Bayswater acquired the Alzada Project through its amalgamation with Kilgore Minerals in 2007. Over 7.0 million pounds of U3O8 (historical resources, non NI 43-101 compliant and not to be relied upon) occur in three closely related properties with mineralized roll fronts in the Fall River and Lakota Formations—the Mindy, Acadia/Cochrane and Ella properties. Preliminary testing of the Ella deposit by Amoco/Exxon indicated favourable conditions for in-situ recovery (ISR), which is one of the preferred mining methods of uranium deposits today due to the small environmental footprint of such operations. Compilation of an acquired database indicates substantial potential to expand mineralized areas. Initial meetings and work with regulators in Montana have been completed with a view of permitting this project for exploration and development. Economic analyses, data compilation and preparation of a drill plan are on-going in preparation for permitting, drilling and testing to confirm known historical resources and expand mineralized roll fronts; as well to determine the amenability of the deposits for in-situ-recovery (ISR). The project is considered to be best developed in tandem with the nearby Elkhorn Project in Wyoming. Both are located in excellent areas for project development and mining infrastructure needs (see map below).

Location & History

The Alzada project consists of several claim blocks and leases in southeast Montana obtained through Bayswater's merger with Kilgore. The properties were explored extensively in the past by the mineral divisions of major oil companies. Bayswater holds nearly 25,000 acres of mining claims, fee mineral leases, and surface leases across the southern-most portion of Carter County, Montana, close to the Wyoming border. The Company’s historical resources occur within three closely spaced properties referred to as the Mindy, Acadia/Cochrane, and Ella projects.

Southern Carter County was intensely explored by numerous major mining and energy companies during the 1970's and into the late 1980's. Kerr McGee, one of the largest uranium producers during this era, in its joint venture with Chevron, was particularly active in the area and drilled thousands of reconnaissance and closer spaced delineation holes on and around the Mindy and Acadia/Cochrane projects.

As mentioned earlier, the property is being developed in conjunction with the Company's Elkhorn property in Wyoming due to their close proximity to each other, demonstrated in the map to the right.

In October 2005, the Company acquired an extensive uranium exploration database covering portions of southeastern Montana and northeastern Wyoming. The package includes rotary and diamond drill core data and the original borehole geophysical logs from 951 holes with a total footage of nearly 2 million feet in the immediate area of the Company’s historical resources. This data is part of a much larger database, including a total of about 4600 holes, generated over a period of 18 years (1970-1988) by Montana Nuclear, Exxon, Amoco, Kerr McGee, and Uranium Resources, Inc. (URI).

The Company has digitized and compiled the information for historical resource areas. Currently, the Company is in the process of establishing drilling and development plans to confirm the historical resources and further expand roll front mineralized zones in the individual projects and to further evaluate the amenability of ISR to the deposits.

The Mindy Project

The Mindy Project covers an area of close spaced drilling by Kerr McGee/Chevron that identified a roll front traceable for approximately 4.5 miles in the Fall River Sandstone of the Cretaceous Inyan Kara Group. The sandstone hosted uranium mineralization occurs at a depth of about 950 feet below surface. The known mineralized portions of the roll front are defined by at least 226 holes drilled by Kerr McGee/Chevron. The company holds logs and other data for a total of 417 drill holes on and near the defined roll front. Historical resources total approximately 1.4 million pounds of U3O8 (non NI 43-101 compliant and not to be relied upon) at a grade of 0.156% with an average thickness of 6.5 feet. Numerous target areas with potential for expanding the mineralized roll fronts are held by the Company.

The Acadia/Cochrane Project

The Acadia/Cochrane Project covers another Kerr McGee roll front target that was previously drilled extensively in a close-spaced pattern. This roll front target occurs in the Fall River Sandstone of the Inyan Kara Group that has been traced for approximately 2.5 miles. At least 254 holes were drilled, mostly on 100 foot spacing along fences at 500 foot intervals. The mineralization occurs at approximately 1450 feet below surface. The company holds logs and other data for 333 boreholes on and near the mineralized roll front. The Acadia/Cochrane project has an historical resource of approximately 3.7 million pounds of U3O8 (non NI 43-101 compliant and not to be relied upon) at a grade of 0.125% with an average thickness of about 8 feet. Several excellent areas for expanding the resource have been identified within the mineral lands held by Bayswater.

The Ella Project

The Ella Project covers a roll front target identified first by Uranium Resources, but drilled and tested extensively by Amoco, Exxon and URI. Some 150 holes were drilled targeting mineralization at around 1,800 feet in the Lakota Sandstone of the Inyan Kara Group. The historical resource drilled in the Ella project totals approximately 1.96 million pounds of U3O8 (non NI 43-101 compliant and not to be relied upon) at an average grade of 0.31% over an average thickness of about 8 feet. Amoco conducted initial leach and hydrogeological tests in 1979 for ISR potential, with encouraging results. Only a small portion of the roll front was tested by Amoco, and there are several high priority targets with potential for expansion of the mineralized roll fronts.

The company holds additional mining claims (Owl Group, Tess Group, TOR Claims) that cover known roll front targets with significant but fewer close-spaced drill holes than the aforementioned properties.

Exploration

Historical data from the identified roll fronts in all three project areas exhibit i) numerous historical resource areas that are open along strike in one or both directions which offer potential for defining extensions of the mineralized zones and ii) areas of encouraging drill results not previously followed-up that could lead to further discoveries along the known roll fronts. A large number of such targets have emerged from the preliminary data validation and assessment process currently underway. These targets provide excellent potential for discovery of mineralized extensions and new mineralized zones. The company is working towards developing a drill program to confirm known historical resources and to test for extensions and new zones; and to complete a program of hydrologic and metallurgical testing in order to determine amenability of the deposits for ISR. The Company anticipates that this program will be ready for commencement of permitting in 2010.

Last updated May 27, 2009

Return to top