Mega Uranium Ltd. Releases Unaudited Results For The Three Months Ended December 31, 2010
TORONTO, Ontario (February 14, 2011) – Mega Uranium Ltd. (“Mega”) (TSX: “MGA”) announces its unaudited results for the three months ended December 31, 2010.
SUMMARY FINANCIAL RESULTS
As at December 31, 2010, Mega had cash, cash equivalents and marketable securities totaling $41.1 million, as compared to $49.9 million at the end of September 30, 2010, a decrease of 17.64%. The decrease is primarily attributable to the Lake Maitland feasibility costs and other exploration expenditures incurred during the current quarter.
As at December 31, 2010, the Company had mineral properties and related expenditures of $259.3 million, as compared to $251.7 million as at September 30, 2010, reflecting expenditures on our properties in the quarter.
Summary results for the three months ended December 31, 2010, as compared to the three months ended December 31, 2009:
Income from financial and trading activities for the quarter was $12.1 million, most of which relates to unrealized gains on investments in public companies, as compared to a financial loss of $0.2 million in the prior year’s first quarter .
Total expenses were $2.9 million in the quarter as compared to $2.3 million in the prior year’s first quarter.
Net and comprehensive income in the quarter was $9.1 million ($0.04 per common share), as compared to a net and comprehensive loss of $0.9 million in the previous year’s quarter ($0.01 per common share). The current period income compared to loss for the same period last year was primarily related to an realized gain on disposal of investments in public companies and marketable securities and an unrealized gain on investment in public companies.
Net and comprehensive loss from discontinued operations in the quarter was $Nil ($0.00 per common share), as compared to a net and comprehensive loss of $0.2 million in the previous year’s quarter ($0.00 per common share).
In the last three months of 2010, Mega advanced its feasibility studies of the Lake Maitland uranium project in Western Australia and progressed exploration of priority projects in Australia and Cameroon.
During the quarter, Mega made significant progress in the development of Lake Maitland as follows:
- Receipt of approval for the Environmental Scoping Document from the Environmental Protection Authority of Western Australia (refer to Mega’s news release of October 25 2010).
- Completion of a successful test pit program, which provided valuable data on validation of the geological model, the proposed mining method and dewatering. Further details will be provided in a forthcoming news release.
In its Kintyre Rocks property in Western Australia, Mega reported encouraging results in its initial drill testing of the Area 1 prospect, four kilometers ESE of the Cameco-Mitsubishi joint venture’s 79 million pounds U3O8 Kintyre resource, which is currently in prefeasibility. Stratigraphy equivalent to that hosting the Kintyre resource was intersected below 32-77 meters of Permian cover rocks (refer to Mega’s news release of November 23 2010).
In Cameroon, Mega reported high grade intersections in its second phase drilling program of the Salaki prospect, including 3.7m @ 0.13% U3O8, 3.2m @ 0.11% U3O8 and 2m @ 0.11% U3O8. Further details of the drilling results in the Salaki, Kitongo and Ngombas (Lolodorf) prospects can be found in Mega’s news release of November 10 2010.
Stewart Taylor, Mega’s President and Qualified Person under NI 43-101, has reviewed the technical information in 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.