Uragold Bay Resources Inc.

Uragold Bay Resources Inc.

October 14, 2010 11:26 ET

Uragold Completes the Acquisition of a 425 Square Kilometre Gold Anomaly

MONTREAL, QUEBEC--(Marketwire - Oct. 14, 2010) - Uragold Bay Resources Inc. (Uragold) (TSX VENTURE:UBR), Uragold is pleased to announce it has completed the acquisition of 100% interest in 794 claims by map staking and through an exchange of claims with a private vendor. The claims' block, named the McDonald Property, covers a 425 sq km gold anomaly known as the McDonald Auriferous Till. It is thought that one or more hard rock gold deposits may explain the gold content within the tills.

The McDonald Project 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 property then extends east out to the Eaton River property. The northern limits are 10 km from the city of Sherbrooke while the village of Hereford forms the southern tip of the property.

B.C. McDonald of the Geological Survey of Canada discovered the McDonald Auriferous Till in 1966. Surface till samples of heavy mineral concentrates were assayed to delineate auriferous areas within the sedimentary sequence of the Connecticut Valley-Gaspe Synclinorium. Auriferous till was found to be concentrated in an area at the headwaters of such placer gold bearing drainages as the Saumon, Eaton Rivers and the 400,000 plus ounce placer gold deposit of the Moe River. (Uragold 43-101 Technical Report, Nov 09) Gold in recent alluvium is being washed from the till through which these rivers and their tributaries flow. Uragold now holds this area of till.

Uragold is interested in finding the hard rock source from which the gold originated. It is believed that this source is somewhere within the company's claimed blocks.

Further work on the McDonald Auriferous Till by Rampton and Gleeson in 1981 (Dr V. Rampton, Dr C.F. Gleeson 1981) revealed non-visible gold with one concentrate sample yielding 2.69 g/ton au. The authors felt that the gold was local in origin and probably derived from the pyritiferous slates and quartzites of the Silurian-Devonian, St.-Francois Group (that strikes north easterly through the McDonald Project area).

The geochemical distribution patterns in the glacial drift suggest at least two possible localities for hard rock gold sources. The first could be northwest of Hereford Mountain in Compton County, while the second source may be east of Martinville in Clifton County.

A third possible source of lode gold has been suggested by geologist Pierre Geoffroy in the hills in the vicinity of Saint-Edwidge between the Moe River and Route 251. Mr. Goeffroy was exploring the gold placers of the Moe River for Exploration Minière Appalaches in 1986. In his report (GM43677), he wrote that high yielding placer gold concentrate samples from the tributaries of the Moe River were found at high elevations where glacial till overburden is practically non-existent. He proposed that weathering might have freed gold from gold bearing quartz veins.

Coincidently, in 1985 the Canadian Geological Survey conducted a heavy mineral sampling project throughout the Eastern Townships of Quebec (Y.T. Maurice and M. Mercier). One stream sediment sample concentrate gave 242.30 ppm gold. This sample was obtained from a site above the main glacial till overburden. This sample was also in the hills between the Moe River and Route 251 but some 4 km south of Saint-Edwidge.

Other gold showings on the McDonald Property include:-

The Rowell Property: (GM0917) Clifton County. Two gold bearing quartz veins at 6,9 g/t and 5, 8 g/t of gold.

My Turn Syndicate 1987, (GM45203) Geologist Pierre Beaudry comments "The sectors found at both the confluences of the Eaton and Eaton North Rivers along with the confluences of the Ascot (Saumon) and Moe Rivers show abnormally high gold grades. The thin overburden and the gold concentrations of these sectors could possibly indicate a source of gold in the proximities."

Rivard Ouest Deposit: Zircon deposit in Barford County. Dry placers of zircon and gold in sand deposit.

Uragold's geologist and board member Mr Vivian Stuart-Williams will conduct a field survey and a geological overview of the McDonald Property. An exploration program will then be started to search for hard rock gold deposits.

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, president and COO of Uragold stated. "Uragold benefits from millions of dollars worth of past exploration work. We will be the first to consolidate all this information and move forward with a broad sampling and drilling campaign. It takes a considerable amount of gold to account for all the gold showings found throughout the McDonald Property. Where did it all come from? Searching for the source of gold will be an exciting venture for everyone!" 

Material terms of the claims exchange are as follows In order to acquire its interest in the claims; the Company shall transfer title rights of the following claims to the Vendor.

The Vendor has agreed to grant Uragold the exclusive and irrevocable rights to own a one hundred per cent (100%) interest in 68 claims located within the McDonald Property, in exchange for 73 claims of the Company. It includes the 22 claims of the Bulstrode REE property and the 36 claims of the Inverness property.

The transaction is made with a Vendor that is non-related to the Corporation. It's a direct transfer of ownership with no other consideration. The parties have submitted signed transfer agreements for 100% title rights to the exchanged claims to the Quebec Minister of Mines and Natural Resources. 

About Uragold Bay Resources Inc.

Uragold Bay Resources is a junior exploration company trading on the TSX Venture Exchange under the symbol UBR. Uragold's business model focuses on developing, low-cost gold mining operations while exploring core properties that hold the potential for the discovery of blue sky gold deposits.

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.

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
    Toll-free 1-888-666-3431
    Uragold Bay Resources Inc.
    Patrick Levasseur
    President and COO
    Toll-free 1-888-666-3431