Encouraging news/results from ArgentinaMega Uranium eyes widen at glimpse of Patagonia results
Mega Uranium Ltd (C:MGA)
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Tuesday June 06 2006 - News Release
Mr. Sheldon Inwentash reports
ENCOURAGING INITIAL RESULTS IN MEGA'S DRILLING PROGRAMME IN ARGENTINA
Mega Uranium Ltd. has received encouraging results in the first batch of assay data received to date for two holes in its recently completed drilling program in its Patagonia project in the San Jorge Gulf basin of Chubut province, Argentina. The drilling program, comprising 26 widely spaced, vertical RC holes of 42-144 metre lengths (total 2,029 metres), tested several localities on the mineralized trend projected eastward from the 10.3-million-pound U3O8 Cerro Solo resource, which is held by the National Atomic Energy Commission of Argentina (CNEA) -- refer to Mega's news as reported in Stockwatch May 2, 2006, March 3, 2006, and May 19, 2005.
Hole RCU-03, located approximately four kilometres northeast of the Cerro Solo resource, intersected two metres at 0.11 per cent U3O8 at a depth of 87-89 metres within dark grey tuffaceous rocks in the lower part of the Cretaceous Los Adobes formation, which is the host stratigraphy to the Cerro Solo deposit.
Stewart Taylor, Mega's president, commented: "This is a very encouraging early result from our first pass drilling of the area east of the Cerro Solo deposit. The intersection occurs in the stratigraphy which hosts Cerro Solo, and as the nearest hole on the mineralized trend (Mega's hole RCU-05 for which results are awaited) is located 1.8 kilometres from RCU-03, there is good size potential around the hole. We look forward to receiving the results of RCU-05 and the other holes, which should be available by the last week of June. Follow-up drilling around RCU-03 and other targets will be undertaken when weather conditions improve in two to three months time."
RCU-01, the other hole for which assay results are available, intersected nothing of significance in its test of another target located 1.5 kilometres south of RCU-03.
Representative samples of one-metre intervals of the holes were submitted for geochemical analysis to the ALS Chemex laboratory in Mendoza, Argentina. The samples were initially analyzed by multielement ICP spectrometry (lab method ME-MS61). Any samples with greater than 500 parts per million uranium were then analyzed by XRF spectrometry (lab method U-XRF10).
Mega has the largest holding of prospective ground (total 2,983 square kilometres) in the two areas of Argentina acknowledged by the CNEA as having the country's best uranium discovery potential -- the San Jorge Gulf basin of Chubut province (referred to above), and the Sierra Pintada uranium district in Mendoza province, which contains the CNEA's 30-million-pound U3O8 Sierra Pintada resource. In both areas, Mega has acquired prime exploration ground, in the vicinity of the Cerro Solo and Sierra Pintada deposits, covering uranium occurrences, favourable geological settings for uranium and radiometric anomalies detected by the CNEA in airborne surveys conducted in the 1960s and 1970s.
Stewart Taylor, Mega's president and qualified person under NI 43-101, is responsible for this release and has verified the contents disclosed.