Bayswater Ventures Corp.

Bayswater Ventures Corp.

August 08, 2006 08:15 ET

Bayswater Announces Major Expansion of Land Holdings in Thelon Basin Uranium District, NWT/NU to a Total of 2.2 Million Acres

Thelon Basin is Analogous to the Prolific Athabasca Basin-The Number One Producer of Uranium in the World Targeting High Grade Unconformity Deposits

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 8, 2006) - Bayswater Ventures Corp. (TSX VENTURE:BVE) -


Exceptional New Targets Acquired With High Grade Uranium Occurrences with Assay Values of up to 14.7% U3O8, Radioactive and Uranium Bearing Boulder Trains, Radiometric Anomalies, Uranium Lake Sediment Anomalies, Favourable Basement Structures, Conductors and Host Rocks

Various Targets Adjoin Land Held by Cogema, Uravan Minerals, Cameco-Uravan JV, Ur-Energy and Uranium North Resources

Two Targets Located Along Strike the Kiggavik Trend of Uranium Deposits With Favourable Structural Setting and Radiometric Anomalies

Large Target Area Located Along South Thelon Basin Margin Associated with Favourable MacDonald Fault and Sub-Parallel Faults, High Grade Occurrences of Uranium and Uranium Lake Sediment Anomalies

Acquired Favourable Conductive Trend Southwest of the Boomerang Lake Uranium Occurrence

Large Target Area Acquired Along the Southeastern Margin and Internal Portion of South Thelon Basin Associated With Multiple Favourable Basement Structures Sub-Parallel to the Snowbird Tectonic Zone and Extensive Radioactive Boulder Trains, Uranium Lake Sediment Anomalies and Radiometric Anomalies (Land surrounds and adjoins claims held under JV with Strongbow and adjoins the large land area being explored by Pathfinder Resources under 80% option from Uranium North Resources)

Upon closing of the Merger with Pathfinder, Bayswater Uranium Corporation will have Uranium Interests in Approximately 3.56 million acres in the Thelon Basin

Bayswater Ventures Corp. (TSX VENTURE:BVE) (the "Company") is pleased to announce the completion of staking an additional 522,967 acres in five claim blocks in North Thelon Basin, Nunuvat; and an additional 1,077,743 acres in four claim blocks in South Thelon Basin, Northwest Territories. When combined with the Company's existing land holdings in Thelon Basin (see News Releases dated February 9 and April 26, 2006) these new mineral claims bring the Company's total land interests to 2,203,012 acres making Bayswater by far the largest land holder in the basin.

The acquisition of additional land in Thelon Basin has been guided by a recently completed data compilation of published government and available industry assessment reports and by the analysis and selection of favourable targets for unconformity type uranium deposits. The Company commissioned the acquisition of the new mineral claims subject to an April 13, 2006 agreement with an exploration services company based in Yellowknife.

The Company now has a huge land position in Thelon Basin-recognized as an analogous Proterozoic basin to the prolific Athabasca Basin, Saskatchewan. The Athabasca Basin hosts the world's largest and highest-grade unconformity type uranium deposits including McArthur River and Cigar Lake. In Thelon Basin, uranium mineralization is widespread within and peripheral to the basin. The most important deposits of the unconformity type discovered to date in the area are the Cogema Kiggavik Trend deposits along the southeastern margin of the northern part of the basin. These deposits contain a reported resource of approximately 131 million pounds of contained U3O8. Also, the Boomerang Lake uranium prospect of Uravan Minerals Inc. (TSX VENTURE:UVN), discovered in 1968 along the western margin of the southern part of the basin, was the first recognized unconformity type prospect in the Thelon Basin. It is characterized by a polymetallic association including uranium, gold, nickel, copper, cobalt and arsenic typical of some of the high grade deposits in Athabasca Basin; and is associated with a major northeasterly trending basement structure and zones of conductive basement sediments in the favourable Amer Group.

A location map of the Company's Thelon Basin properties is available on the Company's website at

Dominant Land Position in Three of Canada's Uranium Districts & Niger Pending

Further to Bayswater's recent announcement of a major land acquisition in Athabasca Basin (News Release dated July 26, 2006), this announcement of another huge land holding in the analogous Thelon Basin positions the Company with an even stronger land base for asset growth and increasing shareholder value. Bayswater's strategy of creating a leading uranium exploration company through strategic land acquisitions in key uranium districts is now well developed in Canada. We will continue to develop this strategy in other key uranium fields.

