Bayswater Uranium Corporation
TSX VENTURE : BYU
PINKSHEETS : BYSWF

Bayswater Uranium Corporation

February 15, 2012 08:00 ET

AUC LLC, an Affiliate of Bayswater, Completes 70 Additional Drill Holes at Reno Creek Uranium Project, Wyoming

Drilling Identifies Mineralized Extensions to Known Resources in the Southwest Portion of the Reno Creek Deposit

Best Hole Intersects 38.5 Feet Grading 0.068% eU3O8 Including an Intercept of 18 Feet at 0.09% eU3O8 in Hole RC0284

License Applications and Mining Permits for an In-Situ Recovery ("ISR") Project to be Submitted Early in the 2nd Quarter of 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 15, 2012) - Bayswater Uranium Corporation (TSX VENTURE:BYU)(PINKSHEETS:BYSWF) is pleased to report that AUC LLC ("AUC"), an affiliate that holds the Reno Creek properties and operator of the Reno Creek Uranium Project, has drilled an additional 70 holes to complete its 350 hole 2011 delineation drilling program at the Reno Creek project located in Campbell County, Wyoming. In addition, AUC plans to submit permit applications in the 2nd quarter of 2012 to the U.S. Nuclear Regulatory Commission ("NRC") for a Source Materials License and to the Wyoming Department of Environmental Quality ("WDEQ") for a Permit to Mine uranium at the Reno Creek site now that it has completed baseline environmental work as previously reported.

The recently completed 70 holes, that formed a portion of the 2011 drilling program, were principally designed as step-out holes to test along the strike of identified mineralization in at least three separate roll front systems in the southwest Reno Creek area. Highlights of this drilling phase are as follows:

  • Drilling defined significant uranium intercepts utilizing cutoff grades of greater than or equal to 0.03% eU3O8 and grade-thickness values of greater than or equal to 0.20. Drill holes intercepts that meet or exceed the cutoff, as stated, are summarized in the table below.
  • Nearly 80% of the drill holes encountered mineralization exceeding the listed grade/GT cutoffs.
  • The best hole intersected 38.5 feet grading 0.068% eU3O8 for a grade/thickness ("GT") interval of 2.63, including an intercept of 18 feet grading 0.09% eU3O8 for a GT of 1.62.

AUC's 2011 drilling campaign included 350 holes for a total of 141,000 feet of drilling in the southwest Reno Creek area, including 7 core holes and 2 re-entries of historical holes.

SUMMARY OF INTERCEPTS GRADING ≥ 0.03% eU3O8 WITH GT ≥ 0.20
2011 DRILLING PROGRAM
Drilling in Southwest Reno Creek Area
Hole
ID
Depth to
Intercept
Top
(Feet)
Intercept
Thickness
(Feet)
Grade
(%eU3O8)
Intercept
GT
(feet
%eU3O8)
RC0283 321.0 20.0 0.043 0.860
RC0284 234.5 18.0 0.090 1.620
RC0284 320.5 6.0 0.047 0.282
RC0284 346.0 8.5 0.064 0.544
RC0285 236.5 11.0 0.035 0.385
RC0286 328.5 5.5 0.042 0.231
RC0287 210.0 23.5 0.034 0.799
RC0288 204.5 15.5 0.034 0.527
RC0295 232.5 7.0 0.034 0.238
RC0296 258.5 7.5 0.037 0.278
RC0297 270.0 10.5 0.042 0.441
RC0298 267.0 16.0 0.039 0.624
RC0298 310.5 16.5 0.044 0.726
RC0302 263.5 9.0 0.068 0.612
RC0302 280.0 17.0 0.066 1.122
RC0303 267.5 16.5 0.042 0.693
RC0303 304.5 9.5 0.050 0.475
RC0304 282.5 21.0 0.083 1.743
RC0309 288.5 5.0 0.058 0.290
RC0309 296.0 15.0 0.047 0.705
RC0309 319.5 4.5 0.049 0.221
RC0310 281.0 6.5 0.033 0.215
RC0310 296.5 10.0 0.042 0.420
RC0310 313.0 13.5 0.039 0.527
RC0311 299.0 7.5 0.036 0.270
RC0311 317.0 8.0 0.036 0.288
RC0313 335.5 6.0 0.041 0.246
RC0314 327.5 9.5 0.035 0.333
RC0314 349.0 9.0 0.039 0.351
RC0315 343.5 9.0 0.099 0.891
RC0316 240.0 4.5 0.032 0.144
RC0316 319.5 14.0 0.049 0.686
RC0316 338.0 9.5 0.060 0.570
RC0318 310.0 10.5 0.030 0.315
RC0318 324.5 13.0 0.041 0.533
RC0319 206.5 10.5 0.057 0.599
RC0321 270.0 5.5 0.045 0.248
RC0323 318.5 11.5 0.035 0.403
RC0324 263.5 10.0 0.056 0.560
RC0324 301.5 8.0 0.042 0.336
RC0325 298.5 14.0 0.093 1.302
RC0325 316.0 22.5 0.042 0.945
RC0326 261.0 10.0 0.034 0.340
RC0326 295.0 9.5 0.036 0.342
RC0328 307.5 13.0 0.030 0.390
RC0329 309.0 9.5 0.067 0.637
RC0330 342.5 12.0 0.094 1.128
RC0331 345.5 7.5 0.042 0.315
RC0332 346.0 12.0 0.044 0.528
RC0333 320.5 7.0 0.031 0.217
RC0334 257.5 21.0 0.031 0.651
RC0335 335.0 6.0 0.043 0.258
RC0336 309.5 8.5 0.160 1.360
RC0339 330.0 10.0 0.072 0.720
RC0340 253.5 9.5 0.030 0.285
RC0340 318.5 11.0 0.032 0.352
RC0341 265.0 9.0 0.049 0.441
RC0341 308.0 10.0 0.093 0.930
RC0341 319.0 5.5 0.077 0.424
RC0342 245.5 27.0 0.035 0.945
RC0344 344.0 9.5 0.046 0.437
RC0345 328.0 6.5 0.085 0.553
RC0346 320.0 9.5 0.030 0.285

