and Petroleum under its 2010/11 Exploration Incentive Scheme.
Seven holes are testing the Gleneagles prospect, a large blind target identified by gravity, airborne and ground electromagnetics, lithological mapping and magnetics. Previous drilling has identified anomalous base-metal (pathfinder) geochemistry and Kintyre host type lithologies some 500 metres north of the target. The geophysical expression of the Gleneagles anomaly is considered to be analogous to a Kintyre style deposit buried some 50 metres beneath recent barren cover.
In Area 1, another blind target, three holes will follow up on a group of eight Mega holes which intersected Kintyre deposit host stratigraphy comprising graphitic and chloritic schists. The three additional holes aim to test the potential of this prospective stratigraphic package along strike.
Airborne electromagnetics, airborne magnetics and geological interpretation have identified a large blind target at Southern Cross, approximately two kilometers east of Mega’s previous drill holes in tenement E45/2690. The closest hole to this prospect has intersected a wide graphitic schist unit considered to be equivalent to the graphitic units above and below the Kintyre deposit. Interpretation of the geological data suggests there is potential for uranium mineralization around the margins of a large dome or antiform in the upper part of the Proterozoic Yandagooge Formation (the Kintyre host rocks) under cover of recent aeolian sands.
Mega wishes to acknowledge the support of the Martu Native Title Landowners and the Western Desert Lands Aboriginal Corporation in approving the drilling program.
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 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.