SOURCE: Bayswater Uranium Corporation

February 20, 2008 08:15 ET

Bayswater Uranium Launches Winter Drill Program at Collins Bay Extension Project, Athabasca Basin, Saskatchewan

Twelve Uranium Targets to Be Drilled to Test Extension of Eagle Point-Collins Bay-Rabbit Lake Uranium Belt

VANCOUVER, BC--(Marketwire - February 20, 2008) - Bayswater Uranium Corporation (TSX-V: BAY) (PINKSHEETS: BYSWF) is pleased to announce the start of its 2008 winter drilling program at the Company's wholly owned 37,000 hectare Collins Bay Extension Project ("CBE") located adjacent to the northeast and along strike from Cameco Corporation's (TSX: CCO) Eagle Point mine complex. This mine area is the longest producing uranium operation in the Athabasca Basin, Saskatchewan -- the richest uranium district in the world.

Twelve high-priority, near surface uranium targets have been selected for drilling on the CBE property over the next 3 months, utilizing two drill rigs. These targets are characterized by known uranium mineralization and anomalous concentrations of surface radon gas and uranium in geochemical samples in association with major basement fault structures and zones of anomalous conductivity-favourable features indicating potential for unconformity type uranium deposits typical of the Athabasca Basin.

The Collins Bay Fault zone is the controlling structure for the uranium deposits at the nearby Eagle Point, Collins Bay, and Rabbit Lake deposits. Collectively these deposits contained a global uranium resource of more than 140 million pounds of uranium hosted primarily within the basement rocks. Uranium mineralization in the basement rocks is generally near surface, has favorable metallurgy and is hosted in competent wall rocks -- typical of the Eagle Point Mine, the largest deposit in the area. The objective of Bayswater's drill program is to test for further high-grade uranium deposits within basement rocks along the Collins Bay Fault, that extends for 25 kilometers across the CBE property from Cameco's Eagle Point mine, and along other sub-parallel fault structures.

Drilling is currently underway on the first two of the twelve high priority targets on Bayswater's ground. This winter a total of up to about 7500 meters in approximately 24 holes to depths of 300 to 350 metres is planned for the program, subject to weather conditions. Of the twelve priority targets for drill testing, eight are planned to be tested from the ice early in the winter season on Wollaston Lake, and four are planned from land sites to be drilled later in the winter season. If weather conditions permit and subject to results, additional drilling is planned. A property map illustrating the drill targets, the Collins Bay fault structures, and Cameco's adjacent mines can be viewed at http://www.bayswateruranium.com/i/maps/NCA-Athabasca.jpg.

Drill Targeting

On Bayswater's CBE project, the integration of geologic data along with airborne V-TEM and magnetic survey results has enabled the Company to identify prospective uranium environments, associated with the Collins Bay Fault and other fault zones and airborne geophysical conductors, that extend for a combined strike length of over 100 kilometers on the Company's property.

Drill targets were selected based on the integration of property-wide geochemical sampling, modeling of geophysical data, and integration with geological data and deposit models developed by the Company. A systematic geochemical sampling program was completed by Vista Geosciences (Lakewood, Colorado) based on a successful orientation survey, conducted with Cameco's permission, over their O2-Next uranium deposit. The O2 Next deposit is located north of the Eagle Point uranium mine and less than 6 km south of Bayswater's Collins Bay Extension Project. During August in 2007, 1023 lake sediment and peat geochemical samples were collected from the CBE property and analysed on site for radon gas. All samples were subsequently analyzed for uranium and multi-element geochemistry by Acme Laboratory, Vancouver, BC. Detailed radon sampling grids were completed on the strongest radon gas anomalies.

Results of the geochemical survey were very encouraging. The orientation survey over the O2-Next deposit provided a geochemical signature of this mineralized area, which in turn was applied to the Company's data to help identify targets. Geochemical results from Bayswater's ground were also integrated with results of geophysical modeling of the Company's airborne EM, VTEM and magnetics surveys, processed and integrated by Wave Geophysics (Evergreen, Colorado). Geophysical processing highlighted conductors and breaks in conductor trends, representing major bedrock structures.

The project is operated out of Bayswater's Snowshoe Island winterized camp, with on-site program management by Coast Mountain Geological Ltd. of Vancouver, BC. The drilling contractor is Top Rank Diamond Drilling, St. Rose du Lac, Manitoba. 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 this news release.

Contact Information

  • For further information contact:

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