The Company's current uranium land holdings, held 100% by Bayswater except as noted, are summarized as follows:

Thelon Basin 1,707,566 acres (6911 sq km)
Thelon Basin (Bayswater 50%) 495,446 acres (2005 sq km)
Athabasca Basin 1,508,056 acres (6103 sq km)
Labrador Central Mineral Belt 989,128 acres (4003 sq km)
Tim Mersoi Basin, Niger Applications pending for up to 8000 sq km

Bayswater is now the only small-cap uranium explorer to have major landholdings in each of Canada's three most important uranium exploration regions: the Athabasca Basin, Saskatchewan, Central Mineral Belt, Labrador and the Thelon Basin, NWT & NU. Key elements of the Company's uranium land holdings in these regions are selective favourable geologic settings, proximity to known deposits and major prospects, demonstrated applicable exploration models and the underexplored nature of the holdings.

South Thelon Basin Properties

The South Thelon Basin properties include two large contiguous claim blocks-one along the northwestern margin of the basin comprising 377,048 acres (Northwest Block) 100% owned by Bayswater; and the second along and within the southeastern margin and interior part of the basin comprising 807,551 acres owned 100% by Bayswater and an additional 164,652 acres subject to a 50/50 joint venture with Strongbow Exploration Inc. (TSX VENTURE:SBW) for a total of 1,349,251 acres (collectively the Southeast Block). Depth to basement, based on published seismic studies, on these properties ranges from surface around the margins of the basin to depths of up to about 900 metres in the northern portion of the Southeast Block. This is well within the limits of deep penetrating EM systems that can assess basement rocks to depths in excess of 1000 meters for unconformity type uranium deposits. Companies exploring in the South Thelon Basin include the Cameco (TSX:CCO)/Uravan joint venture, Cogema, Ur-Energy (TSX:URE) and Pathfinder (TSX VENTURE:PHR)/Uranium North.

Northwest Block (377,048 acres): The Northwest Block is a north-south linear block of mineral claims extending over 127 km in length and ranging from 9 to 20 km in width. The Northwest Block, in its central portion, straddles the basin margin for 50 km in a north-northeasterly direction in a favourable area where the basin margin turns from north-south to north-northeasterly trending. This particular section of the basin margin is considered highly favourable as it parallels a north-northeasterly trending zone of major basement structures and is spatially associated with Amer Group sediments, two high grade uranium occurrences (including the Muskox Hill and Thelon River occurrences) at its northern end and intermittent uranium lake sediment anomalies along the basin margin for a distance of about 70 km. The Muskox Hill occurrence is on the Company's claims where previous work identified a hematized fracture zone in gneissic basement rocks close to the Thelon unconformity that assayed 14.68% U3O8 from one grab sample. The Thelon River occurrence is located on Ur-Energy ground 3 km to the southeast of the Muskox Hill occurrence. Uranium mineralization at Thelon River occurs in a narrow fracture zone in basement gneisses close to the Thelon unconformity. One section of this zone assayed 10.4% U3O8 across 5 metres. This 70 km favourable zone of interest is highly underexplored.

Another target of interest on the Northwest Block includes a high grade uranium occurrence (Hanbury) located at the northern end of the claim block spatially associated with the McDonald Fault structure. The Hanbury occurrence consists of numerous uranium bearing vuggy, brecciated and hematized basement rocks in a frost heaved area close to the Thelon unconformity. An assay of this material returned 5.27% U3O8. Although previous work has been done on this prospect no drilling was carried out. This uranium occurrence and general geological environment on this portion of the Northwest Block are highly prospective.

The Northwest Block also covers the favourable southwestern extension of the Boomerang Lake uranium occurrence, located on Uravan ground to the northeast. This extension is characterized by Amer Group equivalent rocks and conductive zones. Uravan-Cameco are actively exploring the northeastern extension of the Boomerang Lake occurrence setting.

