Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

October 03, 2007 09:24 ET

Mega Uranium Options CanAlaska's Poplar Property, Athabasca Basin, Saskatchewan

TORONTO, ONTARIO--(Marketwire - Oct. 3, 2007) - Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to announce that it has entered into an agreement with CanAlaska Uranium Ltd. ("CanAlaska") (TSX VENTURE:CVV) on CanAlaska's 100% owned Poplar property, which is located on the northern rim of the Athabasca Basin of northern Saskatchewan.

Mega can earn a 50% interest in the Poplar property by spending $6 million and by issuing 100,000 Mega shares to CanAlaska over three years. Mega has a $2 million expenditure commitment in the first year of the option and CanAlaska will initially operate the project. Mega can earn a further 5% interest (total 55% interest) by paying CanAlaska $2 million and issuing an additional 100,000 Mega shares.

The 110,268 hectare Poplar property covers 70 kilometres of the northern margin of the Athabasca Basin in northern Saskatchewan, at the eastern end of Lake Athabasca, stretching from Poplar Point in the east to Uranium City and the Gunnar uranium mine in the west. Geological targets in this area are unconformity style uranium deposits and their basement hosted root zones at the Athabasca unconformity, which in this area lies at very shallow depths (0-200 metres). Previous exploration by E&B Exploration Limited in 1979 did include airborne and marine geophysics, however this work was hindered by equipment limitations and though targets were generated, none were followed up.

Geotech Surveys has been commissioned to immediately commence a helicopter-borne magnetic and high powered transient electromagnetic survey (VTEM) over the optioned property. Lake and ground geophysical surveys are anticipated follow-up in early 2008 in order to define drill targets.

Mega is pleased to join CanAlaska on the geologically prospective Poplar property and to partner with a highly experienced technical team focused on uranium. This agreement increases Mega's exposure to the exploration potential in the Athabasca Basin by adding to other recent acquisitions of Forum's Maurice Point Property and the Geomode claims. Mega now has interests in exploration properties in Canada's most prospective uranium provinces - the Athabasca Basin, the Central Mineral Belt of Labrador, the Thelon Basin, and the Wernecke Mountains of the Yukon.

Michael Downes, Ph.D., P.Geo., V.P. North America and Qualified Person reviewed this release for its content.

ABOUT MEGA URANIUM

Mega Uranium Ltd is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada, Cameroon, Argentina, Bolivia, Colombia and Mongolia. Further information on Mega can be found on the company's website at www.megauranium.com. Mega Uranium's Australian uranium properties, including without limitation Ben Lomond, Maureen and Lake Maitland, are subject to State policies which presently prohibit the mining of uranium.

Contact Information

  • Investor Relations:
    Mega Uranium Ltd.
    Richard Patricio, VP Corporate and Legal Affairs
    (416) 643-7630
    or
    Media Relations:
    Mega Uranium Ltd.
    Wanda Cutler, Director of Corporate Communications
    (416) 860-1717
    Email: info@megauranium.com
    Website: www.megauranium.com