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Uragold Starts Diamond Drilling at Beauce Placer Gold Property

Uragold Bay Resources Inc. has announced that it has commenced a four hole, 1000 meter diamond drill program on the Beauce Placer Property to drill the bedrock below the placer gold bearing basal till. Inlandsis Consultants, who will provide geological services and supervision of the drill program, has identifed two potential source areas to be drill tested.

As reported previously, (April 18 and July 5, 2011), Uragold confirmed the existence of a buried orange-brown gold bearing till where analysis of recovered gold grains from Uragold's sonic drill program suggests a proximity to a bedrock source of gold, within the limits of the UBR Property.

Uragold is currently working with GENIVAR Inc.'s Mining group to obtain the required permits from Quebec's MNRF (Ministère des Ressources naturelles et de la Faune) and the MDDEP (Ministère du Développement durable, de l'Environnement et des Parcs) to allow an expanded bulk sampling program of 25,000 tonnes of the basal orange-brown diamict from its Beauce Placer property located near Saint-Simon-les-Mines in the Beauce region of southern Quebec. The increased bulk sampling tonnage will provide a better understanding of the economic potential of the deposit and evaluate a potential future mining method. Due to the significant thickness of overburden material on top of the gold bearing zone, regulatory approval is required. Approval from the MNRF is now required In Quebec for all bulk samples that exceeds 50 tonnes and/or 1000 m3 of overburden.

As reported previously Uragold has retained the services of GENIVAR Inc. (GENIVAR) (TSX:GNV), one of the largest professional services firm in Canada. GENIVAR will provide Uragold with an audit of its environmental compliance in order to meet all legal requirements and obligations as it continues to explore the Beauce Placer gold property.

The Beauce Placer property was the site of Canada's first gold rush in the 1850's, years before the Klondike gold rush. Two of Canada's largest gold nuggets, the Kilgour nugget at 52 ounces and the McDonald nugget at 45 ounces, came from the Gilbert River, which flows through the property.

In the early 1960's, the property was the site of a major placer gold mining operation. The Beauce Placer Minning Co. was the only commercial placer gold mining operation in eastern North America.

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