SOURCE: Bayswater Uranium Corporation

February 17, 2009 07:45 ET

Bayswater's 2008 Drilling Program Significantly Expands Anna Lake Uranium Deposit, Central Mineral Belt Uranium Project, Labrador

Highlights: Best Drill Intersections Return 5.86 Metres Grading 0.102% U3O8 and 19 Metres Grading 0.035% U3O8; Uranium Deposit Outlined Over a 700 Metre Strike Length and 660 Metres Down-Dip of the Mineralized Zone

VANCOUVER, BC--(Marketwire - February 17, 2009) - Bayswater Uranium Corporation (TSX-V: BAY) (PINKSHEETS: BYSWF) is pleased to report on the final results of the 2008, Phase 3 drill program, from its Anna Lake uranium deposit. The Anna Lake deposit is located on the Company's 100% owned property in the Central Mineral Belt of Labrador. Thirty-three holes totaling 15,687 meters were completed in and around the deposit during 2008. The drilling program was designed using 100 meter step-outs both along strike and down-dip with local 50 meter infill. Of these holes, twenty-six were drilled directly on the main Anna Lake Zone with all but one hole encountering anomalous uranium mineralization. The wide-spaced, step-out drilling has increased the overall strike length of the Anna Lake deposit to approximately 700 meters. Continuous uranium mineralization has been encountered for up to 660 metres in the plane of mineralization or up to 550 metres vertical depth. Highlights from the 2008 drill program include intersections grading 0.102% U3O8 over 5.86 metres (AL08-42) and 19 meters grading 0.035% U3O8 (AL08-45). Molybdenum and rhenium credits continue to accompany uranium and may significantly increase the total combined mineral value of the deposit.

During the 2008 drill program, twenty-six holes were collared on the Anna Lake deposit in an attempt to expand the known areas of mineralization identified during the 2007 drilling campaign. Only one hole failed to intersect anomalous uranium. Six holes were collared past the north end of the deposit and one on the west side in an attempt to extend its strike length. These holes failed to encounter significant uranium mineralization. The northern limits of the Anna Lake Deposit appear to be offset by late stage faulting. The orientation, attitude and degree of offset along these structures is currently not fully understood. Limited drilling has yet to identify the probable continuation of the zone to the north.

Assay results of significant uranium mineralization encountered during the 2008 drilling program are provided in Table 1 below. Assays from the first ten holes were previously released on August 6, 2008.

Table 1 - Analytical Results - Uranium, Molybdenum and Rhenium
Anna Lake Deposit

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--------------------------------------------------------
   Hole ID      From    To    Interval U3O8   Mo    Re
                 (m)    (m)      (m)   (%)   (%)   (g/t)
--------------------------------------------------------
AL08-41        331.74   334.33   2.59  0.04 0.022  0.234
--------------------------------------------------------
               343.90   353.85   9.95 0.022 0.020  0.183
--------------------------------------------------------
     including  344.9    350.0    5.1  0.03 0.021  0.224
--------------------------------------------------------
AL08-42         461.4    484.0   22.6  0.03 0.010  0.065
--------------------------------------------------------
     including 478.14    484.0   5.86 0.102 0.038  0.251
--------------------------------------------------------
     including  480.1    482.0    1.9 0.224 0.087  0.322
--------------------------------------------------------
AL08-43           437      439    2.0 0.025 0.007  0.403
--------------------------------------------------------
AL08-44         271.8    272.3    0.5 0.035 0.004  0.062
--------------------------------------------------------
               274.25   275.00   0.75 0.026 0.012  0.175
--------------------------------------------------------
AL08-45         381.8    400.8   19.0 0.035 0.010  0.095
--------------------------------------------------------
     including  389.7    393.5    3.8 0.097 0.029  0.333
--------------------------------------------------------
     including  397.8    400.8    3.0 0.066 0.015  0.071
--------------------------------------------------------
AL08-47           453      454    1.0 0.117 0.050  0.728
--------------------------------------------------------
AL08-48           500   503.26   3.26 0.019 0.009  0.099
--------------------------------------------------------
AL08-49        338.08   341.12   3.04 0.017 0.003  0.049
--------------------------------------------------------
AL08-50           597      599    2.0 0.026 0.012  0.149
--------------------------------------------------------
AL08-51        372.56   374.07   1.51 0.040 0.021  0.194
--------------------------------------------------------
AL08-52        356.93   361.47   4.54 0.018 0.003  0.099
--------------------------------------------------------
     including 360.93   361.47   0.54 0.120 0.014  0.697
--------------------------------------------------------
AL08-53           538      546    8.0 0.032 0.006  0.108
--------------------------------------------------------
     including    543      546    3.0 0.072 0.013  0.245
--------------------------------------------------------
AL08-54        400.00   411.75  11.75 0.021 0.004  0.071
--------------------------------------------------------
     including    400      404    4.0 0.036 0.005  0.134
--------------------------------------------------------
     including    407      408    1.0 0.057 0.016  0.121
--------------------------------------------------------
AL08-55        465.59   472.46   6.87 0.036 0.008  0.123
--------------------------------------------------------
     including 466.55   469.46   2.91 0.050 0.012  0.163
--------------------------------------------------------
AL08-56        588.26   592.36    4.1 0.050 0.041  0.231
--------------------------------------------------------
AL08-57         562.5    597.0  19.75 0.032 0.004  0.176
--------------------------------------------------------
     including 563.57   571.25   7.68 0.057 0.012  0.429
--------------------------------------------------------
     including  593.0    597.0    4.0 0.030 0.017  0.169
--------------------------------------------------------
AL08-58        526.00   536.07  10.07 0.020 0.004  0.040
--------------------------------------------------------
     including    529      530    1.0 0.052 0.005  0.021
--------------------------------------------------------
     including 535.00   536.07   2.07 0.052 0.013  0.136
--------------------------------------------------------
AL08-60        475.12   481.15   6.03 0.031 0.009  0.152
--------------------------------------------------------
AL08-61        537.34   541.50   4.16 0.028 0.004  0.278
--------------------------------------------------------
     including 537.34   538.40   1.06 0.074 0.001  0.987
--------------------------------------------------------
AL08-63B       654.57   663.39   8.82 0.029 0.011  0.062
--------------------------------------------------------
     including 661.94   663.39   1.45 0.110 0.032  0.233
--------------------------------------------------------
AL08-65        291.75    292.8   1.05 0.032 0.013  0.413
--------------------------------------------------------
AL08-68        409.61   415.00   5.39 0.032 0.009  0.169
--------------------------------------------------------
     including 409.61   412.19   2.58 0.059 0.018  0.341
--------------------------------------------------------
AL08-70        438.05   441.43   3.38 0.082 0.014  0.260
--------------------------------------------------------
     including 439.48   440.22   0.74 0.200 0.016  0.515
--------------------------------------------------------
AL08-72        245.84   249.75   3.91 0.038 0.007  0.254
--------------------------------------------------------
AL08-73        513.25   518.50   5.25 0.026 0.003  0.055
--------------------------------------------------------
     including 516.68   518.50   1.82 0.065 0.009  0.125
--------------------------------------------------------

