SOURCE: Bayswater Uranium Corporation

August 07, 2008 07:15 ET

Bayswater's Drilling Further Expands Elkhorn Uranium Project, Wyoming

Preliminary Results for Final 152 Holes of Phase 3 Indicate Further Substantial Expansion of Mineralized Areas, Best Holes 22 Feet (6.7 m) at 0.05% eU3O8 & 33 Feet (10 m) at 0.045% eU3O8

VANCOUVER, BC--(Marketwire - August 7, 2008) - Bayswater Uranium Corporation (TSX-V: BAY), (PINKSHEETS: BYSWF) is pleased to announce preliminary results from the final 152 holes, including 29 core holes, from its Phase 3 drilling program at the Elkhorn Project in Wyoming. The Company drilled 312 holes including 11,073.5 meters (36,321 feet) around the historic Busfield Mine, which has a NI 43-101 indicated resource. Bayswater previously reported preliminary results on the first 160 holes drilled in a news release dated May 20, 2008.

Drill holes were located on 30.5 meter (100 ft) spaced lines, with 30.5 meters between holes on average, to expand the Busfield resource. Drilling tested the 1220 meter (4000 foot) long area between the Busfield mine and the Vickers mine which is located to the northwest. Drilling also tested the historic Quad, Clover and Tract 41 resource areas. The Busfield and Vickers mines produced approximately 69,000 pounds of uranium from near-surface, sandstone hosted deposits that were operated in 1956-57. The Company's subsidiary, NCA Nuclear Inc. completed Phase 1 and 2 drilling programs with 70 holes at the Busfield resource area in 2006, which defined a NI 43-101 compliant indicated uranium resource of 250,000 tonnes at 0.08 % for 397,000 lbs eU3O8.

Preliminary eU3O8 radiometric results have been compiled for the final 152 of the 312 Phase 3 holes. Drilling results have identified widespread mineralization, and the following results have been selected to demonstrate some of the best results obtained during the second half of the Phase 3 drill program. Drill logs and radiometric data have been evaluated resulting in identifying additional areas for resource expansion and exploration with potential for discovery of new resources. Consequently, a Phase 4 drill program has commenced and will be reported in a separate news release. The Company intends to have a revised NI 43-101 resource estimate for the project area prepared this fall.

The following significant intercepts from the final 152 holes have been received, based on a minimum 1.8 meter (6 feet) width and 0.02% eU3O8 cutoff:


