Bayswater Ventures Corp.

Bayswater Ventures Corp.

January 16, 2006 12:13 ET

Bayswater Acquires Additional Huge Land Position in Labrador Uranium Central Mineral Belt

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2006) - Bayswater Ventures Corp. (TSX VENTURE:BVE) (the "Company") is pleased to announce that it has staked an additional 9984 claims in two separate blocks in the uranium district of the Central Mineral Belt Labrador. This additional ground brings the Companies land holding in this important uranium district to a total of 13,365 claims or 3341 sq km. Bayswater is now by far the largest land holder in the region.

The new claim blocks cover two large regional uranium lake sediment anomalies that are juxtaposed the known uranium district on the north. The anomalies are west of and trend sub-parallel to the northeasterly trending eastern portion of the uranium district that contains most of the known major deposits and prospects in the district, including the Michelin deposit and the Otter Lake and Jacques Lake prospects of Fronteer-Altius.

Expanded North Claim Block--Geological Setting

The largest of the two newly staked claim blocks adjoins the Companies previously announced "North Claim Block"; and, in addition to the above geochemical anomaly to the north, also covers a portion of the favourable geologic environment for extensions of the Moran Lake deposit setting in volcanics and sediments to the east-northeast and for extensions of the Melody Hill prospect setting in granitic rocks to the west-southwest. Numerous copper occurrences are present in the southwestern corner of the new claim block closely associated with these favourable geologic environments. To the north, the anomaly is centered over a large northeasterly trending elongate proterozoic intrusive body. The intrusive is a highly differentiated syntectonic to post tectonic foliated diorite to massive granite body emplaced into gneissic rocks. The body is characterized by a syntectonic migmatitic outer contact zone, an outer multiphase shell that is inclusion-rich and a post tectonic core of grey to pink granite. The body contains abundant accessory mineral phases including zircon, allanite and sphene--mineral phases that potentially have associated high contents of uranium, thorium and rare earth elements and that are commonly associated with uranium mineralization in granitic rocks. The uranium lake sediment anomaly associated with this granitic body measures 80 kms long by 25 kms wide. The Companies claims cover all of this highly favourable target.

Northwest Claim Block--Geological Setting

The other newly staked claim block ("Northwest Claim Block") adjoins competitive staking on the north at the west end of the uranium district, north of the Moran Lake deposit of Crosshair, and covers the bulk of an arcuate north-south to northeasterly trending uranium anomaly measuring 65 kms long by 10 to 15 kms wide. The anomaly in the south is localized along the probably faulted eastern margin of a north-south trending granitic body and in the central and northeast portions is associated with a cluster of granodioite to granite bodies that form the indicated west, northwest and northern portion of a possible intrusive ring structure. These intrusive rocks are currently mapped as Archean in age and are emplaced into gneissic rocks. However, they may be proterozoic,, at least in part, as indicated by their geochemical signature and field relations as compared to other granitic plutons in this region. The Companies claims cover all the anomalous portion of this potential ring structure, an arcuate area measuring 50 kms long by 10 to 15 kms wide, as well as several copper, nickel, molybdenum and pyrite occurrences and prospects.

Geochemical Signatures of Anomalies Recently Staked

The above described two large regional lake sediment anomalies, recently staked by the Company, show anomalous uranium values (ranging from 10 to 141 ppm with widespread highly anomalous sample sites with values over 20 ppm and locally over 50 ppm) with homogeneity and tenor very similar to the regional anomalies associated with the currently known uranium district and its specific deposits and prospects. In addition, the uranium anomalies have associated more localized anomalous signatures and patterns of multi-elements, including copper, iron, manganese, silver, lead, molybdenum, arsenic, fluorine and the light rare earth elements--including lanthanum and cerium, that are also typical of known deposits and prospects in the area. These anomalous multielement geochemical signatures indicate the presence of several potentially very large (i.e. over 100's of sq km and possibly up to 1000 sq km or more) and separate hydrothermal systems and/or magmatic-hydrothermal differentiated systems in the district.

