SOURCE: Bayswater Uranium Corporation

November 08, 2006 08:15 ET

Bayswater Discovers Large Potential Uranium Source in Labrador

VANCOUVER, BC -- (MARKET WIRE) -- November 8, 2006 -- Bayswater Uranium Corporation (TSX-V: BAY) is pleased to report the discovery of bedrock uranium mineralization at the north eastern end of its 20-kilometre-long Stomach Lake radioactive boulder train. This new discovery area probably represents the main source of the boulder train, which has returned grab sample assay results as high as 0.232% U3O8. In addition, the Company has extended the Stipec River Trend of uranium bedrock discoveries 4 kilometres to the northeast by discovery of a fifth zone (Stipec River Zone E) that is similar to Stipec River Zone A as previously reported. The Company now has 12 uranium prospects/targets and 1 light rare earth element mineralized area of interest within its extensive Labrador land holdings.

This winter, the Company plans on carrying out ground EM surveying over the Stipec River, Anna Lake, Ghost Lake and other radiometric targets to assist in further defining drill targets. Also, following a thorough review and interpretation of all results from its 2006 field program which is currently underway, the Company is planning additional follow-up prospecting of numerous radiometric targets and on a number of its uranium prospects next summer in order to define additional drill targets. Additional assay results are still pending from this summers work. Based on the need for this additional work to complete drill targeting, the Company has deferred the start of reconnaissance drilling until March/April of 2007.

Highlights of recent results from the Company's Labrador Uranium Program are as follows:

Stomach Lake Zone A Prospect:

A radioactive felsic pegmatite dyke swarm emplaced into banded gneissic rocks has been identified in bedrock associated with a topographic high at the northeast end of the large radiometric anomaly outlined in the airborne radiometric survey. Individual dykes have been noted up to 50 meters in width. This potential bedrock source area correlates with the majority of radioactive boulders in the extensive Stomach Lake radioactive boulder train. It consists of an exposed series of dyke swarms across several hundred metres in width that can be traced for up to 300 m along strike. Scintillometer readings on boulders of this granitic material within the train and from exposed dykes range from 1000 to 13,000 counts per second with handheld spectrometer readings ranging from 0.04% to 0.15% U. Grab samples taken from float within the boulder train typically grade 0.061% to 0.232% U3O8. Assay results from samples collected on the outcrop source area are pending and expected shortly. This Rossing type target warrants further detailed work and drill testing.

Dandy Prospect:

Results from 75 m of cumulative channel samples over an area measuring about 500 sq m taken across the strike of this radioactive granitic dyke swarm assayed in the range of 0.02% to 0.04% U3O8 across local radioactive zones up to a few metres wide. These mineralized zones commonly have associated anomalous contents of light rare earth elements and gold. Several grab samples from outcrop in the area of channel sampling and elsewhere nearby within the dyke swarm indicate locally higher grades with assay values ranging from 0.02% to 0.178% U3O8. These results compare favourably with the grade of the Rossing deposit in Namibia. The Dandy prospect is part of a 6 km long radioactive alaskitic dyke swarm that offers potential for a bulk tonnage deposit. The Kanairiktok Bay prospect, previously described in news release dated October 2, 2006, occurs within this dyke swarm to the southeast of the Dandy Prospect. Both of these targets warrant further follow-up work and drill testing.

Stipec River Zone E Prospect:

The Stipec River Zone E prospect was identified late in the field season and warrants detailed follow-up work. This prospect occurs about 4-km northeast of the Stipec River Zone A Prospect and is very similar in nature to it. It consists of highly radioactive, sulphidic and graphitic sheared sediments located in a gossanous zone previously identified by Noranda. The mineralized zone can be traced for about 60 m and averages 2 m to 3 m in width. It is associated with a moderate-strong airborne EM conductor identified from previous Noranda work that extends the zone along strike. Assay results from a limited number of grab samples taken from the zone are pending. This target warrants drill testing.

Stipec River Zone D Prospect:

Results from grab samples taken from this 2 to 5 m wide continuously mineralized radioactive sandstone unit that has been traced for about 200 m along strike returned best assay results of 0.04% U3O8. Field mapping indicates that mineralization may occur in multiple sandstone beds and further work is warranted.

Also, the Company reports that it has expanded its land holdings within previously "exempt mineral lands" that came open for staking recently i) at the northeastern end of the historic uranium belt adjacent to land held by Universal Uranium (TSX-V: UUL), Silver Spruce (TSX-V: SSE) and Aurora Energy (TSX: AXU); and ii) adjacent the southeastern margin of its North Claim Block. This newly staked ground, totaling 494 claims, was acquired in order to cover favourable areas of anomalous uranium in lake sediments. The Company plans airborne surveying and prospecting of these newly acquired lands next summer. The Company's summer and fall prospecting crew has been demobilized due to winter conditions.

For a brief description of the IOCG and Rossing exploration deposit models that are applicable to the Company's Labrador land holdings, please refer to the Company's news release of January 28, 2006.

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

About the Labrador Central Mineral Belt

The Central Mineral Belt (CMB) of Labrador, Canada, located approximately 135 kilometres north of Goose Bay, has a long history of uranium and base metals exploration. Uranium was first discovered in the belt in the 1950s. With further exploration in the 1960's and 1970's and rising uranium prices, exploration in the CMB increased significantly and several uranium deposits were discovered including the Kitts, Michelin, Inda, Nash, Rainbow and Moran Lake deposits by Brinco. The Moran Lake deposits were later drilled by Shell Canada Ltd. Currently the Michelin uranium deposit is being developed by Aurora Energy Resources Inc. (TSX: AXU) which at the end of January, 2006 announced a NI 43-101 compliant measured and indicated resource of 22.2 million lbs U3O8 plus an additional inferred resource of 13.4 million lbs U3O8 all at an average grade of 0.113% U3O8 to a depth of approximately 600 metres. Crosshair Exploration and Mining is exploring the Moran Lake deposit with an initial NI 43-101 compliant inferred resource of 688,000 lbs U3O8 at a grade of 0.25% U3O8 in the Upper C Zone. Bayswater Uranium is the largest landholder in the CMB with over 4,300 sq km. Aurora controls about 800 sq km and Crosshair approximately 640 sq km.

About Bayswater's Labrador Central Mineral Belt Uranium Project

The Labrador Uranium Project is one of Bayswater's key projects with over 4300 sq km (over 1 million acres) of contiguous land along and adjacent to the historic Labrador Central Mineral Belt uranium district highlighted by resource drilling at the Michelin deposit by Aurora Energy Resources Inc. and on the Moran Lake deposit by Crosshair Exploration & Mining Corp.; and, by exploration drilling of major prospects by Aurora and others working in the district. The Company's land holdings have potential for Olympic Dam and Rossing type uranium deposits. Several new mineralized zones, many of which are at the drill stage, and a large number of recently defined radiometric anomalies requiring further follow-up, occur within the Company's land holdings. The Company has 12 uranium prospects/targets and 1 light rare earth element mineralized area of interest within its extensive Labrador land holdings. Bayswater Uranium Corp. is by far the largest landholder in this important uranium district.

About Bayswater Uranium Corporation - The Super Junior™ Uranium Company

As the only uranium explorer 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 Uranium Corp. is well positioned to be a market leader in uranium exploration. Bayswater combines the experience of its technical and managerial teams with a large, highly prospective and diverse property base. 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. For further information visit 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