Bayswater Uranium Corporation (TSX-V: BAY) (FRANKFURT: B2V) is pleased to announce it has entered into an option agreement to acquire a 100% interest in a property covering a new uranium discovery in Newfoundland. Located in the Baie Verte area of north-central Newfoundland, the 38,970 hectare Wisker Valley property consists of 1,045 claims owned by a group of prospectors and an adjoining 518 claims staked and owned by Bayswater.
On the Wisker Valley property, prospectors have recently discovered significant uranium mineralization in volcanic rocks in an area that has never been explored for uranium. Grab samples, collected by the prospectors from widespread bedrock exposures on the property, have yielded assays grading up to 7,300 ppm uranium (0.86% U3O8) together with several other samples containing greater than 0.1% U3O8. Mineralization is hosted in felsic pyroclastic rocks that form a belt more than 25 km long within the property with associated regional radiometric and magnetic anomalies. Locally, zones of mineralization exhibit significant radioactivity across outcrop lengths of up to 50 meters. Uranium mineralized felsic volcanics display a close similarity to volcanic rocks that host the Michelin deposit in Labrador, an important uranium deposit being developed by Aurora Energy Resources Inc. (TSX: AXU).
"Uranium has been discovered over an extensive area suggesting this property is highly prospective for hosting a near-surface uranium deposit," states George Leary, President of Bayswater. "The area has very good infrastructure which will enable us to quickly evaluate the property and determine whether we have discovered another significant uranium region in eastern Canada."
The Wisker Valley property is well located with a network of bush roads that provide internal access. The initial discoveries occur close to these roads; however, most of the property is unexplored for uranium. Infrastructure in the region includes nearby towns, seaports, powerlines, and the Trans-Canada Highway, which is located 25 kilometres south of the property.
Bayswater is planning an ambitious follow-up program this fall to evaluate the uranium mineralization discovered to date and to explore the property for additional mineralized areas. The following work is planned to be completed before the end of the year:
-- Geological mapping and prospecting of the property; -- Detailed airborne radiometric and magnetics survey; -- Grid establishment over the currently known mineralized zones; -- Soil sampling, detailed prospecting and geological mapping over the grid area; and -- Backhoe trenching and sampling of currently known mineralized zones.
Permitting with the appropriate authorities is underway to allow all these activities, with trenching scheduled to begin this week following recent approval. It is anticipated that the results of this work will lead to a diamond drilling program later this year or in early 2008. A property location map will be posted on the Company's website located at www.bayswateruranium.com.
Pursuant to the option agreement, Bayswater will acquire a 100% interest in the prospectors' claims by making a series of staged cash and share payments and incurring property expenditures. In order to acquire the 100% interest, Bayswater would pay an aggregate of $1,400,000 in cash, issue an aggregate of 2,000,000 common shares and incur $2,500,000 in expenditures upon the prospectors' claims over a four-year period. Bayswater will also grant to the vendor a 3% net smelter returns royalty upon the property of which Bayswater may purchase 1/3 (1%) for an additional cash payment of $2,000,000. The option agreement is subject to the approval of the TSX Venture Exchange and all securities issued under the option agreement will bear a four month hold period from the date of issuance.
The Company's exploration activities are conducted under the supervision of George M. Leary, M.Sc. P. Eng. (BC), President of the Company, and Victor Tanaka, B.Sc. P.Geo. (B.C.), Chief Operating Officer of the Company. Both are qualified persons under NI 43-101. Victor Tanaka is the qualified person responsible for the technical information in this news release.
About Bayswater Uranium Corporation -- The Super Junior(TM) Uranium Company
Bayswater Uranium Corp. is a rapidly growing international uranium exploration and development company. As 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 is a leader in uranium exploration in Canada, the world's largest producer of uranium. The Company also owns several advanced uranium properties in the United States that are being fast tracked to production. Bayswater combines a balanced portfolio of exploration and development projects with the uranium expertise of its technical and managerial teams. The result is a Super Junior(TM) Uranium Company with the share liquidity and market capitalization to provide value to both the retail and institutional investor. Bayswater is listed on the TSX Venture Exchange under the symbol BAY. For further information visit www.bayswateruranium.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.
On behalf of the Board of:
BAYSWATER URANIUM CORPORATION
George M. Leary President
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For further information contact:
Manager, Investor Relations
Telephone: (604) 687-2153