Bayswater: Kilgore Reports Filing of Technical Report
Bayswater Uranium Corporation (TSX-V: BAY) announces that Kilgore Minerals Ltd. (TSX-V: KAU) has filed on SEDAR (www.sedar.com) a report (the “Report”) dated June 6, 2007 entitled Kilgore Minerals Ltd. – Montana & Wyoming Uranium Properties – National Instrument 43-101 Technical Report prepared by James R. Guilinger of World Industrials Minerals, LLC (“WIM”). As previously announced, Bayswater and Kilgore are completing a merger.
The Report contains WIM’s evaluation of Kilgore’s properties located in the Powder River Basin in Crook County, Wyoming and extending into Carter County, Montana, based upon its assessment of the available historical data concerning the properties. As a qualified person has not done sufficient work to classify the historical estimates relating to the Acadia Claim Group and the Mindy Claim Group as current mineral resources, the company is not treating the historical estimates relating to those properties as current mineral resources as defined in NI 43-101, and those historical estimates should not be relied upon. The documented work was undertaken by companies including Kerr McGee Corporation, Amoco Minerals, Exxon Minerals, American Nuclear, Uranium Resources Inc. and Homestake Mining Co. The technical information in this news release is based upon the Report.
-***- Historical Resource Estimate ————————————————————————— Property Resource Short Tons Average Grade % Pounds Class eU3O8 eU3O8 ————————————————————————— Acadia Claim Group Historical 2,080,000 0.125% 3,700,000 including Cochrane Agreement Area1,2 ————————————————————————— Ella Claim Group3 Inferred 327,000 0.30% 1,960,000 ————————————————————————— Mindy Claim Group1 Historical 449,000 0.156% 1,400,000 ————————————————————————— -****- 1 Amounts shown are gross values. Net Kilgore mineral ownership percentage is subject to the Tronox Agreement. 2 Amounts shown are gross values. Net Kilgore mineral ownership percentage is subject to The Cochrane Agreement. 3 Amounts shown are gross values. Net Kilgore mineral ownership percentage is subject to the Schosser Lease.
The Report states that a tonnage factor of 0.42m3 (15.5 ft3) per short ton was used in addition to a minimum grade/thickness cutoff of 0.3 GT (1.8m or 6ft of 0.05%), and that the average thickness was 2.13m (7ft) at a cutoff thickness of 1.8m (6 ft). Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The documented work on the Ella Claim Group, including probe surveying, was undertaken by Amoco Minerals and Exxon Minerals. The commercial electric logging companies used by Amoco Minerals were Digilog Inc. of Broomfield, Colorado, Acculog of Grand Junction, Colorado and Century Geophysical Corporation of Tulsa, Oklahoma. The commercial electric logging company used by Exxon Minerals was Scinti-log of Casper, Wyoming. The Report authors did not have the chemical assays or any information regarding calibration methods used in the probe surveying conducted for Amoco Minerals or Exxon Minerals.
No samples or sample collection data was available for scrutiny by the Report authors. Core and/or drill samples are not available; however, original lithologic logs and copies of commercial laboratory certificates for a very limited number of chemical analyses of cores are available. The amount of analytical data is not considered meaningful. There is no discussion in the information reviewed concerning sample and assay quality controls and security. The Report states that it is felt that the information provided follows generally accepted practices in place during the 1970-1980 time period for the manner in which the samples and assays were collected and analyzed.
The radiometric drill data was posted on drill maps and included collar elevation, depth to the top of the mineralized intercept, thickness of mineralization, grade of mineralization, and depth of hole. Data entry was checked and confirmed. Drill hole locations were digitized from drill maps to create coordinate listings and then plotted. The resultant drill maps were then checked and confirmed by overlaying with the original maps. Radiometric log interpretation was spot checked by the authors for available logs and as previously discussed geophysical log interpretation followed standard methods.
Geologic Setting
The uranium deposits in the Black Hills region of western South Dakota and northeastern Wyoming are found in the Inyan Kara group of Early Cretaceous age (90 to 120 Ma). The Inyan Kara group consists of two formational units.
A lower unit called the Lakota formation consists of fluvial or stream-laid sandstone lenses interbedded with conglomerates, siltstones, and mudstones. The Lakota formation is about 61 to 76 meters (200 to 250 ft) thick and overlies the red and pink variegated shales of the Jurassic Morrison formation. The larger uranium deposits mined in the Black Hills region, such as the Hauber deposit (600,000 tons), were found in the Lakota formation.
