Uragold Bay Resources Inc.
TSX VENTURE : UBR

Uragold Bay Resources Inc.

January 20, 2011 12:05 ET

Uragold Bay Resources Inc.: Beauce Placer Gold Property Update

MONTREAL, QUEBEC--(Marketwire - Jan. 20, 2011) - Uragold Bay Resources Inc. (TSX VENTURE:UBR), is pleased to announce it has retained the services Dr. Remi Charbonneau PhD (P. Geo) of Inlandsis Consultants for the supervision and interpretation of the previously announced Beauce Placer drilling program. Dr. Charbonneau is a specialist in glacial till geology and gold placers. He has worked with junior and senior exploration companies, including Virginia Gold Mines and Goldcorp. Goldcorp's Eleonore Gold Mine property is located 30 km north of Uragold's Uskawanis Uranium property.

Following his analysis of the property's historical information, Dr Charbonneau recommended that UBR use a sonic drill instead of the reverse circulation drill previously announced and commonly used in overburden drilling in southern Quebec.

Sonic drilling provides a continuous, relatively undisturbed core sample of unparalleled quality and accuracy through till overburden. Undisturbed core samples will provide more accurate information on the distributions of both the fine and coarse gold placers throughout the layers of glacial till, sediment layers and of the bedrock below. The decision to change from a reverse circulation drill to a sonic drill resulted in the drilling being delayed by a few weeks. Boart Longyear has been contracted for the sonic drilling.

About the Beauce Placer Gold Property

The property is located near the village of Saint-Simon-les-Mines in the Beauce region of southern Quebec. It was the site of a major placer gold mine operation in the 1960s. Uragold's interest in the property is focused on examining a gold-bearing paleo-placer channel that runs parallel to the southern side of the Gilbert River. The highest gold values are generally at the contact with the fractured bedrock and in the joints and foliation.

The drilling program will be carried out in a manner that will rationalize past drill results to allow both confirmation of the existing historical resource and hopefully to add addition resource.

Uragold believes that gold could be found on the property. If drilling results and trial mining efforts are positive, a low cost placer mining operation would be put in operation. Any positive cash flow achieved could contribute to the exploration of the company's other projects with blue sky potential.

All information herewith presented is historical in nature and while relevant, the information was obtained before the implementation of National Instrument 43-101 and as such does not meet National Instrument 43-101 reporting standards. The historical estimate should not be relied upon until the Company can confirm them.

Note: Mr Vivian Stuart-Williams, (SACNASP), a Director of the Company and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the information in this news release.

Patrick Levasseur, UBR President and COO: "This drilling program launches the first of our 2011 exploration projects. I believe this year will be a year of exciting new discoveries from Uragold's gold, uranium and rare metals projects."

On Other Corporate news:

Bernard Tourillon, Chairmen and CEO of Uragold announces that the Corporation is exploring opportunities in the Middle East and Africa through Mr. A. Al Hazeem who resigned as a director of the Corporation effective immediately. Uragold will retain Mr. Al Hazeem, who is currently one of the largest shareholders of the Corporation, as a consultant.

His role was instrumental in supporting the company for the past 3 years and he was extremely useful during the tough times. He has worked closely with the management team and has collaborated in formulating and implementing our new business plan and in developing our ventures. We strongly believe that he will remain an indispensable asset and we thank him for his impeccable leadership, guidance and efforts.

Mr. Al Hazeem commented, "It was a great pleasure to work with Uragold's team and I greatly believe that the integrity and hard work of the management team will pay off handsomely. UBR's management is determined to build shareholder value and to succeed in its endeavors."

About Uragold Bay Resources Inc.

Uragold Bay Resources is a junior exploration company trading on the TSX Venture Exchange under the symbol UBR. Uragold is a top claims holder in Southern Quebec's Appalachian belt. The properties benefit from extensive historical exploration work and from well-established infrastructure thereby helping to reduce exploration risks. Uragold's business model focuses on developing, a series of potential small scale low- cost gold mining operations including the Beauce Placer, the Calway, the Riviére du Loup, Rivière Bergeron, and Grande Coulée for their potential in generating cash flow while simultaneously exploring core properties that hold the potential for the discovery of blue sky gold deposits like the MacDonald project.

The recent rise in Uranium prices combined with the discovery of Rare Earth Element deposits in the area close to Uskawanis, allows the Corporation to explore once again the potential of our James Bay projects.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Uragold Bay Resources Inc.
    Bernard J. Tourillon
    Chairman and CEO
    514-846-3271
    www.uragold.com
    or
    Uragold Bay Resources Inc.
    Patrick Levasseur
    President and COO
    514-846-3271
    www.uragold.com