Uragold Bay Resources Inc.

Uragold Bay Resources Inc.

January 27, 2010 12:12 ET

Uranium Bay Stakes Three Prospective Gold Properties Plus a 19th Century Gold and Platinum Project, All Situated Near the Gilbert River in the Beauce Region of Southern Quebec

MONTREAL, QUEBEC--(Marketwire - Jan. 27, 2010) - Uragold Bay Resources Inc. (Uragold) (TSX VENTURE:UBR), is pleased to announce that it has acquired, by map staking, 100% interest in four gold properties located in the Beauce region in the Appalachians of southern Quebec. UBR new exploration projects are:

1) The Calway River Gold Project

Six claim blocks cover the Calway Project. The project is located in the Beauce region (68 km south of Quebec City and 12 km north west of Uragold's Beauce Placer Gold Project on the Gilbert river). The North American Asbestos Company last explored the property in 1962. Drilling and exploration work by the company (GM12015) revealed two indicated paleoplacer gold resources estimated at 16,000 T at a grade of 4 g/T of gold or 2,057 oz of gold and 327,000 T at a grade of 3.4 g/T of gold or 35,864 oz of gold (*).

2) The Rivière du Loup Gold and Platinum Placer Mine Property

The project is composed of 32 claim blocks and is located in the Liniere County of the Beauce region, 98 km south of Quebec City and 12 km south of Uragold's Beauce Placer Gold Project. Like the Gilbert River and the Calway, the Rivière du Loup River is a tributary of the Chaudière River.

Various companies actively mined the banks and benches of the river from the 1850's up to 1910, but not much reliable information about the quantities of gold and platinum extracted is available today. However, the most interesting information from the period comes from site inspection reports done by geologists of the Geological Survey of Canada (GSC) and the Quebec Ministry of Colonization and Mines (QMCM) that noted the following:

In 1864, pioneer geologist and first director of the Geological Survey of Canada, Sir W. E. Logan, noted the presence of platinum along with other platinum group metals (PGM) such as iridium and osmium, in the placers of Riviere du Loup. In 1895, Oblanski of the QMCM noted that the gold bearing gravels were mined at a grade of 2.25 grams per m3 of placer gold. In 1898, Chalmers of the GSC documented that an 8-metre shaft cut through gold bearing quartz veins that produced a sample of 10.5 grams per ton of gold. In June 1898, Oblanski wrote that technological limitations prevented the miners from mining the richest part of the deposit. (*)

3) Samson River Gold Project

The project is composed of 15 claim blocks, located in the Marlow County of the Beauce region, 123 km south of Quebec City and 55 km south of Uragold's Beauce Placer Gold Project. The information on the potential is limited but Chalmers (1890) reported that in 1877 lots were sold for prospecting, but no mention of any discoveries was made. In 1985, two stream sediment samples collected from the Samson River by the GSC yielded grades of 245 grams of gold per ton and 7.14 grams of gold per ton of concentrate. (*)

4) Grande Coulee River project

32 claim blocks, located in the Dorset County of the Beauce region, 100 km south of Quebec City and 32 km south of Uragold's Beauce Placer Gold Project. In 1985, three stream sediment samples collected from the Grande Coulee by the GSC yielded grades of 197,51.5 and 10 grams of gold per ton of concentrate. (*)

(*) All historical resource information presented in this press release 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 estimates 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.

The Beauce and Eastern township areas are presently enjoying a major staking rush. Recent public information indicates that Bowmore Exploration Ltd. (TSX VENTURE:BOW), Fancamp Exploration Ltd. (TSX VENTURE:FNC), Nevado Venture Capital Corp (TSX VENTURE:VDO) and others have staked vast land concessions in the area over the last months.

The main reason for this staking rush is the fact that companies are realizing that the Beauce region, the site of Canada's first gold rush in the 1850's, decades before the Klondike, has been under-explored for a long period. Similar to the Eastern Townships of Quebec, Gold mineralization in the Beauce are found as placer gold in the overburden; pre-glacial paleoplacer gold found at the bedrock/overburden interface; and as mineralized quartz veins.

Bernard Tourillon, UBR Chairman and CEO comments: "Uragold believes that based on the historical information available, these properties are similar in scope to our recently acquired Beauce Placer Gold Project on the Gilbert River. These projects warrant further exploration work and will be grouped together to collectively be referred to as the Beauce Placer Projects. The goal of the Company is still to delineate a significant resource that can be placed into production relatively quickly, but the staking rush in the area, that started after UBR started its staking activity, opens the option of developing our properties and looking at strategic partnerships."

About Uragold Bay Resources Inc.

Uragold 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 105,894,367 shares outstanding. The Company holds 100% of the 314 km2 Uskawanis Uranium property located just south of the Opinaca reservoir, 100% of the Blue Lake Base Metal and Gold property situated close to Radisson in the James Bay region, 100% of the "Saint-François and Dudswell Tertiary Gold concessions", 100% of the "Moe River Placer Gold Project", 100% of the "Eaton North Placer Gold Project and 50% with an option to get 100% of The Beauce Placer Gold Project". In addition the Corporation is also staking promising projects in the eastern regions of the Province of Quebec.

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 press release contains certain "forward-looking statements," as identified in the Uragold Bay periodic filings with Canadian Securities Regulators that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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