Bayswater Uranium Corporation - Brudell Lake

Brudell Lake, Saskatchewan

Located in the western portion of the Athabasca Basin, a region known for hosting high-grade unconformity type uranium deposits.
5 high priority basement conductive zones identified by an airborne geophysical survey.
Drilling commenced in fall 2008 to test high-priority targets

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Overview

Brudell Lake consists of just under 200,000 acres of 100% owned land in the western region of the Athabasca Basin of Saskatchewan making Bayswater one of the largest landholders in the region. An airborne survey conducted in 2007 identified five high priority targets displaying potential for high-grade unconformity deposits. Drilling to test these targets began in fall 2008.

Location & History

The Brudell Lake property is located approximately 40 km from AREVA Resources Canada Inc.'s formerly active Cluff Lake uranium mine which produced 62.5 million pounds U3O8, and the Shea Creek Project owned by AREVA and UEX Corp (TSX:UEX) drill intersections from which have assayed as high as 12.6% U3O8 over 11.9 m.

The Athabasca Basin is widely recognized as the premier region in the world for high-grade unconformity-type uranium deposits like McArthur River and Cigar Lake. The region accounts for approximately 32% of the world's uranium supply, a figure which is expected to increase significantly by the end of the decade.

Geology & Mineralization

The property covers a series of favourable large-scale, northeast-trending basement fault structures associated with regions of low magnetic susceptibility that indicate favourable graphitic sedimentary rocks. Basement fault structures and electromagnetic conductors that trace favourable graphitic zones, are key elements associated with large, high grade, unconformity related uranium deposits in the Athabasca Basin. Such deposits include Cameco Corporation's (TSX: CCO) McArthur River and Cigar Lake mines located in eastern Athabasca Basin. These are the largest high-grade uranium deposits in the world.

The depth to the unconformity on the Brudell Lake property ranges from 400 metres to greater than 1,000 metres. Target depth of uranium mineralization in the basin can be up to 200 metres above and up to more than 200 metres below the unconformity. With today's deep penetrating electromagnetic (EM) systems, depths in excess of 1,000 metres can be assessed for unconformity type uranium deposits.

Exploration

A 14,000 line km, deep penetrating VTEM survey was flown in early 2007 which identified five high priority targets. These five conductive zones (resistivity anomalies) range in length from 3 to over 7 km and occur in a southwest area of the property which shows strong structural uplifts and down drops associated with regional basement faults.

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During early 2008, three of the strongest resistivity anomalies were followed-up by a detailed ground MT (magnetotelluric) survey. The MT survey confirmed the presence of strong conductive zones at and beneath the unconformity spatially associated with major magnetically inferred basement fault structures. These conductive materials likely represent graphitic metasediments which are in most cases spatially associated with the host rocks for unconformity related uranium deposits in the Athabasca Basin.

A MT profile of one conductor zone - Hekelaar Lake -- may be viewed below.

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Geophysical modeling of magnetic and electromagnetic data is in progress to more carefully define basement geology and the thickness of sandstone cover. Planned future work will include further MT surveys in preparation for diamond drilling.