Toronto, Ontario – June 27, 2017 – Purepoint Uranium Group Inc. (the “Company” or “Purepoint”) (TSX:PTU.V) today reported the details of upcoming summer programs at their 100% owned Umfreville, Henday and McArthur East projects in the Athabasca Basin, Saskatchewan.
The Company also announced that this summer, the Hook Lake Joint Venture will play host to a dozen researchers from the Geological Survey of Canada and the Saskatchewan Geological Survey as well as technical representatives from AREVA Resources Canada Inc. The Government groups are undertaking a detailed lithostructural study of the Patterson Lake Corridor of the Athabasca Basin.
“Recently, our focus has been driven by our Hook Lake project discoveries within the Patterson Uranium District, however, Purepoint maintains five highly prospective and well advanced projects along the eastern mine corridor of the Athabasca Basin,” said Chris Frostad, President & CEO Purepoint Uranium Group Inc. “We have minimized our investment in these ventures during a prolonged period of low uranium prices but believe the sector is soon entering a phase of stronger recovery. We will use this summer to further delineate and prioritize the numerous drill targets within our significant portfolio”.
• Ground gravity surveys to cover key target areas on the Henday, Umfreville and McArthur East projects with the objective to further define and help prioritize drill targets
• At Umfreville, the gravity survey will cover an airborne gravity low that is coincident with anomalous uranium-in-soil samples and an airborne magnetic low. It is anticipated that the ground gravity results will provide detail not seen with the airborne gravity results
• The Henday project has a strong electromagnetic conductor stretching across the claim and gravity results may help prioritize segments of the conductor to test with initial drilling.
• McArthur East’s primary drill target, a large conductive zone, will be covered by gravity survey to define/support interpreted structures and lithologic contacts.
• The Hook Lake JV project will host the Geological Survey of Canada, Saskatchewan Geological Survey and technical representatives from AREVA Resources Canada Inc. in support of a lithostructural study of the Patterson Lake Corridor of the Athabasca Basin.
“We’ve found ground gravity surveys provide a valuable, cost-effective layer of exploration data and in conjunction with past work, the gravity surveys may lead to new discoveries.” said Scott Frostad, VP Exploration at Purepoint. “We are also very excited about this summer’s kickoff to the Government sponsored study representing significant investment in technical personnel dedicated to analysing and understanding the growing Patterson Uranium District”.
Ground gravity surveys are to be conducted this summer over Henday, Umfreville and McArthur East target areas by MWH Geo-Surveys Ltd. of Vernon, BC. Purepoint’s previous success with ground gravity results include discreet gravity lows that correlated with areas of known hydrothermal alteration, gravity highs that correlated with lithology, and an improved structural interpretation (see “Technical Report on the Red Willow Uranium Project, N. Sask, Canada”, Oct, 2015, on the Purepoint website). Other successes using gravity survey results include NexGen Energy’s Arrow Uranium Deposit that was discovered by drill testing a gravity low anomaly (NXE PR, February 19, 2014) and Forum Uranium’s uranium intercepts at 4 of the 5 ground gravity targets tested on their Northwest Athabasca property (see Forum’s “Corporate Presentation, Jan 2017”, on Forum website).
Originally covering over 60,000 hectares, the Umfreville Project has been refined to the most prospective target areas using results from airborne gravity, magnetic and electromagnetic surveys. The project sits on the North-East rim of the Athabasca Basin and lies over a complex series of cross-cutting faults which are typical mineralization settings. Geophysical signatures interpreted as being representative of hydrothermal alteration coincident with anomalous uranium-in-soil geochemistry have been isolated. The Umfreville Property covers approximately 4,383 hectares and consists of two mineral claims.
McArthur East Project
The 100% owned McArthur East property adjoins Cameco’s McArthur River project, which contains the world’s largest high-grade uranium deposit, and is situated due south of the Cigar Lake Mine. The property is 1,985 hectares in size and consists of 1 claim. It is underlain by a magnetic low believed to represent pelitic basement rocks, a typical host rock for economic uranium mineralization. Depth to the unconformity is estimated at a relatively shallow 200 metres.
The 100% owned Henday Lake property is 1,029 hectares in size and consists of 2 claims. This property is located nine kilometres northwest of Areva’s Midwest Lake deposit (41 million lbs. U3O8) and ten kilometers west of Rio Tinto’s Roughrider Deposit. Only one drill hole is known to have been drilled on Purepoint’s Henday property. Hole HLH8-71 was drilled by Cogema Resources in 1998. That hole encountered a steeply dipping, strongly graphitic fault gouge at the bottom of the hole. The claims rest within a magnetic low believed to represent pelitic basement rocks, a typical host rock for economic uranium mineralization. The depth to basement is locally less than 350 metres.
Patterson Uranium District Study
The Geological Survey of Canada is undertaking a detailed, 3 year, lithostructural study of the Patterson Lake Corridor of the Athabasca Basin. Preliminary studies by the Saskatchewan Geological Survey indicate that the geological setting of uranium deposits within the Patterson Lake Corridor is significantly different from those in the better-known eastern part of the basin, suggesting a different and possibly unique set of underlying controls. Through characterization of the geological setting and structures of basement rocks and the sandstone cover, the research aims to develop a conceptual model for ore genesis, and related structural controls, to inform future exploration elsewhere in the Athabasca Basin and in other Proterozoic basins in Canada and abroad.
Purepoint Uranium Group Inc. is focused on the precision exploration of its seven projects in the Canadian Athabasca Basin. Purepoint proudly maintains project ventures in the Basin with two of the largest uranium producers in the world, Cameco Corporation and AREVA Resources Canada Inc. Established in the Athabasca Basin well before the initial resurgence in uranium earlier last decade. Purepoint is actively advancing a 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