SOURCE: Bayswater Uranium Corporation

October 29, 2007 08:20 ET

Drilling Leads to Major Uranium Discovery on Bayswater's Anna Lake Prospect, Central Mineral Belt Uranium Project, Labrador

VANCOUVER, BC--(Marketwire - October 29, 2007) -


Highlights

* Best drill intersection to date returns 40 meters grading 0.07% U3O8 and
  0.022% Mo (molybdenum)
* Hole to hole correlation establishes main uranium mineralized zone over a
  340 meter  strike length, 230 meter vertical depth and approximate true
  widths of up to 25 meters
* Deposit open in all directions
* Deposit is entirely blind-overburden covered with a veneer of glacial
  drift and boulders

Bayswater Uranium Corporation (TSX-V: BAY) (PINKSHEETS: BYSWF) is pleased to report a near surface uranium discovery with significant molybdenum credits from drilling on its Anna Lake Prospect located on the Company's 100% owned property in the Central Mineral Belt, Labrador. Drill results include an intersection in AL07-01 grading 0.07% U3O8 over 40 metres including 0.12% U3O8 over 5 metres and 0.15% U3O8 over 6.0 metres. Also, an approximate true width intersection from AL07-25 grades 0.05% U3O8 over 25.0 metres including 0.10% U3O8 over 2.0 meters and 0.11% U3O8 over 6.0 meters.

Mr. George Leary, President of Bayswater states, "The Company is very encouraged by the drill results from its Anna Lake property to date. This discovery is an excellent start for our first drill program in Labrador and on our Canadian holdings."

To date, 62 diamond drill holes totalling approximately 13,000 meters of core recovery have been completed on several of Bayswater's high priority targets identified during 2006. Uranium assay results have been received for 28 of 33 holes at the Anna Lake Uranium prospect, 12 of 13 holes for the Dandy and all holes for Stipec A, Stipec E and Kanairiktok Bay showings. Only partial results have been received for an ICP-42 multi-element suite. Additional results for the Anna Lake drilling are pending laboratory analysis.

Table 1 highlights drill results from the Anna Lake discovery to date.

Table 1 - Analytical Results - Uranium & Molybdenum Anna Lake Prospect

For Table 1, click on the link below or paste the link into your browser:

http://www.usetdas.com/maps/bay/BAYTable1Oct29.pdf

Based on drill results to date, the main mineralized zone consists of two moderate to steeply dipping, sub-parallel sheets that locally coalesce. The main zone along with numerous minor sub-parallel lenses and sheets contain significant uranium/molybdenum grades, show good hole to hole correlation, and can be delineated over a minimum strike length of 340 meters. Uranium intersections range between 1.0 and 25.0 meters in true thickness, grade between 0.02% U308 and 0.11% U3O8 and can be traced from surface to a vertical depth of 230 meters. Initial drill testing of the Anna Lake target appears to have encountered the mineralization in a down-dip orientation. The orientation of the drilling program was revised following the completion of drill hole AL07-08 in order to intersect the mineralization at an optimum angle. True widths of mineralized sections are unknown up to holes AL07-03. Subsequent to this, true widths are estimated from 80-95% of the core length of intersections. Currently, all holes are being drilled due west to test the north-south trending zone. Of the Anna Lake holes reported in this release, 19 were designed to cut the main mineralized zone. Seventeen of these holes hit significant mineralization for an 89% hit ratio.

The Anna Lake uranium mineralized zones occur within a poorly exposed area with a veneer of glacial drift and boulders. A 1.3 km long and 500 meter wide induced polarization/resistivity anomaly, which reflects a belt of north-south trending supracrustal rocks consisting of metasediments/metavolcanic units, was delineated from ground geophysical surveys this year. The IP/resistivity anomaly is characterized by a very distinctive and well defined zone of high chargeability and low resistivity. Sulphide content within the belt averages approximately 1% to 5% and occurs in the form of pyrite, non-magnetic pyrrhotite and lesser chalcopyrite. A large structural component to the Anna Lake deposit is also evident from ground and airborne magnetic data. Potassic alteration manifesting itself as biotite overprinting can be observed in varying degrees throughout the core samples. Uranium mineralization occurs predominantly within sulphidic, biotite/garnet schist along a possible structural contact with footwall quartz sericite schist and porphyroblastic hematized granite. The exact controls on uranium mineralization are not clearly understood. The zone remains open in all directions with many high priority geophysical, geochemical and radon gas targets remaining untested along the above mentioned IP anomaly and elsewhere on the grid area. The host rock units within the Anna Lake area are believed to be a part of the Aillik belt of supracrustal rocks associated with the Michelin, Kitts, Gear, Inda, Nash and other uranium deposits hosted in the Central Mineral Belt.