Structural Setting of Anomalies Recently Staked and of the CMB Uranium District

Both of the newly staked anomalous areas, as indicated by the regional geology and more particularly by airborne magnetic survey data, are associated with intersecting faults and lineaments that reflect the unique structural setting of the district. That is--the district, based on known deposits and prospects and the distribution of uranium in lake sediments, is a southerly facing curvilinear belt localized along and north of the leading edge of the southerly dipping imbricate thrust sheets of the Grenville Province to the south with three northerly splayed zones that occur along and adjacent primarily to northeasterly trending major structures juxtaposed to the north of the leading edge of the Grenville thrust faults. These northeasterly trending structures separate and subdivide the Churchill, Nain and Makkovik Provinces on the north. In particular, the airborne magnetic patterns for the two anomalies recently staked and also for the known region of uranium deposits and prospects show four dominant structural trends. These consist of the southerly facing curvilinear faults and lineaments associated with the southerly dipping thrust sheets along the southern margin of the district and three intersecting sets of lineaments and faults to the north. These latter structural trends consist of a dominant northeasterly trending set associated with boundaries and subdivisions of the Nain and Makkovik Provinces and subsets that permeate the district trending north-south (this also is the structural trend of the boundary of the Churchill and Nain Provinces on the west of the district) and west-northwest. The known areas of uranium deposits and prospects in the district as well as the two large targets staked recently by the Company are characterized by intersecting patterns of these structures and lineaments. North of the leading edge of thrust faulting these three structural patterns dominate.

Unique Geologic Characteristics of the Known CMB Uranium Deposits and Modeling

Within the historic uranium district, uranium mineralization in known deposits and prospects is characteristically associated with iron oxide minerals and is typically hosted in volcanic breccias spatially associated with granitic intrusive contacts and/or fault structures. The documented coeval intrusive-volcanic relationship of two or more plutonic-volcanic cycles in the district and the high level nature of the granitic bodies as well as the presence of complex intersecting major structural patterns and the anomalous multi-element geochemical signatures associated with the deposits and prospects indicates that the known uranium district and its deposits best fit the IOCG (Iron oxide-copper-gold) model--of which the Olympic Dam deposit in Australia is the largest and best example.

Olympic Dam--IOCG Model

The Olympic Dam deposit is a large hydrothermal deposit associated with a regional graben structure superimposed on a high level proterozoic granite. Mineralization is characterized by copper, uranium, gold, silver and light rare earth minerals in hydraulic brecciated granite that is manifest by granite diatreme breccias and by granite and polymictic lateral breccias in the graben basin, including breccias with sedimentary fragments. The deposit contains extensive iron oxides and is associated with a large hydothermal alteration system. It is localized at the intersection of major structures and lineaments and has an associated magnetic and gravity anomaly. Coeval felsic volcanics occur in close proximity to the Olympic Dam deposit; however, the main volcanic center over the granitic body has likely been removed by erosion. Source of the hydrothermal system is indicated to be from a separate but related granitic phase at depth beneath the host granite. The age of the Olympic Dam host rocks and deposit are the same; and, are comparable to the ages of the Central Mineral Belt uranium district and its associated proterozoic rocks. Uranium mineralization of the IOCG model in volcanic rocks that comprise the edifices of plutonic bodies at depth, typically consists of iron oxide enriched tabular stratabound and discordant bodies of which the known deposits and prospects in the CMB uranium district are examples. The Olympic Dam deposit has a resource of 3.8 billion tonnes grading 1.1% copper, 0.04% uranium, 3.0 g/t silver and 0.50 g/t gold. It is the world's largest uranium resource.

