Purepoint Uranium Group Inc.
TSX VENTURE : PTU

Purepoint Uranium Group Inc.

March 16, 2016 08:00 ET

Purepoint Uranium Group Inc. Continues to Expand Spitfire Zone With New High Grade Uranium Intercepts at the Hook Lake JV, Athabasca Basin Saskatchewan

TORONTO, ONTARIO--(Marketwired - March 16, 2016) - Purepoint Uranium Group Inc. (the "Company" or "Purepoint") (TSX VENTURE:PTU.V) today reported the results of the next series of four holes drilled at the Spitfire Zone. Drilling now confirms that uranium mineralization is continuous for at least 200 metres down-dip of a graphitic shear zone beginning just below the unconformity. High-grade uranium mineralization is consistently seen in association with brittle structures crosscutting the shear zone. Purepoint is the operator of the Hook Lake project on behalf of its Joint Venture partners Cameco Corp. and AREVA Resources Canada Inc.

"We are particularly encouraged by the thickness of mineralization where it is associated with cross-cutting structures," said Scott Frostad, Purepoint's V.P. Exploration. "HK-16-47 is mineralized for over 30 metres within a 40 metre interval while HK-16-52 came back with over 18 metres of mineralization and both these intercepts are considered close to true width."

"The continued expansion of Spitfire is helping us define the potential for yet another regional deposit." said Chris Frostad, President & CEO at Purepoint. "We are very excited at the prospect of what the remainder of this season may deliver."

Highlights:

  • Uranium mineralization is primarily associated with the upper contact of a graphitic/pyritic shear zone and a halo of moderate to intense clay alteration.
  • High grade mineralization is associated with brecciation that occurs sub-parallel to but cross-cuts the graphitic shear zone.
  • Highlights of the downhole gamma probe results are HK16-47 with 19.6 metres of 0.82% eU3O8 that includes 7.2 metres of 1.3% eU3O8 and HK16-52 with 18.5 metres of 0.68% eU3O8 that includes 4.3 metres of 2.6% eU3O8.
  • The targeted graphitic shear zone remains open both along strike and to depth.
  • Drilling is ongoing and is currently targeting the projected intersection of known brittle structures and the graphitic shear zone.

Spitfire Downhole Probe Results

Drill Hole ID From (m) To (m) Width (m) %eU3O8
HK16-47 177.8 183.7 5.8 0.06
194.7 205.6 10.9 0.15
216.4 236.0 19.6 0.82
Inc. 219.5 226.7 7.2 1.3
Inc. 229.1 230.5 1.4 1.4
HK16-49 220.8 226.8 6.0 0.12
237.5 245.5 8.0 0.30
Inc. 239.2 239.9 0.7 1.7
249.7 253.2 3.5 0.55
Inc. 252.0 252.8 0.8 1.6
HK16-51 331.9 338.1 6.2 0.10
HK16-52 232.0 250.5 18.5 0.68
Inc. 245.2 249.5 4.3 2.6
Note: Down-hole thickness are reported; true width varies depending on drill hole dip; most 2016 drill holes were aimed at intersecting the mineralized structures close to perpendicular therefore true width are close to down hole width (approximately 65% to 75% ratio)

Spitfire Holes to March 14, 2016

Drill hole HK16-47 was collared as a 35 metre NNW step-out from HK16-43 with an azimuth of 295 degrees and a dip of -80 degrees. The unconformity was reached at 153 metres then strongly clay altered granitoid rocks intercalated with metasedimentary rocks were encountered to 193 metres. Numerous clay altered fractures both crosscutting and parallel to foliation returned 0.06% eU3O8 over 5.8 metres. Strongly-sheared chloritized pelitic gneiss was drilled to 201 metres followed by strongly sheared graphitic pelitic gneiss to 208 metres and returned 10.9 metres of 0.15% eU3O8. Granitoid rocks with strong clay alteration occur to 218 metres followed by 19.6 metres of brick-red, oxidized rocks hosting uranium mineralization that is centered on a weakly radioactive 1.2-metre-wide chloritized brittle fault and increases in concentration into the adjacent wall rock. The downhole probe returned 19.6 metres of 0.82% eU3O8 that included 7.2 metres of 1.3% eU3O8. Strongly clay-altered granitoid gneisses and metasediments were encountered to the end of hole at 380 metres.

