Mega Uranium Mining & Exploration in  Canada, Cameroon, Australia, Argentina, Bolivia, Columbia and Mongolia.

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Mega Uranium Ltd.
217 Queen Street West, Suite 401
Toronto, Ontario, Canada
M5V 0R2

Phone 416.643.7630
Fax 416.941.1090

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2010 News Releases

Test Pit Program for Mega's Lake Maitland Uranium Project Approved by WA Government

September 29, 2010

TORONTO, Ontario – September 29, 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.

Mega has received approval from the Western Australian Department of Mines and Petroleum ("DMP") to undertake a Test Pit Program ("Program") at Lake Maitland which is a key component of the Definitive Feasibility Study currently underway. Mega has commenced preparations for the Program and expects to begin work on site in October 2010.

The Program will involve the excavation of two test pits, approximately 40 m long by 25 m wide and 5 m deep, and will take approximately 6 weeks to complete. The objectives of the program include: 

  • Trialling the proposed mining methods to be utilised for the Project
  • Trialling haul road construction materials
  • Geological mapping and channel sampling to validate the geological model
  • Obtaining information to facilitate the development of a grade control programme
  • Groundwater assessments to trial potential pit dewatering methods and evaluate the aquifer characteristics
  • Monitoring groundwater drawdown and quality and other environmental parameters to assist with environmental impact assessment studies for the Project
  • Assessing the suitability of materials for the purposes of pit rehabilitation  

On completion of the excavation work, the test pits will be backfilled and the site rehabilitated.

Mega has also recently commenced a groundwater exploration program on Miscellaneous Licence L53/152 to evaluate potential groundwater supply sources for the Project.

Regarding the Environmental Scoping Document (ESD) released for public review, Mega received 36 submissions from a variety of respondents including regulators, NGO's and individuals. Mega will respond to the Western Australian Environmental Protection Authority (EPA) on the submissions prior to the ESD being finalised. 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.

In line with Mega's commitment to engaging with local communities and traditional owners regarding the Project, Mega has embarked on the first stage of a stakeholder engagement program, presenting an update of the Project status and providing an opportunity for stakeholders to participate by providing their expectations and concerns in relation to the Project.


Mega intends to undertake an exploration drilling program to seek extensions to the known Project resource.

The focus of the Project drilling to date has been on evaluation of the identified uranium resource primarily within Mining Lease M53/1089. There has been limited drilling on the several exploration licenses that Mega currently holds surrounding the resource.

From a historical perspective, most of this surrounding tenure is largely unexplored due to the fact that the Lake Maitland drainage channel poses a logistical challenge for accessibility. Additionally, geophysical methods have been difficult to interpret or been ineffective due to a combination of Aeolian cover and thick sequences of palaeo-channel sediments. 

The potential exists for buried, surficial calcrete-style deposits and deeper palaeo-channel type uranium deposits within the Lake Maitland drainage channel. In the limited drilling to date, encouraging results have been encountered under Aeolian sand cover on the eastern and southern edges of the Lake Maitland drainage, importantly where there is weak or no radiometric surface expression.

A reconnaissance air-core drilling programme is planned to test the uranium potential within this prospective tenure.

A phased drilling programme, scheduled to commence before the end of the year, will consist of 147 vertical holes for an estimated 7350 meters using a track mounted air-core rig – refer to Figure below. 

Phase One is located south of the resource on E53/1210 extending over 10km of strike within the Lake Maitland drainage channel. At this location an 800 meter by 800 meter pattern drilling program is planned to blade refusal, totalling 102 holes for an estimated 6000 metres.

Phase Two is designed to test a potential resource extension along an interpreted narrow, deep palaeo-channel of the North Western arm of the lake on E53/1211. A total of 45 holes are planned for a total of 1350 meters along three north-south drill transects at a hole spacing of 200 metres and a nominal hole depth of 30 meters.


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 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:

Investor Relations
Mega Uranium Ltd.
Richard Patricio
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.

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© 2010 Mega Uranium Ltd. - a Canadian based uranium mining and exploration company with projects in Australia ,Canada and Cameroon.