MONTREAL, QUEBEC -- (Marketwired) -- 04/25/13 -- Uragold Bay Resources Inc. ("Uragold") (TSX VENTURE: UBR) is pleased to provide its shareholders with an update on significant developments that have occurred during the first quarter of fiscal 2013 regarding the first new Placer mine in eastern north America in more then 50 years, the Beauce Placer Gold Project located in the municipality of Saint-Simon-les-Mines in the Beauce region of southern Quebec.
During the quarter, the INRS (Institut National de la Recherche Scientifique) completed the geophysical fieldwork on the Rang Chaussegros section of the Property. As mentioned in our December 18, 2012 press release, this geophysical program will generate high resolution cross section images of the Quaternary overburden and the volcano-sedimentary layering of the bedrock formations of the Beauce Property. The results of the geoelectrical tomography will be correlated with Uragold's sonic and other historical drilling data, in order to provide a 3D model of the placer gold channel composed of saprolite and brown basal till.
Once the data analysis is completed, the information obtained should increase our understanding of the placer channel and may strengthen Uragold's model regarding the proximity of the hard rock source for the placer gold found on our property.
In February 2013, following reception by the MDDEP (Ministere du Developpement durable de l'environnement et des parcs) of the Certificate of Authorization (CA) allowing the start of trial mining activities on the Rang Chaussegros, the Corporation started discussions with potential key investors regarding non-dilutive financing options to fund the start of mining operations. Financing alternatives considered include: debt, senior gold loan, forward gold sale, convertible debt, high yield debt, and alternative debt or joint venture partnerships.
The Corporation submitted to potential financiers copies of a January 29 2013 "43-101 Technical Report on the Beauce Property, Southeastern Quebec" (prepared by Remi Charbonneau, PhD. P. Geo) and an internal economic assessment model prepared by management around mining a conceptual (i) potential volume model 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 found the Rang Chaussegros section of the Beauce Placer channel ((i)based on figures from the 43-101 report and from Genivar's environmental audit and mining permit applications).
"The potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource."
Financing interest was strong, but for due diligence purposes, the financiers requested that we submit additional information. The information requested was prepared by a mining engineering firm and was finalized in April 2013.
Due to the coarse gold characteristics (nugget effect) of the Beauce Placer project, delineating a mineral resource and reserve categories as defined in National Instrument 43-101 reporting standards, would be difficult and costly. The volume, quality and reliability of historical information available, combined with the accessibility of the gold and the low cost nature of a placer mining allows the Corporation to focus its efforts toward starting its mining operations as soon as possible. Start date is subject to financing and respecting all our permitting obligations.
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