Mega to acquire Future Metals and EnergyMega Uranium Ltd (C-MGA) - News Release
Mega Uranium to secure Future Metals and Energy
2006-03-27 11:13 ET - News Release
Shares issued 44,272,894
MGA Close 2006-03-24 C$ 8.80
Mr. Sheldon Inwentash reports
MEGA TO ACQUIRE ADDITIONAL URANIUM RESOURCES IN QUEENSLAND, AUSTRALIA
Mega Uranium Ltd. has entered into an agreement to acquire the private Australian company, Future Metals and Energy Ltd. (FME), which holds historical uranium resources totalling 6.4 million pounds U3O8 (2.34 million tonnes) in exploration permits adjacent to Mega's Georgetown project in Queensland, Australia (see Stockwatch, Nov. 18, 2005). Upon completion of this agreement, Mega will have acquired rights to all the principal known uranium resources in the Georgetown region within 30 kilometres of Mega's 6.5-million-pound-U3O8 Maureen resource (2.38 million tonnes at 0.12 per cent U3O8).
Under the agreement, Mega can acquire FME for a total consideration of one million Mega shares. The deal is subject to Mega's completion of satisfactory due diligence on the FME properties and to TSX Venture Exchange approval.
FME's 11 exploration permits, totalling 4,874 square kilometres, cover upper Devonian to lower Carboniferous sediments/volcanics and their unconformable contact with underlying Palaeoproterozoic metasediments, and granitoids of Proterozoic and Silurian to early Devonian ages. The properties contain numerous uranium occurrences and several small uranium resources, which were delineated by Minatome Australia Pty. Ltd. and Esso Exploration and Production Australia Inc. in the 1970s to early 1980s. The Minatome and Esso uranium resource estimates, reported below, were competently conducted according to the standards of the day and, as such, are regarded by Mega as a reasonable reflection of the magnitude and grade of the mineralization. However, as they were conducted prior to the introduction of the JORC regulations in Australia, they must therefore be reported as unreliable at this time according to the NI 43-101 guidelines. At this time, there are no more recent estimates or data available to Mega. Mega will engage an independent qualified person to establish resources that are 43-101 compliant.
The largest concentration of uranium resources in the FME ground is the Dagworth-Quartz Blow northeast-trending zone in the Fiery Creek area, located approximately 30 kilometres southeast of the Maureen deposit, where uranium mineralization occurs in steeply dipping northeast-trending vein systems within dikes and fault zones straddling the unconformity between lower Carboniferous sediments/volcanics and underlying Palaeoproterozoic metasediments. Within this eight-kilometre-long zone are the Four Geo, Two Gee and Quartz Blow deposits, which were reported by Minatome in 1983, to contain a total of 5.1 million pounds U3O8 at an average grade of 0.09 per cent U3O8, based on a cut-off of 0.059 per cent U3O8 or 0.035 per cent U3O8. Potential exists in this northeast-trending zone to delineate additional uranium resources in the projections of the three known resources at depth or along strike, and in inadequately tested uranium prospects elsewhere.
The other area of the FME ground, in which a uranium resource has been delineated, is the east-west trending, five- to six-metre-wide, Lineament Fault zone, approximately 30 kilometres south of the Maureen deposit, where there are several high-grade uranium occurrences over a nine-kilometre strike length. The largest uranium deposit discovered to date in this area, Central 50, was reported by Esso in 1981, to have a resource of 1.3 million pounds U3O8 at a grade of 0.16 per cent U3O8 based on a cut-off of 0.045 per cent U3O8. There is potential to discover additional uranium resources along the Lineament Fault zone and its vicinity. For example, Esso's exploration of the Somerset prospect in the 1970s included drill intersections up to true width of four metres at 0.13 per cent U3O8 and trench exposures with up to four metres at 0.06 per cent U3O8.
The FME ground will be included in a detailed airborne magnetic/radiometric survey of Mega's Georgetown project ground, which is scheduled to be flown in June, 2006.
Stewart Taylor, president, Mega's qualified person under NI 43-101, is responsible for the contents of this release and has verified the data disclosed.