Rossing--Granite Model

In addition to the classic Olympic Dam-IOCG model as described above, the Rossing disseminated magmatic deposit in Namibia, operated by Rio Tinto, and other similar deposits in Africa and Australia provide a model that can also be applied to the Central Mineral Belt uranium district. The Rossing deposit is characterized by disseminated uranium mineralization (dominantly uraninite) in late proterozoic to early paleozoic late to post tectonic alaskite bodies emplaced peripherally to larger granitic bodies-one of which, that the Rossing alaskite is more closely associated, is comprised of radiometrically anomalous red granites. The uranium bearing alaskites occur in and around structural domes in areas of high grade metamorphism within a migmatite zone. The alaskites and associated granites are emplaced into metamorphosed and deformed gneissic platformal rocks. Mineralized alaskite bodies contain accessory monazite, zircon, apatite and sphene that are all closely associated with uranium mineralization. Copper sulphides, molybdenite, arsenopyrite, iron oxides and fluorite are often associated with the ore. Rossing is the largest deposit of its class in the world and is the fifth largest producer of uranium in the world. The deposit is reported to have contained an original reserve of about 200,000 tonnes (440 million pounds) U3O8 grading 0.035% U3O8. The uranium grade is basically the same as Olympic Dam but lacks the copper, gold and silver. The deposit and others in its class are considered to possibly represent the deeper geologic equivalents of the higher level Olympic Dam-IOCG model. Therefore, the two models can both be applied in certain uranium districts.

Application of the Olympic Dam and Rossing Models to the Company's Claims

The Company considers that the recently acquired claims can be explored with the application of both the high level Olympic Dam-IOCG model and the deeper level Rossing-Granite model. However, its previously announced claims are considered to be best explored with the application of the Olympic Dam-IOCG model.

Within these newly acquired areas certain characteristic features indicate that the Olympic Dam-IOCG model and the Rossing-Granite model are both applicable. These features include the intrusive setting and character of the intrusive bodies, intersecting patterns of major structural faults and lineaments, the size, tenor and nature of the uranium anomalies and the associated anomalous multi-element signature patterns in lake sediments. Also, the geologic settings and character of known uranium mineralization in the district and its juxtaposition to these targets indicates potential for similar discoveries. Olympic Dam-IOCG type mineralization discovered to date in the CMB uranium district is largely contained within the volcanic carapaces. Only limited exploration in the district has not been carried out within the associated coeval high level granitic bodies. However, the potential for deposits in granitic rocks within the Central Mineral Belt uranium district is demonstrated by the granite hosted Melody Hill uranium prospect of Fronteer-Altius; and, also by the presence of several local uranium occurrences distributed throughout the district within granitic rocks. The Melody Hill prospect is characterized by a high-grade boulder train with samples assaying up to 28.2% U3O8--the best grades in the district. A historic drill hole from this prospect returned 0.14% U3O8 over 6.0 metres. This target is one of the reported best targets of Fronteer-Altius for further follow-up work. These newly acquire targets of the Company offer potential for discovery for both Olympic Dam-IOCG and Rossing-Granite type mineralization.

Within the Companies previously announced staked claim blocks, that adjoin Crosshair on the east and Fronteer-Altius and Santoy on the west and south, the IOCG model and in particular the Olympic Dam granite hosted model is considered the most applicable. The reasons for this are primarily the coeval nature of the volcanic and intrusive rocks in this portion of the district and the geologic extensions covered on the Company's claims adjoining known deposits and prospects. The Company believes that potential for high level granite hosted deposits as well as volcanic hosted deposits exists on these prior acquired claims.

Exploration Plans

The Company plans to compile all available data on its land holdings and to conduct a program of airborne radiometric and magnetic surveying this spring once the snow is off the ground. Follow-up sampling, prospecting, geophysics and drilling are planned commencing in the spring and summer of 2006.

The Labrador Uranium Assets of the Company

Based on the quality and size of targets acquired by the Company; and, on the exploration success as announced by Fronteer-Altius on expansion of the Michelin resource and on significant positive developments on other prospects in the district-the Company deems its land holdings in the Labrador Central Mineral Belt to be very valuable. It therefore will be moving ahead aggressively to develop its land holdings.

Companies Obligations in regards the Newly Staked Claims

A net smelter royalty (NSR) of 1% will be payable on each of the claim blocks. The Company has the right to purchase all of the NSR (1%) at any time for $2,000,000. A staking fee to the staker is also payable subject to the approval of the TSX Venture Exchange.

George M. Leary, president of the Company, is the qualified person responsible for the technical information in this news release.


George M. Leary, President

Warning: The Company relies upon litigation protection for "forward-looking" statements.

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

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