-****-

To date, a total of 25,469.51 meters of drilling in seventy-four holes have been completed in the area of the Anna Lake deposit. Drill hole centers generally average 50 meters in the upper portions of the deposit to over 100 meters in the deeper portions. Drilling during 2008 was designed to test strike extensions of the main zone to the north and south as well as down-dip. Some limited additional wide spaced infill pattern drilling was also completed. The program was successful in delineating the deposit both laterally and down-dip. The Anna Lake deposit, as currently defined by drilling, has a strike length of approximately 700 meters and continuous down-dip extension of up to 660 meters in the plane of the mineralization and to vertical depths of up to 550 meters.

Drilling during 2008 continued to outline the continuity and overall grade of the Anna Lake deposit. Results from the Phase 1 and Phase 2 drilling program at Anna Lake during 2007 showed similar but better overall grade and widths than encountered in 2008. This is mainly due to the fact that a greater number of holes were drilled on the shallow portions of the deposit in shorter step-outs. Highlights from the prior drilling returned values of 40 meters grading 0.07% U3O8 (AL07-01), 25 meters grading 0.05% U3O8 (AL07-29) and 18.55 meters averaging 0.05% U3O8 (AL07-36). 3D modeling of the deposit shows a complex series of open folds plunging between 50 and 70 degrees to the east. These observations have also been noted from minimal outcrop in the Anna Lake area. The variance in grades and widths noted to occur within the deposit are most likely a function of the location in the fold sequence that the drill hole pierces. Mineralized intersections from holes that pierce fold noses are most likely thicker than those that pierce the narrower fold limbs.

Based on extensive exploration performed in the Anna Lake area, the potential to increase the size, width and grade of the deposit along with the potential for new discoveries remains high. The deposit remains open along strike and at depth. The Company is in the process of evaluating the engagement of an independent consulting company to perform a resource estimate on the Anna Lake Deposit during 2009.

An updated drill hole location map and grade/thickness longitudinal section of the deposit is currently available on Bayswater's website at www.bayswateruranium.com.

Sample handling consists of shipping one half of split drill core samples to Activation Laboratories Ltd. sample preparation facility in Goose Bay, Labrador where the samples are crushed, pulverized and split. Sample pulps are then forwarded to Ancaster, Ontario for analyses. Uranium analysis is performed using the delayed neutron counting (DNC) method. Multi-element inductively coupled plasma mass spectrometry (ICP-42) is performed as well on all samples. Where uranium values exceed the upper limit of 1%, samples are re-assayed using X-ray fluorescence (XRF). A quality control/assurance program was instituted for the sampling and analytical work. Control samples, consisting of three separate standards and commercial blanks, were inserted in the sample stream approximately every 25 to 30 samples. To date, this program has shown that the analyses are reliable.

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 kilometers north of Goose Bay, has a long history of uranium and base metals exploration. Uranium was first discovered in the belt in the 1950s. 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, over 145 million pounds of NI 43-101 compliant uranium resources have been reported in the Central Mineral Belt by various companies, a figure that is expected to increase significantly in the coming years through increases to existing resources, as well as from new uranium discoveries. Bayswater Uranium is the largest landholder in the Central Mineral Belt with interests in about 587,000 acres in the heart of the belt. At the end of the 2008 field season, Bayswater discovered several new uranium targets, including a 5 km uranium trend at Boiteau Lake, with sample values up to 0.72% U3O8. Further information on the Central Mineral Belt is available at www.bayswateruranium.com/s/CMB.asp.

About Bayswater Uranium Corporation - The Super Junior™ Uranium Company

Bayswater Uranium Corporation is an 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 where drilling has identified deposits that may be amenable to ISR and/or conventional mining. Bayswater combines a balanced portfolio of development and exploration projects with the uranium expertise of its technical and managerial teams. Bayswater's vision is to build a major international uranium company. Shares of the Company are listed on the TSX Venture Exchange under the symbol "BAY." 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