SOURCE: Bayswater Uranium Corporation

April 12, 2007 07:30 ET

Bayswater Discovers Possible Kimberlite Targets in Thelon Basin, NU/NWT and Central Mineral Belt, Labrador

VANCOUVER, BC -- (MARKET WIRE) -- April 12, 2007 -- Bayswater Uranium Corporation (TSX-V: BAY) is pleased to announce that airborne geophysical surveys flown in 2006 over its properties in the Thelon Basin, NU/NWT have revealed a number of circular magnetic features that are interpreted to represent possible clusters of kimberlite pipes. These features were initially noted at one of Bayswater's properties within the North Thelon Project area, located northwest of Baker Lake in Nunavut. Kimberlite is the primary host rock for diamonds.

The geophysical survey on the North Thelon property that detected these initial anomalies measured magnetic and radiometric fields along lines 200 metres apart. A number of the identified kimberlite targets are located outside but close to Bayswater's existing property boundaries. Accordingly, Bayswater has recently staked a total of 2,237 square kilometers of mineral claims, and has acquired six prospecting permits totaling approximately 978 square kilometers surrounding these features.

These new mineral tenures are in addition to Bayswater's pre-existing land position in the North Thelon of 3,455 square kilometers, and bring the Company's total land position in the North Thelon Basin area to 6,670 square kilometers (1,648,186 acres). The newly acquired mineral claims and permits also have considerable potential for uranium as they are situated along the northeastern margin of the Thelon Basin with known major basement fault structures and areas of favourable Amer Group sediments north of the Kiggavik Trend of uranium deposits.

Bayswater's newly acquired land package in the North Thelon is in close proximity to diamond company De Beers' large land holdings, and is considered to have high potential for diamonds. A map of the magnetic clusters and new landholdings will be posted on the Company's website.

Bayswater has completed a re-evaluation of all airborne magnetic data acquired by the Company over the past year (over 70,000 line kilometres). In addition to the targets in North Thelon as above, a number of single line magnetic features of interest have been noted in the South Thelon project in the Northwest Territories as well as a large cluster of circular magnetic highs within the Company's Labrador land holdings.

The majority of these surveys were flown at 400 metre and 200 metre line spacings and therefore significant potential remains for additional targets to be identified by more detailed magnetic surveys. During 2007, Bayswater is planning to follow up some of these anomalies with more detailed airborne magnetic surveys as well as very limited orientation and evaluation sampling. In addition, Bayswater has commissioned airborne magnetic and radiometric surveys over the newly acquired properties in the North Thelon Basin area as part of an initial evaluation of the uranium and diamond potential of these areas.

George Leary, Bayswater's president and CEO, commented, "The discovery of these magnetic features adds a new dimension to our properties. Many of these properties have never been tested by large-scale, state-of-the-art airborne geophysical surveys, and we are keeping an open mind as to the results that come out of our surveys. We are fortunate in that we have considerable in-house diamond exploration expertise as Vic Tanaka, our COO, has extensive experience in diamond exploration in Canada and Greenland, and was responsible for acquiring the original assets of Diamonds North Resources. Also, Ken Armstrong, a director of Bayswater, was involved with the development of the original resource models at the Diavik Diamond Mine. I have to emphasize, however, that Bayswater remains firmly focused on uranium exploration, and we therefore are evaluating option-joint venture and/or spin-off strategies to maximize the value of these discoveries for our shareholders."

Bayswater Uranium is the largest landholder in the Thelon Basin with interests in approximately 4.5 million acres. For 2007, an $8.1 million exploration program is planned in the North and South Basin region to identify and evaluate uranium targets, including up to 10,000 metres of drilling. Bayswater is also the largest land holder in the Central Mineral Belt, Labrador uranium district with interests in approximately 1.1 million acres and a 2007 exploration budget of $6.3 million intended to identify and evaluate uranium targets, including up to 20,000 metres of drilling.

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. Victor Tanaka is the qualified person responsible for the technical information in this news release.

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