Uragold Bay Resources Inc.
TSX VENTURE : UBR

Uragold Bay Resources Inc.

February 02, 2011 12:14 ET

Uragold Commences Work on the McDonald Gold Property

MONTREAL, QUEBEC--(Marketwire - Feb. 2, 2011) - Uragold Bay Resources Inc. (TSX VENTURE:UBR), is pleased to inform its shareholders that the company has retained the services of VP3 Geoservices, led by Exploration Manager and Technical Director, Mr. Viv Stuart- Williams, to manage a technical team for the 2011 field campaign on Uragolds wholly owned 425 square kilometre McDonald Gold property.

Initial work will consist of collating all historical exploration work and all geological information available into a mapping and geo-analytical database for a tabletop study of the property. This will enable VP3 to build a geological model of the gold distribution. The model will help Uragold plan a systematic spring and summer field campaign of sampling and drilling.

The objective is to locate the source of gold that has enriched the McDonald Auriferous Till and the Quaternary placers and gold bearing drainages such as the Saumon, Clifton, Eaton Rivers and the 400,000 plus ounce historical placer gold deposit of the Moe River. It is believed that this source is somewhere within the company's claimed blocks. Locating a source could lead to the discovery of one or more lode gold deposits.

The presence of widespread gold in the area has historically been attributed to gold transported by south-eastward moving ice-sheets from the gold bearing polymetallic mines to the north and west of the McDonald area. This is a practical model but open to serious questioning. For example how does this explain the Beauce placer on the Gilbert River and the Moe River placer which are a significant distance apart. Or have these been fortuitously mineralized?

The presence of gold bearing quartz veins, that have occasionally been found within the area, seems to have been ignored. More recently Uragold has identified inter-bedded graphitic schists that contain large pyrite cubes (a cubic centimeter or more) that are said to contain gold (at least in places).

The presence of abundant free gold in surface placers (even if spatially separated); the presence of gold in quart veins; and the presence of graphitic shales that are clearly strongly reductant leads Uragold to consider the possibility of a Sukhoi Log type gold deposit somewhere under the till cover. Uragold tends to follow this model using the database currently under construction and by doing geological structural modeling to try and identify likely mineralized zones.

About the McDonald Gold Property

The McDonald Property is located in the southwestern part of the Quebec Appalachians in the Eastern Townships region of the Province of Quebec. Uragold's Moe River Property forms the western edge of the property. The McDonald Property covers a 425 sq km gold anomaly known as the McDonald Auriferous Till discovered in 1966 by B.C. McDonald of the Geological Survey of Canada. For a more detailed description, please read the company's press release titled Uragold Completes the Acquisition of a 425 Square Kilometer Gold Anomaly issued October 14, 2010.

Placer Property Updates

Boart Longyear has notified Uragold that the sonic drill and crew will arrive at the Beauce Placer property the week of February 21. As previously announced, Inlandsis Consultants will supervise and report on the drilling results.

Experience gained by working on the Beauce Placer property will then be applied to confirm and possibly increase the 400,000-ounce historical gold deposit of the Moe River (48 million tons of gravel at 0.30 grams per cubic metre) as a Mineral Reserves according to National Instrument 43-101 standards.

Patrick Levasseur, UBR President and COO: " I am confident that exploration work on the McDonald Property by Mr Stuart-Williams and his team will lead us to exciting new discoveries. Southwestern Quebec holds prolific gold showings yet has remained largely unexplored "

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.

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
    or
    Uragold Bay Resources Inc.
    Patrick Levasseur
    President and COO
    514-846-3271
    www.uragold.com