November 4 2008 – Purepoint Uranium Group Inc. (TSX:PTU.V) is pleased to announce that encouraging results from its first drill program at the Smart Lake JV project have lead to the company’s decision to drill several additional holes prior to moving camp. Purepoint operates the Smart Lake project in the Athabasca Basin under the terms of an agreement with Cameco that permits Purepoint to acquire up to a 50% interest in the project. The most recent program expenditures completed Purepoint’s earn-in of its initial 20% interest in the Smart Lake project.
The company has budgeted a further $450,000 for three to four additional holes to follow-up along strike of the strongly altered basement structure associated with radioactivity intersected by SMT08-01. “To have indicators of a large-scale uranium mineralizing event from our very first hole at Smart Lake is tremendously exciting” said Chris Frostad, President and CEO of Purepoint. “Following Turnor Lake and Red Willow, this is our third project to report outstanding results from a first pass drill program. These results continue to validate our heavy emphasis on geophysics and analyses before drilling.”
Smart Lake Highlights:
- Hole SMT08-01 intersected a 54 metre wide, strongly altered structure hosting anomalous radioactivity (up to 2,238 cps, or 25 time background)
- This structure was intersected 96 metres below the unconformity and contains evidence of multiple episodes of alteration
- The strong EM conductor targeted by SMT08-01 was explained by a graphitic horizon proximal to the radioactive structure
- This conductor has been outlined over 1.0 kilometer by a ground EM survey and over 1.3 kilometers by an airborne EM survey.
Smart Lake Project
The Smart Lake property 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 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 (max. grade of 58.3% U3O8 over 3.5 m) 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 never drill tested.
SMT08-01 targeted a step-wise moving loop anomaly on the Centre Zone of the Smart Lake property. The hole encountered 120 m of overburden, intersected the unconformity at 125.7 m and then drilled strongly chloritized pelitic gneiss to 222.5 m. The hole intersected a structure over 54 meters (true width estimated at 35 m), which displayed intense clay alteration, silicification and hematization between 222.5 and 276.5 m. The zone was brecciated and healed with an overprinting of alteration styles suggesting multiple episodes of alteration. The structure is associated with elevated radioactivity returning a maximum downhole gamma probe reading of 2,238 cps at a depth of 222.7 m, an average of 1,145 cps over 3.0 m from 230.4 m to 233.4 m, and 1,260 cps over 1.0 m from 240.3 to 241.3 m. The conductor was explained by graphitic pelitic gneiss intersected between 276.5 m and 285.5 m and the hole was completed at a depth of 300 m. The background radioactivity of the basement rocks was approximately 80 cps.
Both SMT08-02 and 03 targeted a different conductor on the South Zone. In SMT08-02, the conductor is likely explained by a weakly clay altered graphitic pelitic gneiss (up to 10% graphite) intersected between 110.7 and 116.3 m. Lower radioactivity (<250 cps from the downhole gamma probe) was returned from this hole. For hole SMT08-03, the EM conductor remains unexplained, with only pelitic gneiss being encountered until the completion depth of 213.0 m. The downhole probe for this hole returned a peak reading of 1,590 cps at 135.0 m corresponding to a hematite stained fracture.
Purepoint Uranium Group Inc. is focused on the precision exploration of more than 55 defined target areas on its seven 100% owned projects in the Canadian Athabasca Basin,and its two Basin projects joint ventured with Cameco Corporation and UEM Inc. a company owned equally by 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