SOURCE: Bayswater Uranium Corporation

March 06, 2008 07:15 ET

Bayswater Uranium Launches Drilling Program at Elkhorn Project, Wyoming

Resource Expansion Planned With 261 Drill Holes

VANCOUVER, BC--(Marketwire - March 6, 2008) - Bayswater Uranium Corporation (TSX-V: BAY) (PINKSHEETS: BYSWF) is pleased to announce the start of the Phase III drilling program at the Company's 100% owned Elkhorn Project in northeast Wyoming. The Company's subsidiary, NCA Nuclear Inc. completed Phase I and II drilling programs at the Busfield resource area in 2006, which defined a NI 43-101 compliant indicated uranium resource of 250,000 tonnes at 0.08 % for 397,000 lbs eU3O8. Drilling will focus on expanding the Busfield resource, which remains open in three directions, and the historic Vickers mine, which define a 4,000 foot (1,200 m) long trend of near-surface, sandstone hosted uranium mineralization. Drilling will test the entire zone between these historic open pit mines. Additional drilling will be completed at the Quad historic resource area, located 6,200 feet (1,900 m) southwest of the Busfield open pit mine.

The Phase III drill program is planned to evaluate three areas with up to 261 holes and 37,850 feet (11,500 m) of drilling in areas with historic drilling and resources:

-***-

                        Type         Number   Feet    Depth
                                     Holes  (meters)  (feet/meters)
                        ----         -----  --------  -------------
Busfield/Vickers Area:  Air/Rotary:   171    27,100   100 - 450 (33 - 140)
                        Core           40     4,000   100 (33)
                        ---------------------------
                        Subtotal:     211    31,100


Quad                    Air/Rotary     45     6,250   100 - 450 (33 - 140)
                        Core            5       500   100 (33)
                        ---------------------------
                        Subtotal:      50     6,750
                        Grand Total:  261    37,850   (11,500)
-****-

Bayswater's geologists have completed field mapping and ground radiometric surveys and evaluated historic drilling records, to identify and plan additional drilling in areas of uranium mineralization within this trend. Drilling will be completed in areas containing historic resources, identified by previous mining companies, in a manner necessary to calculate NI 43-101 compliant inferred resources. Drilling will be conducted on a systematic spaced grid with both core and air rotary drilling to provide radiometric, geologic and geochemical/assay data. Uranium mineralization occurs in the Cretaceous Fall River Formation, hosted in fluvial sandstones at depths ranging from 0 - 60 feet (18 m). Drilling will also evaluate potential targets within the deeper Cretaceous Lakota Formation, which hosts significant historic uranium resources at the historic Hauber mine/deposit. The Hauber mine is located 7.5 miles (12 km) to the southwest and was operated by Homestake Mining Corporation during the 1950's during which time it produced an approximately 2.76 million pounds of uranium (U3O8). It is significant that the Hauber deposit, hosted in the Lakota Formation at depths of about 400 feet (122 metres), has associated near surface uranium mineralization in the Fall River Formation -- the host for the Busfield/Vickers/Quad mineralization.

The Elkhorn project is one of nine uranium projects that Bayswater is exploring on the western flanks of the Black Hills uplift and eastern Powder River Basin. The Elkhorn project comprises over 16,700 acres of land held under Federal, State and Fee agreements. Three uranium mines are in production in this region, including the Smith Ranch-Highland uranium project and the Crow Butte mine, owned by from Cameco Corporation and the Christensen Ranch mine, owned by Cogema, all which employ "in-situ recovery" processes to recover uranium mineralization. Operating mines are exploiting uranium mineralization that occurs in concentrations that range from approximately 0.1 - 0.3% U3O8. Bayswater plans additional drilling on the Elkhorn Project following Phase III to further expand identified areas of mineralization and to test new target areas.

All work will be directed through Bayswater's subsidiary, NCA Nuclear Inc., under the direction of Keith Laskowski, M.Sc., VP Exploration-USA for the Company, who is the qualified person under NI 43-101 responsible for the technical information in this news release. Pinyon Environmental Services of Denver, Colorado has been retained to obtain all drilling permits, and to manage all environmental and drilling operations. All work will be conducted in a manner to provide low-impact access road and site construction for all drill holes. Pinyon will initiate a surface water monitoring program, following the spring break-up. A ground water monitoring program will be initiated during the drilling program, and a minimum of 6 drill holes will be converted to ground water monitoring wells, to provide background hydrological data. Drilling will be conducted by Arrow Drilling of Arvada, Colorado, using two air/rotary drills and one core drill. COLOG of Denver, Colorado has been contracted to provide down-hole radiometric logging services. All drilling will be dependent upon weather conditions, and the company will seek to minimize the amount of ground disturbance at all times. The Company will cease operations during periods of excessive mud and moisture.

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 this news release.

Contact Information

  • For further information contact:

    John Gomez
    Manager, Investor Relations
    Telephone: (604) 687-2153