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* 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.
*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.