Southeast Block (972,203 acres): The Southeast Block of claims covers an area measuring up to 80 by 90 km. It largely comprises ground internal to the basin but covers extensive areas outside the basin margin along its southeast side. The Southeast Block also encompasses ground previously staked under the Canada Uranium Joint Venture with Strongbow (see News Release dated April 26, 2006). Based on government magnetic surveying, the claim block covers a favourable zone of complex basement structure that is dominated by multiple northeasterly trending faults offset by northwesterly trending faults. This favourable structural zone lies between the Snowbird Tectonic Zone, that occurs outside the Thelon Basin area to the south and extends southwesterly to the Athabasca Basin, and the McDonald Fault and subparallel structures to the northwest, referred to above in reference to the Northwest Block. This favourable structural zone also occurs at least in part along the projection of favourable Amer Group rocks and their equivalents beneath the Thelon Basin that occur both to the southwest and northeast of the basin. The Southeast Block is also characterized by extensive uranium bearing boulders and radioactive boulder trains, particularly in its central and northwestern regions, by lake sediment uranium anomalies in its central and southeastern regions and by local radiometric anomalies in its southeastern and eastern portions. Within the southern end of the claim block a coincident lake sediment uranium anomaly and spatially associated radiometric anomaly occur in a region outside and marginal to the basin. This area of interest lies immediately south of a high grade uranium occurrence (Muskeg Lake) located within three km of the Company's claims on Ur-Energy ground. The Muskeg Lake occurrence is characterized by a intermittent east-west zone of fractured and hematized cataclastic gneisses with uranium assays from numerous grab samples of up to 5.4% U3O8. Proximity to the Thelon unconformity is evidenced by frequent sandstone boulders in the region. The aggregate of the favourable aspects of the Southeast Block indicate its favourablilty for unconformity type uranium deposits.

North Thelon Basin Properties

Land holdings totalling 853,761 acres in North Thelon Basin comprise two separate permit areas held under the Canada Uranium Joint Venture with Strongbow and five separate recently staked claim blocks held 100% by Bayswater. These properties are briefly described as follows:

Permit Area-1 (9 permits--290,743 acres): This permit area covers a central northeasterly trending region of exposed basement rocks, including favourable Amer Group sediments, and flanking Thelon sandstone along a portion of the Amer Fault Zone-the northeastern extension of the McDonald Fault in South Thelon Basin. This fault structure is a major northeasterly trending regional tectonic zone with the potential to provide a structural and stratigraphic trap for uranium mineralization. On the east flank of the basement high within the permit area are a number of radioactive boulder trains with various orientations related to different ice directions. Over 1400 radioactive boulders occur in one boulder train and individual trains have been followed for up to 4 km. In one boulder train, 32 boulders of radioactive, hematitic Thelon sandstone breccia were sampled and returned assays of up to 0.4% U3O8. Lithology of a number of breccia boulders suggests proximity to the Thelon unconformity. Numerous favourable conductive zones are known in the Amer Group in the region and are likely present within the permit area.

Permit Area-2 (1 permit--40,051 acres): This permit straddles the favourable Amer Fault Zone at the margin of the basin to the northeast of Permit Area-1. The permit is largely underlain by favourable Amer sediments. Several conductive zones are known in the Amer Group to the southwest of the permit.

Kiggavik Trend: The Kiggavik Trend deposits (Kiggavik, Andrew Lake and End deposits) are associated with radiometric highs and occur along a strong northeasterly trending magnetic linear that defines the southeastern margin of a regional magnetic high systematically offset by regional left-lateral northwesterly trending faults. The deposits are spatially associated with the southeastern margin of the Thelon Basin. They occur within quartz-hematite cemented breccias hosted in altered basement rocks. This model has been applied to the following land acquisitions along the potential southwestern extension of the Kiggavik Trend.

Southwest Kiggavik (200,714 acres): The target area acquired by staking covers a strong northeasterly trending magnetic linear and associated strong radiometric anomaly along strike the Kiggavik Trend located about 38 km southwest of the Andrew Lake and End deposits. The property occurs at the potential source area of an intermittent radioactive boulder train extending for 25 km northwest of the north boundary of the claims. Boulders give highly anomalous scintillometer counts of up to over 15,000 cps. They are widely distributed suggesting a significant source area. Glacial ice transport direction is to the northwest.

Central Kiggavik (72,918 acres): The target area acquired covers a strong northeasterly trending magnetic linear and associated radiometric anomaly along strike the Kiggavik Trend located about 8 km southwest of the Andrew Lake and End deposits.

