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vol 279,398 $44 Million Uranium Exploration Budget on Mega's Properties in 2008
TORONTO, ONTARIO, Mar 25, 2008 (MARKET WIRE via COMTEX News Network) --
Mega Uranium Ltd. (TSX: MGA) ("Mega") wishes to announce that it has approved a total 2008 budget of $44 million for its worldwide uranium exploration properties in Australia, Canada, Argentina, Bolivia, Colombia, Cameroon and Mongolia. The $44 million total does not include funding of ongoing prefeasibilty studies of Mega's Ben Lomond (10.7 million pounds U3O8) and Lake Maitland (23.7 million pounds U3O8) uranium resources in Australia, for which a separate budget is being drawn up.
Around 87% of the $44 million exploration budget is allocated to three countries, Canada ($20.5 million, 47% of the total), Australia ($11.7 million, 26%) and Cameroon ($6 million, 14%). Included in the Canadian portion of the budget is an allocation of $9.1 million for the Central Mineral Belt in Labrador which may be revised depending on the outcome of a bill before the Nunatsiavut Government of Labrador, which proposes a 3-year moratorium on uranium mining.
Mega's proposed exploration programs in 2008 will include a total of 82,000 metres of drilling in 20 projects in five countries, Australia, Canada, Cameroon, Argentina and Mongolia, as summarized below:
AUSTRALIA
- Georgetown (Queensland):
- 1,000 metres of Reverse Circulation ("RC") drilling to evaluate known uranium occurrences in the vicinity of Mega's Maureen uranium resource.
- Evaluation of historical resources some 20 kilometres south and southeast of Maureen by means of 2,000 metres of diamond drilling and 3,000 metres of RC drilling.
- 2,000 metres of RC drilling to investigate airborne radiometric anomalies identified in 2007.
- Oasis (Queensland): 2,000 metres of RC drilling to test radiometric anomalies delineated in an airborne magnetic-radiometric survey in 2007.
- Kintyre Rocks (Western Australia): 4,000 metres of RC drilling to test targets within five kilometers of Rio Tinto Ltd's 79 million pounds U3O8 Kintyre resource.
- Aura Energy Joint Venture (Western Australia): 8,860 metres of widely spaced reconnaissance drilling to investigate uraniferous palaeochannels in the Gunbarrel Basin. In this project, Mega can earn up to a 70% interest from the operator, Aura Energy Ltd (ASX: AEE).
- Cronje Dam (South Australia): 7,000 metres of rotary mud reconnaissance drilling to test palaeochannels in which previous drilling has returned encouraging results, including 3 metres @ 507 ppm U3O8 from 105 metres depth and 2 metres @ 400 ppm U3O8 from 104 metres depth.
- Corunna North (South Australia): 2,000 metres of RC drilling to assess the potential for unconformity-related uranium mineralisation. In this property Mega is earning an 80% interest in the uranium content from Intermet Resources Ltd (ASX: ITT). Mega is the operator.
CANADA
- Central Mineral Belt (Labrador):
- A 3,500 metres drilling program is underway on the Mustang Lake project to test NE-trending lineaments thought to represent a major structure on strike with Aurora Energy's Michelin uranium resource. This project is a Joint Venture with Santoy Resources (TSX VENTURE: SAN) in which Santoy is diluting its 50% interest. Mega is the operator.
- 4,000 metres in the Aillik East property to test radiometric anomalies with associated mineralized zones on surface. Grab samples in 2007 returned assays in the range 0.06-13.8% U3O8 in a geological setting similar to that of the Michelin uranium resource.
- Cypress Hills (Saskatchewan): Provision for approximately 6,000 metres in the South Fork property in which Uranium Power Corp. (TSX VENTURE: UPC) ("UPC") has an option to earn 65% from JNR Resources (TSX VENTURE: JNN), and Mega has an option with UPC to acquire a 35% interest in the property. UPC is the operator.
- Athabasca Basin (Saskatchewan)
- A 3,600 metres drilling program is already underway to test three targets in the Maurice Point property in which Mega is earning a 55% interest from the operator, Forum Uranium Corp. (TSX VENTURE: FDC) - refer to Mega's news release of February 21 2008.
- Wernecke Uranium District (Yukon): 7,000 metres drilling in the Igor Iron Oxide Copper-Gold-Uranium prospect, in which Cash Minerals (TSX VENTURE: CHX) ("Cash") can acquire a 75% interest by completing a bankable feasibility study by December 31, 2012. The drilling will further evaluate the 600 metre long mineralized zone, which is open to the north. In 2007, drilling results included 140 metres @ 0.76% Cu, 0.05 g/t Au, 0.042% U3O8 which includes 7 metres @ 7.37% Cu, 0.33 g/t Au and 0.417% U3O8. Cash is the operator.
- Thelon Basin (Nunavut): Provision for 2,000 metres of drilling to test radiometric anomalies delineated in a 2007 airborne magnetic-radiometric survey. In this project Mega is earning a 51% interest from the operator, Titan Uranium Inc. (TSX VENTURE: TUE).
CAMEROON
A total of 12,000 metres of diamond drilling in the Kitongo (5,000 metres), Lolodorf (5,000 metres) and Teubang (2,000 metres) properties. In all three projects the drilling will investigate known occurrences of uranium intersected by historical drilling, and will also test substantial radiometric anomalies delineated in Mega's detailed airborne magnetic-radiometric surveys in 2007.
ARGENTINA
A total of 4,800 metres of shallow RC drilling in the Patagonia Project in Chubut Province to further evaluate significant near surface mineralisation delineated in trenches and pits in the Laguna Salada, Sierra Cuadrada and Mirasol prospects, and to follow up on Mega's previous drill intersections of 2 metres @ 0.11% U3O8 and 1 metre @ 0.21 U3O8 some 5 kilometres east of the 10 million pounds U3O8 Cerro Solo uranium deposit (held by the Argentina Atomic Energy Commission).
MONGOLIA
A total of 3,750 metres of drilling in the Khashaat (1,500 metres RC), Baganurat (1,000 metres DDH) and Jargalan (1,250 metres DDH) properties.
Stewart Taylor, Mega's President and Qualified Person under NI 43-101, is responsible for this release and has verified the contents disclosed.