Uranium Bay Resources Inc.

Uranium Bay Resources Inc.

June 16, 2009 10:23 ET

Uranium Bay Receives Technical Report on its Uskawanis Property: Based on the Current Information the Prospectivity of the Property is Still Considered Very Good

MONTREAL, QUEBEC--(Marketwire - June 16, 2009) - Uranium Bay Resources Inc. (TSX VENTURE:UBR)

- Radon Levels up to 60,000 PPM Intersected in Ground Water in Fractures Clearly Demonstrate the Unique Nature of the Property's Granitic Environment

- Three Separate Types of Radiometric Tools Confirmed That the "Uranium" Radiometric Anomalous Zones Found on the Property Are Real and Massive

- Large Amounts of Radon and Uranium Daughter Products Cannot Occur Unless There Is a Breakdown of a Higher Grade Uranium Source.

- The Fact That All the Anomalies Occur in Proximity to Faulting in a Discrete Zone (Striking About 30 Degrees East of North) Suggest the Presence of a Large Uranium Source, at Depth, in or Below the Granites.

- Two Geological Models Could Account for the Findings; Either Uskawanis Possesses a Large Uranium Vein System Within the Granites; or a Large Uranium Source Possibly Meta-Sedimentary, Within or Probably Below the Uskawanis Granites, Similar to the Nearby Strateco Apple Deposit

Uranium Bay Resources Inc. is pleased to inform its shareholders that Mr. Vivian Stuart-Williams, UBR director and Exploration Manager, completed a second technical report describing the findings emanating from the exploration work done to date on UBR's wholly owned 314 km2 Uskawanis Uranium Property ("UUP") situated SE of Hydro-Quebec's Opinaca Hydroelectric Reservoir along the Eastmain River, 180 km SSE of Radisson, Quebec.

The report brings together the geological information of the UUP, including work by independent consultants, contractors and logistical support people as at end 2008, and it was prepared in accordance with National Instrument 43-101 and 43-101F as part of UBR's Continuous Disclosure Reporting requirements. The report will be available soon on the SEDAR website at www.sedar.com and on a new UBR website that will be prepared after the holding of the AGM of the Corporation (June 18, 2009).

The UUP property is located in the Superior Province of the Canadian Shield. The Superior Province was assembled from continental fragments and intervening tracts of oceanic crust between 2720 Ma and 2680 Ma. The entire property is within the La Grande Sub-Province of the Superior Province. The geology of the UUP is dominated by the Uskawanis pluton and is largely tonalities and monzogranites. The main exploration target for the Uskawanis Uranium Property is uranium.

Review of 2008 work programmes:

An airborne geophysical report prepared GEOPHYSICS GPR INTERNATIONAL INC. was delivered towards the end of the 2007 drilling programme. The report indicated the presence of large radiometric anomalies in the centre of the project area that had not been drilled by UBR. These larger radiometric anomalies identified and prioritized by GAP Geophysics, early in 2008, became the target of the 2008 drilling programme. (please refer to June 9, 2008 press release)

This prioritization localized the anomalies to be investigated to W(est) 1 to 16; WC (West Central) 1 and 2; N(orth) 1 to 4; C(entral) 1 to 17; S(outh) 1 to 5; and E(ast) 1. This gave a total of 45 anomalies to be investigated. (Please refer to attached map for more details: http://media3.marketwire.com/docs/Mineralized_zone_pdf.pdf)

The W and WC anomalies had been mostly investigated during the 2007 campaign. The N, C, S and E anomalies became the priority for the 2008 programme (please refer to August 1, 2008 press release). For the 2008 programme, 27 drillholes were planned of which 26 were successfully drilled.

It was decided early during screening of the anomalies that the N3 and N4 anomalies would be priority and drilled first. The size of these anomalies suggested that they had a high potential to generate a resource quickly (Please refer to attached map for more details: http://media3.marketwire.com/docs/Mineralized_zone_pdf.pdf). Boreholes BHN3-01 to BHN3-03 were drilled in an eastward direction away from the radiometric outcrop. Borehole BHN3-01 gave radiometric results that suggested an average grade of about 100 ppm eU3O8 over the top 50 metres of the drillhole.

In all, seven drill-holes were completed on the N3 radiometric anomaly. On the basis of the down-hole logging results UBR was very encouraged and issued a Press Release indicating that UBR had identified a resource on the N3 anomaly (please refer to August 20, 2008 press release).

At the time this press release was issued UBR had received no geochemical results. There was concern that drillcores logged seemed to correlate badly with the down-the-hole-logger radiometric results. UBR asked Terratec (the geophysical contractor) to confirm equipment specs and to re-log several boreholes (including some drilled in 2007) to test that results were comparative. There was no evidence of any equipment problems and the instrument proved to be virtually 100% accurate.

