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Mega Uranium partner Aura Energy discovers uranium channel in reconnaissance drilling at Junction, Australia

Published: 06:00 11 Aug 2009 AEST

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Mega Uranium Ltd (TSX: MGA) said its joint venture partner Aura Energy Ltd (ASX: AEE) has intersected a uranium-bearing palaeochannel in its initial, widely spaced, reconnaissance drill testing of the Junction tenements in the Gunbarrel Basin of Western Australia.

The best intersection was 2 meters at 147 part per million triuranium octoxide at hole JUAC020.
The drilling program comprised 30 aircore holes, a total of 2,225 meters, drilled at 300-400 meter intervals on six lines transecting the interpreted location of the palaeochannel.

At the northern end of line 5, JUAC020 intersected 14 meters of elevated uranium values, with three intervals, each of one meter thickness, containing greater than 100 ppm eU3O8. Samples from the hole have been submitted for geochemical assay.

The groups are planning a detailed follow-up drilling program to investigate the palaeochannel in the vicinity of hole JUAC020.

Mega Uranium’s president Stewart Taylor commented: "This is an excellent result from a first pass reconnaissance drill test of the Junction palaeochannel in view of the large extent of the target area.

The Gunbarrel Basin, located east of the Archaean Yilgarn Block, contains a large endowment of sediment-hosted uranium mineralization, but is significantly less explored than the other major uranium provinces of Australia, Mega Uranium said.

The largest known deposit in the region, Mulga Rock, held by the Energy and Minerals Australia Ltd (ASX: EMA), is reported to contain 54 million pounds U3O8 at a 200ppm U3O8 cut-off. Aura's properties comprise 11 granted exploration licences with a total area of 2,476 square kilometers and cover extensive portions of three of the four main palaeochannels in the region.

Under a December 2006 agreement, Mega can earn a 50 percent interest in Aura's properties through expenditure of A$3 million within three years. Mega then has the option to increase to 70 percent through additional expenditure of A$3 million over a further 18 month period.

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