Toronto, April 2, 2008 – Purepoint Uranium Group Inc. (TSX:PTU.V) is pleased to report on the progress of their two winter diamond drill programs in the Athabasca Basin. In 2008, twenty-nine holes for a total of 5,718 metres have been completed at the Turnor Lake and Red Willow projects. Frozen ground conditions on both properties are expected to allow continued drilling until mid April. Results will be available following completion of program drilling and the review and analysis of drill data.
“We were very focused on testing as many target areas as possible this winter in keeping with our philosophy of continually refining and prioritizing our targets” said Chris Frostad, President and CEO of Purepoint Uranium Group Inc. “These are large properties with complex geology and first pass drilling of multiple target areas will allow us to direct our following efforts and resources in the most prudent and cost-effective manner possible. Purepoint remains well funded with cash resources sufficient to carry out our full exploration plans well into 2009.”
Highlights
- Twenty-one holes totaling 3,773 metres have been completed at the Red Willow project. Initial diamond drilling targeted the Osprey Zone and Long Lake Zone at the Red Willow project.
- Eight holes for a total of 1,945 metres have been completed at the Turnor Lake project. Initial diamond drilling targeted the Quetzal Zone and the Cotinga Lake area
- Planned drilling for April includes the Serin Zone at Turnor Lake and the Lyon Lake Zone at Red Willow.
Red Willow
Purepoint’s 100% owned Red Willow project adjoins AREVA Resource Canada Inc.’s claim group that contains the JEB, Sue, McClean and Caribou deposits to the west, as well as UEX’s Hidden Bay project that surrounds the Rabbit Lake, Collins Bay and Eagle Point deposits to the south. Discovered in 1980, Cameco’s Eagle Point mine lies approximately 15 kilometres south of Purepoint’s Red Willow Project and remains the longest producing uranium mine in Canada, with total mined and proven resources of 133 million lbs. U3O8.
Osprey Zone
Purepoint’s first pass drilling in 2007 discovered a wide mineralized structure associated with the Q Conductor zone that returned an average grade of 0.20% e U3O8 over 5.8 metres, including 1.01% e U3O8 over 0.1 meters, starting at a depth of only 71 metres. Comparisons performed at the Saskatchewan Energy and Resources’ Precambrian Geological Laboratory confirmed that the geology surrounding the Q conductor structure demonstrates a unique set of key features common to those found at the Eagle Point deposit, including characteristics of the control structure, the alteration style and the basement host rock.
Long Lake Zone
A number of radioactive boulders were discovered on the Red Willow property in 1975 by Gulf Minerals. By 1984, Eldorado Resources had determined that these boulders were part of a boulder train that returned assays of up to 0.80% U3O8. Prospecting by Purepoint during the summer of 2006 redefined the original boulder train and extended it one kilometer further up-ice (i.e. closer to the bedrock source for these rocks). Boulder sampling returned uranium values up to 1.30% U3O8.
Lyon Lake Zone
Geophysics conducted by Purepoint in 2007 defined an EM conductor coincident with, as well as up-ice of, two lithologically distinct boulder occurrences. Values of 1.02% U3O8 and 1.14% U3O8 have been returned.
Turnor Lake
The Turnor Lake Project is 100% owned by Purepoint. This 9,705 hectare property covers graphitic electromagnetic (EM) conductors that are associated with uranium showings on adjoining properties, namely Cameco’s La Rocque occurrence (up to 33.9% U3O8 over 5.5 m) to the west and Areva’s HLH-50 intercept (5.2% U3O8 over 0.38 m) located to the south. The project lies in close proximity to several uranium deposits, including Midwest Lake, McClean Lake and Eagle Point, and has a shallow depth to the unconformity at approximately 180 metres.
Quetzal Zone
The Quetzal Zone is located north of Purepoint’s previous drilling and was the subject of one airborne and four types of ground geophysical surveys during 2007. These surveys (electromagnetics, magnetics, IP resistivity and gravity) defined over seven kilometers of EM conductors within a complex structural setting. Areas interpreted to be underlain by graphitic rocks and crosscutting structures have been targeted, as they are ideally suited to host a typical Athabasca Basin unconformity uranium deposit.
Cotinga Lake
EM conductors outlined within the Cotinga Lake area are coincident with sandstone having a low apparent resistivity response that is thought to represent favourable clay alteration. A water sampling program carried out by Asamera Oil Corporation in 1977 found Cotinga Lake to have elevated concentrations of radon.
Serin Conductor
The Serin conductor is interpreted to be the northeastern extension of the conductor which hosts Cameco’s La Rocque showing. Results from EM surveys suggest the conductor is offset by approximately 150 metres at the same location that a refraction seismic survey, conducted by Saskatchewan Energy and Mines in 1984, reflects a significant down drop in the basement topography. The MacArthur River Deposit, one of the world’s largest uranium mines, was formed at the site of a similar basement step-fault.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision exploration of more than 42 defined target areas on its eleven 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
(416) 603-8368
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