December 6 2007 – FOR IMMEDIATE RELEASE
Purepoint Uranium Group Inc: Red Willow structure proves a close match to Eagle Point
Toronto, November 6, 2007 – Purepoint Uranium Group Inc. (TSX:PTU.V) released today the conclusions of a comparative analysis performed at the Saskatchewan Energy and Resources’ Precambrian Geological Laboratory. Diamond drill core from the radioactive structure recently discovered in the Q Conductor Zone at Purepoint’s Red Willow project was compared to historic core from Cameco’s nearby Eagle Point uranium deposit. This comparison 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.
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.
Purepoint reported earlier this week the discovery of a wide mineralized structure in the Q Conductor Zone at Red Willow, with the final drill hole of this fall’s first pass program returning an average grade of 0.20% U3O8 over 5.8 metres, including 1.01% U3O8 over 0.1 meters, starting at a depth of only 71 metres.
The Precambrian Geological Laboratory in La Ronge, Saskatchewan houses drill cores principally from mineral deposits, drill prospects and showings in northern Saskatchewan, including the Athabasca Basin. This core was assembled over a 25 year period by Dr. Andrew Gracie during his time as Resident Geologist with Saskatchewan Industry & Resources. Purepoint’s geologists conducted the comparison under the guidance of Dr. Gracie.
“Comparative analyses such as these are precisely why this Laboratory was created” said Dr. Gracie. “Purepoint’s ability to visually associate core from known deposits to the geology of Red Willow is an extremely valuable tool for locating new ore bodies”.
In particular, the Laboratory comparison concluded that the Red Willow discovery and the Eagle Point deposit share a unique combination of key features, including:
- basement-hosted uranium mineralization with no overlying Athabasca sediments
- high angle control structure
- radioactive fractures immediately above and below the uranium bearing zones
- dark chlorite forming a narrow but strong alteration halo to the radioactive structure
- brick red hematite within the uranium bearing zones
- mineralization hosted by graphitic-pyritic gneiss with coarse grained pegmatitic bands
The Red Willow project adjoins AREVA Resource Canada Inc.’s claim group that contains the JEB, Sue, McClean and Caribou deposits to the west and, to the south adjoins UEX’s Hidden Bay project that surrounds the Rabbit Lake, Collins Bay and Eagle Point deposits.
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.
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