Purepoint Uranium Group Inc.

TSX VENTURE : PTU


Purepoint Uranium Group Inc.

November 08, 2012 08:00 ET

Purepoint Signs Athabasca Basin Joint Venture with Cameco and AREVA

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2012) - Purepoint Uranium Group Inc. (TSX VENTURE:PTU) is pleased to announce that it has entered into a definitive joint venture agreement with Cameco Corporation and AREVA Resources Canada Inc. for the ongoing exploration of the Hook Lake uranium project in the Athabasca Basin pursuant to its option agreement with Cameco announced February 7, 2007. Purepoint holds a 21% interest in the project.

"We look forward to working closely with Cameco and AREVA on the ongoing advancement of the Hook Lake project," said Chris Frostad, Purepoint's President and CEO. "Hook Lake has continuously demonstrated great potential for discovery and now more so with the Fission and Alpha joint venture's new discovery on the Patterson conductor trend."

Highlights:

  • By spending $3,350,000 on exploration since 2007, Purepoint has acquired a 21% interest in the Hook Lake project;
  • The remaining 79% of the project is owned by Cameco Corporation (39.5%) and AREVA Resources Canada Inc. (39.5%);
  • A winter drill program in the range of $850,000 - $1,000,000 is currently being planned by Purepoint (as Operator) for review and approval at the Technical Committee meeting scheduled for mid-November 2012.

Hook Lake Project

The Hook Lake Project consists of nine claims totaling 28,683 hectares and is situated in the southwestern Athabasca Basin approximately 80 kilometers southeast of the former Cluff Lake mine. The depth to the Athabasca unconformity is very shallow, ranging from zero to 350 metres.

Three prospective "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 Patterson Lake corridor is the same conductive trend along which the Fission/Alpha joint venture has intersected anomalous radioactivity, most notably the 6 metres of massive pitchblende in drill hole PLS12-022 (Fission Energy press release of November 5, 2012). Within the Hook Lake project, the Patterson Corridor displays geophysical evidence of a complex structural history and, where drill tested, the conductors have shown favourable signs of alteration 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 "Millennium-style" basement alteration. It is believed that the historic shallow drilling along the Derkson Corridor did not properly test for deeper Millennium or Eagle Point-type basement-hosted uranium deposits.

About Purepoint

Purepoint Uranium Group Inc. is focused on the precision exploration of its eleven projects in the Canadian Athabasca Basin. Purepoint proudly maintains project ventures in the Basin with the three largest uranium producers in the world, Cameco Corporation, AREVA and Rio Tinto. 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts 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