Project Venture with Ur-Energy Adds 1.2 Million Pounds U3O8 of Historical Resources to Bayswater's Elkhorn Project
Vancouver, BC, December 1, 2009 - Bayswater Uranium Corporation (TSX-V: BAY), (OTC: BYSWF) is pleased to announce that it has entered into a venture agreement with NFUR HAUBER, LLC, a subsidiary of Ur-Energy Inc. (TSX: URE) whereby the Company can earn a 75% interest in URE's Hauber Uranium Project located in Crook County, Wyoming ("the Project").
The Hauber Uranium Project comprises approximately 5160 acres, consisting of 205 federal lode mining claims totaling approximately 4200 acres and one Wyoming State Uranium Lease of 960 acres. In addition, the Project includes a substantial database including logs, stratigraphy, assays and metallurgical information on up to 700 drill holes, plus a geologic study, a hydro-engineering report, an In-Situ Recovery (ISR) amenability report and an Environmental Due Diligence report prepared by outside consultants.
The Hauber Project is located within five miles of portions of Bayswater's Elkhorn Project and represents a significant addition to Elkhorn's resource base. In addition, the Project is located very close to the former Hauber Mine, previously operated by Homestake Mining Company. Homestake produced 2.6 million pounds of U3O8 averaging 0.22% U3O8 from the underground Hauber mine during the period 1958-1966, and explored adjacent areas of the northern Black Hills into the mid-1980s.
During this period, Homestake defined four resource areas that are controlled by URE within the Project area, including resources in both the Fall River and Lakota sandstones. Homestake prepared historical estimates of the uranium contained in each of the four resource areas, referred to as Hulett Creek, Poison Creek, Tract 39 and Hauber Area Surface, totaling approximately 1.2 million pounds of U3O8, using a cutoff of 6 feet at 0.06% U3O8, as detailed below:
i. Hulett Creek (Lakota Sst): 728,000 lbs U3O8 in 262,000 tons at an
average grade of 0.14% U3O8
ii. Poison Creek (Lakota Sst): 320,000 lbs U3O8 in 85,000 tons at an average
grade of 0.19% U3O8
iii. Tract 39 (Lakota Sst): 119,000 lbs U3O8 in 67,000 tons at an average
grade of 0.09% U3O8
iv. Hauber Area Surface (Fall River Sst): 50,000 lbs U3O8 in 23,000 tons
at an average grade of 0.11% U3O8
Homestake's data indicates that the Lakota resources lie at depths ranging generally from 150 to 400 feet; whereas, the Fall River resources occur near surface. The Company believes that there is good potential for additional resources in the immediate vicinity of the known deposits within the property as most of the mineralized areas are open both laterally and along strike. The above historical resource estimates are not compliant with NI 43-101 and should not be relied upon.
Under the terms of the agreement with Ur-Energy, Bayswater, acting as Manager of the venture, can earn-in a 75% venture interest upon completing a total aggregate expenditure of US$1,000,000 on the Project by December 1, 2013 as follows:
i. Incurring at least US$150,000 eligible exploration expenditures on
or before December 1, 2010;
ii. Incurring at least an additional US$200,000 eligible exploration expenditures
on or before December 1, 2011;
iii. Incurring at least an additional US$300,000 eligible exploration
expenditures on or before December 1, 2012; and
iv. Incurring at least an additional US$350,000 eligible exploration expenditures
on or before December 1, 2013.
The first year's eligible exploration expenditures will include at least two core holes drilled for the purpose of testing the In-Situ Recovery ("ISR") amenability of selected mineralized zones in the Lakota and Fall River sandstone members of the lower Cretaceous Inyan Kara Group. Tests to be conducted are planned to include permeability and porosity testing; leach testing; and complete mineralogical and petrographic analyses within the mineralized zones.
As part of the Company's effort to consolidate and expand its Elkhorn Project, Bayswater has commissioned Tom Pool of International Nuclear Inc., an independent geologist with extensive uranium experience in the western United States basins, to prepare a NI 43-101 Technical Report on the entire Elkhorn Project, which will include the Busfield, Vickers, Clover, and Quad projects previously reported, plus other project areas held by Bayswater in the Black Hills region of Wyoming. In addition, the NI 43-101 report will incorporate the resources included within the Hauber Project controlled by URE. The Company anticipates releasing the NI 43-101 report around the end of 2009.
George Leary, President of Bayswater stated, "The acquisition of the Hauber Uranium Project is an important step for the Company commensurate with our stated goals of focusing on advanced uranium projects with near-term production potential and building a major uranium company. The Hauber acquisition enables us to significantly increase our historic resources at Elkhorn and significantly expand its overall resource potential. The Company plans to continue developing the Elkhorn/Alzada Project with the intention of bringing it to the feasibility stage."
Bayswater has a strong management and technical team, cumulatively with over 120 years of combined experience in exploration, permitting, development and operation of uranium production, plus a group of industry-leading consultants with uranium experience in the U.S.A, Canada, and overseas.
Bayswater's exploration activities are conducted under the supervision
of George M. Leary, M.Sc. P. Eng. (BC), President of the Company, and
Victor Tanaka, B.Sc. P.Geo. (B.C.), Chief Operating Officer of the Company.
Both are qualified persons under NI 43-101. George Leary is the qualified
person responsible for the technical information in this news release.
About Bayswater Uranium Corporation - The Super Junior Uranium Company!"
Bayswater Uranium Corporation is an international uranium exploration and development company. The Company owns several advanced uranium properties in the United States with significant historical resources that may be amenable to ISR and/or conventional mining. As well, Bayswater is 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 combines a balanced portfolio of advanced and exploration projects with the uranium expertise of its technical and managerial teams. To capitalize on current market conditions and strong growth of the nuclear industry, the Company is pursuing acquisition opportunities of advanced-stage uranium projects with near-term production potential. Bayswater's vision is to build a major international uranium company. Shares of the Company are listed on the TSX Venture Exchange under the symbol “BAY”. For further information visit www.bayswateruranium.com.
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 |
Statements in this news release other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in mineral exploration, development and mining. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
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.
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