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Message: Signs a Letter of Intention 100% Interest in 277 Gold Claims Eastern Townships
| May 26, 2009 |
| Uranium Bay Signs a Letter of Intention Regarding the Acquisition of 100% Interest in 277 Gold Claims Located in the Eastern Townships of Quebec |
| MONTREAL, QUEBEC--(Marketwire - May 26, 2009) - Uranium Bay Resources Inc. (TSX VENTURE:UBR), is pleased to announce that it has signed a letter of intention with Ice Age Gold Corporation ("IAG") regarding the acquisition of 100% interest in gold and other minerals exploration projects covering four blocks of claims, located in the Eastern Township region of Quebec. The first two blocks of claims are part of the exploration project, known as the "Saint-Francois and Dudswell Tertiary Gold concessions; composed of the "Saint-Francois Valley Block" and the "Dudswell Block" together being 172 claims. The third block of claims known as the "Moe River Placer Gold Project" is composed of 62 claims, while the final block of claims, known as the "Eaton North Placer Gold Project" covers 43 claims. Material terms of the agreement are as follows (all amounts are expressed in Canadian dollars). In order to acquire 100% interest in the claims, the Corporation shall make the following payments to the vendor: - UBR will purchase 100% interest in the Property by issuing to IAG 11,000,000 common shares of UBR and 5,500,000 common share purchase warrants exercisable at a price of $0.10 for each common share for a period of 2 years as of the closing date, set up to be 2 days after the approval is received from the TSX Venture and the AMF; - In the event that work on the concession confirms the presence of 1,000,000 ounces of gold as inferred resources according to NI 43-101 requirements, IAG shall be entitled to be paid by UBR, by means of shares issuance of common shares for an amount equivalent to 8% of the market capitalization of the Corporation, based on the market price of the shares, but the total value of the share issuance may not exceed a value amount of $2,500,000; - In the event that work on the concession confirms the presence of over 2,000,000 ounces of gold as measured and indicated resources according to NI 43-101 requirements, IAG shall be entitled to be paid by UBR, by means of shares issuance of common shares for an additional amount equivalent to 5% of the market capitalization of the Corporation, based on the market price of the shares, but the total value of the share issuance may not exceed a value amount of $2,500,000; - The agreement also provide for the grant by UBR of a 2% net smelter royalty; - Finally, the agreement does not contain any work commitments. The transaction is made with a party that is non-related to the Corporation. The letter of intention is conditional to the completion of a NI 43-101 reliant qualification report, a satisfactory due diligence investigation of the Property and the Vendor by UBR, including, environmental issues and the capability of obtaining the relevant permits or consent to work on the Property from the Government and land owners. The transaction is subject to approval by regulatory authorities. Further to the acquisition and its approval, the parties will proceed with the signature of a formal agreement and the titles of the claims will be transferred to the Corporation. History of Gold mineralization in Eastern Township Gold is widely found through the region both as placer and hard rock deposits. The region was the scene of Canada's first gold rush in the 1850's, decades before the famous Klondike gold rush. Since then, many gold occurrences have been found and a number of famous mines have operated such as the Eustis, Silver Star and Weedon mines. Much of the work was done prior to the gold discoveries of the Abitibi regions of Ontario and Quebec, and as the Nova Scotia Goldfields, the gold exploration/mining in the Eastern Townships was abandoned when the Kirkland Lake Gold Camp was discovered ca. 1905. Very little work ensued except for a handful of players working in the 1980's when the original flow-through funding was available. This allowed secondary and tertiary gold regions of Quebec to be re-evaluated, such as was the case for the Beauce and Eastern Townships. The main conclusion derived from the evaluation was that the gold mineralization was significant. Saint-Francois and Dudswell Tertiary (paleo-placer) Gold concessions The Saint-Francois Project encompasses two blocks of claims. The first block, the Saint-Francois Tertiary Gold project, parallels the Saint-Francois river for 50km to the south of the Stoke Mountain Belt from the town of Lenoxville to the town of Weedon. The second block, the Dudswell Tertiary (paleo-placer) Gold project is located in Dudswell County at the NE end of Stoke Mountain, surrounding Silver Lake and the town of Dudswell. All information herewith presented is historical in nature and while relevant, the information was obtain before the implementation of National Instrument 43-101 and as such does not meet National Instrument 43-101 reporting standards. The historical estimate should not be relied upon until they can be confirmed by the Company. Saint-Francois Valley Block In 1985 a private consortium called the My Turn Syndicate was formed for the purpose of exploring for both placer and hard rock gold deposits in the Eastern Townships. The Syndicate's most exciting discovery was finding an ancient river (Tertiary channel) buried under the Saint-Francois River valley (source reports GM45202, GM45203, GM45723, GM45427, GM46620). Two holes drilled far apart along the river revealed significant gold values at the base of Pleistocene gravel. Refractory seismic surveys carried out over 50km length of the Saint-Francois river indicated a deep Tertiary period channel or gutter of the ancestral river. The exploration model advance by the My Turn Syndicate was that the channel took some 65,000,000 years to form and then was buried beneath the Quaternary period glacial till. In the glaciated region of North America, deep channels must be oriented at or near rights angles to the advances and retreats of the glaciers' activities (otherwise they would be scoured out). The Saint-Francois Valley Block meets this prerequisite as it is formed in a south western to a north-eastern orientation. Furthermore, the model also requires that the tertiary period deep channel must have a bordering gold source whereby time and erosion furnished gold to the ancestral channel. Base on the information presented by the My Turn Syndicate work, this prerequisite was fulfilled since there are a number of streams (and mines) that contain placer gold which flow down towards the Saint-Francois. Historical data indicates that on three such streams, exploration work has found the following gold samples: Big Hollow 