Montreal, Quebec / February 25 2015 – Uragold Bay Resources Inc. (“Uragold”) (TSX Venture: UBR) is pleased to provide its shareholders and stakeholders an update regarding its ongoing work program on its option with Golden Hope on the Bellechase-Timminnins (“BT”) gold deposit, located near Saint-Magloire in the Beauce region of Southeastern Quebec.
To complete its goal of acquiring all of the required permits needed to do a rolling start open pit operation on the BT gold deposit, Uragold had to first compile all available data in order to complete a new NI 43-101 resource estimate. Regulatory rules dictate that Uragold must treat all information from Golden Hope’s NI 43-101 technical report published in June 2012 as historical information until such time that Uragold’s technical team has independently validated the data.
In order to complete this, Uragold needed to build a completely new 3D geological model for the T1 and T2 surface zones of BT, to be then able to develop its own independent assay grade shells.
Uragold has acquired a license for the Leapfrog 3D Modeling package. The 3D Model created by the company’s technical team will allow Uragold to evaluate new gold grade shells. Uragold is also planning a re-sampling/assay program to validate all historical data for a new NI 43-101 resource estimate on the T1 and T2 Zones.
Once completed, Uragold can move forward with the creation of a Feasibility Study, as required by the new Mining Act, and to finalize the permitting process for a rolling start open pit gold mining operation.
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Figure 1. This figure shows the drill holes entered into the initial database with associated gold values. The dark surface is the underside of the topography and the associated pink haze is created by the borehole number/ nametags. The view is northeast looking slightly upward through the borehole cluster. The closest cluster of holes is the T1 diorite. Maximum depth of the boreholes is around 600 metres.
The database still requires the addition of several sets of borehole data; surface trenching data (the trench data is currently being added), and potentially other data not yet identified.
As can be seen from Figure 1, there are numerous boreholes (to the left of centre) that are grey coloured. These are known boreholes from a previous drill campaign by Osisko (2003-04), for which no assay data is available nor has it been added to the database (not sampled/ not assayed/ etc.). The assay colouring scale is arbitrary but warm colours (red/ yellow/ orange) are higher gold grades than cooler colours (green/ blue). Considerable trench data is available and will be added.
Figure 2 shows what the model looks like when the interpretive lithology data is utilized. At the time of core logging, Golden Hope’s staff identified numerous gold hosting diorite types and categorized these individual units into named types. This version of the Leapfrog model has constructed “shells” that incorporate most of each named subset of diorite.
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Figure 2. This diagram shows the Timmins1 body (T1 – left hand body); the Timmins2 (T2 – red/ brown body); the Timmins5 body (T5 – yellow body); the Ascot body (green-blue at the back); and the Z88 body (dark blue right foreground). The view is looking downward onto the bodies very slightly east of north.
The shape of these bodies is very dependent on the initial logging and the reader is reminded again that this is a preliminary model. However the vertical nature of the diorite bodies and their tendency to parallel the regional stratigraphy and strike (northeast and close to vertical) is very apparent. This is particularly well seen in Figure 3.
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Figure 3. This image shows the BT diorite bodies from overhead. In this image it becomes very clear that the regional strike and dip (northeast and close to vertical) had a very strong controlling influence on the development of the dioritic bodies. It is very apparent that they intruded at a stage when the surrounding sediments were still relatively easily deformed and yet dominantly in a vertical position.
The Leapfrog package can also be used to develop assay grade shells.
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Figure 4 is generated on an arbitrary grade shell that was used to test the modelling data. This Figure shows the T1 (red) and T2 grade shells. These are preliminary and the shape will almost certainly change in later versions.
By using the Leapfrog software to develop a new block model, it should be possible to generate updated resource figures and grades. The block model uses several control parameters that still need to be determined as part of the modelling program.
Patrick Levasseur, President and COO of Uragold stated, “Golden Hope has done a tremendous job in demonstrating the gold potential at Bellechase-Timmins. We are excited to further develop these resources. We look forward to confirming the potential with an updated gold resource estimate.”
Mr. Vivian Stuart-Williams, SACNASPS, working under Special Authorization #308 of the Quebec Order of Geologist, is an Independent Qualified Person as defined by National Instrument 43-101 that supervised the preparation of the information in this news release.
All the information on exploration potential herewithin presented is historical in nature and while relevant, the information was obtained before the implementation of National Instrument 43-101 and as such does not meet National Instrument 43-101 reporting standards. The historical estimate should not be relied upon until the Company can confirm them.
About Golden Hope Mines Option
In April 2014, Uragold singed a definitive option agreement with Golden Hope Mines (“GNH”) concerning the advancement of the Bellechasse-Timmins (BT) Gold Deposit into a producing mine.
In August 2012, GNH published a resource estimate of an indicated resource of 313,900 ounces gold (2.9 million tonnes grading 3.36 g/t Au) and an inferred resource of 102,000 ounces gold (2.17 million tonnes grading 1.46 g/t Au) using a cut-off grade of 0.60 g/t. Furthermore, GNH’s many bulk-sampling campaigns revealed extensive areas of surface mineralization averaging approximately 3 g/t Au. Notable were sampled areas averaging up to 10 g/t Au (Trench 09A).
With its Beauce Placer project, Uragold intends to develop a (600 MT/day) surface gold mining operation on the B-T property. Developing in parallel the B-T property and the Beauce Placer property will benefit both companies by providing greater geological and operational synergies such as cost savings.
Under the terms of the Option Agreement, Uragold will be responsible for obtaining all required permits, approvals, and documentation associated with going into production, in return for a 30% interest in the property. Uragold will then have 120 days to obtain project financing, which, if successful, will earn it a further 20% interest, giving Uragold a 50% interest in the B-T deposit. The companies will then form a Joint Venture (JV) for the operation of the mine, with Uragold serving as operator. GNH will have a carried interest into production, and will receive a 50% Net Proceeds Royalty (“NPR”) on the gold produced.
Other Corporate developments:
Uragold (Quebec Quartz) is expanding its holdings over the Martinville silica property to 12 claims, with the purchase from a private vendor of 8 adjacent claims. As consideration for the transaction and subject to regulatory approval, the Corporation will be acquiring 100% of the 8 claims that will constitute the New Martinville silica property through the issuance of 400,000 units. Each Unit is comprised of one (1) common share and one (1) common share purchase warrant (“Warrant”) of the Company. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company at an exercise price of $ 0.07 during a period of 36 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month holding period from the date of closing of the placement.
About Uragold Bay Resources Inc.
Uragold Bay Resources is a TSX-V listed Gold and High Purity Quartz exploration junior focused on generating free cash flow from mining operations. Our business model is centered on developing mining projects suited for smaller-scale start-up, (Capex < C$10M), that will generate high yield returns (IRR > 50%). Uragold will reach these goals by developing Quebec’s first placer mine in 50 years, the Beauce Placer Project developing and, in partnership with Golden Hope Mines, the Bellechasse-Timmins Gold Deposit.
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.
For further information contact
Bernard J. Tourillon, Chairman and CEO
Patrick Levasseur, President and COO
Tel: (514) 846-3271
www.uragold.com
GARIBALDI RESOURCES CORP.
