Mega Provides Update on Canadian Exploration
TORONTO, ONTARIO -- (Marketwire) -- 06/16/11 -- Mega Uranium Ltd. (TSX: MGA) ('Mega') is pleased to provide an update on its Canadian exploration. These activities represent a reinvigoration of its exploration work through drilling in 2011.
Highlights
-- Drilling completed at Mustang Lake with best intercept of 1m of 0.08%
U3O8.
-- Drilling planned to commence at Bruce River property in Labrador.
-- On the NW Athabasca property a gravity survey identifies eleven high
priority drill targets with drilling scheduled for later this year.
-- Drilling completed on the Greenwich Lake PGM property with no
mineralized intercepts.
NEWFOUNDLAND AND LABRADOR - CENTRAL MINERAL BELT (U)
Mustang Lake Property (Virginia-Mega JV)
A winter drilling program was completed on the Mustang Lake property located in the Central Mineral Belt of Labrador. The target area consists of a structural zone containing Aillik Group volcanic stratigraphy interpreted to trend from Paladin's Michelin uranium deposit (located 8 km to the southwest) through the Mustang Lake property. The project is part of a joint venture with Virginia Energy Resources Ltd. (Mega 66.69%: Virginia 33.31%).
A total of 888.5 m of diamond drilling was completed in four holes on the property. In hole ML-11-02, a 46 m long zone of discontinuous anomalous radioactivity was intersected from 141 to 187 m depth. Analysis of samples from this zone yielded best results of 1 m of 0.08% U3O8 at 163 m and 1 m of 0.06% U3O8 at 187 m.
Though the analytical results were low, the presence of Aillik Group volcanic stratigraphy, with Fe-oxide alteration and uranium mineralization in ML-11-02 validated the exploration model and prospectively of the Mustang Lake Property.
Sampling was conducted in accordance with NI 43-101 as well as the Mineral Exploration Standards implemented by the Nunatsiavut Government of Labrador. Mega includes regular standards, and locally obtained blanks in its sample submissions. All samples were analyzed for uranium using the Delayed Neutron Count (DNC) method by Actlabs of Ancaster, Ontario. Actlabs is an ISO/IEC17025 and CAN-P-1579 accredited laboratory. Comprehensive procedures are in place to ensure that no contamination of the environment occurs and strict protocols have been established to maintain the health and safety of all program participants.
Bruce River Property (Virginia-Mega JV)
A diamond drill program of 600 m in five holes is scheduled to commence in early July on the Bruce River property in the Central Mineral Belt of Labrador. The project is also part of a joint venture with Virginia Energy Resources Ltd. (Mega 66.69%: Virginia 33.31%). Drilling is designed to test the Noseman showing where a mineralized zone exposed intermittently over an area of approximately 200 m long by 75 m wide occurs within a hydrothermal alteration zone exposed intermittently over 300 m long by 100 m wide. A total of 16 grab samples of altered granite were collected during the 2009 prospecting program with assay results ranging from 0.001% to 0.241% U3O8. Four channel samples were taken from the areas of the best scintillometer response on the Noseman showing with a best result of 0.092% U3O8 over 2.0 m.
SASKATCHEWAN - ATHABASCA BASIN (U)
North West Athabasca Property (Cameco Option, Forum JV)
A gravity survey has been completed on the NW Athabasca uranium project which is under option from Cameco Corporation and being explored in a JV with Forum Uranium Corp. Results of the survey have led to the identification of eleven high priority targets to be drilled later this year following a summer field program. Gravity surveys of this type are designed to identify zones of lower density hydrothermal alteration, which are typically in spatial association with uranium deposits in the Athabasca Basin.
The project is located on the northwest edge of the Athabasca Basin and is considered to have good potential for unconformity and basement-style uranium mineralization. The Maurice Bay deposit (with a historical resource(i) of 1.5 million pounds uranium grading 0.6% U3O8) as well as Zone 2A which has grades of up to 5.68% U3O8over 8.5 metres and three other areas of surface mineralization show the project's potential for further discoveries. Most of the exploration work was done in the late 70's and early 80's. The historical drill programs focused on surficial mineralization, located by radioactive boulder trains and outcrop showings.
The recently identified gravity anomalies by Forum/Mega will be drill tested either late in 2011 or early in 2012. Future plans are to cover the remainder of the ground with a gravity survey aimed at developing additional targets.
An exploration camp and drill rig will be mobilized to site in September. A comprehensive summer exploration program of geological mapping, re-logging of existing drill core and prospecting for the bedrock sources of glacially transported mineralized boulders is planned. Drilling could commence as early as this upcoming fall depending on results of the summer program.
Forum and Mega Uranium have entered into a 50/50 Joint Venture Agreement to manage the exploration program during the earn-in period with Forum as initial Operator. Forum and Mega can earn a 60% interest from Cameco on the NW Athabasca project by completing $4 million in exploration over four years and making cash payments of $400,000 over three years of which $60,000 has been paid.
ONTARIO - MIDCONTINENT RIFT SYSTEM (Ni, Cu, PGM)
Greenwich Lake Property - (Mega)
Mega's 100% owned Greenwich Lake property was originally acquired for its uranium potential but is being explored for Nickel-Copper-Platinum Group Metals (Ni-Cu-PGM). The property is located northwest of Thunder Bay, Ontario and approximately 5 km to the east of Magma Metals Limited's Ni-Cu-PGM discovery, which is an advanced platinum group metal exploration project with significant copper and nickel credits. The geological setting is interpreted to be analogous to that hosting the world-class Ni-Cu-PGM deposits of the Noril'sk-Talnakh region in Russia.
Mega completed a diamond drill program consisting of 963 m in six holes, aimed to test two targets defined by sinuous magnetic highs coincident with weak EM anomalies. None of the holes intersected Ni, Cu, PGM mineralization. Mega considers that the property still has merit through additional drilling and is looking at strategic alternatives for the future of the project.
Michael Downes Ph.D., P.Geo., Vice President North America and Qualified Person for Mega, has reviewed the technical content of this news release.
(i)Historical resource for the Maurice Bay deposit, as reported by Saskatchewan Industry and Resources, Miscellaneous Report 2003-7, has not been calculated or classified under the specifications of National Instrument 43-101 and should not be relied upon.
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 uranium properties in Queensland, Australia, including without limitation Ben Lomond and Maureen, are subject to a State policy which presently prohibits the mining of uranium.
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 and plans for future drilling, 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.
Contacts:
Investor Relations: Mega Uranium Ltd.
Richard Patricio
VP Corporate and Legal Affairs
(416) 643-7630
info@megauranium.com
www.megauranium.com