Test Pit Program completed in Mega's Lake Maitland ProjectPlans for exploration drilling adjacent to the Lake Maitland Project Plans for exploration drilling on Mega's 100% owned:Kintyre Rocks Project (Western Australia)Ben Lomond Project (Queensland, Australia)
Toronto, Canada (February 16, 2011) - Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to provide an update on the development of its Lake Maitland Uranium Project ("Project") in Western Australia.
Mega recently completed a Test Pit Program ("Program")at Lake Maitland, concluding a key component in the preparation of the Definitive Feasibility Study ("DFS") and Environmental Review and Management Program ("ERMP") currently underway for the Project.
The Program involved the excavation of two test pits, approximately 34 m long by 19 m wide and 5 m deep.
The objectives of the Program, achieved over an eight week duration, provided Mega with fundamental information for the DFS and ERMP. The highlights of the Program include:
Completion of a close spaced grade control drilling program over the test pit areas prior to excavation commencing; Validation of the geological model interpreted from drilling data; Demonstration that a truck and excavator mining method is viable and that the ore and overburden can be excavated without blasting; Demonstration that selective mining is achievable using high precision GPS equipment on the excavator; Natural groundwater flow into the test pits was less than expected and the barrier system trialled around the test pits was successful in reducing groundwater inflows; Dewatering of the test pits during the Program, together with monitoring undertaken, has provided invaluable data required to evaluate the aquifer characteristics; and Data collected from monitoring of groundwater drawdown and quality, as well as other environmental parameters, including air quality, will provide information to assist with the environmental impact assessment studies for the Project.Mega's environmental approach, aiming to have as low an impact as possible, was achieved throughout the Program. Since the excavation work has been completed, the test pits have been backfilled and rehabilitation has commenced in accordance with Mega's Mining Proposal approved by the Western Australian Department of Mines and Petroleum.
EXPLORATION DRILLING ADJACENT TO MEGA'S LAKE MAITLAND PROJECT
Near Resource and Extensional Drilling
Further to Mega's announcement on September 29, 2010 regarding its intention to undertake an exploration drilling program, Mega has revised the program's scope and drilling will commence this month.
Mega will be investigating extensions to its uranium deposit at Lake Maitland, targeting near surface calcrete uranium mineralisation within the same drainage system that hosts the deposit in ground that is largely unexplored.
This exploration drilling will now be conducted as a single phase rather than a multi-phase program and will occur in the two main areas previously advised, which are:
Southern Area within E53/1210 - 99 holes covering an 800m by 800m grid pattern will be drilled to an average depth of 15m, for a total of 1,500 metres. North Western Area within E53/1211 - 39 holes to be drilled to an average depth of 15m, for a total of 500 metres.Deeper Palaeochannel Drilling for Roll Front Uranium Mineralisation
Mega is also currently investigating the potential for deeper roll front uranium mineralisation within the Tertiary Carey Palaeochannel. Recent drilling targeting palaeochannels for production water bores has also encountered highly anomalous uranium intervals associated with redox boundaries. Although exploration for these deeper channel deposits has been very successful elsewhere in Australia, and in particular South Australia, their potential has not yet been explored at Lake Maitland. Deeper drilling down to 120m is being planned to target these redox channels later this year.
EXPLORATION DRILLING AT MEGA'S 100% OWNED KINTRYE ROCKS PROJECT
Further to Mega's announcement on 23 November 2010, further diamond core drilling is planned to commence in the first half of 2011 at Mega's wholly owned Kintyre Rocks Project in Western Australia on the Area 1, Southern Cross, Wyoming Valley and other prospects. These prospects, located 3 to 6 kilometers from the Cameco-Mitsubishi Kintyre resource (79 million pounds U3O8), contain uranium targets which have geophysical/geological similarities to Kintyre.
EXPLORATION DRILLING AT MEGA'S 100% OWNED BEN LOMOND PROJECT
At Mega's wholly owned Ben Lomond uranium-molybdenum resource in Queensland, Australia, diamond core and reverse circulation drilling programs are being planned this year to pursue further extensions to the west of the deposit and potential repetitions to the north of the East/West trending mineralisation. Sophisticated fluid flow and structural modelling techniques are being applied to refine drill targets in a highly prospective East/West sediment filled graben immediately north of the deposit.
Ben Lomond, located some 50 kilometers west-southwest of the city and port of Townsville, contains a NI 43-101 compliant resource comprising:
an Indicated Resource of 7.9 million pounds U3O8 at an average grade of 0.27% U3O8; and an Inferred Resource of 2.8 million pounds at a grade of 0.21% U3O8.In a 1982 internal feasibility study by Minatome Australia Pty Ltd ("Minatome Study") the resource was also reported to contain a substantial molybdenum credit of 0.15% Mo*.
The Ben Lomond resource occurs at low elevation in remote, sparsely populated hill country at an easily accessible site, and is favourably located with respect to mine development, as it is close to power, water and essential services. The Minatome Study concluded that 70% of the delineated resource was mineable by open pit at a 5:1 stripping ratio and that the remainder of the resource was conducive to extraction by underground workings from the pit. In 1984, an Environmental Impact Study was accepted by the relevant Federal and State authorities, but in 1985 the planned mine development was halted by the imposition of the "Three Uranium Mines Policy" by the then Australian Federal Labor Government. Mine development at Ben Lomond is currently prevented by the Queensland State Labor Government's policy banning new uranium mines in the State.
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 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.
* The reported average molybdenum grade in the Ben Lomond uranium resource is not NI 43-101 compliant as it is based on insufficient geochemical analyses and a regression comparison with the uranium values. Mega intends to undertake work to establish a molybdenum grade that is NI 43-101 compliant.
For further information, please contact:
Investor Relations |
|
Mega Uranium Ltd. |
|
Richard Patricio |
|
EVP Corporate Affairs |
|
T: (416) 643-7630 |
|
| |
www.megauranium.com |
|
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, 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.
Note Regarding Disclosure for Mineral Projects
This press release contains disclosure regarding our mineral resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources may never be converted into reserves. Furthermore, inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Further exploration will be required to upgrade the inferred resources to a higher resource category.