Toronto, Ontario – September 25, 2012 -Purepoint Uranium Group Inc. (TSX:PTU.V) is pleased to provide an update on its Hook Lake Joint Venture as well as announce the pending addition of newly staked claims to the project. Purepoint holds a 21% interest in the Hook Lake Joint Venture with partners Cameco Corporation (39.5%) and AREVA Resources Canada Inc. (39.5%).
A drill program is currently being planned for Hook Lake this winter and is proposed to focus on the “Patterson Corridor” which hosts numerous electromagnetic conductors. During 2007 and 2008, Purepoint conducted extensive geophysical work over the Patterson Corridor and has now compiled these results with historic geophysical data and drill results collected south of the Hook Lake property. It has been concluded that anomalous radioactivity encountered by drilling south of the project on Patterson Lake in the 1980’s, and anomalous intercepts by the Fission/ESO Joint Venture on their Patterson Lake South property, lie on the southern portion of the Patterson Corridor.
Three claims totaling 2,632 hectares were recently staked by Cameco and have been agreed in principle to be included in the Hook Lake Joint Venture agreement. These new claims are located due north of high grade uranium boulders discovered by the Fission/ESO Joint Venture on their Patterson Lake South property.
“The Hook Lake project continues to demonstrate solid potential for a discovery and we are pleased that the identification of radioactive boulders nearby has renewed interest in the area,” said Chris Frostad, Purepoint’s President & CEO. “We are currently making preparations for a significant exploration program this coming winter”.
- A winter drill program in the range of $850,000 – $1,000,000 is currently being planned by Purepoint (as Operator) for review and approval at the Technical Committee meeting scheduled for later this year;
- High priority geophysical drill targets have been outlined along the project’s “Patterson Corridor” which is northeast of, and on geophysical trend with, historic radioactive drill intercepts;
- New claims staked by Cameco in late 2011 are being acquired by the Joint Venture. These claims lie due north of, and possibly up-ice of, radioactive boulders discovered by the Fission/ESO Joint Venture on their Patterson Lake South property;
- Purepoint completed its earn-in under the Hook Lake option agreement in 2011. The Hook Lake Joint Venture currently operates under the terms of a binding letter of intent dated February 6, 2007. A definitive Joint Venture Agreement is expected to be completed shortly.
The planned drilling at Hook Lake this winter will test the Patterson Corridor which has numerous well-defined geophysical targets indentified by Purepoint during 2007 and 2008 with Stepwise Moving Loop electromagnetic (SWML), Pole-dipole array Induced Polarization (IP) and Gradient array IP surveys Using results from a 2005 VTEM airborne electromagnetic survey flown by Cameco Corporation, a conductor associated with two anomalous drill holes by Saskatchewan Mining and Development Corp. (SMDC) on Patterson Lake has been traced onto the Hook Lake property. The holes by SMDC, PAT-04 and PAT-13, returned values of 105 ppm U over 4.2 metres and 64 ppm U over 9.0 metres, respectively.
The Patterson Corridor has now been traced onto the Patterson Lake South project, where drilling by the Fission/ESO Joint Venture has returned favourable results from four holes, PLS12-13 to PLS12-16, which intersected strong alteration below the unconformity and continuous wide intervals of anomalous low grade uranium basement mineralization (Fission NR, July 24, 2012). An interpretation by Purepoint of the results from a horizontal loop (MaxMin) EM survey by Canadian Occidental in 1980 and a VTEM survey flown by Titan Uranium Inc. in 2008 connects the Patterson Corridor with three sets of conductor axes and the anomalous PLS drill holes.
In 2011, Cameco staked three new claims totaling 2,632 hectares due north of where radioactive boulders were discovered on the Patterson Lake South property. Twenty-five (25) basement metasedimentary boulders with grades over 10% U3O8 were discovered (Fission NR, July 27, 2011) The source of the high grade uranium boulders is expected to be a basement hosted system located in an area where the Athabasca and Cretaceous sedimentary rocks have both been excavated away by ice action. Since recent drilling by the Fission/ESO Joint Venture intersected anomalous uranium in basement rocks below the Athabasca Sandstone, it is believed that the source of the radioactive boulders has not yet been found and may lie up-ice on the newly staked claims
Hook Lake Project
The Hook Lake Project consists of nine claims totaling 28,683 hectares and is situated in the southwestern Athabasca Basin approximately 80 kilometers southeast of the former Cluff Lake mine. The depth to unconformity is very shallow, ranging from zero to 350 metres.
Three prospective “corridors” have been defined on the property, each corridor being comprised of multiple conductors that have been confirmed to be the results of graphitic metasediments that intersect the Athabasca unconformity.
Historic exploration efforts focused on the Derkson Corridor, where SMDC encountered uranium mineralization near the unconformity averaging 0.24% U3O8 and 1.35% Ni over 2.5 metres of diamond drilling. Drill holes along this trend encountered very encouraging “Millennium-style” basement alteration. It is believed that the historic shallow drilling along the Derkson Corridor did not properly test for deeper Millennium or Eagle Point-type basement-hosted uranium deposits.
Purepoint Uranium Group Inc. is focused on the precision exploration of its thirteen projects in the Canadian Athabasca Basin. Purepoint proudly maintains project ventures in the Basin with the three largest uranium producers in the world, Cameco Corporation, AREVA and Rio Tinto. Established in the Athabasca Basin well before the initial resurgence in uranium earlier last decade, Purepoint is actively advancing a 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