Commencement of a Diamond Drill Program aiming to increase the Lake Maitland resource tonnes, grade and contained uranium.
TORONTO, Ontario (October 26, 2011) - 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 commenced a Diamond Drill Program at Lake Maitland which is planned to consist of 200 holes with a total of 1200 meters. Weather permitting, the drilling component of the program is scheduled to be complete by the end of the year.
Figure 1 – Project Deposit and Diamond Drill Program Hole Locations
The results of the disequilibrium study conducted on the Project earlier this year concluded that, overall, positive disequilibrium exists in the Project deposit and that downhole radiometric logging significantly understates the actual uranium grade. Examination of the diamond core assays from the Test Pit Program showed them to be robust, with the analysis of the diamond hole radiometric logging versus the chemical analysis of the core samples indicating that, on average, radiometric logging at Lake Maitland understates the:
The completion of the Diamond Drill Program therefore has the potential to increase the magnitude of the resource as the resource estimation to date has been based mainly on data from downhole radiometric logging.
In addition, the results from density determinations on two diamond cores from the recent Test Pit Program indicate appreciably higher density values than used to date for the resource estimation. The Diamond Drill Program provides an opportunity to collect additional density determinations which have the potential to significantly increase the tonnage estimate for the Lake Maitland resource.
Greenwich Lake, Ontario
Mega also announces that it has entered into a farm-out joint venture agreement with Magma Metals Ltd. on Mega’s Greenwich Lake property, which is adjacent to Magma’s Thunder Bay North (TBN) platinum-palladium-copper-nickel (Pt-Pd-Cu-Ni) project in Ontario.
The principal terms of the agreement with Magma are:
Magma will spend $3 million on the project within 5 years to earn a 60% interest;
Following the farm-in stage, the parties will form a 60/40 joint venture; and,
Magma must spend $250,000 in the first year, at least half of which must be on drilling, after which it has the right to withdraw from the agreement.
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 a focus on 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 properties in Queensland, Australia are subject to a state policy which presently prohibits the mining of uranium.
For further information, please contact:
Mega Uranium Ltd.
VP Corporate and Legal Affairs
T: (416) 643-7630
Disequilibrium is an imbalance between the actual uranium content and the radioactivity emitted by a given volume of rock. It is caused by differential mobilisation (or precipitation) of uranium or its daughter isotopes from the deposition site or by a lack of time for the accumulation of the daughter isotopes to reach a state of equilibrium after the uranium has been deposited.
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.
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.