235 g/t Au from 4,6 m (Drill hole B1, GM21904) Willard Brooke 11,86 g/t Au (Rock sample, C.G.C 1895 annual report Vol VIII, page R31) Kingsley Brooke 3.14 g/m3 (of sand and gravel, McGerrigle 1935) Dudswell Block In a published document "Synthese metallogenique de l'Estrie et de la Beauce" for the Quebec Department of Energy and Mines, (1986 MB8646/47) a team of geologists lead by Michel Gauthier of the Universite du Quebec a Montreal (UQAM) searched for potential gold deposits throughout the Eastern Townships. Their research revealed a conglomerate containing paleoplacer gold deposits near the Silver Lake area of Dudswell county. A formation similar to the Witwatersrand mines of South Africa. In the report, Mr. Gauthier states that this is a major target for exploration with the potential for a major discovery. Moe River Placer Gold Project All information herewith presented is historical in nature and while relevant, the information was obtain before the implementation of National Instrument 43-101 and as such does not meet National Instrument 43-101 reporting standards. The historical estimate should not be relied upon until they can be confirmed by the Company. The gold bearing gravels of the Moe river valley has attracted prospectors since the 1850's. The area was last explored in 1986 by Exploration Miniere Appalaches. In a report file with the Quebec ministry of mines, (GM 13677) the company's geologist, Mr Pierre Geoffroy, wrote that there was a good possibility of confirming a deposit of 48 million tons of gravel containing about 0.30 grams of gold per cubic meter. Samplings and previous work revealed that some of Moe Rivers' tributaries have up to 175 grams of gold per ton of concentrate with an average of 57 grams of gold per ton of concentrate. Eaton North Placer Gold Project All information herewith presented is historical in nature and while relevant, the information was obtain before the implementation of National Instrument 43-101 and as such does not meet National Instrument 43-101 reporting standards. The historical estimate should not be relied upon until they can be confirmed by the Company. Exploration work by My Turn Syndicate in 1986 and by, Maurice, Y.T. and Mercier, M. of Canadian Geological Society in 1985 (Heavy Minerals, Estrie, Maurice & Mercier, 1985) obtained samples containing above average Quaternary placer gold. The historical results are as follow: 220 grams of gold per ton of concentrate (sample #21E06841144), 71 grams of gold per ton of concentrate (sample #21E06841142), 57 grams of gold per ton concentrate (sample #21E06841140). The uniformly high gold counts from widely spaced sample sites, warrant a tighter exploration program. Future work programs The first work to be done will be the hiring of an independent geologist to prepare a NI 43-101 compliant qualification report. Together with him, the Corporation will elaborate a plan to confirm the historical information. Mr. Bernard Tourillon, UBR's President and CEO comments on the investment proposal: The IAG properties acquisition is part of an overall plan being put forward by the Corporation to increase the visibility of all of the Corporation projects. If successfully implemented, the plan while help increase shareholder value, while at the same time giving us the time required to asset the full implication of the discoveries made to date on the Uskawanis Uranium Project ("UUP"). While the details of the technical report just completed on UUP will be subject to a specific press release, important point emanating from the reports are: - Anomalies identified and drilled on the UUP are NOT Rossing type anomalies. They are clearly different and MAY be unique to the UUP; - These big anomalies are apparently always associated with large crustal scale faulting; - It is proposed that uranium breakdown products are rising up these faults and saturating adjacent rocks with uranium daughter products and radon. The implication is that large uranium bodies may underlie the UUP; - It is thought that these may either be vein deposits of uranium within the granite OR that they may be a uranium bearing meta-sediment under or within the granite; Therefore, before a further drilling phase can be planned, UBR Exploration Manager and Technical Director, Mr. Viv Stuart-Williams recommends that the following be done: - A comprehensive desk-study; - A re-interpretation of the original magnetic data specifically looking to see whether detection of any deeper structure is possible; - An airborne gravity survey to again see whether any deeper structure can be determined. It would be very useful for future planning to have a comprehensive understanding of the structure of the granite and any possible meta-sedimentary (or other) packages within or below the granite. While the implementation of the recommendations will not be too costly, their full completion may take between 6 to 12 months to realize, and unfortunately during this period, the flow of news will not be optimum to increase the market visibility of the Corporation Uranium project. While many analysts are still very bullish when it comes to the long term potential for uranium, there seems to be a generally held view that uranium-only junior exploration corporations, that have not delineated any resources, will have a difficult time gaining market visibility and market interest, and that this will result in a languishing share price and market cap. According to these same market participants, the lack of interest for uranium project without any resources could remain a serious constraining factor until uranium spot prices break above $ 65 lb (presently at $ 51 per lb), and it will not be until the uranium spot price breaks above the $ 85 per lb mark that we can anticipate major interest to return. Regrettably, the time line before this will happen is unknown, but some analysts have stated that it could be as long as 12 to 24 months from the lows. Combining the IAG claims, together with our massive UUP property potential and our Blue Lake claims, we can bring forward a new excitement to the Corporation, and our concession holdings. The goal is to send a clear message to our shareholders that we have a plan, and that we are going forward to generate value for our investors, present and future. Note: Mr. Vivian Stuart-Williams, (SACNASP), a Director of the Company and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the information in this news release. About Uranium Bay Resources Inc. Uranium Bay Resources Inc. is a Canadian based junior resource and exploration company trading under the symbol UBR on the TSX Venture Exchange. The Company has 82,374,367 shares outstanding. The Company holds 100% of the 314 km2 Uskawanis Uranium property located just south of the Opinaca reservoir. |
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