Uragold Updates Shareholders on the Beauce Placer Gold Project; Will Issue a 43-101 Compliant Inferred Resource Followed by a...
January 23 2014 - 11:16AM
Marketwired Canada
Uragold Bay Resources Inc. ("Uragold") (TSX VENTURE:UBR) is pleased to provide
its shareholders with an update on the Beauce Placer Gold Project, located in
the municipality of Saint-Simon-les-Mines in the Beauce region of southern
Quebec.
As previously stated last April, the Corporation submitted to potential
financiers copies of a "Technical Report on the Beauce Property, Southeastern
Quebec" and an internal economic assessment model prepared by an independent
mining engineering firm. The assessment assumed mining a conceptual potential
volume ranging from 385,000 m3 to 407,000 m3 of gold bearing basal units with a
potential grade between 1 g to 2 g AU/m3 (12,000 to 25,000 ounces of gold) found
on the Rang Chaussegros section of the Beauce Placer channel (based on figures
from the Technical report and from Genivar's (now WSP Group) environmental audit
and mining permit applications).
At the start of 2013, financiers interest in the economics of our project was
strong, and this even if the potential quantity and grade of Gold on the
property in our technical reports was conceptual(i) in nature, ("insufficient
exploration done to define a mineral resource and uncertainty if further
exploration will result in discovery of a mineral resource"). As key milestones
were met, the price of gold was collapsing, venture capital funding was
drying-up and the few remaining financiers were tightening their minimal
financing requirements. This was not anticipated.
Evaluating the Beauce Placer project potential versus industry comparables, in
an environment where there are no standard benchmark's for placer projects, made
it difficult for financiers and investors in evaluating the project's economics
potential.
As opposed to standard hard rock projects, the coarse gold characteristics
(nugget effect) of the Beauce Placer project implies that delineating a mineral
resource and reserve categories as defined in National Instrument 43-101
reporting standards using a traditional drilling program would be very difficult
and costly.
During the third quarter of fiscal 2013, UBR technical committee reviewed the
historical information and concluded that there was enough new and historical
information for the Company to disclose an Inferred Resource(i) and to increase
its resource potential for the Rang Chaussegros section of the deposit. The
report is presently in being finalized and should be issued during the next 50
days.
Once the new NI43-101 technical report will be published, UBR will mandate WSP
Group (formerly Genivar) to complete the above mention assessment into to a
NI43-101 compliant Preliminary Economic Assessment (PEA). Interest in our
project remains strong and having these reports will only broaden Uragold's
financing options and allow Shareholders to better value their investment in the
Company.
To help shareholder visualize and compare the advancement of the Beauce Placer
project, Management has modified the standard hard rock gold project mine and
exploration development Cycle table under appendix 1 to illustrate the
development stages cycle of a "standard" placer vs the advancement of our Beauce
project.
Mr Vivian Stuart-Williams, SACNASPS, working under Special Authorization #290 of
the Quebec Order of Geologist, is a Qualified Person as defined by National
Instrument 43-101 that supervised the preparation of the information in this
news release.
Patrick Levasseur, president and COO of Uragold stated, "Management is eager to
present to investors in a complete fashion all information gained during the
preparation of the 43-101. Further more the PEA will finally allow management to
demonstrate the low cost nature of our Beauce project. Shareholders will be able
to appreciate Uragold's Fundamental value."
PDAC
For the first time Uragold will be an exhibitor at the 2014 PDAC (Prospectors &
Developers Association of Canada) convention and trade show held in Toronto,
Ontario from March 2 to 5. Uragold welcomes everyone to come and meet the
management.
(i)An "Inferred Mineral Resource" is that part of a mineral resource for which
tonnage, grade and mineral content can be estimated with a low level of
confidence. It is inferred from geological evidence and assumed but not verified
geological/or by grade continuity. It is based on information gathered through
appropriate techniques from location such as outcrops, trenches, pits, workings
and drill holes which may be of limited or uncertain quality and reliability.
About the Beauce Placer Gold Project
From 1959 to 1961, the Beauce Placer Mining Company, using a dragline and a
floating Yuba dredge, mined 56,000 oz of gold from an area representing less
than 20% the Rang Chaussegros placer channel. Sedimentological observations and
characteristics of the gold grains extracted from the property suggest a close
proximity to a bedrock source. An Induced Polarization (IP) survey revealed a
strong conductive anomaly (+60 msec) of the bedrock below the auriferous basal
till. This anomaly could correspond to a bedrock source for the gold.
Uragold's Beauce Placer Gold project has all the required environmental permits
to start its operations, and is in the final stage for obtaining a 20 years
mining lease placer gold mining operation. It will be Quebec's first placer
mining operation in 50 years.
About Uragold Bay Resources Inc.
Uragold Bay Resources is a junior exploration company trading on the TSX Venture
under the symbol UBR. Uragold holds gold properties in Southern Quebec's
Appalachian belt. Uragold's business model focuses on developing small scale
low-cost mining operations for their cash flow generating potential to finance
the exploration of core properties that hold the potential for the discovery of
blue sky gold deposits like the MacDonald project.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Appendix 1
----------------------------------------------------------------------------
Mine Exploration & Development Cycle UBR
----------------------------------------------------------------------------
Beauce
Placer Gold Project Placer
----------------------------------------------------------------------------
Exploration Time %
Stage Cycle stage Objective required Completed
----------------------------------------------------------------------------
1 Grassroots Conceptual, land acquisition 12 months 100%
----------------------------------------------------------------------------
2 Target Filtering for drill targets 12 months 100%
Generation &
Drilling
----------------------------------------------------------------------------
3 Discovery Defining the limits of a 12 months 100%
Delineation discovery & producing initial
resource potential
----------------------------------------------------------------------------
5 Resource Producing initial inferred 9 to 18 90%
Delineation resource estimate months
----------------------------------------------------------------------------
6 Preliminary Evaluating recoveries and 9 to 18 75%
Economic optimal processing method, months
Assessment initial economic analysis with
(PEA) & 35%-50% error margin
Metallurgy
----------------------------------------------------------------------------
4 Permitting Securing environmental approval 9 to 18 90%
& Mining Lease months
----------------------------------------------------------------------------
7 Bulk sampling Full scale field testing of 6 months 0%
and Mining recoveries and optimal
processing method, further
economic analysis reducing to
10%-20% error margin before
final production decision is
taken
----------------------------------------------------------------------------
8 Production Mining cash flow (Life of Mine)5-10 years 0%
----------------------------------------------------------------------------
Shares outstanding: 54,039,743
FOR FURTHER INFORMATION PLEASE CONTACT:
Uragold Bay Resources Inc.
Bernard J. Tourillon
Chairman and CEO
(514) 846-3271
Uragold Bay Resources Inc.
Patrick Levasseur
President and COO
(514) 846-3271
www.uragold.com
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