Mr. George Leary, President of Bayswater, states, "Although it is very early into the drill program, the cumulative widths and grades demonstrated along with the near surface nature and continuity of the mineralization, indicate that the Anna Lake deposit may be amenable to open pit mining. Excellent potential exists for expanding the deposit near surface and for discovery of higher grade zones at depth."

The deposit is entirely open along strike and to depth. The potential, as demonstrated on other deposits in the district, of a higher grade system at depth has yet to be evaluated. Additional drilling is planned to continue until mid-November and resume again in the early spring of 2008 from a base camp to be established on site at Anna Lake. A drill hole location map with drill hole sections will be available on the Bayswater website at www.bayswateruranium.com.

Additional results have also been received from the Dandy, Stipec River A, Stipec River E and Kanairiktok Bay uranium showings identified during the 2006 prospecting program. Results from drilling on the Stipec A (6 holes), Stipec E (3 holes) and Kanairiktok Bay (3 holes) showings returned no significant values of interest. Further geological work will be required to fully evaluate these surface showings. Drilling on the Dandy Uranium prospect has returned numerous low grade intersections of uranium. Table 2 summarizes the results from the Dandy drilling.

Table 2 - Analytical Results Dandy Prospect

For Table 2, click on the link below or paste the link into your browser:

http://www.usetdas.com/maps/bay/BAYTable2Oct29.pdf

Drill holes DS07-01 through to DS07-09 were collared in various locations in an attempt to intersect surficial zones of uranium mineralization. Holes DS07-10 to DS07-13 were designed to test the main Dandy uraniferous dike swarm that hosts abundant uranophane mineralization on surface. Mineralization at the Dandy prospect occurs within pegmatite dikes cutting dominantly quartzofeldspathic gneiss. The best intersection returned to date assayed 0.04% U308 over 5.0 meters from DS07-13. Surface uranium mineralization in the Dandy area is extensive over a 1.5 kilometer by 600 meter area. Surface samples returned U308 grades up to 0.18%. Further evaluation of this prospect will continue in 2008.

Currently, two rigs continue to drill on the main Anna Lake target. Detailed follow-up grid controlled work including soil sampling, induced polarization/resistivity and radon cup surveys have been completed over the Anna Lake prospect for 2007. Further ground magnetics surveys are ongoing. The radon cup survey targeted the Anna Lake grid along with selected reconnaissance lines over the Ghost Lake A, Ghost Lake B and a newly discovered uranium bearing sandstone boulder train identified in the Stipec River area as previously announced. Limited grid controlled surveys have also been completed over portions of the Stipec River prospects. In addition, airborne electromagnetic and radiometric surveys have been completed during the 2007 field season and results of this along with all prospecting work will be forthcoming in subsequent news releases as analytical and other data is reviewed and assessed.

Sample handling consists of shipping one half of split drill core samples to Activation Laboratories Ltd. sample preparation facility in Goose Bay, Labrador where the samples are crushed, pulverized and split. Sample pulps are then forwarded to Ancaster, Ontario for analyses. Uranium analysis is performed using the delayed neutron counting (DNC) method. A multi-element inductively coupled plasma mass spectrometry (ICP-42) is performed as well on all samples. Where uranium values exceed the upper limit of 1%, samples are re-assayed using X-ray fluorescence (XRF). A rigorous quality control/assurance program was instituted for the sampling and analytical work. Control samples, consisting of three separate standards were inserted in the sample stream approximately every 25 to 30 samples. To date, this program has shown that the analyses are reliable. The company intends to implement a more rigorous QA/QC program during its 2008 drilling program.

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 the Labrador Central Mineral Belt

The Central Mineral Belt of Labrador, Canada, located approximately 135 kilometers north of Goose Bay, has a long history of uranium and base metals exploration. Uranium was first discovered in the belt in the 1950's. With further exploration in the 1960's and 1970's and rising uranium prices, exploration in the region increased significantly and several uranium deposits were discovered including the Kitts, Michelin, Inda, Nash, Rainbow and Moran Lake deposits by Brinco. Today, exploration activity in the region is highlighted by resource drilling at the Michelin and Jacques Lake deposits by Aurora Energy Resources Inc. (TSX: AXU) and at the Moran Lake deposit by Crosshair Exploration & Mining Corp. (TSX-V: CXX). Collectively, approximately 100 million pounds of NI 43-101 compliant uranium resources have been reported in the Central Mineral Belt by Aurora and Crosshair, a figure that is expected to increase significantly in the coming years through increases to existing resources, as well as new uranium discoveries. Bayswater Uranium is the largest landholder in the Central Mineral Belt with interests in 4,626 sq km of strategic landholdings; Aurora controls about 800 sq km and Crosshair approximately 640 sq km. Bayswater is aggressively exploring several uranium targets within its landholdings with the objective of discovering new uranium resources.

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 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. 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

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

Contact Information

  • For further information contact:
    John Gomez
    Manager, Investor Relations
    Telephone: (604) 687-2153