Clean, secure and cost-effective: Nuclear power is in high demand as one of the most important sources of energy in the world. According to Stewart Taylor, Director and President of Toronto-based Mega Uranium Ltd., Mega plans to invest more than $30 million in uranium exploration projects in 2007. “We’re one of the largest explorers for uranium in the world right now,” said Taylor. “This year, we’re spending about $27 million Canadian dollars, and our joint venture partners are adding another $15 million U.S. dollars on our properties.”

Mega has active uranium exploration programs in Australia, Argentina, Bolivia, Colombia, Mongolia, Canada and Cameroon. The company also has interests in Canadian and Australian base and precious minerals exploration properties and a copper-nickel exploration project in Guinea, West Africa. “We’re doing lots of drilling in most of the countries in which we’re operating, so there will hopefully be a steady stream of good exploration results,” said Taylor.

In the past few years, favorable share prices have motivated Mega to focus on purchasing a variety of interesting properties, including the recently acquired NU Energy in Africa. According to Taylor, “It’s a Toronto-based company, and they’ll be looking after the African projects and also seeking other opportunity for us in Africa.

“We’re always on the lookout for good acquisitions,” he commented, adding, “We’re very strong technically, with good uranium expertise in all the countries where we’re operating, and we’re backed by a substantial cash reserve right now, about $120 million Canadian.” Taylor also hinted that some new acquisition opportunities are currently in the works.

Experienced uranium mining experts

Mega’s strong financial position and successful track record of identifying and acquiring significant uranium resources puts the company at a distinct advantage. Stewart credits Mega’s strong board, lead by CEO and Chairman Sheldon Inwentash, as the reason Mega has emerged as one of the fastest growing junior mining companies in the world.

Promoted to the role of President in October 2005, just eight months after joining the company as its VP of International Exploration, Stewart is responsible for the generation, acquisition and exploration of the Company’s uranium projects worldwide. A geologist from the University of Glasgow, Scotland, he has over 35 years of mining and exploration experience in Australia, Asia, Africa, Europe and North and South America. “I look after the technical aspects of worldwide exploration as well as the evaluation of the acquisition opportunities.”

Stewart pointed out that the managers in each of the countries and regions where Mega operates are geologists, thus strengthening the company’s technological backbone.

Australia’s political landscape

The Ben Lomond deposit comprises an east-west trending, steeply dipping (750) vein system within Carboniferous volcanic rocks immediately underlying an unconformity.

Mega’s key uranium mining and exploration operations in Australia cover approximately 27,000 km² of ground in Queensland South Australia, Northern Territory and Western Australia. Taylor said these resources are close to surface and amenable to low-cost open pit mining. “Particularly Lake Maitland in Western Australia,” he pointed out, “That goes only one to one and a half meters below surface.”

However, when it comes to uranium production in Australia, politics plays an important role. Taylor explained, “Right now the federal Labor Party, which is the opposition party in Australia, is in favor of uranium mining. However, the problem is with the state governments, which are also Labor Party, but the two state governments in Western Australia and Queensland currently have a policy against uranium mining. But it’s only a policy; it’s not a regulation – which is enacted by law. So, it’s a matter of just changing the policies, and that can happen at any time.”

If Australia’s federal Labor Party wins an upcoming federal election, anti-mining laws that affect Mega’s Lake Maitland property could be reversed. But regardless of election results, Stewart remains optimistic about the future of uranium mining in Australia. “I think it will be favorable for uranium, because such are the economic pressures and the political pressures in Australia being exacted by the likes of the Chinese wanting uranium supplies from Australia, that I think it’s only a matter of time before the two state governments change the policy."

Active project updates on Australian properties

The Georgetown Project contains the Maureen uranium deposit, which comprises an historical Indicated resource of 6.5 million pounds U₃O₈ at a grade of 0.12% U₃O₈, and molybdenum grade of 0.07%. To date, 35 RC holes (total 4194 meters) were drilled in and around the Maureen resource to seek extensions of the known mineralization and to test for other mineralized zones in the immediate vicinity. Samples from radiometrically anomalous portions of these holes have been submitted for geochemical analysis, and results are pending.

The Oasis Project is located adjacent to the Georgetown Project. Oasis is a north-south trending shear zone defined by a highly fissile biotite-quartz schist unit within a Proterozoic syenogranite. Between 1977 and 1979 the shear zone was drill tested by Esso Exploration and Production Australia Inc (“Esso”). The drilling delineated a coherent, steeply dipping, tabular zone of disseminated uraninite mineralization, up to 15 meters thick, and extending over a 300 meter strike length to a depth of 175 meters.

