February 7 2007 – Purepoint Uranium Group Inc. (TSX:PTU.V) is pleased to announce its agreement with UEM Inc. to form a joint venture in the ongoing exploration of UEM’s Hook Lake uranium project in the Athabasca Basin. The agreement permits Purepoint, as operator, to acquire up to 50% of this large project.
UEM Inc. is a company owned 50% by each of AREVA Resources Canada Inc. and Cameco Corporation, the world’s two largest uranium exploration, mining and milling companies.
“We are extremely proud of AREVA and Cameco’s vote of confidence in our ability to move this important project forward” said Chris Frostad, President & Chief Executive Officer of Purepoint Uranium Group Inc. “The depth of the exploration talent and experience that we now have mobilized in Saskatchewan clearly demonstrates our commitment to advancing each of our nine Basin properties into as many advanced near term production projects as possible.”
Joint Venture Highlights:
- Purepoint is engaged as project operator
- Purepoint may acquire an initial 35% ownership interest through the expenditure of $7.5 million over a period of 6 years with the option to participate further to a maximum interest of 50%
- UEM has isolated a basement alteration trend at Hook Lake now recognized as being similar to the Millennium deposit. Previous drilling along this trend has encountered significant uranium mineralization
- UEM retains the right to mill and market any uranium mined from the project
- Drilling is scheduled to continue at Hook Lake this winter season.
Hook Lake Project
The Hook Lake Project was staked by UEM in 1997 and consists of six claims totaling 26,051 hectares 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.
The western and central corridors (Carter and Patterson) contain 46 km of well defined conductors which have been subject to very limited diamond drilling. Historic initial drilling consistently encountered post-Athabasca brittle faulting and/or graphitic basement rocks and strong hydrothermal alteration indicative of unconformity uranium deposits. The extensive multiple conductor system displays evidence of a complex post-Athabasca Group structural history and structural disruption.
Purepoint Uranium Group Inc. is focused on the precision exploration of its nine highly prospective projects in the Canadian Athabasca Basin. Established in the Basin well before the resurgence in uranium, Purepoint is actively advancing its 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