Purepoint Uranium Group Inc.
TSX VENTURE : PTU

Purepoint Uranium Group Inc.

April 07, 2010 08:00 ET

Purepoint Uranium Group Inc: Completes Drill Program on Osprey Conductor at Red Willow Project

TORONTO, ONTARIO--(Marketwire - April 7, 2010) - Purepoint Uranium Group Inc. (TSX VENTURE:PTU) announced today the conclusion of their 20 hole, 3,290 metre drilling program at their wholly-owned Red Willow Project in Saskatchewan Canada's Athabasca Basin. As follow up to the company's initial high-grade uranium discoveries, the program was designed to systematically test the entire Osprey zone, a structurally complex six kilometre conductor, with the objective of isolating potential uranium occurrences and understanding the geology of the area as a whole. Assays are pending.

This program has successfully determined that the entire central portion of the "S" shaped conductor (1.2 kilometres in length) has been subjected to a large scale uranium mineralizing event and possesses the classic indicators of a potential uranium deposit. "This winter's drill program has shown that radioactivity is found throughout the central portion of the Osprey conductor", said Scott Frostad, VP Exploration at Purepoint. "Our next stage of drilling here will follow-up the newly discovered 'Hinge Fault' and other locations where cross-cutting structures may have trapped the uranium-rich fluids."

Highlights:

  • Most of the 14 shallow drill holes along the centre arm of the "S" shaped Osprey conductor (1.2 km in length), from RW-19 (3% U3O8) to the west, to the nose of the fold towards the east, encountered elevated radioactivity (> 1,000 cps) associated with favourable alteration and structure;

  • RW-35 and RW-40 tested the centre arm of the Osprey conductor near RW-07 and returned the maximum downhole gamma results of the program with 23,251 cps and 20,240 cps, respectively;

  • RW-28, RW-29 and RW-41, drilled at the nose of the fold, encountered the strongest clay alteration seen on the property to date and also intersected a vertical radioactive structure (Hinge Fault) that returned up to 2130 cps;

  • RW-30, drilled on the west shore of Linda Lake approximately 350 metres east of the fold nose, encountered a 22 metre wide zone of elevated radioactivity (up to 645 cps) associated with strong silicification;

A fence of three holes, RW-28, 29 and 41, tested the nose of the fold and were all drilled to the east at -65 degrees and were approximately 50 metres apart. All three holes encountered zones of strong clay alteration and silicification. RW-29 and RW-41 intersected a radioactive fault zone, now named the Hinge Fault, associated with strong chlorite and hematite alteration and returned maximum downhole gamma results of 1,892 cps and 2,134 cps, respectively. RW-29 intersected the radioactive fault zone between 72.5 and 77.5 metres while RW-41 intersected the fault between 157.7 and 161.0 metres. The strike of the Hinge Fault is currently unknown and untested. Where that fault intersects the central portion of the Osprey Conductor represents an important uranium target.

An EM conductor, approximately 700 metres in length, is seen to cross-cut the Osprey conductor near RW-07, representing another important target zone. Unfortunately, poor ice conditions this winter did not allow the conductor to be tested where it extends beneath Osprey Lake. 

Red Willow

The Red Willow property consists of eight claims on the eastern edge of the Athabasca Basin. The thickness of the Athabasca sandstone varies from 0 to 80 metres and the basement rocks are composed of intensely deformed and metamorphosed sedimentary, volcanic and plutonic rocks trending NE to SW. Five major uranium deposits, JEB, Midwest, Cigar Lake, McArthur River and Millennium, are located along a NE to SW mine trend that extends through the Red Willow Project.

To date only 4 of the projects 22 delineated target zones have been subject to first pass drilling.

The Red Willow property 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 property that surrounds Cameco Corporation's Rabbit Lake, Collins Bay and Eagle Point deposits.

About Purepoint

Purepoint Uranium Group Inc. is focused on the precision exploration of more than 55 defined target areas on its eight 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
    www.purepoint.ca