Bayswater Uranium Corporation (TSX-V: BYU), (PINK SHEETS: BYSWF) reports that Otis Gold Corp (TSX-V: OOO),(“Otis”) has received results of a recent Controlled-Source Audio-Frequency Magnetotellurics (“CSAMT”) geophysical survey that indicates the presence of numerous sizeable and geologically significant resistivity anomalies underlying the Dog Bone Ridge gold target area located at the Kilgore Gold Project, Clark County, Idaho. The target area, which has only been minimally tested by historic drilling, is located approximately 1,200 meters southwest of the known Kilgore gold deposit and comprises most of the core of the larger epithermal system containing the deposit. Of the five CSAMT anomalies detected by the survey, only three have been initially tested by historic drilling, with all drill holes in these three anomalies containing significant intercepts of gold mineralization (detailed below).
Based on the lack of drilling and the fact that the anomalies are sizeable (upwards of 1,200 meters in length), a 2,000-meter, 6-hole drill program is planned to test the highest priority anomalies and offset some of the known historic drill-hole intercepts during the 2010 field season. Permitting for this drilling with the U.S. Forest Service, Targhee National Forest, is in process. This drilling is part of a larger 8,000-meter drill program planned for the Kilgore Gold Project in 2010.
The Dog Bone Ridge gold target comprises an extensive area of 242 hectares mostly overlain by an apron of Pliocene-age hot-spring sinter and explosion breccia that caps lithic tuff, the same rock unit that hosts the Company’s nearby Kilgore gold deposit. Of the three CSAMT anomalies associated with historic and significant drill-hole intercepts, the most northerly (Target C1) coincides with Kilgore Gold Company drill holes KG04-02 containing 51.8 m @ 1.25 grams/tonne (“g/t”) gold (“Au”) (see Kilgore Gold Company September 7, 2004 News Release) and KG06-01 with 12.6 m @ 1.57 g/t Au (Otis internal data archives). Within the hole KG04-02 intercept a higher-grade intercept of 3.1 m @ 15.9 g/t Au was reported that coincides directly with the slightly higher resistive core of the anomaly, possibly reflecting a silicified structure. The second, or central, CSAMT anomaly (Target D3) associated with historic drill-hole intercepts coincides with Echo Bay core hole 96EKC-178 that contains 99.4 m @ 0.428 g/t Au and further contains within this intercept higher grade intercepts of 4.6 m @ 2.57 g/t Au, 10.7 m @ 1.51 g/t Au, and 3.1 m @ 2.57 g/t Au (Otis internal data archives). Gold mineralization in these holes is hosted within silicified lithic tuff.
The survey was conducted using a 50-meter electric-field receiver dipole in spreads consisting of four electric-field dipoles with a magnetic-field antenna located in the center of the spread. The data was acquired in the broadside mode of operation with the electric-field dipoles oriented along the survey line and parallel to the transmitter dipole. The magnetic antenna was oriented perpendicular to the survey line. One CSAMT transmitter of a grounded dipole configuration was used for the survey. The survey was conducted to search for low to moderate resistivity bodies containing higher resistivity cores near or associated with structures that may have acted as conduits for gold mineralization.
The CSAMT survey was conducted by Zonge Geosciences Inc., Sparks, Nevada, between October 19th and October 27th 2009 and consisted of data acquisition from six N45E-oriented survey lines for a total of 8.5 line-kilometers of coverage. Detailed geophysical interpretation of the CSAMT survey data was conducted by James L. Wright of J. L. Wright Geophysics, Spring Creek, Nevada, during the latter half of December 2009 and was presented in a report to Otis dated December 29, 2009.
A detailed location map of the CSAMT survey grid lines and resultant anomalies, along with the historic drill-hole intercepts associated with these targets, can be found on the Otis website at http://www.otisgold.com/projects/kilgore/. Although a few additional and widely scattered historic holes were drilled in the Dog Bone Ridge target area, they either were not drilled deep enough to reach the newly discovered CSAMT anomalies or they were angled away from and/or off the flanks of them, missing them completely.
John R. Carden, Ph.D., P. Geo., a Qualified Person (QP) as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this News Release.
In June 2008, Bayswater and Otis entered into an option/ joint venture agreement whereby Otis can earn up to a 75% interest in the Kilgore Gold Project, and two additional gold properties, Hai and gold Bug, also located in Idaho. For the terms of the agreement refer to Bayswater’s June 10, 2008 news release.
About Bayswater Uranium Corporation - The Super Junior Uranium Company TM
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 “BYU”. For further information visit www.bayswateruranium.com.
On behalf of the Board of:
BAYSWATER URANIUM CORPORATION
George M. Leary
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.
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John Gomez, 604-687-2153
Manager, Investor Relations