Bayswater's 2007 Exploration Programs at North & South Thelon Basin Projects Yield Several Drill Targets for Near Surface Sediment-Hosted and Deeper Unconformity-Type Uranium Deposits
Drilling Planned in North Thelon Basin in 2008
Vancouver, BC, January 4, 2008 ─ Bayswater Uranium Corporation (TSX-V: BAY) (OTC: BYSWF) is pleased to report the results of its 2007 field program from the North and South Thelon Projects located in Nunavut and Northwest Territories, Canada respectively. Results of this work successfully delineated high priority uranium targets that will be drill tested in 2008.
North Thelon Project, Nunavut
The North Thelon Project consists of a series of properties centered about 100 km northwest of the hamlet of Baker Lake in Nunavut. The exploration targets are unconformity related uranium deposits similar to the Kiggavik and Andrew Lake deposits currently being developed by Areva, and sediment hosted uranium deposits similar to the Oklo and Shinkolobwe deposits that have been mined in West Africa..
Detailed ground follow-up of all radiometric anomalies detected by the 2006 airborne geophysical survey was completed in 2007 except for those targets within Permit-1. Significant uranium mineralization was discovered in outcrop and float in the Amer West Block where Bayswater holds a 100% interest. Prospectors collected 16 grab samples from this block which yielded between 1,050 and 2,720 ppm U (0.12 to 0.32 % U3O8) with an average of 1,663 ppm U (0.20% U3O8). This mineralization is stratigraphically hosted in phyllites and feldspathic sandstones of the Amer Lake Group, and the mineralized horizon displays significant continuity along strike in the order of 10’s of kilometers.
Limited exposure of this mineralized unit precludes an estimate of its average thickness. Detailed grids will be established in early 2008 on at least two targets in the Amer West Block to follow-up this mineralization by completing detailed geophysics followed by diamond drilling. Other significant results came from the Permit-2 Block—part of the 50/50 Canada Uranium Joint Venture with Strongbow Exploration Inc. (TSX-V: SBW). Prospectors discovered a small (<0.5 m), subangular, granodiorite boulder which assayed 3,300 ppm U (0.389% U3O8). A major structural break—the Amer Lake Fault Zone, is interpreted to intersect the Thelon sandstone in the area of Permit-2 and extends southwesterly through Permit-1. Analytical results from additional rock samples from 2007 North Thelon prospecting are still pending.
A 16,000 line kilometer fixed-wing airborne radiometric and magnetic survey was completed over newly acquired claims, comprising approximately 551,600 acres, in the Itza area in order to carry out an initial evaluation of the uranium and diamond potential of this region. This area was acquired in 2007 as a result of the 2006 airborne survey which identified a number of circular magnetic features within the Itza claim block. These magnetic features are interpreted to represent possible clusters of kimberlite pipes—host rock for diamonds. In early 2007, the Company entered into an agreement with Stornoway Diamond Corporation (TSX: SWY) to explore the Itza Lake property for diamonds. Stornoway completed an initial ground evaluation of some of these magnetic features in 2007 from which results are still pending. Preliminary results from the 2007 airborne survey indicates the presence of several anomalous radiometric targets in favorable geological settings. These targets are planned to be detailed prospected and evaluated in 2008.
The 2008 field program at North Thelon is planned to consist of detailed geophysical, geological and prospecting surveys to follow-up 2006 radiometric targets in Permit-1 and newly discovered radiometric anomalies form the 2007 survey. A diamond drill program, consisting of a minimum of 5,000 metres of drilling, is planned to test uranium zones of interest defined in the Amer West and Permit Area-2 areas. A drill contractor has been secured for this work, and permitting for the project is under way.
