Bayswater Uranium Corporation (TSX-V: BYU), (OTC: BYSWF) reports that Otis Gold Corp (“Otis”) has announced drill results from the first five holes of its 2010, 32-core hole, 6,000-metre program at Bayswater’s Kilgore Gold Project, in Clark County, Idaho, in which Otis can earn up to a 75% interest. The drill results comprise significant, potentially bulk-mineable, open-pittable intercepts. Highlights of these first five drill holes, listed in Table 1 below, include intercepts of 55.5 metres (m) of 1.36 grams per tonne gold (g/t Au) in hole 10 OKC-208 and 30.4 m of 2.53 g/t Au in hole 10 OKC-210. All five holes were drilled as in-fills in areas where historic wide-spaced drilling resulted in gaps that require further closer spaced drilling to confirm deposit continuity.
Table 1. 2010 Kilgore Gold Project Drill Highlights – First Five Holes
These new intervals, in combination with other significant bulk-tonnage intercepts determined for a number of Otis’s core holes drilled during 2008 and 2009 in the nearby higher-grade Mine Ridge core area of the deposit (Otis October 7 and December 16, 2009 and March 23, 2010 News Releases), all support a high degree of confidence concerning continuity of mineralization throughout the deposit and further 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). Based on these new results, Otis continues to expect that there is a strong possibility to increase the overall size, grade, and economic viability of the Kilgore deposit. Three dimensional computer modeling of the deposit is being initiated and is expected to be completed Winter 2011 after all the 2010 drill results have been obtained and incorporated into the database.
As a continuation of Otis’ highly successful 2008 and 2009 drilling programs of the deposit’s higher-grade, 200-metre wide, Mine Ridge core area, this year’s aggressive drill program is being conducted as first-round in-fill and extension of the much larger 800-metre-long and 400-metre-wide Kilgore deposit area surrounding Mine Ridge. Much of this area was historically drilled on extremely wide, 60- to 120-metre-spaced centers, with in-fill and extension drilling necessary to more fully and clearly evaluate the deposit. Historic drilling was conducted by Bear Creek, Pegasus Gold, Placer Dome U.S., and Echo Bay Mines from 1983-1996, while exploring the property for a bulk-tonnage gold deposit (Otis June 10, 2008 News Release). Core holes 10 OKC-208 containing 55.5 metres @ 1.36 g/t Au and 10 OKC-210 containing 30.4 metres @ 2.53 g/t Au (Table 1) indicate that additional significant bulk-tonnage gold mineralization exists and extends at least 120 metres west and east, respectively, of the deposit’s Mine Ridge core area.
Locations of these first five holes, which total 954 metres of drilling, and their corresponding assay intercepts, are shown in a drill-hole location map available on the Otis Gold Corp. website at www.otisgold.com/projects/kilgore/.
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.
True bulk-tonnage widths are estimated to be between 90% and 100% of the drilled interval, based on their estimated dip, association with diking, and continuity of mineralization between drill holes. The HQ3-size core drilling is being performed by Timberline Drilling, Inc., Coeur d’Alene, Idaho, employing two Sandvik DE-140 core drills outfitted with a triple-tube core recovery system and face-discharge bits. Drilling continues on a full-time, around-the-clock basis, with all results to be reported throughout Fall 2010 as they are received.
John R. Carden, Ph.D., Lic. Geo., a Qualified Person with Otis, as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this News Release.
In other news, Bayswater reports that it has terminated its interest in the Baca uranium property, New Mexico held under option from Urawest Energy LLC and Sedi-Met Inc. and in addition has abandoned other lode claims held by the Company adjoining the property collectively referred to previously as the Tejana Mesa project. The project is at a very early stage and did not fit with Bayswater’s corporate focus to develop advanced uranium projects to feasibility and production.
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 NI 43-101 compliant and historical resources that may be amenable to ISR and/or conventional mining. With the acquisition of the Reno Creek Property in Wyoming, the Company’s focus is to put Reno Creek into production in the shortest period possible. The Company’s Elkhorn/Alzada Project, located approximately 100 miles northeast of Reno Creek, is a planned development project for future US production. 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 will continue to pursue acquisition opportunities of advanced-stage uranium projects with mid-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. Neither the 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 news release.
John Gomez, 604-687-2153
Manager, Investor Relations