Toronto, June 1, 2010 – Purepoint Uranium Group Inc. (TSX:PTU.V) announced today the results of a six month geochemical/diamond drill analysis designed to validate the results of a syndicated research study recently submitted by the Canadian Mining Industry Research Organization (CAMIRO).
“These techniques will help us to identify deep uranium mineralization from surface” said Chris Frostad, President & CEO of Purepoint Uranium Group Inc. “We anticipate that utilizing CAMIRO’s findings will significantly reduce the time to new uranium discoveries while providing lower cost exploration methods”.
In 2006 The Canadian Mining Industry Research Organization (CAMIRO) carried out a scoping study documenting and evaluating the relative effectiveness of methods applied in the past to explore for uranium in the Athabasca Basin. This scoping phase formed the basis for designing field studies to develop new methods and optimize existing ones for the direct detection of uranium deposits along the unconformity of the Athabasca sandstone. Field studies were carried out in 2008 and 2009 and the final report was released in April 2010. All scientific results arising from the Research Project are subject to a confidentiality period ending on March 15, 2013.
Purepoint and other members of Canada’s uranium industry (including Cameco, AREVA, Denison and the Saskatchewan Research Council) sponsored the three year research study. The field samples were collected from the areas overlying the McClean Lake, Cigar Lake West and Dawn Lake uranium deposits in Saskatchewan’s Athabasca Basin.
“Now that we are confident in the utility of this approach, we will be incorporating it into our ongoing exploration programs to help prioritize our drill targets” said Scott Frostad, Vice President Exploration at Purepoint. “We consider the work performed by the late Mr. Robert Jackson who initially led the project and the team at CAMIRO will prove invaluable in advancing one of the world’s most prolific uranium bearing regions”.
Red Willow Results
The CAMIRO geochemical techniques were applied over three separate zones within the Osprey Area.
Osprey Hinge Zone – The strongest CAMIRO geochemical anomaly returned from the 2009 field sampling was located over the nose of the Osprey fold. The three drill holes in this zone discovered a radioactive fault now named the Hinge Fault. RW-29 intersected the Hinge Fault approximately 70 metres below surface while RW-41, drilled beneath RW-29, intersected this vertical structure at approximately 150 metres below surface. The best assays from the Hinge Fault are provided below. The strike of the Hinge Fault is currently unknown and remains untested.
Osprey Lake Zone – The area surrounding the RW-07 discovery (0.20% eU3O8 over 5.8 metres) also returned a CAMIRO geochemical anomaly. Drilling within this area during 2010 continued to return promising results with assays up to 5420 ppm U (0.64% U3O8).
Osprey Conductor North – Despite the existence of classic geophysical indicators, the CAMIRO geochemical sampling failed to return anomalous results from this high priority drill target. Geophysics indicated that the Osprey conductor was bifurcated (split into two parts) in this area and offset by a cross-cutting fault. Drilling in this area intersected wide intervals of the target host rock, graphitic pelite, as well as major structures but no anomalous radioactivity was encountered.
Significant Uranium Intercepts from Red Willow, 2010 Drill Program
Purepoint Uranium Group Inc. is focused on the precision exploration of more than 55 defined target areas on its eight 100% owned projects in the Canadian Athabasca Basin, and its two Basin projects joint ventured with Cameco Corporation and AREVA Resources Canada Inc. 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