Purepoint Uranium Group Inc.
TSX VENTURE : PTU

Purepoint Uranium Group Inc.

June 11, 2008 08:30 ET

Purepoint Uranium Group Inc: Athabasca Basin Exploration Update

TORONTO, ONTARIO--(Marketwire - June 11, 2008) - Purepoint Uranium Group Inc. (TSX VENTURE:PTU) is pleased to provide the following update on its exploration programs in the Athabasca Basin. In addition to the successful follow up of the Red Willow Osprey Zone announced in April, the company is now able to announce the discovery of two additional radioactive structures on the Red Willow Property found within the Long Lake and Lyon Lake Zones.

"These are no longer mere geophysical targets" said Scott Frostad, VP Exploration of Purepoint. "Our drill programs are now advancing these areas into unique zones of merit, delineating radioactive structures and alteration zones that are typical to high grade uranium ore deposits."

In 2008, twenty-nine holes for a total of 5,718 metres were completed at the Turnor Lake and Red Willow properties. The company recently initiated its spring drill program at Red Willow's Radon Lake Zone.

Highlights

- A 1.6 metre radioactive structure at Long Lake (hole LL08-05) returned up to 2385 cps from the downhole gamma probe (15 times background) while three narrow mineralized structures at Lyon Lake (hole LL08-07) returned gamma readings that ranged between 1106 and 2433 cps.

- Two of three eastern electromagnetic conductors drill-tested this winter on the Long Lake and Lyon Lake zones are now known to reflect altered, graphitic rocks. These two target areas represent 8.7 kilometers of prospective EM conductors.

- Drill holes on the Quetzal zone at Turnor Lake encountered broken, blocky, and desilicified Athabasca sandstone as well as narrow radioactive shear zones (up to 1463 cps), while holes in the Cotinga conductor encountered anomalous radioactivity at the unconformity (up to 1247 cps). These two target areas represent a further 8.0 kilometers of prospective EM conductors.

- Drilling at the Serin Lake Zone of the Turnor property intersected an interpreted uplifted block of basement rocks, an important feature associated with many of the larger uranium deposits found in the Athabasca Basin.

All drill holes were probed with a Mount Sopris 2PGA-1000 Poly-Gamma Probe and downhole surveyed using a Reflex EZ-SHOT tool. Drill core samples are being analyzed at the Saskatchewan Research Laboratory in Saskatoon, with the most recent results still pending.

Red Willow

Purepoint's 100% owned Red Willow project adjoins AREVA Resource Canada Inc.'s claim group that contains the JEB, Sue, McClean and Caribou deposits to the west, as well as UEX's Hidden Bay project that surrounds the Rabbit Lake, Collins Bay and Eagle Point deposits to the south. In April 2008, Purepoint reported on diamond drill hole RW-19 from the Osprey zone that intersected a structure averaging 0.58% U3O8 over 1.0 metre at a shallow depth of less than 100 metres and included an interval assaying 3.03% U3O8 over 0.1 metres. RW-19 is located approximately 80 metres north from the Osprey zone discovery hole RW-07, which reported 0.20% eU3O8 over 5.8 metres in December 2007.

Long Lake Zone

Four holes, LL08-01 through 04, tested the 4.5 kilometer electromagnetic (EM) conductor that partially runs beneath Long Lake. Three of the four holes intersected graphitic rocks that explained the conductor and all holes encountered strong silicification and/or strong chlorite alteration associated with fault zones. Significant radioactivity was not encountered. The source of the historic Long Lake boulder train, located due north of Long Lake, remains unknown. Less than a kilometer of the 4.5 km Long Lake conductor was drill-tested, and it is now thought that the source of the radioactive boulders remains further up-ice from the recent drill program.

One hole, LL08-05, tested the 1.0 kilometer EM conductor that partially runs beneath Riche Lake (located 500 m west of Long Lake). LL08-05 encountered a 1.6 metre radioactive fault zone with the downhole gamma probe returning greater than 1000 cps over the entire structure and a maximum reading of 2385 cps. Prospecting by Purepoint during the summer of 2006 discovered two radioactive boulders approximately 200 metres due south of Riche lake that returned uranium values up to 1.30% U3O8.

