SOURCE: Bayswater Uranium Corporation

July 12, 2007 08:15 ET

Bayswater Starts Drilling for Uranium in Central Mineral Belt, Labrador

VANCOUVER, BC--(Marketwire - July 12, 2007) - Bayswater Uranium Corporation (TSX-V: BAY) reports that two drill rigs have started drilling at the Company's 1.1 million acre property in the Central Mineral Belt of Labrador. This first phase program comprises approximately 10,000 metres of drilling to test up to 10 uranium targets discovered in 2006-including the Stipec River trend of prospects and the Anna Lake, Kanairiktok Bay, Dandy, and Stomach Lake prospects. This phase of drilling is primarily reconnaissance in nature -- designed to test various targets as a first pass within our land holdings. Currently one drill is active on the Stipec River Zone A prospect and the second has commenced drilling on Anna Lake. The average length of the drill holes in this phase of drilling is expected to be about 150 to 200 metres -- which means we will drill a minimum of about 50 test holes in this phase of drilling on our various targets.

Other uranium prospects and radiometric anomalous targets are being further explored and evaluated for drill testing, including a recent discovery by Bayswater prospectors of a new uranium showing within the Company's land holdings northeast of Anna Lake, in this round of drilling.

Based on results of our first phase of drilling and ongoing evaluation of numerous airborne radiometric targets requiring further work, an additional 10,000 metres of drilling is tentatively planned as a second phase, bringing our total to 20,000 metres of drilling this year in the Central Mineral Belt, one of the larger exploration drill programs in the region.

In addition, an exploration program of prospecting, rock and soil sampling, mapping and ground geophysical surveys is being undertaken to evaluate numerous uranium targets of interest and to follow-up results of a recently completed 5,700 line km airborne electromagnetic (EM) geophysical survey. The EM survey identified a 12 kilometre long southwesterly trending conductive zone coincident with the Stipec River trend of uranium prospects (Zone A, B, C, D and E). Numerous surface grab samples in 2006 from various prospects along this trend commonly assayed 0.04% to 0.4% U3O8. Drilling is underway to test this target. The EM survey also identified a number of other favourable conductive targets that are being further assessed and evaluated.

The Anna Lake prospect is characterized by an extensive radioactive boulder train with 11 grab samples, taken from over 2000 radioactive gossanous garnet-biotite schist boulders, that assayed 0.132% to 3.05% U3O8 (samples were taken by both Brinco in the 1970's and Bayswater in 2006). Boulders are typically angular to sub-rounded and indicate a proximal bedrock source area. The boulder train occurs along the southeast margin of a NE-SW trending linear, narrow magnetic high in association with a radiometric anomaly. Limited drilling by Brinco in the 1970s at one potential source area of the boulders returned 0.118% U3O8 over 1.5 metres and 0.10 % U3O8 over 2.0 metres respectively in two separate, closely spaced drill holes. Mineralized boulders are typically gossanous and show evidence of appreciable original sulphide content, including pyrite. An induced polarization survey is currently underway by Bayswater to evaluate the distribution of potential sulphidic zones in the Anna Lake target area. Initial results from this survey have been very encouraging with several anomalous chargeable zones identified. One highly chargeable anomaly traced for over 700 metres and open along strike occurs adjacent to the above holes drilled by Brinco. This target is currently being drill tested by Bayswater.

Both the Stipec River trend of prospects, located about half way between the Michelin deposit to the east and the Moran Lake deposit to the west, and the Anna Lake prospect, located about 10 km west of the Melody Hill prospect of Aurora, are located along the northern margin of the historic uranium district in the Central Mineral Belt of Labrador.

Data sets from both the airborne EM survey, completed, and ground geophysical surveys, currently underway, are being reviewed, processed and evaluated in order to assist in selecting drill targets and prospecting follow-up targets.

With about 1.1 million acres of largely contiguous landholdings along and adjacent to Labrador's historic Central Mineral Belt uranium district -- representing the largest land position in the region -- the Labrador Central Mineral Belt Uranium Project is one of Bayswater's key projects. The Company's large landholdings have potential for Olympic Dam and Rossing type uranium deposits. In 2007, Bayswater plans to spend approximately $7 million in Labrador.

The Company is also pleased to report that it has been approved for Junior Exploration Assistance under the Mineral Incentive Program in the Province of Newfoundland & Labrador in respect to a government contribution towards the cost of drilling on the Anna Lake prospect.

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. George Leary is the qualified person responsible for the technical information in this news release.

About the Labrador Central Mineral Belt

The Central Mineral Belt 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 1950's. With further exploration in the 1960s and 1970s and rising uranium prices, exploration in the region increased significantly and several uranium deposits were discovered including the Kitts, Michelin, Inda, Nash, Rainbow and Moran Lake deposits by Brinco. Today, exploration activity in the region is highlighted by resource drilling at the Michelin and Jacques Lake deposits by Aurora Energy Resources Inc. (TSX: AXU), and at the Moran Lake deposit by Crosshair Exploration & Mining Corp. (TSX-V: CXX). Collectively nearly 100 million pounds of NI 43-101 compliant uranium resources has been reported in the Central Mineral Belt by Aurora and Crosshair, a figure that is expected to increase significantly in the coming years through increases to existing resources as well as new uranium discoveries. Bayswater Uranium -- the largest landholder in the Central Mineral Belt -- has interests in 4486 sq km of strategic land holdings; whereas, Aurora controls about 800 sq km and Crosshair approximately 640 sq km. Bayswater is aggressively pursing uranium targets within its land holdings with the objective of discovery of new uranium resources.

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 uranium expertise 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