MONTREAL, QUEBEC--(Marketwire - Nov. 11, 2010) - Uragold Bay Resources Inc. (Uragold) (TSX VENTURE:UBR),is pleased to announce that a drilling program has been agreed upon andshortly a drilling contractor will be appointed to start drillingapproximately twenty drill holes at the Beauce Placer Gold Property.
At first, Uragold's interest in the property was focused onexamining the tailings of the Beauce Placer Company's 1960s placer goldmine operation. However, trenching and field investigations revealedun-mined segments of the paleoplacer channel. Re-interpretation of theavailable data for the Beauce Placer Project suggests that gold iscontained within a volume of influence in the immediate area of thedredging operation.
The paleo-placer channel runs parallel to the southern sideof the Gilbert River. It is believed the pre-glacial weathering of theAppalachian Mountains during the Mesozoic Era formed the placer golddeposit.
Most of the historical gold values were seen to be at thetill – bedrock contact. As the gold is found at the contact and crevicesin the bedrock, it appears the dredge could not mine the richest partof the channel. Beauce Placer Co. overestimated the effectiveness of theYuba dredge. It was not designed to mine through the thick glacialJonville Till that is peppered with large boulders. The buckets of thedredge repeatedly broke or would snag, causing the dredge to sinkforward.
Drilling will be done through the till and a couple of metresinto the fractured shale bedrock. The holes will vary in depth from 10to 25 metres. Section lines will run across mined and un-mined segmentsof the paleochannel. One-metre samples will be collected and assayed forcontained gold.
The additional drilling will be carried out in a manner thatwill rationalize past drill results to allow both confirmation of theexisting resource and hopefully an addition of further resource.
Uragold believes that a considerable amount of gold could befound on the property. If drilling results and trial mining efforts arepositive, a low cost profitable placer mining operation could be put inoperation. This could provide cash flow to the company and helpcontribute to the exploration of other projects with blue sky potential.
The discovery of gold in the Gilbert River launched Canada'sfirst gold rush in the 1850s, decades before the Klondike. Two of thelargest gold nuggets found in Canada came from the gravels of theGilbert, the Kilgour nugget at 52 ounces and the McDonald nugget at 45ounces.
The best values were found in the paleoplacer channels. Downstream from Uragold some miners in the 1880's made some spectacularwinnings from underground tunnels and shafts. Most successful was MrW.P. Lockwood a private entrepreneur.. 1898 reports by Obalski for theDepartment of Colonization and Mines, Province of Quebec, states that MrLockwood describes that the highest gold grades are found in the bottom1.5 metres of gravels at the bedrock as well as half a meter belowbedrock in fissures and crevices.
All information herewith presented is historical in natureand while relevant, the information was obtained before theimplementation of National Instrument 43-101 and as such does not meetNational Instrument 43-101 reporting standards. The historical estimateshould not be relied upon until the Company can confirm them.
Mr Vivian Stuart-Williams, (SACNASP), a Director of theCompany and a Qualified Person as defined by National Instrument 43-101,supervised the preparation of the information in this news release.
About Uragold Bay Resources Inc.
Uragold Bay Resources is a junior exploration company trading on the TSX Venture Exchange under the symbol UBR.
Uragold is a top claims holder in Southern Quebec'sAppalachian belt. The properties benefit from extensive historicalexploration work and from well-established infrastructure therebyhelping to reduce exploration risks.
Uragold's business model focuses on developing, a series ofpotential small scale low-cost gold mining operations including theBeauce Placer, the Calway, the Riviére du Loup, Rivière Bergeron, andGrande Coulée for their potential in generating cash flow whilesimultaneously exploring core properties that hold the potential for thediscovery of blue sky gold deposits like the MacDonald project.
The recent rise in Uranium prices combined with the discoveryof Rare Earth Element deposits in the area close to Uskawanis, allowsthe Corporation to explore once again the potential of our James Bayprojects.
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracy ofthis release.