Mega Uranium Announces High Grade Uranium Mineralization Confirmed on
Northwest Athabasca Property, Saskatchewan
TORONTO, ONTARIO -- (Marketwire) -- 11/08/12 -- Mega Uranium Ltd.
(TSX:MGA) ("Mega") and Forum Uranium Corp. (TSX VENTURE:FDC)
("Forum") are pleased to announce preliminary results from the first
of three high priority targets being drilled on the Northwest
Athabasca property. Uranium mineralization was encountered at shallow
depths in two of four holes drilled in the first target area.
Drillhole NWA-35 intersected a 1.4 metre mineralized interval at a
vertical depth of 26 metres and is interpreted to be part of Zone 2A
discovered in 1978. Within this interval a 25 centimetre section gave
an off-scale scintillometer(i) reading (greater than 9999 counts per
second). Mineralization consists of blebs and flecks of pitchblende.
Sufficient drilling has now been completed in the vicinity of Zone 2A
to conclude that the zone is of very limited extent, however the
intercept in hole NWA-35 confirms the presence of high grade
mineralization on the Northwest Athabasca property. Further drilling
is recommended outside Zone 2A to define the controlling structure.
Drillhole NWA-34 intersected a 10cm zone, within a graphitic shear,
with a scintillometer(i) reading of 1,400 counts per second at a
vertical depth of 50 metres and located 20 metres west of Zone 2A.
Approximately 20 metres to the west of the NWA-34 intercept is an
untested electromagnetic conductor which has been selected for future
The current drill program is continuing with testing of the Maurice
Creek South target, (a gravity low situated immediately south of the
historic Maurice Creek mineralization) and the Barney Zone, (tested
by a single hole in March 2012 with very positive results of strong
bleaching and faulting associated with dravite clays in the overlying
Large gravity lows are present both to the north and south of Zone
2A. Drilling on the gravity low to the south discovered the Opie Zone
in March 2012 (0.142% U3O8 over 7.6 metres at a depth of 40 to 100
metres) which requires more drilling this winter. An untested gravity
low also lies to the north of Zone 2A and is a priority target for
future drill programs. See Figure 1: Northwest Athabasca Project
Gravity Survey at the end of this news release.
The Northwest Athabasca property hosts the Maurice Bay deposit
(historical resource(ii) of 1.5 million pounds uranium at 0.6% U3O8).
The positive results returned from the drill program completed in
March 2012, including the discovery of the Opie encouraged Forum and
Mega to step up exploration on the property. All targets are similar
to Cameco's Millennium deposit and Rio Tinto's Roughrider deposit and
at much shallower depths (less than 100 metres).
Quality Assurance and Quality Control
Core samples are collected and shipped in sealed containers to the
Saskatchewan Research Council, an ISO/IEC 17025:2005 (CAN-P-4E)
certified laboratory for geochemical analysis using the Uranium ICP
Package. This package is the preferred analytical technique for
detecting uranium and pathfinder elements in the alteration halos of
unconformity-type uranium deposits in the Athabasca Basin.
Michael Downes Ph.D., P.Geo., Vice President North America and
Qualified Person for Mega, has reviewed the technical content of this
Forum and Mega Option with Cameco
Forum and Mega Uranium have entered into a 50/50 Joint Venture
Agreement to manage the exploration program during the earn-in period
with Forum as initial Operator. Forum and Mega can earn a 60%
interest in the Northwest Athabasca project, a joint venture between
Cameco Corporation and Areva Resources Canada, by completing $4
million in exploration over four years and making cash payments
totaling $400,000 over three years, of which $140,000 has been paid.
It is anticipated that Forum and Mega will vest their joint 60%
interest in the property upon completion of the current program.
The Northwest Athabasca project will form part of the Mega projects
being sold to NexGen Energy Ltd., as announced August 9, 2012. That
transaction is expected to close in the fourth quarter of 2012.
(i)Natural gamma radiation in drill core that is reported in this
news release was measured in counts per second (cps) using a handheld
Exploranium GRS-101 total count gamma-ray scintillometer. The reader
is cautioned that scintillometer readings are not directly or
uniformly related to uranium grades of the rock sample measured, and
should be used only as a preliminary indication of the presence of
radioactive materials. The degree of radioactivity within this
interval is highly variable and associated with visible pitchblende
mineralization. Core recovery is generally between 90% to 100% in
hole NWA-35. All intersections are down-hole, core interval
measurements and true thickness are yet to be determined.
(ii)Historical resource for the Maurice Bay deposit, as reported by
Saskatchewan Industry and Resources, Miscellaneous Report 2003-7, has
not been calculated or classified under the specifications of
National Instrument 43-101 and should not be relied upon.
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
NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain information contained in this press release may constitute
"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
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
All forward-looking information contained in this release is
expressly qualified by this cautionary note.
To view "Figure 1: Northwest Athabasca Project Gravity Survey",
please visit the following link:
Mega Uranium Ltd.
Richard Patricio, EVP Corporate Affairs
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