July 13 2005 – The identification of a previously undiscovered conductor coinciding with an interpreted down drop in the basement topography will significantly impact drill plans as announced today by Purepoint Uranium Group Inc. (TSX-V:PTU). This third discovery is as a result of winter 2004/05 geophysical work performed on the Serin Grid at their Turnor Lake project located in the Athabasca Basin of Northern Saskatchewan.
“Based on airborne surveys conducted by Cogema over ten years ago we were fairly confident that this target would present itself,” said John Steele, Chief Geophysicist and Exploration Manager, Purepoint Uranium Group Inc. “The placement and curvature of this new conductor, which exactly coincides with the target identified in the Saskatchewan Energy and Mine’s 1984 seismic study, makes this an outstanding point of interest.”
“The return of new discoveries and high prospect targets on all three of our grids significantly impacts Purepoint’s plans for a drill program at Turnor Lake this coming winter,” said Chris Frostad, President and CEO, Purepoint Uranium Group Inc. “Our team of experts will be considering far more extensive work than originally set out.”
The Turnor Lake project is in close proximity to several uranium deposits including Midwest Lake, McClean Lake, Eagle Point, and Collins Bay. The property is adjoined to Cameco’s La Rocque Lake claim group and Cogema’s Henday Lake project.
Purepoint Uranium conducted ground Protem/EM-37 surveys over the Serin grid on the Turnor Lake property in 2005. An excellent target which fits well into Purepoint’s exploration model of uranium deposition was identified during this survey.
A near-vertical conductor extending for at least 2.2 km was identified running Northeast-Southwest along the contact between magnetic basic rock and non-magnetic potentially pelitic metasediments was seen. This conductor likely extends northward off the grid and southwesterly to the west of the southern portion of the grid. Near the southern end of the conductor it is interpreted to be displaced to the west by faulting.
The response of this EM conductor is medium to weak which can be explained because of its interpreted depth ranging from 400 to 450m below surface which allows this conductor to be upgraded to a high priority exploration target.
Refraction seismic surveys, conducted by Saskatchewan Energy and Mines (SEM) in 1984, indicated a significant down drop in the basement topography at Serin Lake. The MacArthur River Deposit, one of the world’s largest uranium mines, was formed at the site of a basement down drop that likely acted as a dam to mineralized fluids. The SEM seismic target on Serin Lake is coincident with the new EM anomaly discovered by Purepoint.
Further ground electromagnetic and magnetic surveys will be conducted to define the extent of the conductor to the north and to the southwest in preparation for defining a drill target in the winter of 2005/2006.
Turnor Lake Project
The Serin Grid lies within Purepoint’s Turnor Lake Project. Within this property, 34 kilometers of conductors have been outlined by ground geophysics more than ten of which have been recently discovered by Purepoint. Numerous recommended drilling programs by previous operators were never carried out to test these conductors (Asamera, 1982; SMDC, 1983, 1984; Cogema, 1996). However, drilling conducted on the Turnor property to date has intersected graphitic pelites, hydrothermal bleaching and clay alteration all of which are indicators of uranium mineralization.
The Turnor Lake Project is located 12 kilometres east of Cameco Corporation’s high-grade uranium zone at La Rocque Lake. Drilling completed in the winter and summer of 1999 on the La Rocque Lake claims encountered uranium mineralization of 8.2%, 19.1% and 29.9% U3O8 in three drill holes over 3.6m, 2.5m and 7.0m, respectively.
Anomalous uranium was intersected approximately one-half kilometre south of the Purepoint Turnor Property in Cogema drill hole HLH-48. The underlying basement rocks in this hole consisted of altered, graphitic and pyritic sediments that are highly fractured. The anomalous intercept at 168 metres returned a weighted assay of 0.17% U3O8 over 0.6 metres.
A more detailed discussion of this and other Purepoint properties can be found on the Purepoint web site at www.purepoint.ca.
Purepoint Uranium Corporation is a uranium exploration company driven by intellectual, precision prospecting focusing on distinct, targeted properties with historic significance in the Canadian Athabasca Basin. Currently, Purepoint’s seven, 100% owned, Athabasca Basin uranium projects cover nearly 120,000 hectares and are considered high prospect properties that include several near term targets expected to be drill ready for winter 2005/06.