Toronto, Ontario, May 15, 2012 – Purepoint Uranium Group Inc. (TSX:PTU.V) today provided an exploration update on its Red Willow Project in Saskatchewan’s Athabasca Basin. The project is managed by Rio Tinto under an option agreement allowing Rio to earn a controlling interest in the Red Willow Project by spending $22.5 million in exploration and development expenses.
This update discusses the results of a geochemistry review, a ground gravity survey, a four hole (1,464 metre) drill program as well as the upcoming summer program of an extensive geochemical sampling survey and property-wide geological mapping.
In 2011 Rio Tinto identified a select number of geochemical target areas in its review of Purepoint’s drill core geochemistry database.
The first geochemical target is in the western Radon area where drill hole RAD08-09 returned 166 ppm U over 2.1 metres from within the sandstone. The background concentration of uranium in the Athabasca sandstone is typically less than 5 ppm U. The second target area is located southeast of the Osprey Hinge. The geochemistry of drill core basement samples show alteration to increase from Osprey’s RW-07 (0.2% eU3O8 over 5.8m) towards the southeast (Osprey Hinge) with drill hole RW-28 returning the strongest alteration signature. The third target is located within the eastern area of the Red Willow project where historic hole CBA-20 intersected 0.17% U3O8 over 0.8 metres within a pegmatite dyke before being lost at a depth of 20m.
The gravity survey covered the Geneva grid and succeeded in substantiating the high priority target located at the western terminus of two parallel conductors. The target area coincides with a gravity low as well as low apparent resistivity chimneys in the sandstone that may represent zones of hydrothermal alteration. An additional gravity low depression was outlined along the primary Geneva conductor where three drill holes by Eldorado in 1984 (RAD-17, 19 and 27) encountered strong basement alteration and one of which (RAD-27) intersected anomalous uranium (0.22% U3O8 over 1.0 metre) within a graphitic fault zone. A strong gravity low was identified within the large-scale arcuate magnetic high where it is crosscut by a weak northeast trending conductor. The gravity survey also covered a portion of the Radon area and outlined subtle gravity lows within the area of Radon Lake near the historic radon-in-water anomaly. A large esker overlies the main Radon conductor and may be masking a gravity low at its south end. Due to thick ground cover, the gravity survey could not be carried far enough south to cover the RAD08-09 geochemical target.
Rio’s 2012 drill program at Red Willow totaled 1,464 metres, with three of the four drill holes being drilled at the Osprey area and a single hole at Geneva. The first hole of the program, 12RDW-1, was drilled 300 metres west of the Osprey Conductor and targeted a weak EM conductor located within a gravity low, magnetic low and resistivity high. No elevated radiation or significant structures were intersected within the unaltered, quartz-rich metapelite. Hole 12RDW-2 targeted the southeast portion of the Osprey Conductor and intersected a radioactive structure (up to 57 ppm U) within a chloritized graphitic-pyritic unit. The third hole at Osprey, 12RDW-4, tested a resistivity low in the southwest portion of the Osprey grid. The hole was drilled 100 metres north of the Osprey conductor and encountered strong hematite and clay alteration at the unconformity. The metapelite basement rock of 12RDW-4 hosted numerous zones of chlorite and hematite alteration.
The one exploratory hole drilled at Geneva, 12RDW-3, tested the strong gravity low that was coincident with a weak northeast trending conductor. The drill hole did not intersect any significant structures or mineralization.
Two primary targets at Osprey, which include the Osprey Hinge and the Osprey Lake resistivity low located just west of the 0.2% eU3O8 over 5.8 m intercept, have not yet been followed-up. The previously defined high-priority targets at Geneva, the western terminus of two parallel EM conductors and the graphitic structure with anomalous uranium (0.22% U3O8 over 1.0 metre), have been substantiated by the recent gravity results and remain to be followed-up with drilling.
2012 Summer Exploration Program
The 2012 summer exploration program consists of a surficial geochemical sampling survey, property-wide geological mapping and re-sampling of historic core. The geochemical survey involves the collection of soil, vegetation and tree core samples at approximately 2,000 locations over the Osprey, Geneva, Big Bay, Dancing Lake and Cross areas as well as a reconnaissance grid. The new target named “Cross”, located in the north-central area of the property, is interpreted to host crosscutting structures and returned anomalous concentrations of uranium, nickel and copper from soils collected by Gulf Minerals Canada during 1971 and 1972.
The Red Willow property covers 25,612 hectares on the eastern edge of the Athabasca Basin. The Athabasca sandstone is shallow and the depth to unconformity varies from zero to 80 metres. The basement rocks are composed of intensely deformed and metamorphosed sedimentary, volcanic and plutonic rocks trending NE to SW. Five major uranium deposits are located along a NE to SW mine trend that extends through the Red Willow Project.
The Red Willow property adjoins AREVA Resource Canada Inc.’s claim group that contains the JEB, Sue, McClean and Caribou deposits to the west and, to the south adjoins UEX’s Hidden Bay property that surrounds Cameco Corporation’s Rabbit Lake, Collins Bay and Eagle Point deposits.
Purepoint Uranium Group Inc. is focused on the precision exploration of its twelve 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