The Georgetown Project comprises:
1. Rights to the uranium-molybdenum-fluorite content of one tenement (29km2) in the Georgetown area of northern Queensland. The tenement is the remaining portion of a larger package of ground (since reduced by voluntary and statutory relinquishment) which was acquired under an agreement dated November 2005 with two private companies, Georgetown Mining Ltd (since renamed Plentex Mining) and O’Rourke Geological Contractors Pty. Ltd. Under the agreement, Plentex and O’Rourke (combined) retain a 0.75% royalty on any future uranium-molybdenum-fluorite production. In March 2009, Plentex sold its rights to all other minerals on the properties and its uranium royalty to an Australian subsidiary of the German company Deutsche Rohstoff AG.
2. Rights to the uranium-molybdenum-fluorite content of two nearby tenements (total 121 km2), part of a package of ground (since reduced by voluntary and statutory relinquishment) which Mega acquired in its takeover of the private Australian company, Future Minerals & Energy in June 2006. In a subsequent agreement the rights to all other minerals on the properties were acquired by Plentex Ltd. In march 2009, Plentex sold its interests to an Australian subsidiary of the German company Deutsche Rohstoff AG.
The Georgetown Project contains the outcropping Maureen uranium deposit, which was detected in 1971 in an airborne magnetic-radiometric survey conducted by the Australian company Central Coast Exploration NL. Drill testing commenced in 1972, then in 1974 Getty Mining Pty Ltd, the Australian mineral exploration arm of Getty Oil, farmed-in to the property. Over a five year period, Getty evaluated the deposit with a detailed drilling programme, culminating in a 1979 resource estimate of 2.38 million tonnes @ 0.12% U3O8 and 0.07% molybdenum, based on a cut-off grade of 0.035% U3O8. The delineated resource occurs from surface to 120 metres depth and is conducive to open cut extraction at a favourable stripping ratio. Total drilling of the deposit and its immediate surrounds, from 1972 to 1980, comprised 881 percussion holes (total 78,550 metres) and 137 diamond core holes (total 8368 metres).
In the period August 2006 to November 2007, Mega drilled 94 RC/diamond core holes in order to validate the historical Maureen resource, to seek resource extensions and to discover additional resources in the immediate vicinity**. The drilling confirmed the previous results reported by Getty Mining Ltd in the late 1970s, but did not delineate additional resources. On July 7 2008, Mega announced a new NI43-101 compliant resource comprising an Indicated Resource of 3.12 million tonnes @ 0.09% U3O8 (5.95 Mlbs U3O8) and an Inferred Resource of 0.15 million tonnes @ 0.11% U3O8 (0.38Mlbs U3O8). Further details can be found in the Mega news releases of February 22 2007, June 4 2007 and December 4 2007.
Some 30 km south and southeast of Maureen, four other uranium deposits contain historical Inferred Resources aggregating to 2.9 million tonnes @ 0.10% U3O8 (6.4 Mlbs U3O8)**. Three of these deposits, Four Geo, Two Gee and Quartz Blow, occur SE of Maureen, in the NE-trending Dagworth-Quartz Blow Zone, as steeply dipping vein systems within dykes and fault zones straddling the unconformity between Lower Carboniferous sediments/volcanics and underlying Palaeproterozoic metesediments. Mega's drilling results in the Two Gee prospect were reported in its news release of January 15 2009. The other historical resource is the Central 50 prospect in the east-west trending, 5-6 metres wide Lineament Fault Zone, some 30km south of Maureen. In late 2007, Mega's 8 hole, 1525 metre, RC drilling programme, testing for possible strike extensions of the Central 50 Zone, intersected significant uranium mineralisation including 12 meters @ 0.09% U3O8 from 117 meters downhole and 7 meters @ 0.09% U3O8 from 167 meters downhole. In 2008 Mega conducted a follow-up program of 7 holes - results were reported in Mega's news release of January 15 2009.
Good discovery potential also exists elsewhere in the properties, within both the Proterozoic basement and overlying Upper Devonian/Lower Carboniferous volcanics /metasediments, in the form of radiometric anomalies, uranium occurrences and favourable geological settings for uranium, which were either untested or inadequately examined by previous explorers. In the last quarter of 2006, a high resolution, 40270 line-kilometre airborne magnetic-radiometric survey was flown over a 3528 km2 portion of the Georgetown Project area. In mid 2007, other portions of the project area were covered by a 23300 line kilometre airborne survey. Several interesting targets identified in the survey data are being investigated.
**All historical resource estimates referred to on this page were prepared prior to the implementation of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mega has not conducted any work at this time to verify these historical resource estimates, we are not aware of any more recent resource estimates or data for the properties which conform to the standards of NI 43-101 and we are not treating the historical estimates as current mineral resources. They should not be relied upon. The Central 50 and Two Gee uranium resource estimates reported, were, however, competently conducted respectively, by Esso in 1981 and Minatome in 1983, in accordance with the standards of the day and we regard them as a reasonable reflection of the magnitude and grade of the mineralization. The historical resource estimates are categorized as “indicated” and “inferred”, which are comparable to the corresponding resource categories permitted under NI 43-101.