SOURCE: Bayswater Uranium Corporation

January 31, 2008 08:15 ET

Bayswater Purchases Balance of Interest in Uranium Properties in Saskatchewan and Nevada

VANCOUVER, BC--(Marketwire - January 31, 2008) - Bayswater Uranium Corporation (TSX-V: BAY) (PINKSHEETS: BYSWF) is pleased to announce it has entered into an agreement to acquire the remaining 10% carried interest in six uranium properties, three located in the Athabasca Basin region of Saskatchewan and three located in southwestern Nevada. The 10% carried interest was held by Bullion Fund Inc. ("Bullion"), an Alberta corporation, acting as agent for certain legal and beneficial owners. Properties pursuant to the agreement include the Collins Bay Extension, Viking and Coin Canyon projects in Saskatchewan, that consist of mineral claims covering an aggregate of 40,339 hectares; and the Carol R Mine (24 claims) and Holiday Mine (20 claims) located in Mineral County, Nevada and the Green Monster Mine (80 claims) in Clark County, Nevada.

Bayswater initially acquired a 90% working interest in the properties as a result of the amalgamation with Northern Canadian Uranium Inc. ("NCA") which closed in December, 2007. NCA acquired the properties pursuant to a letter agreement with Bullion entered into in June, 2005. Under the terms of the purchase agreement, Bullion will sell its undivided 10% working interest in and to the claims to Bayswater for the following consideration:

(a) $125,000 cash payable on the closing date; and

(b) $225,000 payable through the issuance of common shares in the capital of Bayswater, with the number of common shares to be issued to be calculated using the average closing price of the common shares of Bayswater on the TSX Venture Exchange for the five (5) trading days prior to the closing date.

The purchase agreement is subject to the acceptance of the Exchange. The closing date is to be five days after the Exchange issues a bulletin accepting the purchase agreement for filing. All shares payable under the purchase agreement, when issued, will be subject to a four month hold period.

Saskatchewan Uranium Properties Subject to the Purchased 10% Carried Interest

The Collins Bay Extension property consists of 37,310 hectares of contiguous mining claims, located along the eastern margin of the Athabasca Basin, immediately north from and adjoining Cameco's (TSX: CCO) producing Eagle Point mine and Rabbit Lake mine and mill. Recent exploration by Northern Canadian Uranium Inc., prior to the amalgamation with Bayswater, includes airborne VTEM surveying, geochemical sampling and limited drilling. An extensive +2000 sample radon gas survey was completed during the 2007 field program, covering the projection of the the Collins Bay Fault, a major ore-controlling structure which hosts the Eagle Point mine, and other sub-parallel conductive structures. The results of the radon survey have identified high priority targets along these structures which are planned to be tested with a major drilling program in early 2008.

The Coin Canyon and Viking properties are located along the northern margin of the Athabasca Basin, east of Uranium City, the site of initial uranium mining in Canada.

The Coin Canyon property, consisting of one claim covering 923 hectares, covers three out-cropping uranium occurrences of structurally controlled / shear zone type mineralization with reported assays of 3.7% U3O8 over 0.61 m and 3.4% U3O8 from a second sample. The three occurrences are hosted in the footwall gneisses, similar to some of the deposits in the Uranium City and Collins Bay areas. All historic geological data has been compiled and the property has received reconnaissance sampling and mapping to confirm the uranium mineralization and prospectivity for exploration drilling. A well defined target for potential drill testing has been identified over a strike length of more than 3 kilometers. Drilling of this target is being considered for 2008.

The Viking property consists of one claim comprising 2,106 hectares, located on the north side of the Athabasca Basin, east of Uranium City. The property covers four structurally controlled uranium prospects hosted in the footwall gneisses, similar to some of the deposits in the Uranium City and Collins Bay areas. The property also contains a large area of iron oxide alteration with potential for REE elements located north and northeast of the main uranium occurrences. All geological data has been compiled, and the property has received reconnaissance sampling and mapping. Additional work will be considered during 2008.

Nevada Uranium Properties Subject to the Purchased 10% Carried Interest

The Carol R property is centered on the historic Carol R open pit uranium mine, which produced uranium in 1955-56. Historic reports indicate uranium minerals occur within stratigraphic units that contain carnotite as disseminations and along bedding planes and fractures. State of Nevada records list one sample analysis that reported 0.94% eU3O8. The property was drilled in 1972 and historic reports state that significant inferred uranium resources were identified. These results are non-compliant with NI 43-101 and require confirmation sampling. Bayswater plans to assess the probable need for detailed sampling and mapping on the property to determine the potential size of the mineralized areas in planning for future drill programs.

The Green Monster property surrounds 4 patented mining claims, not held by the Company, that cover the historic Green Monster mine. The Green Monster mine produced significant lead and zinc, which contained reported elevated uranium content. A 5 ton bulk sample from the mine, collected in 1951 reportedly contained 1.09% U308 with individual samples containing up to 10.5% U3O8 (these results are non-compliant with NI 43-101). Bayswater plans to conduct reconnaissance mapping and sampling on its claims.

The Holiday Mine contains structural and intrusive hosted uranium mineralization that will be evaluated during the upcoming field programs.

Keith Laskowski, M.Sc., VP Exploration-USA for the Company, is the qualified person under NI 43-101 responsible for the technical information in this news release.

About Bayswater Uranium Corporation -- The Super Junior™ Uranium Company

Bayswater Uranium Corporation is a rapidly-growing international uranium exploration and development company. As the only uranium company 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 is a leader in uranium exploration in Canada, the world's largest producer of uranium. The Company also owns several advanced uranium properties in the United States that are being fast tracked to feasibility and production. Bayswater combines a balanced portfolio of exploration and development projects with the uranium expertise of its technical and managerial teams. 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. To capitalize on the strong growth of the nuclear industry and to continue to add shareholder value, Bayswater plans to focus on the development of its resource properties and to evaluate early stage projects for further discoveries. Other acquisition opportunities will continue to be assessed all with a corporate vision of building a major international uranium company. Bayswater is listed on the TSX Venture Exchange under the symbol "BAY." The Company's website is www.bayswateruranium.com.

On behalf of the Board of:

BAYSWATER URANIUM CORPORATION

George M. Leary
President and CEO

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