To date, a detailed 20500 line kilometer airborne magnetic-radiometric survey was flown over the project area. The bulk of the survey was conducted by Universal Tracking Systems Pty. Ltd. at a line spacing of 100 meters and sensor height of 50 meters, but over the Oasis prospect and its immediate surrounding area the line spacing was reduced to 50 meters. The results of the survey are being processed.

A program of geological mapping, magnetic/radiometric surveys and shallow auger drilling (24 holes of 3-7 meters depth) was undertaken to trace the strike extensions of the mineralized zone, but in much of the surveyed ground the results were inconclusive due to the extensive soil/alluvium/colluvium cover, which is up to 2.5 meters thick.

A 9-hole RC drilling program (total 1620 meters) is underway to test for depth and strike extensions of the Oasis mineralized zone. If favorable results are obtained, additional holes will be drilled. By the end of September a total of 552 meters had been drilled in three holes.

Based on several factors, including a government that supports uranium exploration, South Australia is one of the most attractive uranium exploration targets in the world. In fact, the state contains the largest uranium resource (Olympic Dam) and the largest producing ISL uranium mine (Beverley) in the world. Mega’s wholly-owned subsidiary, Hindmarsh Resources Ltd, oversees exploration tenements totaling over 14500 km² in South Australia.

Exploration for sediment-hosted uranium in its Cronje Dam project yielded encouraging results in June from a program of widely spaced reconnaissance rotary mud holes. Currently, a 50 hole, 5000-metre drilling program is underway to test targets in several prospect areas. The program also includes 3 meters @ 507ppm U₃O₈ at 105 meters depth in the Kinlock Tank area, 4 meters @ 236ppm U₃O₈ at 98 meters depth in the Olary Creek area, and 2 meters @ 400ppm U₃O₈ at 104 meters depth in the Gairloch Dam area.

ARGENTINA

Drilling in Argentina



Mega has increased its property holdings in Argentina with applications for three exploration permits in San Luis Province. Two exploration permits in the Libertador San Martin area (total 190km²) contain radiometric anomalies within Palaeozoic granitic intrusives, which are thought to have potential for uranium mineralization similar to the deposits (Razes, la Crouzille etc.) of the Central Massif in France. The other exploration permit application (100km²), located in the Corcaran area in the valley of the Conlara River, cover an extensive Quaternary terrace containing prominent autunite and carnotite mineralization within sandstone and pebble conglomerates. In 1970, three trenches excavated by the Argentina Atomic Energy Commission (CNEA) exposed a mineralized layer 1.0-1.5 meters thick, with grades of the order of 0.03-0.10% U₃O₈, at a depth of 2-3 meters.

BOLIVIA

In Bolivia, where Mega is earning 75% of the uranium-molybdenum content of exploration tenements held by Intrepid Mines Ltd (TSX:IAU), work continued in the field checking of radiometric anomalies and other areas of interest in the Altiplano and in the Eastern Precambrian Belt. In the former area, the target is ignimbrite-hosted uranium similar to the Macusani Belt in Southern Peru. In the latter region, the Mega/Intrepid Joint Venture is investigating the potential for unconformity-related uranium deposits and other uranium deposit styles.

COLOMBIA

In Colombia, reconnaissance geological mapping and ground radiometric surveys continued in the Betulia concession in the Zapatoca district of Santander Province. The work delineated radiometrically anomalous sandstone horizons within the Jurassic Giron Formation over a 3 km² area in the Campo Alegre prospect. In one creek, where the Giron Formation is exposed over tens of meters, chip samples from a 2.5-3 metre thickness of sandstone contained values up to 960 ppm U₃O₈.

CAMEROON

Mega’s subsidiary, Nu Energy Corporation, has conducted detailed airborne magnetic-radiometric surveys over its Lolodorf and Kitongo concessions, which total 2000 km². The surveys, flown by New Resolution Geophysics (NRG) of South Africa, were conducted at a line spacing of 150 meters and sensor height of 30 meters. Data processing and initial ground follow up of radiometric anomalies are underway. Diamond drill rigs have been purchased and transported to Cameroon. It is anticipated that drilling of the Kitongo prospect will commence in October.

For more information:

Contact
Mega Uranium Ltd. 
The Exchange Tower 
130 King Street West, Suite 2500 
Toronto, ON
M5X 1A9 
Phone 416.643.7630 
Fax 416.941.1090 
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