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Mega Uranium Ltd.: Mega Uranium Ltd.: Discovery of Uranium-Bearing Palaeochannel in Western Australia

  //house-home.news-articles.net/content/2009/08/1 .. -bearing-palaeochannel-in-western-australia.html
  Published in House and Home on Monday, August 10th 2009 at 7:51 GMT, Last Modified on 2009-08-10 07:52:08 by Market Wire
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TORONTO, ONTARIO--(Marketwire - Aug. 10, 2009) - Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to announce that its Joint Venture Partner, Aura Energy Ltd. (ASX:AEE) ("Aura), has intersected a uranium-bearing palaeochannel in its initial, widely spaced, reconnaissance drill testing of the Junction tenements in the Gunbarrel Basin of Western Australia (Figure 1).

The drilling program comprised 30 aircore holes (total 2225 meters), drilled at 300-400 meter intervals on six lines transecting the interpreted location of the palaeochannel, as shown in Figure 2. At the northern end of line 5, hole JUAC020 (Figure 3) intersected 14 meters of elevated uranium values in reduced carbonaceous sands, gravels and clays, including three intervals, each of one meter thickness, containing greater than 100ppm eU3O8(1). The best intersection was 2 meters @ 147ppm eU3O8(1). Samples from the hole have been submitted for geochemical assay.

As the position of the palaeochannel is approximately two kilometers northeast of the interpreted location based on topography and a 2007 airborne EM survey, no access lines for the drill rig were cleared north of hole JUAC020, hence it was not possible to drill further holes to test the whole width of the palaeochannel at this location during the drill program. A follow-up detailed drilling program is planned to investigate the palaeochannel in the vicinity of hole JUAC020.

The nearest drill traverses transecting the whole palaeochannel, line 4 and line 6, are, respectively, 7 kilometers up channel, and 20 kilometers down channel, from hole JUAC020. In line 4, the drilling intersected a well-developed palaeochannel in the Proterozoic basement. However, the palaeochannel is broad (approximately 1800 meters in width), is incised to depths of only approximately 40 meters into the basement, consists predominantly of clays and contains only weakly anomalous uranium.

Stewart Taylor, Mega's President, commented "This is an excellent result from a first pass reconnaissance drill test of the Junction palaeochannel in view of the large extent of the target area. We look forward to investigating the economic potential of the palaeochannel in the vicinity of hole JUAC020 and elsewhere along this extensive palaeochannel development."

The Gunbarrel Basin, located east of the Archaean Yilgarn Block, contains a large endowment of sediment-hosted uranium mineralization, but is significantly less explored than the other major uranium provinces of Australia. The largest known deposit in the region, Mulga Rock, held by the ASX-listed Energy and Minerals Australia Ltd, is reported to contain 54 million pounds U3O8 at a 200ppm U3O8 cut-off(2). Aura's properties comprise 11 granted Exploration Licences with a total area of 2476 km2 and cover extensive portions of three of the four main palaeochannels in the region.

Under a December 2006 agreement, Mega can earn a 50% interest in Aura's properties through expenditure of $A3 million within three years. Through its funding of the drilling programme reported above, Mega will fulfill the expenditure requirement to earn 50%. Mega then has the option to increase to 70% through additional expenditure of $A3 million over a further 18 month period.

Notes:

1. Equivalent grades U3O8, based on downhole gamma logging conducted by Downunder Surveys of Perth, Australia, using an Auslog A75 total count gamma tool. Calibration was undertaken in Adelaide, South Australia at the Department of Water, Land and Biodiversity Conservation, in calibration pits constructed under the supervision of the CSIRO. The gamma ray readings were converted to equivalent U3O8 readings by 3D Exploration of Western Australia using the calibration factors derived in the Adelaide calibration pits.

2. Reported in the Energy and Minerals Australia Ltd news release of 13.1.09

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, 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 Ben Lomond and Maureen uranium resources are subject to a Queensland State Government policy that presently prohibits 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.

To view Figure 1, please visit the following link:

[ http://media3.marketwire.com/docs/AuraFigure1.pdf ]

To view Figure 2, please visit the following link:

[ http://media3.marketwire.com/docs/AuraFigure2.pdf ]

To view Figure 3, please visit the following link:

[ http://media3.marketwire.com/docs/AuraFigure3.pdf ]