June 26, 2008
Mega Uranium Ltd.: Extensive Shallow Uranium Mineralization Delineated in Argentina
Mega Uranium Ltd. (TSX: MGA) ("Mega") is pleased to report on progress in its ongoing investigation of the shallow uranium resource potential of the Laguna Salada tenements of its Patagonia Project in Chubut Province, Argentina - refer to the Mega news releases of September 4 2007 and December 5 2007.
In the Guanaco prospect area, the exploration to date has included 182 shallow trenches and 11 drill holes (to 8-10 meters depth). Of the 145 trenches for which assay results have been received, 117 trenches have delineated an extensive, consistent, flat-lying layer of uranium mineralization within unconsolidated Quaternary pebbly conglomerates, that are either exposed on surface or lying below less than 0.3 meter of soil cover. The mineralized layer averages 1 meter in thickness, contains grades representative of the whole thickness of 40-200 ppm U3O8(1), and has an overall average grade of all samples of 120 ppm U3O8. Mineralization comprises disseminations of carnotite and autunite within the fine-grained sandy matrix of the conglomerates, in association with carbonates and minor gypsum. To date the mineralization has been traced in trenches and drill holes over a 15 km2 area.In the Lago Seco Prospect area, located four kilometers southwest of Guanaco, 87 trenches and 4 drill holes have delineated a similar horizontal mineralized layer in unconsolidated pebbly conglomerates under 0.2 meter of soil cover. Over a 4.6 km2 area, the mineralization averages 0.7 meter in thickness, and contains grades over the whole thickness of 120-250 ppm U3O8(1), with an overall average of 140 ppm U3O8.
Mega is now assessing the economic viability of this extensive mineralized layer, as it is amenable to low cost mining and beneficiation based on the following favourable characteristics:
- It occurs on surface or at a shallow depth, generally of less than 0.3 meter.
- It is flat-lying and continuous over an extensive area.
- As mineralization is confined to the fine-grained matrix of unconsolidated pebbly conglomerates, it is suitable for beneficiation by a simple screening process.
- In general, samples of the Lago Seco conglomerates consist of 45% by weight of barren pebbles and 55% by weight of mineralized matrix. In the Guanaco area, where the conglomerates typically contain a higher proportion of pebbles, the samples generally comprise 65% of barren pebbles and 35% of mineralized matrix.
Based on the results of the trenches summarized above, Mega estimates that the 15 km2 area of the Guanaco prospect explored to date contains potential for delineating a resource of the order of 5-8 million pounds U3O8 with an average grade of all samples of the order of 100-140 ppm U3O8. The mineralisation is open to the southeast where a 15km2 area of the Quaternary terrace remains to be investigated by trenches. In the Lago Seco prospect, it is estimated that the 4.6 km2 area explored to date contains potential for delineating a resource of the order of 2-3 million pounds U3O8 with an average grade of all samples of the order of 120-160 ppm U3O8, and that additional potential exists in a 6 km2 portion of the Quaternary terrace to the south. In accordance with the NI43-101 guidelines, Mega wishes to state that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource, and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Further trenching, shallow drilling and beneficiation/processing test work will be conducted over the area in the coming months to delineate a resource and determine its economic viability.
Stewart Taylor, Mega's President and Qualified Person under NI43-101, is responsible for this release and has verified the contents disclosed.
(1). Samples were assayed at the Mendoza laboratory of Alec Stewart assayers, Argentina, using inductively coupled plasma spectrometry (method ICP-AR-42)
About Mega Uranium
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada, Argentina, Bolivia, Colombia, Mongolia and Cameroon. Further information on Mega can be found on the company's website at www.megauranium.com. Mega Uranium's Australian uranium properties, including without limitation Ben Lomond, Maureen and Lake Maitland, are subject to State policies that presently prohibit the mining of uranium.
Cautionary Statement 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 the proposed acquisition of Energentia by Mega, the continuation of its business following completion of the acquisition and our expectations regarding Energentia's properties and the Columbian region generally.
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: the possibility that the necessary shareholder and regulatory approvals will not be obtained in a timely manner or at all, and that other conditions to completion of the acquisition will not be satisfied; and risks related to the inherent uncertainty of mineral exploration and development activities generally, including political and regulatory risks.
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.
Contacts: Investor Relations Mega Uranium Ltd. Richard Patricio, VP Corporate and Legal Affairs (416) 643-7630 Email: [email protected] Website: www.megauranium.com
SOURCE: Mega Uranium Ltd.