Mr. Victor Tanaka reports
BAYSWATER RECEIVES NEW TECHNICAL REPORT FOR RENO CREEK
Bayswater Uranium Corp. has received a new technical report for the Reno Creek ISR uranium project. The report was prepared by Behre Dolbear for AUC LLC, the operator of the project, to update mineral resources described in the previous technical report on the project, dated Nov. 30, 2012. Bayswater has a 3.09-per-cent interest in the Reno Creek project.
Key updates
The new report incorporates the following information:
- Documentation of the results of 2012 and later AUC drilling programs, incorporating data from 526 new AUC and historical drill holes, including:
- New AUC drilling: 235 new holes completed by AUC since 2012. Ninety-eight holes were completed in the Moore resource unit, including three core holes; 137 were completed in the North resource unit;
- Recently acquired data applicable to several resource units from 100 historical drill holes. Most of the data were in the Southwest and Pine Tree units;
- Acquisition of new mineral holdings, including 191 additional historical drill holes. AUC acquired a 320-acre fee mineral lease in the Moore unit, eight mining claims under lease in the Southwest unit and 480 acres of fee mineral leases in the North unit;
- Revision of the treatment of barren intercepts and their influence on the estimation of a resource;
- Revision of the cut-off parameter for resource estimation from a grade/thickness product of 0.3 per cent to 0.2 per cent/foot. A review of new operating facilities in Wyoming and properties held by other companies immediately adjacent to the North unit indicates that the current industry standard for GT cut-off is 0.2;
- Purchase of 40 acres of surface land to house the central processing plant (CPP) and leasing of eight mining claims on and around the CPP;
- Receipt from relevant state and federal authorities of additional permits and licences, including all of the permits from the State of Wyoming necessary to build and operate the project.
Mineral resources
Measured and indicated resources for the Reno Creek ISR uranium project total approximately 27 million tons with a weighted average grade of 0.041 per cent triuranium octoxide and a weighted average thickness of 12.3 feet containing 22 million pounds of U3O8 in place. Compared with the 2012 resource estimate, the reduction in GT cut-off from 0.3 to 0.2 resulted in an increase of 3.79 million pounds of measured and indicated U3O8 resource. The inclusion of additional current and historical drilling data plus acquired mineral lands resulted in an increase of 2.25 million pounds of measured and indicated resources. These additions offset negative adjustments owing to revision of the treatment of barren intercepts and their influence on the estimation of a resource. Inferred mineral resources total 1.4 million tons with a weighted average grade of 0.034 per cent U3O8 and a weighted thickness of 10.6 feet containing 930,000 pounds of U3O8 in place as represented in the table.
SUMMARY OF MEASURED AND INDICATED RESOURCES IN PLACE
Class Tons(1) Weighted average thickness Weighted average grade Contained U3O8(1)
(M) (ft) (% U3O8) (Mlb)
North Reno Creek
Measured 4.51 16.4 0.040 3.61
Indicated 6.15 13.1 0.033 4.05
Total 10.66 14.3 0.036 7.65
Southwest Reno Creek
Measured 4.68 12.9 0.043 3.94
Indicated 4.08 10.4 0.038 3.08
Total 8.77 11.6 0.040 7.03
Moore
Measured 2.32 10.3 0.048 2.20
Indicated 2.31 9.0 0.042 1.92
Total 4.63 9.6 0.044 4.12
Bing
Measured 0.30 14.6 0.038 0.23
Indicated 0.71 12.4 0.032 0.45
Total 1.02 13.0 0.033 0.67
Pine Tree
Measured 0.57 14.0 0.056 0.63
Indicated 1.83 12.2 0.051 1.87
Total 2.40 12.6 0.053 2.51
Reno Creek project
Measured 12.38 13.6 0.043 10.61
Indicated 15.09 11.5 0.039 11.37
Total 27.47 12.3 0.041 21.98
SUMMARY OF INFERRED RESOURCES -- IN PLACE
Class Tons(1) Weighted average thickness Weighted average grade Contained U3O8(1)
(M) (ft) (% U3O8) (Mlb)
North Reno Creek
Inferred 1.02 11.5 0.034 0.69
Southwest Reno Creek
Inferred 0.20 8.6 0.033 0.13
Moore
Inferred 0.13 8.0 0.035 0.09
Bing
Inferred 0.00 0.0 0.000 0.00
Pine Tree
Inferred 0.02 6.8 0.040 0.01
Reno Creek project
Inferred total 1.36 10.6 0.034 0.93
Cut-off is greater than or equal to 0.20 grade times thickness.
(1) Columns may not add due to rounding.
The new measured and indicated resource estimate of 21.98 million pounds U3O8 is an increase of 110,000 pounds U3O8 from measured and indicated resources reported in Behre Dolbear's 2012 technical report. Given the change in resources and data, the preliminary prefeasibilty study prepared in 2014 is no longer current and is not to be relied upon.
Qualified persons
The report, entitled "Technical Report and Audit of Resources of the Reno Creek ISR Project, Campbell County, Wyoming, USA," dated July 31, 2016, was authored by Robert D. Maxwell (CPG, AIPG) and Betty Gibbs (MMSA), Associates of Behre Dolbear & Company (USA) Inc., who are independent persons in accordance with the definition in National Instrument 43-101. Mr. Maxwell and Ms. Gibbs are qualified persons under NI 43-101, are responsible for the resource estimate in the technical report, and have reviewed and verified the technical disclosure provided in this news release. The technical report prepared for AUC is being filed by Bayswater and will be available on SEDAR.
Bayswater has a 3.09-per-cent interest in Reno Creek Holdings Inc., the holding company of AUC LLC, which owns 100 per cent of the Reno Creek ISR uranium development project in Wyoming. The company also owns a 100-per-cent interest in the Brudell property located in the Athabasca basin in Saskatchewan.
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