Mega Uranium Ltd.
TSX : MGA

Mega Uranium Ltd.

December 05, 2007 09:26 ET

Update on Mega's Uranium Exploration Programmes

- Significant results in trenching of extensive shallow uranium mineralisation in the Patagonia Project, Chubut Province, Argentina. - Acquisition of an interest in a uranium property within the Manomo carbonatite, Bolivia.

TORONTO, ONTARIO--(Marketwire - Dec. 5, 2007) - Mega Uranium Ltd. (TSX:MGA) ("Mega") is pleased to announce progress in its uranium exploration projects in Argentina, Bolivia and Mongolia.

ARGENTINA

In its Patagonia Project in the San Jorge Gulf Basin of Chubut Province, Argentina, Mega has increased its property holdings through farm-in agreements with two private vendors. In one agreement, Mega can acquire 100% of five exploration permit (cateo) applications (total 493 km2) in its Laguna Salada prospect area (see below), through total cash payments of $US55,000 and exploration expenditure of $US150,000 within a three year period. In the other agreement, covering one 0.4 km2 exploration permit application some 20 kilometres east of the Cerro Solo uranium deposit, Mega can earn a 100% interest through total cash payments of $US12,000 and exploration expenditure of $US50,000 within three years. In addition to these agreements, Mega has increased its holdings in the Laguna Salada area with an application for an exploration permit covering 70km2. As a result of these initiatives, Mega now holds, or is earning interests in, 3300 km2 of ground in the highly prospective San Jorge Gulf Basin.

In the Laguna Salada portion of the Patagonia Project, the excavation of trenches continued in the Guanaco prospect area, in order to expose shallow, horizontal layers of uranium mineralisation from surface to 5 metres depth (refer to Mega's news release of September 4, 2007). The mineralisation, which is exposed in gullies incised into a Quaternary terrace, has been mapped over an area of approximately 20 km2. To date 56 widely spaced trenches have been dug, to 2.5-6.5 metre depths, at 200 metre intervals, on lines 1 kilometre apart. Encouraging initial assay results(1) have been received to date for 17 of the first 19 trenches, as listed below. The mineralisation occurs mainly within surficial fine pebble conglomerates with a calcareous sandstone matrix, and in a deeper calcareous-rich (caliche) horizon.



---------------------------------------------------------------------------
Trench From To Metres ppm U3O8
(m) (m)
---------------------------------------------------------------------------
1 0 0.8 0.8 337
---------------------------------------------------------------------------
2 0.3 0.9 0.6 365
---------------------------------------------------------------------------
5 3.1 3.6 0.5 220
---------------------------------------------------------------------------
6 0.65 2.1 1.45 181
---------------------------------------------------------------------------
7 1.3 2.45 1.15 190
---------------------------------------------------------------------------
8 1.9 2.25 0.35 272
---------------------------------------------------------------------------
8b 2.8 3.4 0.6 490
---------------------------------------------------------------------------
9 3.65 4.55 1.0 160
---------------------------------------------------------------------------
9b 2.0 2.5 0.5 1000
---------------------------------------------------------------------------
11 0.3 1.3 1.0 228
---------------------------------------------------------------------------
14 2.95 3.65 0.7 658
---------------------------------------------------------------------------
15 1.8 2.35 0.55 433
---------------------------------------------------------------------------
16b 0.4 1.2 0.8 172
---------------------------------------------------------------------------
17 4.2 4.55 0.35 142
---------------------------------------------------------------------------
18 2.0 2.45 0.45 574
---------------------------------------------------------------------------
19 0.7 1.35 0.65 176
---------------------------------------------------------------------------
19b 2.85 3.25 0.4 247
---------------------------------------------------------------------------


Some 2 kilometres southwest of Guanaco, a 15 km2 radiometric anomaly over similar Quaternary sediments has been investigated by geological mapping, ground radiometric surveys and sampling of exposed mineralized horizons. Results are awaited. Work has commenced on an initial programme of 80 trenches on a 200 x 200 metre grid to obtain information on the thickness and continuity of uranium mineralisation within 5 metres of surface.

BOLIVIA

In Bolivia, the Mega/Intrepid Mines Joint Venture, through its Bolivian company Minera Baures SA, has entered into an option agreement with a private vendor regarding the 6.25 km2 Ana Lis claim, which covers known uranium mineralisation within the Upper Jurassic/Lower Cretaceous Manomo carbonatite intrusion. Under the agreement, the Mega/Intrepid Joint Venture can earn a 96% interest in the Ana Lis claim through exploration expenditure of $US50,000 by October 2008 and total cash payments of $US60,000 by October 2009. In addition to Ana Lis, an application has been made for a 6.25 km2 claim on the western flank of the carbonatite.

Manomo, located within the Velasco Alkaline Province in the Precambrian belt of eastern Bolivia, comprises a 24 km2, 300 metre high mesa of strongly leached and altered carbonatite surrounded by alluvial flats. Previous exploration, by the British Overseas Geological Survey (1977-1979), General Minerals Corporation (1980) and local consultants (1998), investigated the phosphate, rare earths and uranium potential of Manomo by means of geological mapping, ground radiometric surveys, geochemical sampling and shallow pitting to 4-5 metre depths. Within the area covered by the Ana Lis claim, the work delineated a 200 metre x 20-30 metre uraniferous lense within a phosphatic pipe. Test pits to 5 metres depth contained uranium mineralisation of the order of 200-400 ppm U3O8, with a maximum of 5 metres @ 0.26% U3O8. Mega has commenced a programme of geological mapping, ground radiometrics and trenching in the claim.

MONGOLIA

In Mongolia, Mega has earned a 50% interest in the uranium properties held by Red Hill Energy Inc. (TSX VENTURE:RH). Exploration programmes are now being funded by Mega and Red Hill on a 50/50 basis and will continue to be managed and operated by Red Hill. Current ground holdings comprise ten exploration licences with a total area of 1850 km2.

Assay results received for the drilling programme in the Emeelt property contained nothing of economic significance.

Stewart Taylor, Mega's President and Qualified person under NI43-101, is responsible for this release and has verified the contents disclosed.

(1) Samples were assayed at the Mendoza laboratory of Alec Stewart Assayers, Argentina, using inductively coupled plasma spectrometry (method ICP-MA-42).

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
    Email: info@megauranium.com
    or
    Media Relations
    Mega Uranium Ltd.
    Wanda Cutler
    Director of Corporate Communications
    (416) 860-1717
    Website: www.megauranium.com