Mega Update On Canadian Exploration
Mega Uranium Ltd. (TSX:MGA) has provided an update on its Canadian exploration. These activities represent a reinvigoration of its exploration work through drilling on two properties, acquiring an interest in a uranium property and planning further drilling on uranium properties in 2011.
Highlights
- Mega has entered into an option agreement with Cameco Corporation where Mega and Forum Uranium Corp may jointly earn a 60% interest in the North West Athabasca uranium property. Mega has commenced a 1,800 metre drill program on the Mustang Lake uranium property in the Central Mineral Belt of Labrador, which is part of a joint venture with Virginia Energy Resources Ltd.
- A 1,000 metre drill program is being carried out by Mega on its Greenwich Lake PGM property in Ontario.
- On the Byron Bay REE property, replicate sampling by Mega yielded a grab sample containing 8.85% TREO.
North West Athabasca Property - Uranium (Cameco Option)
Mega has entered into an option agreement with Cameco Corporation whereby Mega and Forum Uranium Corp may jointly earn a 60% interest in the 98 square kilometre North West Athabasca uranium property located on the northwestern margin of the Athabasca Basin, Saskatchewan. Mega and Forum view this property as having very good potential for the discovery of high grade unconformity style uranium deposits.
The property hosts a non NI 43-101 compliant historical resource (drilled to a depth of 50 metres) of 1.5 million pounds uranium grading 0.6% U3O8 in the Maurice Bay deposit, (source: Saskatchewan Industry and Resources, Miscellaneous Report 2003-7; Note: A Qualified Person (QP), as defined in NI 43-101, has not done sufficient work to classify this historical estimate as current mineral resources. Mega is not treating the historical estimate as current mineral resources, as defined in NI43-101, and thus the historical estimate should not be relied upon).
The deposit was discovered in 1977 by Uranerz Exploration and Mining Ltd., along with several other unconformity hosted showings. A showing in the northwest part of the property (Zone 2A) is basement hosted with grades of up to 5.68% U3O8 over 8.5 metres and requires further exploration.
Mega/Forum plan to test and expand the potential of the known mineralization and to locate new deposits using the latest in exploration techniques on a project that has seen most of its work in the late 70’s and early 80’s. Initially, five areas have been selected to be covered by a ground gravity survey starting in mid-March. Gravity surveys of this type are designed to identify zones of lower density hydrothermal alteration, which are typically in spatial association with uranium deposits in the Athabasca Basin. Drilling is scheduled for later this year on Zone 2A, plus other targets, including those generated from the gravity survey.
Cameco owns an 87.5% participating interest and Areva a 12.5% participating interest in the North West Athabasca property. Forum and Mega may jointly earn a 60% interest in the property by committing to $750,000 in exploration within 15 months of the closing date, and incurring additional optional expenditures of $250,000 by the second anniversary of the agreement and a further $3 million on or before the fourth anniversary of the agreement, for a total expenditure of $4 million. In addition, Forum and Mega must make option payments of $60,000 upon closing, $80,000 by the first anniversary, $110,000 by the second anniversary and $150,000 by the third anniversary, for a total of $400,000 in cash option payments.
Forum and Mega have entered into a 50:50 Joint Venture agreement to manage the exploration program during the earn-in period, with Forum as initial operator.
Maurice Point Property - Uranium (Forum Option)
Mega has terminated its option with Forum Uranium Ltd. on the Maurice Point property located on the northwestern edge of the Athabasca Basin adjacent to the North West Athabasca property.
Mustang Lake Property - Uranium (Virginia-Mega JV)
Mega has commenced a 1,800 metre diamond drill program (7 holes), designed to test a structural target beneath Mustang Lake. The target is within a structural zone containing Aillik Group volcanic stratigraphy interpreted to trend from Paladin’s Michelin uranium deposit (located 8 km to the southwest) through the Mustang Lake property.
The target lies within the core of a SW-plunging synform and is at the centre of a regional magnetic high which is considered prospective because known mineralized zones typically contain hematite and magnetite alteration. The target has known mineralization on either side with previous holes SP-06-10 intersecting 9.11 m of 0.11% U3O8 on the NW side of the target and ML-08-07 intersecting 4.3 m of 0.044% U3O8on the SE side. The project is part of a joint venture with Virginia Energy Resources Ltd. (Mega 66.69%: Virginia 33.31%).
Greenwich Lake Property - Ni, Cu, PGM (Mega)
Mega’s 100% owned Greenwich Lake property was originally acquired for its uranium potential but is now being explored for Nickel-Copper-Platinum Group Metals (Ni-Cu-PGM). The property is located northwest of Thunder Bay, Ontario and approximately 5 km to the east of Magma Metals Limited’s Ni-Cu-PGM discovery, which is an advanced platinum group metal exploration project with significant copper and nickel credits. The geological setting is interpreted to be analogous to that hosting the world-class Ni-Cu-PGM deposits of the Noril’sk-Talnakh region in Russia.
A 1,000 metre diamond drill program (6 holes) is currently being completed on two targets that are defined by sinuous magnetic highs coincident with weak EM anomalies.
Byron Bay Property - REE (Mega)
Prospecting and ground-radiometric surveying in 2010 resulted in the discovery of additional REE mineralization at Mega’s wholly-owned Byron Bay Property in eastern Labrador, in an area that was originally explored for uranium. A replicate sample from the 2009 discovery outcrop (Mega Uranium Ltd., press release January 12th, 2010) yielded a sample containing 8.85% TREO(1) (Total Rare Earth Element Oxide), including 1.83% La2O3, 4.02% Ce2O3, 0.48% Pr2O3, 1.74% Nd2O3, 0.29% Sm2O3 and 0.20% Y2O3. All other REE oxide amounts in this sample ranged from 0% to 0.18%. REE mineralization is hosted by monzodiorite to granodiorite and the primary REE carrier phase is monazite, as identified by scanning electron microscopy. A total of 14grab samples were taken from an exposed zone 200 metres by 400 metres and 5 of these samples exceeded 1% TREO. The other samples ranged from 0.014-0.33% TREO. ((1)TREO is defined as rare earth elements, calculated as oxides, including lanthanum to lutetium plus yttrium.)
Analysis of Rare Earth Elements was carried out by Actlabs (Ancaster, Ontario) which is an ISO/IEC17025 and CAN-P-1579 accredited laboratory. All samples were analysed using Actlab’s Rare Earth Element- Niobium- Zirconium- Yttrium- Tantalum- Uranium- Thorium- Beryllium- Phosphate- Tin Assay ICP and ICP/MS Package. Sampling was conducted in accordance with NI 43-101 as well as the Mineral Exploration Standards implemented by the Nunatsiavut Government of Labrador. Mega includes regular standards and locally obtained blanks in its sample submissions.
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 www.megauranium.com. Mega Uranium’s uranium properties in Queensland, Australia, including without limitation Ben Lomond and Maureen, are subject to a State policy which presently prohibits the mining of uranium.
Posted March 8, 2011
