Mega Uranium Ltd.

Mega Uranium Ltd.

September 19, 2007 09:29 ET

Mega Uranium and Cash Minerals Announce Igor and Lumina Drilling Results Wernecke Uranium District, Yukon

- 0.055% U3o8 and 2.82% Copper Over 22.25 Metres in First Phase of Drilling at Igor - 1.5 Metres Of 0.14% U3o8, 0.035% Molybdenum and 0.08 G/T Gold at Lumina

TORONTO, ONTARIO--(Marketwire - Sept. 19, 2007) - Mega Uranium Ltd. (TSX:MGA) ("Mega") has been advised by its joint venture partner, Cash Minerals Ltd. (TSX VENTURE:CHX) ("Cash"), of results from the first phase of drilling at the Igor and Lumina properties. Cash is presently the operator and funding 100% of the Wernecke Uranium project to earn a 75% interest in the project. Cash advises that advanced exploration in the Wernecke Uranium district builds on past exploration success, again producing notable results as shown by intersections yielded in this first phase of drilling.

Highlights from recent drilling at Igor and Lumina include:

- At Igor: 22.25 metres at 0.055% uranium oxide (U3O8), 2.82% copper (Cu), 5.2 g/t silver (Ag) and 0.03 g/t gold (Au); and

- At Lumina: 1.5 metres of 0.14% U3O8, 0.035% molybdenum (Mo) and 0.08 g/t Au; as well as 40.1 metres of 0.014% uranium (U), 0.047% Mo and 0.31 g/t Au.

Igor and Lumina, known as iron-oxide, copper-gold-uranium (IOCG-U) and U-Mo-Au targets, respectively, are both located in Canada's mineral-rich Wernecke Uranium District, Yukon Territory. A total of 16,000 metres has been diamond drilled in 2007, with up to six drill rigs operating concurrently on a number of the Yukon properties. The focus of Cash's drilling in 2007 has been the Igor and Lumina properties. Exploration on other Wernecke properties is engaged in testing other areas to identify targets for this year and 2008 drilling.

Cash, the operator, has advised that they are extremely pleased with results from the first phase of drilling, which continues to show the potential of a world-class IOCG target, similar to that of Australia's Olympic Dam mine. The joint venture continues to focus on extending the distribution of known uranium mineralization, in addition to creating additional project value through new mineral discoveries, such as the polymetallic U-Mo-Au mineralization shown in the 2007 drilling data at Lumina.

Igor Property Continues to Deliver

At Igor, IOCG-U mineralization crops out and is open at depth. Uranium-copper mineralization is largely coincident with masses of magnetite, hematite, barite and pyrite within dilatant veins and breccias, interpreted to have formed over a long period of geological time.

Drilling at Igor began in June 2007 and initial results show intersections with appreciable uranium and copper mineralization, which include 22.25 m at 0.055% U3O8, 2.82% Cu, 5.2 g/t Ag and 0.03 g/t Au; 9.5 m at 1.68% Cu, 0.24 g/t Au: and 3.0 g/t Ag; and 3.6 m at 0.125% U3O8 (Table 1).

The objective of the 2007 drill program at Igor aims to define a resource by testing existing areas with known uranium and copper mineralization, as well as examining the potential for IOCG-U mineralization at depth, which would comprise of testing the annulus-shaped sub-surface geophysical anomaly identified in 2006. Initial drilling conducted this year has yielded intersections of U-Cu-Au-Ag mineralization comparatively close to the surface, with the source of the anomaly currently being tested. Drilling will continue at Igor until the end of October weather conditions permitting, with three drills allocated to the property.

Hole From To Interval U3O8 Cu Au Ag
Name (m) (m) (m) (%) (%) g/t g/t

IG-06 138.75 161.00 22.25 0.055 2.82 0.03 5.2

IG-02 6.0 15.5 9.50 - 1.68 0.24 3.0
includes 9.0 12.0 3.00 - 3.01 0.39 4.4
and 110.2 119.4 9.25 - 0.60 0.05 1.0
includes 110.15 111.90 1.75 - 2.01 0.16 2.4

IG-03 186.2 191.7 5.50 0.037 - 0.03 1.6
includes 190.7 191.7 1.00 0.099 - 0.01 0.6
and 223 226.6 3.60 0.125 - - 2.2
includes 225 225.6 0.60 0.310 - - 1.8

Table 1. Summary drill hole results from preliminary analysis from the Igor property.