With completion of environmental baseline studies, AUC is finalizing applications for a Source Materials License to the NRC and a Permit to Mine to the WDEQ. In order to optimize the quality and effectiveness of the applications, AUC elected to initiate a collaborative, publicly open procedure with the NRC during November 15-17, 2011, called a Pre-Submission Audit. NRC staff traveled to the Reno Creek Project site and toured the proposed project development area. NRC staff then reviewed the draft application, including both the Technical Report and Environmental Report, in detail, to determine the application's general level of completeness. NRC staff found the documents very thorough and identified specific sections of the document whose enhancements could significantly reduce future Requests for Additional Information during the technical review phase. NRC's comments are now being incorporated into the final applications. Key findings of environmental baseline work are as follows:

  • The mineralized Production Zone sandstone horizon is physically confined above and below by a low permeability shale or mudstone across the entire project area. Detailed core testing of these mudstone aquitards has revealed very low permeability ranging from 0.0005 to 0.0009 millidarcies.
  • The four multi-well pump tests completed, document that the hydrologic conditions such as permeability and transmissivity are within the normal operating ranges exhibited at existing commercial ISR production facilities in Wyoming and neighbouring states as well as for projects under on-going permitting or recently permitted for production in Wyoming.
  • No hydrologic communication has been detected between the mineralized production sandstone and the underlying and overlying aquifers in the area of pump testing. This finding also confirms that there is no evidence of hydrologic leakage or communication through historical drill holes.

AUC's plans for 2012 include drilling of up to 550 exploration and delineation holes on various Reno Creek area properties, continuing its permitting activities with the NRC and the WDEQ, preparation of an updated NI 43-101 Resource Report, and preparation of a NI 43-101 compliant Prefeasibility Study/Preliminary Economic Analysis. In addition during 2012, the Company intends to commence engineering and design of the Production Units and Central Process Plant. AUC's total budget during 2012 is approximately $8.0 million (US) that has been fully funded by Pacific Road Resources Funds. The 2012 drilling campaign will commence in March, 2012.

Bayswater and Pacific Road Resources Funds ("PRRF") are developing the Reno Creek Uranium Project through Reno Creek Holdings Inc. ("RCHI"), which owns 100% of the Project through RCHI's wholly owned subsidiary AUC. Bayswater currently has a 13.47% interest in RCHI. PRRF is entitled to convert its investment in RCHI into common shares of Bayswater at any time up to six months following the later of completion of a feasibility study or receipt of all requisite mining permits, but in any event PRRF shall convert its investment not later than April 7, 2015, provided certain conditions are met. Upon conversion of PRRF's investment, Bayswater will own a 100% interest in RCHI which holds the Reno Creek property.

The Company's exploration activities are conducted under the supervision of George M. Leary, M.Sc., P. Eng. (B.C.), President of the Company, and Victor Tanaka, B.Sc., P.Geo. (B.C.), Executive VP and 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 Bayswater Uranium Corporation - The Super Junior Uranium Company

Bayswater Uranium Corporation is an international uranium exploration and development company. The Company owns several advanced uranium properties in the United States with significant NI 43-101 compliant and historical resources that may be amenable to ISR and/or conventional mining. Bayswater's focus is to develop the Reno Creek Project in Wyoming to production in the shortest time frame possible. The Company's Elkhorn/Alzada Project, located approximately 100 miles northeast of Reno Creek, is being advanced as a complementary or stand alone project for future potential production. As well, Bayswater is the only uranium company to have strategic landholdings in each of Canada's most important producing and exploration regions - the Athabasca Basin, the Central Mineral Belt, and the Thelon Basin. Bayswater combines a balanced portfolio of advanced and exploration projects with the uranium expertise of its technical and managerial teams. To capitalize on the strong growth of the nuclear industry, the Company will continue to pursue acquisition opportunities of advanced-stage uranium projects with production potential. Bayswater's vision is to build a major international uranium company. Shares of the Company are listed on the TSX Venture Exchange under the symbol "BYU". For further information visit www.bayswateruranium.com.

About Pacific Road Resources Funds and Pacific Road Capital Management Pty Limited

The Pacific Road Resources Funds are private equity funds investing in the global mining industry. They provide expansion and buyout capital for mining projects, mining related infrastructure and mining services businesses located throughout resource-rich regions of the world. The Pacific Road Resources Funds are managed and advised by Pacific Road Capital Management Pty Ltd ("PRCM"). The PRCM team, located in Sydney, Australia, San Francisco and New York, USA, is comprised of experienced mining investment professionals that have extensive knowledge and experience in the mining and infrastructure sectors, including considerable operating, project development, transactional and investment banking experience. For further information on the Pacific Road Resources Funds and PRCM, please go to their website at www.pacroad.com.au.

On behalf of the Board of:

BAYSWATER URANIUM CORPORATION

George M. Leary, President

Statements in this news release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration, development and mining. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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