Unconformably overlying the Lakota formation is the Fall River formation consisting of marginal marine sandstone and gray colored shales that are 30.48 to 61 meters (100 to 200 ft) in thickness. Numerous small deposits of uranium ore were mined from the Fall River formation in the Black Hills region in the 1952-1974 period. They only averaged about 10,000 to 50,000 tons in size and in aggregate produced an estimated 600,000 tons of uranium ore at a grade of 0.15 to 0.20% U3O8.
Overlying the Fall River formation is the marine Skull Creek shale of Late Cretaceous age. No economic deposits of uranium have been found in any of the rocks lying above or below the Inyan Kara group.
The Black Hills region is characterized by a broad domal-shaped uplift containing, on its western flank, the Inyan Kara group in outcrop that measures about 257 km (160 miles) in length in a NW-SE alignment. It is about 96.5 km (60 miles) in width and terminates just south of the Wyoming-Montana State Line. The northern terminus also is marked by a steeply dipping monocline 2.4 to 9.6 km (1 1/2 to 6 miles) in width that drops the Inyan Kara group in sub-crop to a depth of 244 to 518 meters (800 to 1700 ft) in SE Montana.
Mineralization
Uranium deposits that occur in most of the region are of the “roll front” type. Roll fronts occur in areas where ground water had infiltrated from the surface or migrated through an aquifer composed of sediment containing minerals with very minor amounts of uranium. Near the surface, oxidizing conditions result in the weathering of minerals (such as feldspar) and volcanic ash and the mobilization of trace concentrations of uranium in solution. As ground water continued to migrate, it encountered reducing conditions where the uranium was no longer stable in solution. (The reducing environment may be a result of hydrogen sulfide (H2S), pyrite, or organic material existing in the aquifer.) As a result, the uranium precipitated from the ground water and formed coatings of minerals such as uraninite (UO2) or coffinite (USiO4) on the sediment grains in the formation. Roll fronts extend farther in the middle of an aquifer. Therefore, uranium minerals occur concentrated in the direction of flow, resulting in distorted C-shaped or “roll shaped” deposits. The physical shape of the ore deposit is dependent on the local permeability of the sandstone matrix, its continuity and distribution in the geologic unit, as well as the former oxidation/reduction front in the aquifer.
Individual fronts can range in thickness from 0.6m (2 ft) to more than 7.6m (25 ft). Mineralization may exist laterally along a front hundreds of meters long, and fronts may coalesce to form ore bodies’ kilometers in length. Thin mineralized trails and more finely disseminated minerals are found branching off the main front and are located between fronts. In general, uranium ore deposits in eastern Wyoming average between 0.10 to about 0.20 percent uranium oxide.
The roll front uranium deposits of SE Montana have been classified by Kerr McGee into 4 main units or fronts (sometimes a 5th unit or front is added). The Inyan Kara fronts are subdivided by formation in descending order as noted below:
Fall River formation:
“A” Front: 1.5 to 9 meter (5 to 30 ft) in thickness and about 75.6 km (47 miles) long “B” Front: 3 to 12 meter (10 to 40 ft) in thickness and 96 km (60 miles) long “C” Front: 3 to 15 meter (10 to 50 ft) in thickness and 82 km (51 miles) long
Lakota formation:
“D” Front: 6 to 30.4 meter (20 to 100 ft) in thickness and 109km (68 miles) long “E” Front: 3 to 15 meters (10 to 50 ft) in thickness-length unknown
About 50% of the holes drilled by Kerr McGee are mineralized with uranium contents ranging from 0.01 to 1.14% U3O8. The gross length of redox fronts total about 364km (226 miles) and it is estimated by Kerr McGee that approximately 1.6km (1 mile) out of 34km (20 miles), or about 5%, could contain ore grade material (above cutoff of 2 meters (6 ft) of 0.05% U3O8).
A 175 km (105 mile) long grouping of roll fronts in Crook County, Wyoming was identified. These features are complex and have been defined in considerable detail. The data indicates that approximately 50% of the Wyoming roll fronts contained roll front uranium mineralization, but only about 5% contain uranium in sufficient quantities that economic extraction may be feasible.
About Bayswater Uranium Corporation – The Super Junior(TM) Uranium Company
As the only uranium explorer 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 Uranium Corp. is well positioned to be a market leader in uranium exploration. Bayswater combines the uranium expertise of its technical and managerial teams with a large, highly prospective and diverse property base. 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. For further information visit www.bayswateruranium.com.
On behalf of the Board of: BAYSWATER URANIUM CORPORATION George M. Leary President & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.
Distributed by Filing Services Canada and retransmitted by Marketwire
For further information contact: John Gomez Manager, Investor Relations Telephone: (604) 687-2153
SOURCE: Bayswater Uranium Corporation