Drilling moved to the N4 anomaly. Some eight drill-holes were completed.

BHN4-02 had a spot anomaly (that was about 30 cm wide) that gave radiometric assays of about 6,000 ppm eU308. The core sample at the same depth was essentially barren and gave no comparable hand-held scintillometer result! Consensus opinion on the base of the results of different in-drillhole surveys done on the hole was that there was very strong evidence that a fracture at about 70 metres was continuously and on an on-going basis pouring radiometric "fluid" into the borehole and it was suggested that the fluid was rising up the borehole (warm?). UBR requested Terratec to investigate this borehole.

It was confirmed that the key "issue" was in-hole radon gas - probably present as geogas (micro-bubbles) in the groundwater (please refer to February 3, 2009 press release). Radon levels were calculated to be up to 60,000 ppm in the groundwater intersected in the fracture / fissure system of BHN4-02. These levels of radon geogas are out of equilibrium with the adjacent granites and must therefore be coming from a deeper source of higher grade uranium.

Similar issues were found in some of the other N4 drill-holes.

The S Anomaly was a well defined circular radiometric anomaly that had a marked recti-linear pattern suggesting that faulting played a major role in the distribution of the anomaly. Four drill-holes were completed.

By the time of the S Anomaly drilling, UBR staff were now of the understanding that the radiometric anomalies being seen had very little to do with in-situ uranium. It was now thought that the anomalies related to uranium daughter products being carried upward along fractures. This model had been developed from the radiometric results specifically on the South, North and East Anomalies. The association of faulting and radiometric anomalies seemed too strong to be coincidental.

As has been mentioned, there was a huge disparity between the radiometric logs; and the physical core and geochemistry. Normally in hardrocks such as granites, the correlation between the radiometric "assays" and geochemical assays for uranium are very good (within a few percent). At the UUP it quickly became apparent that this was not the case and that the geophysical "assays" were up to 700% or more higher than the geochemical assays. This meant that the geophysical assays were showing the presence of sub-economic to economic grades while the geochemistry was indicating only slightly elevated uranium levels in the granites.

It must be clearly recognized by shareholders that the "uranium" radiometric anomalies found at the UUP are real and big. They were demonstrated by the airborne radiometric survey; confirmed by the use of ground operated scintillometer on outcrop and core; and re-confirmed by professionally calibrated and operated down-the-hole radiometric logger. This device was regularly checked on site and gave duplicate results for boreholes drilled during the 2007 drilling programme. This means that all three separate types of radiometric loggers were in agreement that the UUP had large radiometric anomalous zones.

Secondly it has to be recognized by shareholders that the geochemical analyses were re-run and checked using different assay techniques and have also been reconfirmed. Essentially there is no uranium in the rocks above typical background levels for slightly enriched granites (with the exception of the one boulder analysis).

This meant that two well proven exploration techniques were giving widely differing results for the same samples. UBR staff and contractors are confident that there were no geochemical or geophysical errors and that there is a REAL substantial difference in results from the geophysical and the geochemical analyses.

Discussions with uranium geologists and geophysicists suggest that the situation found at the UUP is unique in this type of granitic environment. UBR staff believes this uniqueness to be very important.

The issue is disequilibrium. Put in its simplest manner, disequilibrium is a where there is more than about a 20% error between radiometric assays and geochemical analyses of the same sample or rock unit. What we have at the UUP is substantial disequilibrium (up to + 700%) over the 14 or 15 major radiometric anomalies (N1-4; S1-5; E1; and some of the C anomalies).

If a rock is a closed system (nothing being added or subtracted), then a very accurate measurement can be made of the amount of uranium in the rock using radiometric assays. Generally, hardrock geological systems are approximated as being closed, so hardrock uranium orebodies generally give good relationships between the radiometric assays and geochemical analyses. If the rock system is an open system and materials can be added or subtracted, disequilibrium can occur.

The subject is complicated and is discussed further in the report Section 17.1 - 17.3. Basically what has occurred is that radioactive uranium breakdown products (daughters) have been added to the rocks substantially increasing the level of radiation (but not the level of geochemical uranium). This in turn creates large amounts of radon gas (along with gas from deeper sources) that have created the large surface radiometric anomalies. The anomalies are a combination of the significantly increased radioactivity (due to the addition of uranium daughter products) and the radon gas (which is itself radioactive).

"UBR staff is now attributing these strange results to the presence of radon gas and the addition to the rocks of uranium daughter products. The radon gas is causing the high radiation levels in fluid and the daughter products are causing the disequilibrium in some of the granites. Both of these effects relate directly to the breakdown of higher grade uranium "somewhere" in the adjacent rock system."

