September 29, 2011 – Purepoint Uranium Group Inc. (TSX:PTU.V) reported today that it recently staked a 1,985 hectare property lying due east of Cameco’s McArthur River Mine and due south of the Cigar Lake Mine in Canada’s Athabasca Basin.
“Over the past several years we have been actively evaluating the more than five million hectares (1,200 claims) that have come open in northern Saskatchewan and watching for exceptional opportunities such as this” said Scott Frostad, Vice President Exploration of Purepoint. “While many of the exploration companies have been moving on to other commodities, we have been taking advantage of the vast amount of uranium exploration data submitted to the Saskatchewan government between 2003 and 2008 in order to acquire promising new properties”.
Purepoint’s newly staked McArthur East property adjoins Cameco’s McArthur River Project, which contains the world’s largest high-grade uranium deposit, and is situated due south of the Cigar Lake Mine. The property is underlain by a magnetic low believed to represent pelitic basement rocks, a typical host rock for economic uranium mineralization. Depth to the unconformity is estimated at a relatively shallow 200 metres.
A structural interpretation, based on regional aeromagnetic signatures, indicates the property is bounded by two strong north-south trending faults while a detailed aeromagnetic survey suggests the property has a high degree of structural complexity. Areas interpreted to be underlain by crosscutting structures will be targeted as they are ideally suited to host a typical Athabasca Basin unconformity uranium deposit.
Staking at Purepoint
As uranium entered a down cycle in 2008, Purepoint set out to capitalize on project opportunities that would undoubtedly arise utilizing a number of strategies:
- Purepoint commissioned Dr. Jay Hodgson, past Professor of Economic Geology at Queen’s University and former Chief Geologist at Barrick Gold Corp to develop a methodology for quantifying the potential of exploration projects in the Athabasca Basin. Hodgson’s approach has allowed Purepoint to quickly evaluate available properties and distil them down to those having the highest uranium exploration potential.
- Purepoint has maintained, on retainer, a local and experienced field crew for staking, allowing the Company a competitive edge for acquiring those projects identified.
- Purepoint has acquired through staking six new projects covering 33,000 hectares in prime locations within the Athabasca Basin including:
- The Henday Block – on trend with an interpreted East-West alteration corridor that hosts neighbouring Fission Corp’s J-Zone as well as Hathor’s Roughrider Deposit;
- Forsythe Lake – containing known electromagnetic (EM) conductors that extend onto the neighbouring Denison/JNR Bell Lake Project and an intriguing magnetic anomaly suggestive of a volcanic pipe; and
- Red Willow North – covering the eastern extension of EM conductors outlined on the Purepoint/Rio Tinto JV Red Willow project as well as the Richardson-Crooked Lake conductor held by Denison/Virginia Hatchet Lake Project.
Purepoint Uranium Group Inc. is focused on the precision exploration of its eleven 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