---------------------------------------------------------------
                                                      Wt. Avg.
Hole I.D.         From (ft.)   To (ft.)    Width       Grade
---------         ----------   --------  ----------------------
                                         Feet Meters   eU3O8%
---------------------------------------------------------------
Busfield Phase 3
---------------------------------------------------------------
BSF-217               17          29      12   3.7      0.033
---------------------------------------------------------------
BSF-220                0          13      13   4.0      0.036
---------------------------------------------------------------
                      20          42      22   6.7      0.050
---------------------------------------------------------------
BSF-221               28          34       6   1.8      0.094
---------------------------------------------------------------
BSF-232               18          25       7   2.1      0.029
---------------------------------------------------------------
BSF-C-238             34          41       7   2.1      0.040
---------------------------------------------------------------
BSF-C-239             29          38       9   2.7      0.030
---------------------------------------------------------------
BSF-C-240              7          42      33  10.0      0.045
---------------------------------------------------------------
BSF-C-296             11          21      10   3.0      0.038
---------------------------------------------------------------
BSF-C-298             24          31       7   2.1      0.036
---------------------------------------------------------------
BSF-C-299             19          26       7   2.1      0.035
---------------------------------------------------------------
BSF-C-301             24          33       9   2.7      0.028
---------------------------------------------------------------
BSF-C-315             11          17       6   1.8      0.074
---------------------------------------------------------------
Vickers Phase 3
---------------------------------------------------------------
BSF-129               30          36       6   1.8      0.046
---------------------------------------------------------------
                      57          63       6   1.8      0.035
---------------------------------------------------------------
BSF-130               25          31       6   1.8      0.049
---------------------------------------------------------------
                      52          58       6   1.8      0.039
---------------------------------------------------------------
BSF-132               25          31       6   1.8      0.037
---------------------------------------------------------------
                      52          58       6   1.8      0.051
---------------------------------------------------------------
BSF-133               32          37       5   1.5      0.029
---------------------------------------------------------------
BSF-134               26          32       6   1.8      0.042
---------------------------------------------------------------
BSF-135               29          35       6   1.8      0.058
---------------------------------------------------------------
BSF-142               20          33      13   4.0      0.031
---------------------------------------------------------------
                      76          91      15   4.6      0.030
---------------------------------------------------------------
BSF-150               28          34       6   1.8      0.041
---------------------------------------------------------------
BSF-151               30          36       6   1.8      0.075
---------------------------------------------------------------
                      57          67      10   3.0      0.031
---------------------------------------------------------------
BSF-152               25          30       5   1.5      0.064
---------------------------------------------------------------
BSF-156               40          49       9   2.7      0.035
---------------------------------------------------------------
BSF-157               18          39      21   6.4      0.045
---------------------------------------------------------------
                      85         108      23   7.0      0.033
---------------------------------------------------------------
BSF-158               30          36       6   1.8      0.088
---------------------------------------------------------------
                      81         102      21   6.4      0.029
---------------------------------------------------------------
BSF-187               45          53       8   2.4      0.056
---------------------------------------------------------------
BSF-188               48          55       7   2.1      0.053
---------------------------------------------------------------
BSF-190               37          47      10   3.0      0.036
---------------------------------------------------------------
BSF-191               51          61      10   3.0      0.069
---------------------------------------------------------------
BSF-193               56          62       6   1.8      0.111
---------------------------------------------------------------
BSF-196               45          56      11   3.4      0.059
---------------------------------------------------------------
BSF-198               51          58       7   2.1      0.044
---------------------------------------------------------------
BSF-246               56          67      11   3.4      0.030
---------------------------------------------------------------
BSF-248               22          30       8   2.4      0.039
---------------------------------------------------------------
BSF-249               27          33       6   1.8      0.050
---------------------------------------------------------------
BSF-C-304             55          62       7   2.1      0.061
---------------------------------------------------------------
BSF-C-307             45          56      11   3.4      0.045
---------------------------------------------------------------
BSF-C-312             49          57       8   2.4      0.095
---------------------------------------------------------------
BSF-C-313             23          29       6   1.8      0.145
---------------------------------------------------------------
BSF-C-314             29          35       6   1.8      0.057
---------------------------------------------------------------
BSF-339               22          28       6   1.8      0.067
---------------------------------------------------------------
BSF-346               77          84       7   2.1      0.075
---------------------------------------------------------------
BSF-348               61          68       7   2.1      0.047
---------------------------------------------------------------
Clover Phase 3
---------------------------------------------------------------
BSF-206               30          41       11  3.4      0.076
---------------------------------------------------------------
BSF-207               25          35       10  3.0      0.058
---------------------------------------------------------------
BSF-210               23          32        9  2.7      0.023
---------------------------------------------------------------
BSF-211               70          79        9  2.7      0.051
---------------------------------------------------------------
                     114         134       20  6.1      0.028
---------------------------------------------------------------
BSF-213               38          48       10  3.0      0.023
---------------------------------------------------------------
                      57          67       10  3.0      0.070
---------------------------------------------------------------
BSF-352              110         117        7  2.1      0.053
---------------------------------------------------------------
BSF-353              136         150       14  4.3      0.024
---------------------------------------------------------------
BSF-354               98         104        6  1.8      0.049
---------------------------------------------------------------
BSF-355               92          98        6  1.8      0.070
---------------------------------------------------------------
BSF-356               85          91        6  1.8      0.034
---------------------------------------------------------------
BSF-357               77          83        6  1.8      0.054
---------------------------------------------------------------
BSF-C-360             19          28        9  2.7      0.033
---------------------------------------------------------------
BSF-C-361             68          76        8  2.4      0.073
---------------------------------------------------------------
BSF-C-362            107         116        9  2.7      0.068
---------------------------------------------------------------
Quad Phase 3
---------------------------------------------------------------
BSF-264               15          21        6  1.8      0.150
---------------------------------------------------------------
BSF-266                9          17        8  2.4      0.054
---------------------------------------------------------------
BSF-267               15          21        6  1.8      0.110
---------------------------------------------------------------
BSF-319                8          16        8  2.4      0.030
---------------------------------------------------------------
BSF-325               16          23        7  2.1      0.170
---------------------------------------------------------------
Includes h.g. zone:   17          20        3  0.9      0.360
---------------------------------------------------------------
BSF-329               15          21        6  1.8      0.030
---------------------------------------------------------------
BSF-332                6          14        8  2.4      0.030
---------------------------------------------------------------
BSF-334                7          16        9  2.7      0.030
Tract 41 Phase 3
T41-002              246         255        9  2.7      0.069
---------------------------------------------------------------

