Bayswater Uranium Corporation (TSX-V: BYU), (OTC: BYSWF) reports it has received additional positive drill results from the Kilgore Gold Project (“Kilgore”) in Clark County, Idaho. Otis Gold Corp (TSX-V: OOO)(“Otis”), that has the option to earn up to a 75% interest in Kilgore from Bayswater, has announced significant bulk-tonnage and potentially open-pittable intercepts from the last five holes of its 2009, 12-core hole, 3,122-metre drill program. Highlights of these final five “200 series” drill holes, listed in Table 1 below, include bulk-tonnage intercepts of 64.0 metres (m) of 1.89 grams per tonne gold (g/t Au) in hole 09 OKC-206 and 50.0 m of 1.02 g/t Au in hole 09 OKC-205, including high-grade intercepts of 7.7 m of 12.70 g/t Au in hole 09 OKC-206 and 3.0 m of 8.42 g/t Au in hole 09 OKC-205.
These results in combination with other significant bulk-tonnage intercepts determined for a number of Otis’s other holes drilled in the Kilgore deposit Mine Ridge core target area (see October 13 and December 15, 2009 news releases) indicate mineralized thicknesses and average grades that are noticeably greater than those constituting the majority of the intervals comprising the historic Kilgore NI 43-101 compliant resource (Otis March 2, 2009 News Release). As a result, Otis expects that there is a strong possibility to increase the overall size, grade, and economic viability of the Kilgore deposit, thus Otis is in the process of selecting an engineering firm to conduct a prefeasibility study on the bulk-tonnage deposit.
Table 1. Kilgore 200 Series Drill Hole Highlights
** Previously reported interval
Previously reported drill hole 09 OKC-204 which contains 95.6 m of 1.46 g/t Au and 10.2 m of 9.80 g/t Au (December 15, 2009 News Release) has been included in Table 1 because of its direct spatial association with the above holes.
With this News Release, assay results from all 15 completed 2008 – 2009 Kilgore drill holes have been announced, all of which contain substantial intervals of gold mineralization. A detailed review of Table 2 reveals that many of these holes contain significant bulk-tonnage intercepts, all in the Mine Ridge area, with thicknesses of between 50-metres and nearly 120-metres, and with average grades generally ranging between 1 and 6 g/t Au. Visible gold is present in high-grade veins associated with dikes interspersed in the bulk-tonnage mineralization in a number of the holes (08 0KC-191, 193, and 194, and 09 OKC-197, 199, 204, and 206).
All holes were drilled in the Mine Ridge area, the core of the existing Kilgore deposit, to infill previously untested areas and test for thick intercepts of bulk-tonnage mineralization. This area was only partially drill-tested on relatively wide-spaced intervals by Bear Creek, Pegasus Gold, Placer Dome U.S., and Echo Bay Mines between 1983 and 1996, while exploring the property for a bulk-tonnage gold deposit (see June 10, 2008 News Release).
Locations of the final five holes, which total 1,385 metres of drilling, and their corresponding assay intercepts, are shown in a drill-hole location map and two geologic sections available on the Otis Gold Corp. website at www.otisgold.com/projects/kilgore/.
The north-trending section through the Mine Ridge area shows a roughly 50-metre thick or greater section of mineralization that remains open in numerous directions. The west-trending section located normal to the southern end of the north-trending section reveals mineralization roughly 60 metres below the surface that is up to nearly 120-metres thick, 170-metres wide, and remains open in various directions. Further expansion drilling is planned in these areas and as final in-fill and extension work during 2010. This upcoming drilling, which constitutes 6,000 metres of core drilling in the Kilgore resource area and an additional 2,000 metres of RC drilling to test CSAMT anomalies under the sinter cap at the nearby Dog Bone Ridge gold target area (see February 16, 2010 news release), is currently in the planning and permitting stages.
Table 2 lists the assay results of all 2008 – 2009 Kilgore Gold Project drill holes.
Table 2. Kilgore Gold Project 2008 - 2009 Significant Drill-Hole Intercepts
09 OKC-201 Lost hole – abandoned at 96.6m – didn’t reach intended target depth
Note: 4 core holes drilled 2008 and 12 core holes drilled 2009
Analysis and Otis QA/QC Program
All assay work was performed by ALS Chemex Labs, Vancouver, B.C., which has ISO 9001:2008 quality management system certification and ISO 17025:2005 Vancouver Lab technical capability accreditation. A 50-gram pulp of all samples was assayed for gold by Fire Assay/AA finish methods. Certified reference materials, duplicates, and blanks were inserted into the sample stream for quality control. Check assays on pulps were carried out on approximately 7% of the samples by Inspectorate Labs, Reno, Nevada, with all check assay values found to be within acceptable limits.
True bulk-tonnage widths are estimated to be between 95% and 100% of the drilled interval, based on their estimated dip and continuity of mineralization between drill holes. The HQ3-size core drilling was performed by Cabo Drilling (America), Blaine, Washington, employing a Boyles Hydra 56 – Pac Track core rig outfitted with a triple-tube core recovery system and face-discharge bits.
John R. Carden, Ph.D., Lic. Geo., a Qualified Person with Otis Gold Corp., 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