South Thelon Project, Northwest Territories
The target at Bayswater’s South Thelon Project is an unconformity related uranium deposit located at or near the unconformity—associated with basement graphitic gneisses and coincident faulting. A secondary target is a Kiggavik-style deposit located in basement metasediments near the unconformity that is not related to graphite. Airborne geophysical surveys were completed over the entire project area in 2007. These surveys consisted of a 7,000 line-kilometer airborne VTEM/magnetic survey over sandstone covered areas of the property, internally within the Thelon Basin, that were not covered by the MegaTem survey completed in 2006; and a 20,000 line-kilometer fixed wing radiometric/magnetic/VLF survey that was carried out over the marginal portions of the Thelon basin. Ground follow-up activities consisted of prospecting significant radiometric anomalies from this past summer’s airborne in addition to ground EM follow-up of some of the significant airborne EM targets detected during the 2006 MegaTem survey. A significant uranium showing called the Hanbury Showing was discovered in the northwest portion of the NW Claim Block in basement gneisses in close proximity to the unconformity. This showing consists of a series of frost heaved boulders with anomalous radioactivity concentrated in chloritic fractures. Four grab samples assayed between 1,650 and 3,010 ppm U (0.19 and 0.36 % U3O8).
Due to the large scale of the 2006 MegaTem and 2007 VTem surveys, geophysical processing and interpretation has now been completed respectively by Paterson, Grant and Watson Ltd. and Condor Consulting Inc. and PGW have evaluated the magnetic coverage for the entire survey area..
As previously reported from the 2006 MegaTem survey, a 2 to 3 kilometer wide conductive zone, consisting of two subparallel anomalies, trends across the northwest section of Bayswater’s 100% owned CL property. These anomalies are interpreted as part of the same 70 km long conductive trend (referred to as the “F” and “G” conductive zones) that extends northward from the adjacent Boomerang uranium property where joint venture partners Cameco Corporation (TSX: CCO) and Uravan Minerals Inc. (TSX-V: UVN) have recently completed a drilling program. This major conductive trend is a strong drill target with the potential to host unconformity-type, high-grade uranium deposits similar to uranium deposits located in the geologically analogous Athabasca Basin. Other significant airborne EM anomalous conductive zones associated with magnetically interpreted favorable basement structures have been recently defined based on the 2007 VTem survey. To date, a total of nine EM targets of potential interest have been identified throughout the South Thelon 2006/2007 survey area. Of these, four high priority targets, including the CL property target, have been defined that average 5 to 10 km in length and are associated with major basement structures. These targets will be a focus for Bayswater with respect to further ground geophysical definition and drilling.
In the spring of 2007, applications for land use permits were submitted to the Mackenzie Valley Land and Water Board to allow camp establishment and diamond drilling on priority targets within the South Thelon project area. In late August of 2007, these applications were referred to the Mackenzie Valley Environmental Impact Review Board for a full environmental assessment. Meantime, Bayswater has been granted relief under the Canada Mining Regulations so that assessment requirements for all the claims and prospecting permits in the South Thelon project area will be put in abeyance pending a resolution of the permitting issues.
“The potential of Bayswater’s properties in the Thelon Basin to host significant high grade uranium deposits has been confirmed by our 2007 surveys”, states Victor Tanaka, Chief Operating Officer of Bayswater. “We are very much looking forward to the results of our initial drill programs in North Thelon in 2008, and the potential for Stornoway to define kimberlites on our joint ventured ground. We are also optimistic about the results we have seen at South Thelon, although we will have to be patient to resolve the permitting issues there. The relief we have been granted by the Mining Recorder will insure that we do not forfeit any land until that situation has been resolved.”
About Bayswater Uranium Corporation – The Super Junior™ Uranium Company
Bayswater Uranium Corporation is a rapidly-growing international uranium exploration and development company. As the only uranium company to have major landholdings in each of Canada's most important producing and exploration regions – the Athabasca Basin, the Central Mineral Belt, and the Thelon Basin – Bayswater is a leader in uranium exploration in Canada, the world’s largest producer of uranium. The Company also owns several advanced uranium properties in the United States that are being fast tracked to production along with a resource property in Mali and concessions in Niger. Bayswater combines a balanced portfolio of exploration and development projects with the uranium expertise of its technical and managerial teams. The result is a Super Junior™ Uranium Company with the share liquidity and market capitalization to provide value to both the retail and institutional investor. Bayswater is listed on the TSX Venture Exchange under the symbol “BAY”.On behalf of the Board of:
BAYSWATER URANIUM CORPORATION
| George M. Leary |
| President and CEO |
For further information contact:
| John Gomez Manager, Investor Relations |
| Telephone: (604) 687-2153 |
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