Drill hole HK16-49 was collared as a 25 metre NNE step-out from HK16-43 with an azimuth of 285 degrees and a dip of -80 degrees. The unconformity was intersected at 151 metres then strongly clay altered granitoid and pelitic rocks were drilled to 224 metres. A fault zone at 220 metres was associated with 6.0 metres of 0.12% eU3O8. The graphitic shear was encountered from 224 to 244 metres and returned 8.0 metres of 0.30% eU3O8 and a second interval with 3.5 metres of 0.55% eU3O8 that includes 0.8 metres of 1.6% eU3O8. Clay and chlorite altered granodioritic gneiss continues to 272 metres and is then unaltered to the completion depth of 398 metres.

Drill hole HK16-51 was collared 90 metres NW of HK15-27 (2.8 metres of 2.23% U3O8) with an azimuth of 315 degrees and a steeper dip of -85 degrees. The unconformity was intersected at 155 metres then strongly silicified granitoid and pelitic rocks were drilled to 262 metres becoming clay altered to 333 metres. The graphitic shear was encountered from 333 to 346 metres and returned 6.2 metres of 0.10% near the upper contact. Graphitic/pyritic pelite mixed with 30 to 50% quartz vein material continued to 377 metres followed by clay altered granodioritic gneiss to the completion depth of 429 metres.

Drill hole HK16-52 was collared 15 metres W of HK16-43 and drilled with an azimuth of 315 degrees and a steep dip of -85 degrees. The unconformity was intersected at 158 metres then strongly clay and chlorite altered granitoid and pelitic rocks were drilled to 244 metres. The graphitic/pyritic shear was encountered from 244 to 284 metres and returned 18.5 metres of 0.68% eU3O8 that included 4.3 metres of 2.6% eU3O8. Granodioritic gneiss with clay alteration was then encountered to 487 metres then the unit is unaltered to the completion depth of 497 metres.

Gamma Logging

A Mount Sopris 2PGA-1000 downhole total gamma probe was utilized for reporting the low-grade mineralization as a %eU3O8 while a Mount Sopris 2GHF-1000 downhole triple-gamma probe was used for estimating the high-grade mineralization. Reported equivalent uranium grades (%eU308) are downhole calibrated gamma probe results composited by length using a cut-off of 0.05% eU3O8 and maximum internal dilution of 2.0 metres. All drill intercepts are core width and true thickness is yet to be determined.

It is emphasized that the downhole calibrated gamma probe results (eU308) are preliminary and subject to confirmation by geochemical assay. Further downhole probe results and follow-up geochemical assays will be released as they become available.

Hook Lake JV Project

The Hook Lake JV project is owned jointly by Cameco Corp. (39.5%), AREVA Resources Canada Inc. (39.5%) and Purepoint Uranium Group Inc. (21%) and consists of nine claims totaling 28,683 hectares situated in the southwestern Athabasca Basin. The Hook Lake JV is considered one of the highest quality uranium exploration projects in the Athabasca Basin due to its location along the prospective Patterson Lake trend and the relatively shallow depth to the unconformity.

Current exploration is targeting the Patterson Lake Corridor that hosts Fission's Triple R Deposit (indicated mineral resource 79,610,000 lbs U3O8 at an average grade of 1.58% U3O8), NexGen Energy's Arrow Deposit (inferred mineral resource 201,900,000 lbs U3O8 at an average grade of 2.63% U3O8) and the Spitfire Discovery by the Hook Lake JV.

About Purepoint

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

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