January 11, 2011 – Purepoint Uranium Group Inc. (TSX:PTU.V) is pleased to announce that it has entered into a definitive joint venture agreement with Cameco Corporation for the ongoing exploration of the Smart Lake uranium project in the Athabasca Basin pursuant to its option agreement with Cameco announced December 5, 2006. Purepoint, as operator, has currently earned to date a 23% interest in the project and may acquire up to 50%.
“With the discovery of a highly altered, radioactive structure during our initial drill program, Smart Lake represents an exciting asset.” said Chris Frostad, Purepoint’s President and CEO. “We are eager to return to the project and are currently finalizing our plans for its continued advancement this year”.
- Purepoint may acquire up to 35% ownership interest through the expenditure of an additional $1.9 million by 2013 with the option to participate further to a maximum interest of 50%
- To date Purepoint has performed 1,436 metres of first pass diamond drilling;
- The most recent drill program discovered a radioactive structure that displays multiple episodes of intense alteration;
- The newly discovered radioactive structure at Smart Lake is associated with graphite and the Shearwater conductor;
- Best results reported to date from SMT08-05 where downhole total gamma results returned 0.22% eU3O8 over 0.2 m;
- The Shearwater conductor has been outlined over 1.0 kilometer by a ground EM survey and over 1.4 kilometers by an airborne EM survey.
Smart Lake Project
The Smart Lake property is comprised of 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 former Cluff Lake mine. Depth to the unconformity is shallow, at zero to 350 metres. Aeromagnetic and electromagnetic patterns at Smart Lake reflect an extension of the patterns underlying the Shea Creek deposits (maximum grade of 58.3% U3O8 over 3.5 m) just 55 km north of the property. Recent exploration by Purepoint and Cameco has firmly established the presence and location of a number of basement electromagnetic conductors that have never been drill tested.
Purepoint Uranium Group Inc. is focused on the precision exploration on its eleven projects in the Canadian Athabasca Basin. The company proudly maintains project partnerships with the three largest uranium producers in the world, Cameco Corporation, AREVA and Rio Tinto. Established in the Basin well before the resurgence in uranium, Purepoint is actively advancing this 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