MONTREAL,QUEBEC--(Marketwire - April 6, 2010) - Uragold Bay Resources Inc.(Uragold) (TSX VENTURE:UBR), is pleased to announce that it hassigned an option agreement with a private vendor regarding theacquisition of 100% interest in three separate claim blocks representingsixty five (65) mineral claims situated in the James Bay area of theProvince of Québec. The properties are located 80 km southeast ofUragold's Uskawanis Uranium property.
All three claims blocks areadjacent to the joint Sirios Resources (TSX-V: SOI) and DiosExplorations (TSX-V: DOS) Pontax project. The area ispart of a Greenstone Belt characterized by pegmatites found in maficvolcanic rocks. Recent drill results by the Sirios/Diosventure returned impressive results for the Rare Metalselements rubidium, beryllium, tantalum and lithium.
Future exploration work on theproperty, to be named Enistuwach, will happen in conjunction with anevaluation of the Rare Metals and other minerals potential of UBR314 km2Uskawanis Uranium property("UUP") and the resumption of Uranium exploration workon the Uskawanis Uranium property. The reopening date of Uragold'sJames Bay mining camp has yet to be determined.
The motivation of the resumption ofUranium exploration on the UUP is that re-assessment of the availabledata from the Uskawanis area has compared the data with published workcompleted on radon anomalies associated with springs in Europe. Thesesprings showed abnormal concentrations of radon being issued by thesprings. It is suggested by the author of the paper that radium iscollected in the groundwater flowing towards the investigated spring.The radium is collected on organics at the point where the water issuesfrom underground (due to Eh/ pH changes). This creates a high radiumconcentration at this point and hence a high radon concentration. Thisis because radium and radon are two of the elements lying towards thecentre of the break down chain of uranium to stable lead. Both haverelatively short half-lives and breakdown rapidly. A similar process isseen at Uskawanis.
Comparison of this model with thelarge disequilibrium seen at Uskawanis (both in absolute terms and involume of rock affected) and the substantial amounts of radon present aswitnessed in the springs and on equipment, etc, more than everconvinces Uragold staff that it would take a massive uranium deposit toreplenish the radon in order to create such high radon gas readings andthe massive rock disequilibrium seen at Uskawanis. The company's chiefgeologist, Vivian Stuart-Willams, is happy that the currently proposedmodel of a deeply buried uranium source for the radium and radon presentat Uskawanis is correct. A programme to investigate this further willbe evolved.
Note: Mr. VivianStuart-Williams, (SACNASP), a Director of the Company and a QualifiedPerson as defined by National Instrument 43-101, supervised thepreparation of the information in this news release.
Material terms of the agreement areas follows (all amounts are expressed in Canadian dollars). In order toacquire its interest in the claims, the Corporation shall make thefollowing payments to the vendor:
The Vendor agrees to grant thePurchasers the exclusive and irrevocable right to earn a one-hundred percent (100%) interest in the Claims, in consideration of one million(1,000,000) units, each unit consisting of one common treasury share ofUragold and one warrant; each common share purchase warrant entitles theholder thereof to acquire one additional common share of Uragold at aprice of
,10 for a period of 24 months following the closing of theagreement.
The Vendor shall be entitled to atwo per cent (2%) Net Smelter Return ("NSR") royalty on all smeltableminerals or metals extracted from the Claims.
Uragold shall at any time have theright to buy back one per cent (1%) of the Royalty for one milliondollars ($1,000,000). The Purchaser shall have the right of firstrefusal to purchase the remaining one per cent (1%) Royalty in whole orin part and shall have thirty (30) days from the date of receipt of awritten notice from the Vendor to exercise its right of first refusal.
The transaction is made with aparty that is non-related to the Corporation. The option agreement isconditional to the approval of the Board of Directors of Uragold and thetransaction is subject to approval by regulatory authorities. Furtherto the acquisition and its approval, the Vendor will transfer the titlesof the claims to Uragold.
Bernard Tourillon, UBRChairman and CEO comments: "The acquisition of the Enistuwachproperty is motivated by our desire to combine the re-start of ourexploration on our UUP project to the discoveryof Rare Metal elements on the Pontax Project near our properties. Wehave always believed in the truly unique blue sky Uraniumpotential of our UUP concession and the re-assessment ofthe available data only strengthens this position. Thanks to thisacquisition, we intend also to evaluate any other minerals potentialthat could be found on our massive concessions holdings in the area. TheGoal of the Company is still to find a business model that will allowus to delineate a significant gold resource that can be placed intoproduction relatively quickly on our Appalachians properties, whileadvancing the exploration of our blue sky Uranium project on UUP. Inthis regards the Corporation is presently elaborating it's 2010exploration program and shareholders will be soon informed of our plangoing forward to develop our existing group of concessions. "
About Uragold Bay ResourcesInc.
Uragold Bay Resources Inc. is aCanadian based junior resource and exploration company trading under thesymbol UBR on the TSX Venture Exchange. The Company has 109,444,367shares outstanding. The Company holds 100% of the 314 km2 UskawanisUranium property located just south of the Opinaca reservoir, 100% ofthe Blue Lake Base Metal and Gold property situated close to Radisson inthe James Bay region, 100% of the "Saint-François and Dudswell TertiaryGold concessions", 100% of the "Moe River Placer Gold Project", 100% ofthe "Eaton North Placer Gold Project, 100% of the Calway River Goldproject, 100% of the Rivière du Loup Gold and Platinum placer mine, 100%of the Samson River Gold Project and 50% with an option to get 100% ofThe Beauce Placer Gold Project". In addition the Corporation is alsostaking promising projects in the eastern regions of the Province ofQuebec.
Neither TSX Venture Exchange nor its Regulation ServicesProvider (as that term is defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of thisrelease. This press release contains certain "forward-lookingstatements," as identified in the Uragold Bay periodic filings withCanadian Securities Regulators that involve a number of risks anduncertainties. There can be no assurance that such statements will proveto be accurate and actual results and future events could differmaterially from those anticipated in such statements.
Bernard J. Tourillon