January 26 2007 – Purepoint Uranium Group Inc. (TSX:PTU.V) is pleased to announce an agreement with Cameco Corporation to form a joint venture in the ongoing exploration of Cameco’s Smart Lake uranium project in the Athabasca Basin. The agreement permits Purepoint, as operator, to acquire up to 50% of the project.
Identified for its similar setting to that of UEX’s Shea Creek deposit, the Smart Lake Project has been carefully advanced by Cameco to its current drill ready state. This new joint venture will ensure that exploration can continue in a timely and thorough fashion.
“Forming this joint venture with the world’s largest uranium producer is a significant step for Purepoint” said Chris Frostad, President & Chief Executive Officer, Purepoint Uranium Group Inc. “We view Smart Lake as a well advanced high priority asset, and Purepoint has the resources and finances already in place to commence drilling this season.”
- Purepoint is engaged as project operator
- Purepoint may acquire an initial 35% ownership interest through the expenditure of $4 million over a period of 6 years with the option to participate further to a maximum interest of 50%
- Purepoint will have access to Cameco’s exploration expertise, technology and technical assistance
- Cameco retains the right to mill and market any uranium mined from the project
- The Smart Lake project has been aggressively advanced by Cameco since 2004 and represents a high-quality, drill-ready, shallow sandstone project on the south-west edge of the Athabasca Basin
Smart Lake Project
The Smart Lake property is 100% owned by Cameco and includes two claims with a total area of 9,800 hectares situated in the southwestern portion of the Athabasca Basin, approximately 60 km south of the Cluff Lake mine. Depth to the unconformity ranges from 0 to 350 metres in depth. Aeromagnetic and electromagnetic patterns at Smart Lake resemble those observed underlying the Shea Creek deposits located under deeper sandstone cover 55 km north of the property. Recent exploration by Cameco has firmly established the presence and location of basement electromagnetic conductors not drill tested by previous exploration campaigns. Three high priority diamond drill targets were previously identified by Cameco for follow up during the 2007 exploration season.
Purepoint Uranium Group Inc. is focused on the precision exploration of its eight, highly prospective projects in the Canadian Athabasca Basin. Established in the Basin well before the resurgence in uranium, Purepoint is actively advancing its portfolio of drill targets in the world’s richest uranium region.
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