Lyon Lake Zone

Two holes, LL08-06 and 07, were drilled along the 4.2 kilometer EM conductor named the Lyon Lake zone. Both holes encountered graphitic rocks associated with strongly chloritic fault zones and strong silicification. LL08-06 did not intersect anomalous radioactivity but the second hole in the conductor, LL08-07, intersected three distinct radioactive zones. The LL08-07 zones of radioactivity were associated with small structures (less than 20 cm) at 31.1, 92.3 and 148.3 metres depth that returned 2433, 1106 and 1248 cps, respectively.

The Lyon Lake conductor was identified by Purepoint and had never been tested by drilling. The recent drilling has shown the EM conductor to be reflecting graphitic rock, making the entire length of the 4.2 km conductor prospective. Boulder sampling by Purepoint in 2007 returned values of 1.02% U3O8 and 1.14% U3O8 immediately south (down-ice) of the Lyon Lake conductor.

Turnor Lake

The Turnor Lake Project is 100% owned by Purepoint. This 9,705 hectare property covers graphitic electromagnetic (EM) 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, and has a shallow depth to the unconformity at less than 200 metres in most areas.

Quetzal Zone

Six holes (TL-35 to 40) tested the Quetzal zone and determined the depth to basement in this area to vary between 110 and 145 metres. The Quetzal Zone is located north of Purepoint's previous drilling. Approximately 7.0 kilometers of EM conductors were defined during 2007.

Three of the six holes (TL-36, 39 and 40) encountered graphitic basement rocks but did not intersect any major structure. TL-36 intersected a radioactive pyrite band (less than 20 cm) that returned up to 2392 cps. TL-39 intersected 35 metres of broken, blocky, desilicified and lost portions of core in the Athabasca sandstone immediately above the unconformity. Unfortunately, the hole was lost before the downhole gamma survey could be conducted. TL-40 intersected five narrow (less than 10 cm) radioactive shear zones hosting graphite and pyrite in a dark green strong chlorite altered matrix. The TL-40 shear zones returned gamma results up to 1463 cps.

The other three holes in the Quetzal Zone (TL-35, 37 and 38) targeted electromagnetic conductors proximal to granitic domes but encountered granitic basement rocks and failed to explain the conductor. No anomalous radioactivity was intersected in these three holes.

Cotinga Lake

Three holes (TL-41 to 43) tested the 1.0 km EM conductor in the Contiga Lake target area and showed the depth to basement ranges from 130 to 150 metres. TL-41 encountered numerous zones of blocky and rubbly core and desilicification in the Athabasca sandstone and intersected anomalous radioactivity just below the unconformity, up to 1237 cps, from a zone of missing core. TL-42 tested the same conductor as TL-41 600 metres along strike and also encountered anomalous radioactivity near the unconformity at 1247 cps. The radioactivity encountered in these holes is not thought to explain the radon anomaly in Cotinga Lake found by Asamera Oil Corporation in 1977. TL-43 encountered granite and non-graphitic pelitic basement rocks and did not explain the EM anomaly it was testing.

Serin Conductor

One hole (SL08-01) tested the Serin conductor, which is interpreted to be the northeastern extension of the conductor which hosts Cameco's La Rocque showing.

SL08-01 intersected the unconformity at Serin Lake 210 meters below surface, although results from the transient EM indicated the unconformity depth was approximately 350 meters. The basement rocks intersected were comprised of non-graphitic pelites and pegmatite, leaving the conductor unexplained. Downhole gamma readings returned weak radioactive anomalies (less than 800 cps) from the pegmatite contacts.

Results from a 1984 seismic survey suggest that SL08-01 was drilled into an unlifted block of basement rock, and that a major offset in the basement rocks lies just in front of SL08-01. An offset would be a significant discovery, as offsets in the unconformity are associated with many of the unconformity associated uranium deposits found in the Athabasca Basin.

About Purepoint

Purepoint Uranium Group Inc. is focused on the precision exploration in the Canadian Athabasca Basin of more than 42 defined target areas on its eleven 100% owned projects, 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