Toronto, November 7, 2007 – Purepoint Uranium Group Inc. (TSX:PTU.V) is pleased to report that initial geophysical surveys have been completed and drilling has commenced at the Hook Lake JV project on the south west edge of Canada’s Athabasca Basin. Purepoint operates the Hook Lake project under the terms of an agreement with UEM Inc. that permits Purepoint to acquire up to a 50% interest in this large project. UEM Inc. is a company owned by AREVA Resources Canada Inc. and Cameco Corporation, the world’s two largest uranium exploration, mining and milling companies.
“Our Hook Lake work so far this year has focused on target refinement within the Carter Corridor, the most westerly of the project’s three bands of graphitic conductors” said Scott Frostad, Vice President Exploration of Purepoint . “We are very encouraged by the broad chargeability zone our Gradient Induced Polarization survey has outlined in this area. That clearly-defined zone may well reflect favourable clay alteration co-incident with graphitic conductors.”
Highlights:
- 132 line kilometres of gradient and pole-dipole IP completed in 2007
- 2,000 metres of drilling planned for the balance of 2007
- large property totaling 26,051 hectares
- shallow depth to unconformity ranging from zero to 350 metres
- extensive multiple conductor systems with structural breaks
- U308 and Ni mineralization previously encountered by SMDC (Cameco)
- significant investment in 2007 geophysics of $455,000 ($17 per hectare)
Additional information, including a video update of the Hook Lake Project, can be found at www.purepoint.ca.
Hook Lake 2007 Exploration Update
The Carter structural corridor was initially tested by Cameco with a single drill hole in 2006. That hole intersected favourable alteration that included bleaching, sulphidation (pyrite), desilicification and local silicification of the sandstone and, in the basement rocks, hydrothermal bleaching, clay alteration and red hydrothermal hematite. Graphitic fault zones were also intersected, indicating that the area hosts favourable structure and rock types for uranium deposition. Cameco’s initial single hole marked the Carter corridor as a promising exploration target.
During 2007 Purepoint’s activities at the Hook Lake JV included road improvement, construction of a permanent camp, line cutting, and both gradient IP and pole-dipole IP surveys. Approximately 130 line kilometers of grid were cut over the Carter structural corridor (West grid) and 150 line kilometres of grid over the Patterson structural corridor (Central grid).
This summer’s gradient IP survey was completed over the West grid in the Carter corridor. The resulting ground IP resistivity response correlates well with conductors highlighted by a previous airborne VTEM electromagnetic survey. The IP chargeability response indicates that the Carter corridor lies coincident to or along the eastern side of a chargeability high zone.
Drilling has commenced at the Hook Lake project with the first hole targeting a prominent Carter corridor EM conductor. The gradient and pole-dipole IP surveys have also highlighted structural breaks in the EM conductors that may have created traps for uranium-rich fluids. Ongoing drilling will also test those structural targets.
A gradient IP survey has also commenced over the Patterson corridor to further refine drill targets for testing this winter.
Hook Lake Project
The Hook Lake Project consists of six claims totaling 26,051 hectares staked by UEM over ten years ago and situated in the southwestern Athabasca Basin, approximately 80 kilometers southeast of the former Cluff Lake mine. The depth to unconformity is very shallow, ranging from zero to 350 metres.
Three prospective structural “corridors” have been defined on the property, each corridor being comprised of multiple conductors that have been confirmed to be the results of graphitic metasediments that intersect the Athabasca unconformity. The extensive multiple conductor system displays evidence of a complex post-Athabasca Group structural history and structural disruption.
Historic exploration efforts focused on the Derkson Corridor, where SMDC encountered uranium mineralization near the unconformity averaging 0.24% U3O8 and 1.35% Ni over 2.5 metres of diamond drilling. Drill holes along this trend encountered very encouraging “Millennium-style” basement alteration. It is believed that the historic shallow drilling along the Derkson Corridor did not properly test for deeper Millennium or Eagle Point-type basement-hosted uranium deposits.
The western and central corridors (Carter and Patterson) contain 46 km of well defined conductors which have been subject to very limited drilling. Historic drilling consistently encountered post-Athabasca brittle faulting and/or graphitic basement rocks and strong hydrothermal alteration indicative of unconformity uranium deposits.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision exploration of more than 42 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 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.
Ends
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For further information please contact:
Purepoint Uranium Group Inc.
Chris Frostad, President and CEO
(416) 603-8368
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