Uragold Bay Resources Inc.

Uragold Bay Resources Inc.

June 21, 2011 11:02 ET

Uragold's Drill Program Returned Significant Visible Gold Grains From the Beauce Placer Property

MONTREAL, QUEBEC--(Marketwire - June 21, 2011) -Uragold Bay Resources Inc. (TSX VENTURE:UBR), is pleased to inform its shareholders that the analysis of the information gained from the extraction of visible gold grains from the basal units intersected by the sonic drill program has been completed.

Salient points of the information is:

  • The sonic drilling results of the winter 2011 program have enabled the Corporation to confirm that the historical visible gold grain results are accurate and that base in the information available, the Corporation has enough information to disclose an exploration targets under NI 43-101 rules (NI 43-101/2.3).

  • To date the Corporation technical team confirms that the Chaussegros Range (claim # 6001590) of the Beauce Placer Property contains an exploration target of visible gold grains in a range between 9,000 oz (930,000 Cu M @ 0.3 G/Cu M) to 12,000 oz (100,000 Cu M @ 3.69 G/Cu M) of visible gold grains (i).

  • Furthermore, auriferous layer of the Chaussegros Range remains open laterally and UBR Beauce Placer property also holds a northeast extension (claims # 2165255, 2165256 and 2179342), which also presents comparable size and visible gold grains content as the Chaussegros Range according to historical work.

  • The gold grains scanned by SEM (scanning electron microscope) revealed surfaces of relatively pure gold (99%) once pitted with 10 to 25% silver.

  • The coarse nature of the gold extracted emphasizes the nugget effect found on the Beauce Property.

  • A bulk-sampling program is required in order to increase the understanding of statistical variation of the gold distribution found on the property and obtain a realistic minable gold grade for the inferred gold resource identified on the Chaussegros Range.

  • Furthermore, the information gather during the bulk-sampling will allow the Corporation to make a formal evaluation of the visible gold contain an establish the best and most cost effective extraction method for the recuperation of the buried gold bearing sediment layer.

  • The Corporation intends to start the Bulk sampling in July 2011.

Technical review of the information obtained by UBR Technical team from the analysis of the information gained from the winter 2011 sonic drill program is as follow:

Dense mineral fractions were extracted from 34 samples (10 to 43 kg) of sonic cores of the basal clay rich units including a saprolite layer overlain by an oxidized clayey till. As discussed in previous press release, these units are buried under 20 meters of glacio-lacustrine clay silt and younger tills. Examination of the dense mineral concentrates allowed the extraction of 17 gold grains ranging in size from 200 microns to 2 millimeters. Of the 34 treated samples, 7 retuned visible gold, mainly from the till unit. The mineral concentrate residues have been submitted for fire assay to determine the grade of non-visible gold. Results are pending.

The gold grains were submitted to a SEM (scanning electron microscope) examination. The SEM revealed a percentage level chemical analysis and showed combinations of flat angular and rounded rugged surfaces as follows: the flat angular surface are partly covered with iron oxide and analyzed as electrum including from 10 to 25 % silver while the rounded rugged surface presents a microscopically pitted surface analyzed as relatively pure gold (99 %). The angular surfaces correspond to the pristine shaped reported earlier (Apr. 18, 2011 UBR press release).

These are interpreted as follow: the gold grains were incorporated in the clayey till developed mainly form incorporation of the saprolite and their exposed surface that were glacially reshaped and were subsequently exposed to dissolution of silver creating the pitted surface expression. During that period, the angular surfaces were protected by attached gangue mineral, probably sulfides mineral, which are now turned into partial iron oxide coating. These features along with abundance of gold in till, suggest a short distance of glacial transport and the presence of a nearby gold source in bedrock, as discussed earlier (Apr. 18, 2011 UBR press release).

SEM examination also provided detailed measurements of the gold grains, which can be used to estimate the gold grade of the intersected basal units, ranged from 0 to 1.7 grams per cubic meters over thickness ranging from 1.5 to 3 meters. Higher grades may be present if the dense mineral concentrates submitted for chemical assay returns significant gold results.

