Purepoint Uranium Group Inc.
TSX VENTURE : PTU

Purepoint Uranium Group Inc.

January 24, 2008 08:31 ET

Purepoint Uranium Group Inc: Begins Winter Drill Program at Turnor Lake

TORONTO, ONTARIO--(Marketwire - Jan. 24, 2008) - Purepoint Uranium Group Inc. (TSX VENTURE:PTU) is pleased to announce the commencement of their diamond drill program at their 100% owned Turnor Lake project located in the Athabasca Basin. The company has planned 4,000 metres of diamond drilling prior to spring break-up in April of this year.

"Last year our drilling confirmed the existence of extensive uranium rich alteration halos on this property. In light of this early success, we refocused our efforts on the enhancement of our understanding of the area using more sophisticated and detailed geophysics" said Scott Frostad, Purepoint's Vice President Exploration. "We are excited to be returning drills to the project and have very high expectations for this year's program".

Highlights:

- The Turnor Lake conductors wrap around the Kelsey Dome, the same structural feature associated with neighboring high grade uranium showings (including Cameco's La Rocque Deposit which encountered grades up to 33.9% U3O8 over 5.5 m);

- Diamond drilling in the winter of 2008 will concentrate on new geophysics completed on the Quetzal Zone and Serin Conductor;

- The Quetzal Zone is comprised of a complex series of untested, electromagnetic conductors interpreted to represent faulted graphitic rocks of a nature typically associated with uranium deposits in the Athabasca Basin.

- Holes completed by Purepoint south of the Quetzal Zone have outlined uranium-rich alteration similar in nature to those that surround many of the known ore deposits hosted in the Athabasca Basin;

- IP resistivity survey results suggest extensive zones of sandstone alteration underlie the Quetzal Zone, and the detailed magnetic and gravity surveys indicate a high degree of structural complexity in that Zone. The association of these promising indicators (hydrothermal alteration and structural complexity) makes this untested Zone highly prospective;

- A seismic survey conducted over the Serin Conductor indicates it is cut by a significant step-fault. Similar faults elsewhere in the Basin have provided structural traps that have localized uranium bearing hydrothermal fluids and resulted in the formation of ore bodies.

The Turnor Lake Project

The Turnor Lake Project is 100% owned by Purepoint and includes five claims with a total area of 9,705 hectares situated in the eastern plane of the Athabasca Basin. Depth to the unconformity is shallow at approximately 180 metres.

The property covers graphitic 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.

Quetzal Zone

The untested 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 electromagnetic conductors within a complex structural setting that will be the focus of the 2008 winter drill program. Areas interpreted to be underlain by graphitic rocks and crosscutting structures will be targeted as they are ideally suited to host a typical Athabasca Basin unconformity uranium deposit.

Serin Conductor

The Serin conductor is interpreted to be the northeastern extension of the conductor which hosts Cameco's La Rocque showing. The Serin conductor was first identified by Purepoint during a 2005 ground EM survey. Results from EM surveys suggest the conductor is offset (dislocated) by approximately 150 metres at the same location that a refraction seismic survey, conducted by Saskatchewan Energy and Mines (SEM) 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. Three drill holes are planned for this target area.

Previous Drill Results

To date Purepoint has drilled 34 holes on the Turnor property, concentrating on the southern end of the Turaco grid. All assays have been received and almost all the drill holes have returned significant uranium assays (up to 0.15% U3O8) spatially associated with the Athabasca Group unconformity.

The hydrothermal fluids that contribute to the formation of uranium ore bodies also tend to create alteration halos in the rocks surrounding the deposits. These halos are marked by the addition or removal of minerals and results in changes to the composition of these rocks. Twenty five of the 34 holes drilled on the Turaco grid returned results from the Athabasca sandstone that are consistent with this type of alteration and assayed uranium concentrations as high as 300 times the generally accepted 'background' concentration standard for the Athabasca Basin.

About Purepoint

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.

Contact Information

  • Purepoint Uranium Group Inc.
    Chris Frostad
    President and CEO
    (416) 603-8368
    Website: www.purepoint.ca