Breakdown of the low levels of uranium in the granites will produce a known amount of radon and daughter products. The presence of large amounts of radon and the addition of large amounts of daughter products to the granites cannot occur unless there is addition of these products as the direct result of breakdown of a higher grade uranium source. The fact that all these anomalies occur in proximity to faulting in a discrete zone (striking about 30 degrees east of north) has to suggest the presence of a large uranium source, at depth, in or below the granites. (Please refer to attached map for more details: http://media3.marketwire.com/docs/Mineralized_zone_pdf.pdf). This is discussed in considerable detail in Section 17 of the report.

After consideration, it seems that there are two possible geological models that could account for the unusual findings at the UUP. It is believed that we are either looking at uranium vein deposits within the granites OR a large uranium source (possibly meta-sedimentary), within or probably below the Uskawanis granite, similar to the nearby Apple deposit of Strateco. (TSX VENTURE:RSC) This could only be determined through additional work.

On the basis of the current technical information available, the Prospectivity for the UUP is still considered very good.

UBR technical staff is of the opinion that the next phase of this project should include a desk-study; a re-assessment of the magnetic data recovered during the 2007 airborne survey; an airborne gravity survey to try and identify any basement structures; and possibly a seismic survey; and an examination of the satellite thermal data of the core area to see if any thermal plumes on faults can be detected. Recommendations from this phase would define any future programme.

The following future work is recommended:

- A comprehensive desk-study;

- A re-interpretation of the original magnetic data specifically looking to see whether detection of any deeper structure is possible;

- An airborne gravity survey to again see whether any deeper structure can be determined. It would be very useful for future planning to have a comprehensive understanding of the structure of the granite and any possible meta-sedimentary (or other) packages within or below the granite.

Other aspects that may be recommended depending on results from the previous work could include:

- The examination of thermal satellite imagery to try and detect thermal plumes (if present). It seems very probably that the addition of uranium daughter products is happening due to water transport in deep fractures. The very low temperature of the water makes thermal overturn a strong possibility. This small temperature change may be detectable;

- The carrying out of some ground radon surveys. This would confirm the current supposition that radon IS the main cause of the anomalies;

- Seismic surveys. It is possible that the magnetic and gravity surveys may not provide conclusive evidence of structure at depth. If that is the case, then the use of a seismic survey may be justified; and;

- Other techniques. It may be that the work completed could lead to other requirements not yet visualized.

The intention of this "desk study" is to demonstrate that the current model is correct and to provide better control for future deeper drilling, below the 100 metre threshold used for the 2007 and 2008 programmes. The proposed budget for the next phase at Uskawanis is pegged at C$ 750,000 excluding any further resource definition drilling, and may take between 6 to 12 months to realize.

Mr. Bernard Tourillon, UBR's President and CEO, comments:

"The two technical reports done to date present in a clear and concise way that the scientific methodology taken since the arrival of UBR's new technical director and team is bearing fruit and that important milestones are being attained in Uranium Bay's stated goal of delineating a large scale Uranium deposit on the UUP."

"The report validates our exploration strategy that began in 2007 when UBR acquired the UUP grass root exploration project in the Bay James region of Quebec, and invested close to $4,500,000 in exploration expenses since."

"Based on the information available to date, the Corporation no longer believes that the significant radiometric anomalies found on the UUP and the high grade uranium grab samples found on the surface of the concession are indicators of the presence of Rossing style mineralization (low grade, high volume surface deposit) on UUP"

"But the exploration work is starting to demonstrate that the large scale radiometric anomalies found on the UUP combined with the substantial disequilibrium (up to + 700%) over the 14 or 15 major radiometric anomalies are real indicators of what may well be a never seen and recognized unique and deeper source of higher grade uranium."

"The challenge going forward will be developing this potential and the desk study should go a long way in helping the UBR technical team and management develop the potential of the concession, either alone or with the assistance of a well capitalized and serious technical partner.

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 Uranium Bay Resources Inc.

Uranium Bay Resources Inc. is a Canadian based junior resource and exploration company trading under the symbol UBR on the TSX Venture Exchange. The Company has 82,374,367 shares outstanding. The Company holds 100% of the 314 km2 Uskawanis Uranium property located just south of the Opinaca reservoir.

Neither 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. This news release contains forward-looking statements reflecting Uranium Bay objectives, estimates, expectations and the impact of acquisitions on Uranium Bay's financial performance. These statements are identified by the use of verbs such as "believe", "anticipate", "estimate", and "expect" as well as by the use of future or conditional tenses. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Uranium Bay's projections or expectations.

Contact Information

  • Uranium Bay Resources Inc.
    Bernard J. Tourillon
    President and CEO
    Toll-free 1-888-666-3431