Itza Lake (158,183 acres): The mineral claims acquired to cover this target area are underlain by favourable northeasterly trending Amer Group sediments that extend under the Thelon Basin sandstone exposed to the southwest across the southern portion of the property. Numerous radioactive boulders and radioactive boulder trains with assay values of up to 2.6% U3O8 occur to the northwest of the property indicating potential source areas within the Company's claims. The most notable radioactive boulder train occurs along a northwesterly trending esker that contains uranium bearing boulders with assays ranging from 0.10 to 0.98% U3O8 along an 18 km stretch of the esker that extends to the margins of a lake system within 6 km of our property boundary. Within our claims, in the region of the potential source of this boulder train, a conductive zone in Amer sediments returned one grab sample grading 0.25% U3O8 that is associated with a radiometric anomaly and another grab sample from Amer sediments, just outside the newly acquired claims, to the south near the Thelon unconformity returned 0.88% U3O8. Regional magnetics identify a major northeasterly trending basement fault structure within the Amer sediments extending for 35 km through the property.

Amer Lake West (79,283 acres): The target area acquired straddles the extension of the above described magnetic linear for 17 km in favourable Amer sediments. Several uranium occurrences are clustered in the central portion of the property along the north side of this magnetic linear of which the most notable returned a grab sample that assayed 8.48% U3O8. A strong east-west elongate radiometric anomaly is centered over the region of these occurrences and nearly extends the full length of the property.

Amer Lake East (11,869 acres): The target area staked consists of a series of five uranium occurrences with values of up to 0.46% U3O8 and 1.33% copper. The occurrences, mainly hosted in certain sandstone-siltstone horizons in Amer sediments, extend along an east-west strike direction for about 8 km along the extension of the above described magnetic linear. A radiometric anomaly is associated with the area of the occurrences. Outliers of Thelon sandstone are reported in this area indicating proximity to the Thelon Basin unconformity.

Exploration Plans

On the South Thelon Basin Properties the Company is planning two program approaches. One approach will be to evaluate near surface potential of the Thelon Basin margin and the other to evaluate the deep potential of internal portions of the Thelon Basin. Both approaches will be designed to evaluate the potential for unconformity type uranium deposits. On the Northwest Block and eastern portions of the Southeast Block along the basin margin, the Company is planning an airborne radiometric/magnetic survey with follow-up prospecting, mapping and ground geophysics as required to define drill targets. On the central portions of the Southeast Block the Company is planning a deep penetrating MegaTem survey to identify basement conductors and to follow-up with more detailed geophysical and geological surveys in order to identify drill targets. Additional capital will need to be raised in order to carry out these programs.

On the North Thelon Basin Properties the Company is planning an airborne radiometric/magnetic survey with follow-up prospecting, mapping and ground geophysics as required to define drill targets. Funding for this program will come from the Company's recently completed financing. The program is planned for this summer and fall.

Company's Obligations in Regards Newly Staked Claims

A staking fee of 520,297 common shares in Bayswater is payable to the exploration services company that staked the claims on behalf of the Company subject to the approval of the TSX Venture Exchange. Certain restrictions will apply to the trading of the shares.

About The Thelon Basin - The Thelon Basin is recognized for its geological similarities to the Athabasca Basin-the number one producer of uranium in the world from the worlds largest and highest grade unconformity type deposits. Thelon Basin is located about 350 km to the north of the Athabasca Basin. The Thelon Basin received limited exploration for unconformity type uranium deposits commencing in the late 1960's until the early 1980's and is currently receiving renewed interest. It remains highly underexplored compared to the Athabasca Basin and modern exploration techniques--particularly more advanced geophysical systems are only now being applied to the basin. For example, Pathfinder Resources is currently carrying out a MegaTem survey on a large land holding adjoining Bayswater in the southern part of the basin.

About Bayswater Ventures Corp. - Bayswater is a junior exploration company focused on developing uranium projects in Athabasca Basin, Saskatchewan, Labrador's Central Mineral Belt, northern Canada's Thelon Basin, and in Niger, West Africa. Bayswater is also exploring the Avoca Project in Ireland for base metals. In April 2006, Bayswater signed a Letter Agreement to merge with Pathfinder Resources Ltd. (TSX VENTURE:PHR). The merger is anticipated to close subsequent to shareholder meetings to approve the transaction on August 8, 2006. The combined company will have large land holdings in Canada's three major uranium districts and other key exploration regions. Bayswater is building asset and shareholder value through strategic land acquisitions in key uranium districts.

Bayswaters exploration activities are conducted under the supervision of George M. Leary, M.Sc. P. Eng. (BC), a qualified person under NI 43-101. 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 has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

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