The visible gold grains results verified by the sonic drilling of 2011 represent an exploration target with a range of 9,000 oz (930,000 Cu M @ 0.3 G/Cu M) to 12,000 oz (100,000 Cu M @ 3.69 G/Cu M) of visible gold grains (i for the Chaussegros Range (claim # 6001590).

(i) Potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will results in discovery of a mineral resource.

Compared with available historical estimation of contained gold for the auriferous sediment layer by F. Gilbert, P. Ing. for Coniagas Mines Ltd in 1986 and for Macamic Resources Inc in 1988, respectively deposited as assessment file GM 42988 and GM 46544, available through the Examine file retrieving system of the Québec Ministry of Natural Resources (http://sigeom.mrnf.gouv.qc.ca). These estimations preceded NI 43-101 rules and expressions such as "calcul des teneurs et tonnage" (1986) and "calcul des réserves" (1988) were used, although the author recommended further drill testing which displayed the preliminary and conceptual nature of the evaluation. These may be better classified as an exploration target, with the following three limitations: (1) the obtained gold grade vary widely from on hole to another and is based on a small number of large gold grains (2) the economic character of the auriferous units remained to be fully evaluate according to available extraction technologies for buried unconsolidated material and.(3) gold fineness has not yet been considered and that actual grades could be lower.

Gilbert evaluated a resource for the basal oxidized unit using the polygon method surrounding each drill hole that returned significant grades of over 0.3 grams gold per cubic meter (top grade 6.69 g/m3 hole G-64-3). His auriferous body consisted of a fairly continuous layer extending over more than 3 km with a 50 to 75 m width, a thickness ranging from 2 to 12 meters and buried under 15 to 25 meters of more recent sediments. Gilbert's evaluation, updated with the present visible gold data, results in a total of 12 000 oz gold for the portion of the buried layer that is present on the Chaussegros Range (claim # 6001590) that was verified by the sonic drilling of 2011. However, we noticed that Gilbert 1988 estimates include a gold grade correction attributed to the loss of material due to his drilling methods. He considered the missing sediment as a potential loss of gold and increased the gold grade according to its recovery factor. However, observations of sonic cores showed a high proportion of clay (20% to 40%), which was probably lost in the suspension of pressurized water in the RC drilling used by Gilbert. According to our re-interpretation of historical data, the clay fraction does not hold any gold and if the correction factor is removed from Gilbert's calculation, the estimate is reduced.

This results in a range from 9,000 oz (930,000 Cu M @ 0.3 G/Cu M) to 12,000 oz (100,000 Cu M @ 3.69 G/Cu M) of visible gold grains for claim # 6001590. However, according to 2011 results, the width of the auriferous layer remains open laterally and the property also holds a northeast extension (claims # 2165255, 2165256 and 2179342) which also present comparable gold content according to Macamic Data reported in 1988 and which remained to be further tested by further drilling.

Accordingly, because of the coarse nature of gold we reiterate that a bulk sampling is required to obtained realistic gold grades. The Gilbert River basin is famous for producing large nuggets. Nuggets of more than 40 ounces have reportedly been recovered. Bulk sampling will also allow Uragold to evaluate extraction methods for the recuperation of buried gold from the gold bearing sediment layer present on the property.

About the on the Beauce Placer: The Property is located near the village of Saint-Simon-les- Mines in the Beauce region of southern Quebec. In the 1960's, the property was the site of a placer gold mining operation. Considering the intersection of the area excavated by the dredge and the surface expression of the buried gold bearing basal unit, we estimated that less than 20 percent of the known auriferous zone may have be exploited by these past operations.

Uragold's primary objective was to confirm the existence of a placer gold deposit and to evaluate its size and economic potential. A secondary object is to evaluate if the bedrock below could possibly host a hard rock gold deposit.

Note: Mr. Remi Charbonneau PhD (P. Geo), a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the information in this news release.

Patrick Levasseur, Uragold President and COO: states: "An inferred gold reserve is an important milestone for Uragold and a first in the Quebec Appalachians. This encourages us to expand this resource, explore for a hard rock deposit and to validate Uragold's other historical gold deposits such as the Moe River property"

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.

Contact Information

  • Uragold Bay Resources Inc.
    Bernard J. Tourillon, Chairman and CEO
    Patrick Levasseur, President and COO
    (514) 846-3271