July 22 2008 – Purepoint Uranium Group Inc. (TSX:PTU.V) is pleased to announce that 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.
The company has planned a six week drill program at the Hook Lake property to test targets on the Carter and Patterson Corridors. Five to six holes to an average depth of 300 metres are anticipated, to depths below the unconformity designed to also test for basement-hosted mineralization. Drill hole locations have been selected utilizing Purepoint’s interpretation of step-wise moving loop electromagnetic survey data, collected by both Cameco and Purepoint as well as Purepoint’s recent induced polarization data and VTEM data collected by Cameco. Additional drill holes may be added as time permits.
Purepoint also reported the completion of its most recent drill program at its Red Willow Property earlier this month. The spring program completed 2,726 metres of diamond drilling over 13 holes at the Radon Lake Zone. In total the company has completed 7,186 metres of drilling on its Red Willow Property this year. Purepoint is very encouraged with these results and will release them upon completion of its review.
Hook Lake Highlights:
- 1,500 metres of drilling planned this summer
- 69 line kilometre step-wise moving loop EM survey completed in March 2008 on the Carter and Patterson Corridors
- 132 line kilometres of gradient and pole-dipole IP completed in 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)
Hook Lake Project
The Hook Lake Project consists of six claims totaling 26,051 hectares staked by UEM over ten years ago 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 basement alteration. It is believed that the historic shallow drilling along the Derkson Corridor did not properly test for deeper 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.
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