Dr. Geordie Mark, Cash's Vice President, Exploration, has stated that the district appears to be a polymetallic minerals province, noting that the Cash exploration team continues to apply an integrated technical approach with the aim of adding value by enhancing targeting strategies, which in the case at Lumina would assess the hydrothermal mineralization as part of a polymetallic U-Mo-Au system.

Adding Value at Lumina

Drilling and exploration at the Lumina property began in June primarily near the Jack Flash showing, which returned significant uranium mineralization during the 2006 exploration season (55.1 m at 0.103% U3O8). Drilling in 2007 has proved continuity of the uranium mineralization discovered in 2006, and it has extended the known sub-surface distribution of uranium mineralization around 130 m to the southwest (e.g., LU-27, Table 2).

Cash advises that additional drilling and geochemical sampling are planned to define the presence of significant polymetallic U-Mo-Au mineralization (Table 2), and to enhance the metal potential of the Lumina property. Exploration within the Lumina property shows that there are numerous areas with comparable geology, some with more than one kilometre long, on-surface uranium anomalies, which were defined from heli-borne radiometrics. The geology of many of these regions exhibit common characteristics and show U-(Mo-Au) mineralization, most likely formed in a single hydrothermal system distributed for tens of kilometres throughout the Lumina property.

Hole From To Interval U3O8 Mo Au Ag
Name (m) (m) (m) (%) (%) g/t g/t

LU-20 124.05 153.45 29.4 0.026 0.034 0.23 0.9
includes 127.05 130.95 3.9 0.053 0.115 0.89 3.1

LU-21 78.10 98.10 20.0 0.031 0.022 0.04 0.5
includes 78.10 85.55 7.5 0.048 0.017 0.05 0.5

LU-23 52.0 65.5 13.5 0.043 0.008 0.03 0.6
includes 64.0 65.5 1.5 0.139 0.035 0.08 1.9
and 79.0 81.0 2.0 0.033 0.084 1.09 3.2

LU-27 96.7 136.8 40.1 0.014 0.047 0.31 1.3
includes 96.7 106.8 10.1 0.025 0.065 0.22 1.9
includes 125.3 131.3 6.0 0.015 0.062 0.88 1.4

Table 2. Summary drill hole results from preliminary analysis from the Lumina property.

Cash advises that drilling is still underway in the Werneckes with five drills operating at Igor, Lumina and properties in and around the Bear River camp. Drilling at Igor is currently testing the geophysical anomaly beneath the surface. At, Lumina drilling continues to test for U-Mo-Au mineralization to the north of the Jack Flash showing. Geochemical results from the second phase of drilling, as well as geophysical data collected from the Wernecke properties during the 2007 exploration season, are expected to be released in the last quarter of calendar 2007.

Samples prepared and analyzed by ALS Chemex, Vancouver. Samples are crushed, pulverized and digested in a four-acid solution and all elements, but gold were analyzed by ICP methods. Gold was analyzed by Fire Assay and ICP-AES. True width intervals are unconstrained due to insufficient data at depth.


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


This press release contains disclosure that constitutes "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements in the press release, other than statements of historical fact, may be "forward-looking". Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "possible", "targeting", "could", "might", "should", "believe", and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this press release include, but are not limited to, those with respect to our exploration and drilling activities, including planned surveys, mapping and sampling, our expectations regarding the potential mineralization of our properties and anticipated exploration costs. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Mega to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and factors include, but are not limited to, risks related to our joint venture operations, uncertainties associated with the outcome of our current exploration activities, changes in project parameters as our plans continue to be refined, changes in environmental and other regulations in the jurisdictions in which we operate, delays in obtaining governmental approvals or financing, economic and market factors which would limit the availability of capital, competition for acquisitions, the availability of technical expertise and equipment, and fluctuations in commodity prices, as well as those other risks and factors discussed in the section entitled "Description of the Business - Risks" in our annual information form for our fiscal year ended September 30, 2006 and in our other filings with certain of the Canadian securities regulatory authorities, which are available to the public at Although we have attempted to identify for the reader important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. We believe that the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements. Forward-looking statements speak only as at the date on which they are made and we do not undertake to update any forward-looking information that is in this press release or otherwise contained in our public disclosure documents as a result of new information or the occurrence of future events or circumstances, except as required by law.

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