June 14 2007 – Purepoint Uranium Group Inc. (TSX:PTU.V) today released its first update on its Fire Eye Project located in Canada’s Athabasca Basin. The Fire Eye project is made up of two claims covering 10,500 hectares located in the North-West portion of the Basin, immediately south of Lake Athabasca. The property was identified as an area of significant prospect and staked by Purepoint in January 2005, long before the recent surge of claims in this under-explored part of the Basin.
“Early results to date have more than justified our initial attraction to this property” said Scott Frostad, Purepoint’s Vice President Exploration. “Now that we have been able to demonstrate a direct structural relationship between Fire Eye and the historic Beaverlodge uranium deposits near Uranium City, we are confident that we will be able to delineate high priority drill targets by early next year.”
Highlights:
- Completion of a detailed, high resolution, magnetic survey over Lake Athabasca has confirmed that the Beaverlodge uranium belt is structurally associated with the Fire Eye property;
- Completion of magnetic surveys over the project has confirmed a complex structural setting ideal for uranium deposition;
- An airborne gravity survey is scheduled for this summer;
- A seismic reflection survey is planned as a follow-up to the gravity survey in order to delineate high priority drill targets.
Fire Eye Project
The Fire Eye project was selected and staked by Purepoint more than two years ago, at a time when the surrounding area was open for staking, because of its apparent trend with the historic Beaverlodge uranium deposits near Uranium City. The property also displayed complex structures as interpreted from historical airborne magnetics and was considered to be an ideal setting for uranium deposition. Purepoint’s Fire Eye property is now surrounded by more recent claims, including many claims located under the waters of Lake Athabasca.
The Fire Eye property is located 50 kilometres southwest of the Gunnar Mine, which produced 19 million pounds of U3O8, and 80 kilometers southwest of the Beaverlodge district that produced in excess of 50 million pounds of U3O8. Depth to basement is locally less than 600 metres based on magnetic interpretation, making this an economical exploration target.
Purepoint commissioned a 377 line kilometre MEGATEM II airborne electromagnetic and magnetic survey over the Fire Eye property at a line spacing of 400 metres in order to confirm depths and areas of conductivity. In addition, an initial transient magnetotelluric ground survey was conducted on the property in order to identify the most effective methods of locating conductive zones and potential drill targets.
The Black Bay fault and splays off this fault are associated with the uranium deposits in the Beaverlodge area (an area of approximately 30 historical producing deposits) and strikes directly toward the Fire Eye block. To confirm that the Fire Eye structures were an extension of the Beaverlodge structures, in particular the Black Bay fault, a detailed, high resolution magnetic survey over the waters of Lake Athabasca was carried out. The magnetic survey has now been completed and the results confirm that the Beaverlodge uranium belt is structurally associated with Purepoint’s Fire Eye property.
Airborne electromagnetic and ground magnetotelluric surveys conducted by Purepoint have disclosed a near-surface conductive formation which essentially blocks surface electrical surveys from penetrating to the basement to locate the graphitic conductors. Gravity surveys are not adversely affected by this conductive formation and will be useful to indicate the presence of the fault as well as alteration zones that are associated with uranium deposition. The presence of the Black Bay structure under the Fire Eye claim block should allow direct exploration methods, such as reflection seismic, to accurately locate the faults. Initial drill holes may be followed by downhole electromagnetic geophysics to locate target areas of conductive graphite for additional drilling.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision exploration of more than 42 defined target areas on its seven 100% owned projects in the Canadian Athabasca Basin and its two Basin projects joint ventured with Cameco Corporation and AREVA Resources Canada Inc. Established in the Basin well before the resurgence in uranium, Purepoint is actively advancing this large portfolio of multiple drill targets in the world’s richest uranium region.
Scott Frostad BSc, MASc, PGeo, Purepoint’s Vice President, Exploration, is the Qualified Person responsible for technical content of this release.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information please contact:
Purepoint Uranium Group Inc.
Chris Frostad, President and CEO
(416) 603-8368
www.purepoint.ca
