April 28 2006 – Purepoint Uranium Group Inc. (TSX-V: PTU) announced today that this winter’s ground geophysics program at their Red Willow property has identified a previously unseen extension of a graphitic conductor found to have anomalous uranium mineralization by Cameco in 1993. This find comes on the heels of last week’s promising first phase drill results at their Turnor Lake Project.
Red Willow Highlights:
- New 2.5 kilometre conductor target – drill ready for this coming winter
- 1993 Cameco drill program identified conductor as graphitic and radioactive
- Three square kilometre area of flat lying conductivity; an indication of possible uranium deposition
- Target is very shallow, at less than 90 metres in depth
- Project is on trend with the Basin’s Major Mine Corridor hosting the JEB, Midwest, Cigar Lake, McArthur River and Millennium uranium deposits
- New grid work commencing on the Long Lake Radioactive Boulder Train
“Cameco’s diamond drill program at Red Willow identified this radioactive conductor ten years ago” said Scott Frostad, Vice President, Exploration, Purepoint Uranium Group Inc. “Our suspicion of a hidden extension is now confirmed. This conductor continues untested, and is associated with a zone of flat-lying conductivity coincident with a bend in the conductor, providing us with an outstanding new exploration target.”
The uraniferous electromagnetic (EM) conductor was previously thought to terminate. However, geophysical work conducted by Purepoint in two different directions has shown the conductor to curve and continue between the original Cameco survey lines. The geophysical survey has not only discovered new EM conductors but re-established many historic, untested conductors on Purepoint’s Osprey Grid at its Red Willow project.
“Our new approach to old targets on the Red Willow Project has once again provided us with early success,” said Chris Frostad, President and CEO, Purepoint Uranium Group Inc. “This property has numerous indicators of uranium mineralization which we are very excited about. We will continue to apply an innovative approach as we follow-up on each of them.”
Osprey Grid
Purepoint Uranium conducted 120 kilometres of Fixed Loop Transient Electromagnetic and Total Field Magnetic surveys during winter 2005/2006 on the Osprey Grid. Over 11 kilometres of conductors were re-established or discovered on the Osprey Grid located within the North West section of the Red Willow property.
The Osprey Grid covers Cameco’s 1993 drill holes Turk-5 and Turk-7 which intersected anomalous radioactivity ranging from 450 cps to 1660 cps. The uranium mineralization was intersected at less than 90 metres depth within one of two vertically dipping graphitic, pyritic, structurally disrupted pelitic units. Rusty brown limonite coating fractures and minor gouges were noted in both holes. Since no anomalous radioactivity was intersected by Cameco’s drill holes on this north-south trending conductor towards the north, and the conductor was thought to terminate 200 metres to the south of Turk-5 and Turk-7, no follow-up drilling was conducted by Cameco.
The current geophysics by Purepoint shows that the two graphitic units intersected by Turk-5 and Turk-7 in fact separate, with one unit trending towards the southwest and the other east-southeast. The abrupt change in direction for these two conductive units suggests a zone of structural complexity and a corresponding trap for uranium-rich fluids.
The current geophysics also outlined a three square kilometre zone of flat-lying conductivity at the point where these conductive units separate that could represent hydrothermal alteration. The association of the flat-lying conductivity with the untested extension of the radioactive conductor provides a highly prospective target that will be tested by diamond drilling as soon as possible.
Long Lake Radioactive Boulder Train
A grid consisting of approximately 40 kilometres of cut line is currently being established over an area containing a radioactive boulder field. The Long Lake Boulder Train was discovered on the Red Willow property in 1975 by Gulf Minerals. The northeast trending train was found to be two km long and 300 to 400 meters wide. A number of radioactive biotite schist boulders were discovered and assayed up to 0.80% U3O8 while pegmatite boulders assayed up to 0.55% U3O8. The newly cut grid will be used to reestablish the location of the boulder train with the intent of following these boulders back to source.
Red Willow Property
Over 20 kilometres of conductors are known on Red Willow. Historic drilling has intersected graphitic/pyritic pelites, zones of hydrothermal bleaching and anomalous radioactivity. In addition to these positive drill indications, the source of a large scale radon-in-water anomaly remains undiscovered and amplifies the potential for significant uranium mineralization at Red Willow.
The Red Willow project is on trend with the JEB, Midwest, Cigar Lake, McArthur River and Millennium uranium deposits. Cogema’s Moonlight deposit, which returned a drill hole intercept of 0.27% U3O8 over ten meters, is associated with a NE-SW trending conductor and located only five kilometres southwest of Red Willow. Purepoint’s Osprey Grid covers the interpreted northeast extension of the Moonlight conductor trend.
The Red Willow project is on the eastern edge of the Athabasca Basin. It adjoins Cogema’s claim group containing the JEB, Sue and McClean deposits to the west and, to the south, it adjoins UEX’s Hidden Bay claim group that surrounds the Rabbit Lake, Collins Bay and Eagle Point deposits.
Purepoint Uranium Group Inc. is a uranium focused exploration company with 100 percent ownership of over 250,000 hectares in the Canadian Athabasca Basin. Established in the Basin before the resurgence in uranium, Purepoint is now actively advancing seven key properties of historic significance.