QA/QC: All drill holes were logged using down-hole gamma radiation sensing equipment to determine the equivalent uranium content of the rocks, reported as U3O8 (eU3O8). Intercepts were calculated, using a minimum width of 1.8 meters (6 feet) and a cut-off of 0.02% eU3O8. Radiometric data was collected on 0.03 meter intervals (0.1 feet) and converted to equivalent uranium content. No comparative geochemical uranium results are available at this time; however split core samples have been prepared from the core holes drilled and the geochemical results from the core samples will be reported once available and compared with the radiometric data to determine the equilibrium factor of the radiometric data. Pinyon Environmental Services of Denver Colorado was retained to obtain all drilling permits, and to manage all environmental and drilling operations. Drilling was conducted by Arrow Drilling of Arvada Colorado, using two air/rotary drills and one core drill. COLOG of Denver Colorado provided down-hole radiometric logging services.

The Company's exploration activities are conducted under the supervision of George M. Leary, M.Sc. P. Eng. (BC), President of the Company, and Victor Tanaka, B.Sc. P.Geo. (B.C.), Chief Operating Officer of the Company. Both are qualified persons under NI 43-101. George Leary is the qualified person responsible for the technical information in this news release.

About Elkhorn Project, Wyoming

The Elkhorn project is located in the northeastern Powder River Basin and contains over 16,700 acres of land held under Federal, State and Fee agreements. Three uranium mines are in production in this region, including the Smith Ranch-Highland uranium project and the Crow Butte mine, owned by Cameco (TSX: CCO), and the Christensen Ranch mine, owned by Cogema, all which employ "in-situ recovery" processes to recover uranium mineralization. Operating mines are exploiting uranium mineralization that occurs in concentrations that range from approximately 0.1 - 0.3% U3O8. At the Elkhorn project, uranium mineralization occurs in the Cretaceous Fall River Formation, hosted in fluvial sandstones at depths ranging from 0 - 135 feet (41.1 m). Drilling will also evaluate potential targets within the deeper Cretaceous Lakota Formation, which hosts significant historic uranium resources at the historic Hauber mine/deposit. The Hauber mine is located 7.5 miles (12.1 km) to the southwest and was operated by Homestake Mining Corporation during the 1950's during which time it produced an approximately 2.76 million pounds of uranium (U3O8). It is significant that the Hauber deposit, hosted in the Lakota Formation at depths of about 400 feet (122 m), has associated near surface uranium mineralization in the Fall River Formation-the host for the Busfield/Vickers/Quad mineralization. Additional drilling is planned by Bayswater on the Elkhorn Project following Phase 4 to further expand identified areas of mineralization and to test new target areas.

About Bayswater Uranium Corporation - The Super Junior™ Uranium Company

Bayswater Uranium Corporation is a rapidly-growing international uranium exploration and development company. As the only uranium company to have major landholdings in each of Canada's most important producing and exploration regions -- the Athabasca Basin, the Central Mineral Belt, and the Thelon Basin -- Bayswater is a leader in uranium exploration in Canada, the world's largest producer of uranium. The Company also owns several advanced uranium properties in the United States that are being fast tracked to feasibility and production. Bayswater combines a balanced portfolio of exploration and development projects with the uranium expertise of its technical and managerial teams. The result is a Super Junior™ Uranium Company with the share liquidity and market capitalization to provide value to both the retail and institutional investor. To capitalize on the strong growth of the nuclear industry and to continue to add shareholder value, Bayswater plans to focus on the development of its resource properties and to evaluate early stage projects for further discoveries. Other acquisition opportunities will continue to be assessed all with a corporate vision of building a major international uranium company. Bayswater is listed on the TSX Venture Exchange under the symbol "BAY." The Company's website is www.bayswateruranium.com.

On behalf of the Board of:

BAYSWATER URANIUM CORPORATION

George M. Leary
President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • For further information contact:

    John Gomez
    Manager, Investor Relations
    Telephone: (604) 687-2153