July 6 2005 – The discovery of a strong continuous conductor adjacent to interpreted granitic gneiss was announced today by Purepoint Uranium Group Inc. (TSX-V:PTU) as a result of winter 2004/05 geophysical work performed on the Laysan Grid at their Turnor Lake project.
“By utilizing deeper penetrating instruments and a tighter range of measurement we have been able to create a clear target that fits our model,” said John Steele, Chief Geophysicist and Exploration Manager, Purepoint Uranium Group Inc. “Previous work already provided us with three ready areas of focus; however, this new discovery provides an even greater level of interest.”
The Turnor Lake project is in close proximity to several uranium deposits including Midwest Lake, McClean Lake, Eagle Point, and Collins Bay. The property is adjoined to Cameco’s La Rocque Lake claim group and Cogema’s Henday Lake project.
“This particular project best represents the distinct, targeted properties with historic significance that we originally set out to identify,” said Chris Frostad, President and CEO, Purepoint Uranium Group Inc. “When Cogema held the property in the 1990’s they re-established the existence of many of the targets and recommended a number of drill programs which were never carried out. Most likely, increasing work requirements and depressed uranium prices at that time, led to the claims being allowed to lapse. Leveraging the work that was done back then, combined with our systematic approach to identifying solid indicators, has led us to this recent discovery which is very encouraging. ”
Interest in this area was originally sparked by SMDC in 1983 when uranium mineralization was intersected just 600m E of the Laysan grid in DDH OD-1. The hole returned 0.06% U3O8 over 3.4 m within a hydrothermally altered pelite immediately below the unconformity. Anomalous arsenic, nickel and cobalt over 0.5 m were associated with the alteration. Follow-up drilling (SMDC, 1984) intersected hydrothermal bleaching and clay alteration both above and below the unconformity but did not encounter further uranium mineralization. Water sampled from these drill holes, however, were elevated with uranium and radon.
In 1984, SMDC outlined two (2) NW-SE conductors within Purepoint’s current Laysan grid and drilled three holes. One continuous conductor extends across the centre of the Laysan grid while the southern conductor appeared to be discontinuous. A single drill hole, HT-113, was drilled to test the conductor in the centre of the grid. The depth to the basement was 155m, no conductor was intersected and 23 m of basement was drilled. Of the two holes drilled on the southern conductor, HT-112 & 112A, only one reached the basement. No conductor was intersected and the hole was stopped after 14 m of basement was drilled. HT-112A intersected slightly anomalous radiation just below the unconformity that corresponded with elevated cobalt, zinc and nickel values.
In 1996, Cogema retraced the original SMDC conductors on the ground and recommended a new drill program, however, no significant exploration investment was made and the claims were ultimately allowed to lapse most likely due to the market economics of the late 90’s.
In 2005, Purepoint conducted a Protem/EM-37 TDEM survey to provide better resolution of the discontinuous southern conductor and to explore for NE-SW trending conductors. The southern conductor was clearly identified and proved to be continuous across the grid. No NE-SW conductors were found on this survey and the central conductor was likely not seen because the line orientation paralleled the conductor strike. Detailed magnetics conducted by Purepoint over the Laysan grid have helped to refine the interpreted rock types and faulting.
Further electromagnetic surveys are planned over the northern half of the Laysan grid to define the central conductor and to determine if the conductors lying to the east extend into the grid prior to the definition of a drill program.
Turnor Lake Project
The Turaco Grid lies within Purepoint’s Turnor Lake Project. Within this property, 24 kilometers of conductors have been outlined by ground geophysics. Numerous recommended drilling programs by previous operators were never carried out to test these conductors (Asamera, 1982; SMDC, 1983, 1984; Cogema, 1996). However, drilling conducted on the Turnor property to date has intersected graphitic pelites, hydrothermal bleaching and clay alteration all of which are indicators of uranium mineralization.
The Turnor Lake Project is located 12 kilometres east of Cameco Corporation’s high-grade uranium zone at La Rocque Lake. Drilling completed in the winter and summer of 1999 on the La Rocque Lake claims encountered uranium mineralization of 8.2%, 19.1% and 29.9% U3O8 in three drill holes over 3.6m, 2.5m and 7.0m, respectively.
Anomalous uranium was intersected approximately one-half kilometre south of the Purepoint Turnor Property in Cogema drill hole HLH-48. The underlying basement rocks in this hole consisted of altered, graphitic and pyritic sediments that are highly fractured. The anomalous intercept at 168 metres returned a weighted assay of 0.17% U3O8 over 0.6 metres.
A more detailed discussion of this and other Purepoint properties can be found at our web site at www.purepoint.ca.
Purepoint Uranium Corporation is a uranium exploration company driven by intellectual, precision prospecting focusing on distinct, targeted properties with historic significance in the Canadian Athabasca Basin. Currently, Purepoint’s seven, 100% owned, Athabasca Basin uranium projects cover nearly 120,000 hectares and are considered high prospect properties that include several near term targets expected to be drill ready for winter 2005/06.