MONTREAL, QUEBEC--(Marketwire - March 30, 2012) - Uragold Bay Resources Inc. (TSX VENTURE:UBR), Uragold is pleased to announce that the Company's has received the results of its four hole reconnaissance diamond drill program completed on the Beauce Placer Property located near Saint-Simon-les-Mines in the Beauce region of southern Quebec in December 2011. The key result is the identification of a hard rock gold anomaly in the bedrock directly beneath the gold placers. This strenghthens Uragolds' working hypothesis that suggests a proximity to a bedrock source of gold for the buried gold placers.
Gold analysis by fire assay from Laboratoire Expert Inc for selected samples along drill hole RG11-01 returned slightly anomalous values, from 10 to 75 ppb Au, sparsely distributed along core length from 20 m to 130 m of depth. This anomaly occurs in pyritic volcanic and sedimentary units of the Beauceville Formation, with minor quartz carbonate veining. In contrast, the three other holes drilled outside the placer gold channel returned no (or undetected) gold values.
Additional splitting and sampling are currently being applied to intervening length to confirm and better define this anomaly which is located immediately below the buried gold placer, recently confirmed by UBR (press release dated June 16, 2011). If confirmed, this anomaly may represent an alteration envelope from nearby gold mineralization, which may warrant additional drilling.
As previously reported, (Uragold press releases of April 18 and July 5, 2011) Uragold confirmed the existence of a buried orange-brown gold bearing till where analysis of recovered gold grains from Uragold's sonic drill program suggests a proximity to a bedrock source of gold, within the limits of the UBR Property.
Dr. Remi Charbonneau PhD (P. Geo) of Inlandsis Consultants, is a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the information in this news release.
Bulk Sampling Update
Uragold is pleased to announce that on March 5, 2012, the city council of St-Simon-les-Mines has unanimously approved the Company's bulk sampling program. Uragold is currently at a 50 day mark of a 75 working day waiting period to obtain the required permits for its bulk sampling permit from Quebec's MNRF (Ministère des Ressources naturelles et de la Faune) and the MDDEP (Ministère du Développement durable, de l'Environnement et des Parcs).
About the Beauce Placer Gold Property
The Beauce Placer property was the site of Canada's first gold rush in the 1850's, years before the Klondike gold rush. Two of Canada's largest gold nuggets, the Kilgour nugget at 52 ounces and the McDonald nugget at 45 ounces, came from the Gilbert River, which flows through the property. In the early 1960's, the property was the site of a major placer gold mining operation. The Beauce Placer Mining Co. was the only commercial placer gold mining operation in eastern North America.
Uragold Acquires An Additional Placer Gold Property in Southern Quebec
Uragold is pleased to announce it has signed an agreement with a private vendor regarding the acquisition of 100% interest in Arnold River Placer property comprising of 41 mineral claims located near the town of Woburn, located in southern Quebec's Eastern Townships region.
Material terms of the agreement are as follows (all amounts are expressed in Canadian dollars). In order to acquire its interest in the claims, the Company shall make the following payments to the vendor.
The Vendor agrees to grant Uragold the exclusive and irrevocable right to earn a one hundred per cent (100%) interest in the Claims, in consideration of 2,000,000 common treasury shares of the Company plus a cash payment of $10,000.00. The Vendor has a right to an NSR of 5% for all placer gold production, and an NSR of 2% for all hard rock production. At all times, Uragold can purchase both NSRs for the amount of $5,000,000.00.
As part of the agreement, the Vendor has the right to nominate a new Director to Uragold's Board of Directors. This nomination will be announced at a later time.
The transaction is made with a party that is non-related to the Corporation. The acquisition is conditional to the approval of regulatory authorities. Further to the acquisition and its approval, the parties will proceed with the transfer of the titles of the claims to the Corporation.
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 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.
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.