Purepoint Uranium Group Inc.
TSX VENTURE : PTU

Purepoint Uranium Group Inc.

March 31, 2015 11:05 ET

Purepoint Uranium Group Inc. Hits 12.90% U3O8 Over 0.4 Metres Within 2.23% U3O8 Over 2.8 Metres Near Patterson Lake, SK

TORONTO, ONTARIO--(Marketwired - March 31, 2015) - Purepoint Uranium Group Inc. (TSX VENTURE:PTU) today reported preliminary results from the 2015 Hook Lake JV drill program within the Patterson Lake conductive corridor in Saskatchewan's Athabasca Basin. Results were highlighted by hole HK15-27 that returned 2.8 metres of 2.23% U3O8 including 12.90% U3O8 over 0.4 metres. The Hook Lake project is a joint venture with AREVA Resources Canada Inc. and Cameco Corporation.

The new high-grade uranium intercept by hole HK15-27 is located 240 metres along strike (northeast) and 180 metres down dip of last year's Spitfire Discovery (press release dated March 10, 2014). Uranium mineralization is controlled by a semi-brittle structure that is coincident with the upper contact of a thick, strongly sheared Graphitic-pyritic Pelitic Gneiss unit. Drilling is following up the HK15-27 high-grade mineralized intercept.

"We were led to successively deeper drill targets while using large step-outs to chase an observed increase in alteration and radioactivity," said Scott Frostad, Purepoint's Vice President of Exploration. "Our successful cut of high-grade mineralization came by drilling 85 metres down dip of the structure that returned 0.10% U3O8 over 4.3 metres in hole HK15-25".

Highlights:

  • High-grade uranium mineralization has been discovered 240 metres northeast of the Spitfire discovery approximately 390 metres below surface;
  • Hole HK15-27 intersected 2.23% U3O8 over 2.8 metres from the upper contact of a graphitic unit (depth of 390 metres) and contains 20 centimetres of semi-massive pitchblende;
  • Hole HK15-25 intersected 0.10% U3O8 over 4.3 metres (depth of 310 metres) from the same structure hosting the high-grade mineralization in HK15-27, and an additional interval of 0.13% U3O8 over 1.2 metres (depth of 255 metres);
  • The current drill season will allow for a few more follow-up drill holes to the HK15-27 intercept

Initial Drill Results - NE of Spitfire Discovery

Eleven diamond drill holes (5,438 metres) have now been completed during the ongoing 2015 winter drill program that is expected to continue into early April. Five of the eleven drill holes have been drilled northeast of the Spitfire discovery area along strike.

Drill hole HK15-18 was collared 350 metres northeast of the Spitfire discovery (0.32% U3O8 over 6.2 metres) and drilled with an azimuth of 307 degrees at a dip of -70 degrees. Overburden was cased to a depth of 114 metres then moderately bleached, highly fractured and locally unconsolidated Athabasca sandstone was drilled to the unconformity at a depth of 178 metres. Chloritized, moderate to strongly sheared Graphite-rich Pelitic Gneiss was encountered between 217 and 226 metres and returned 95 ppm U over 2.3 metres from intervals of crushed core and strong patchy clay alteration. Chloritized and silicified Quartz-rich Semi-pelitic Gneiss was then encountered to 253 metres, was strongly sheared with moderate clay alteration to 294 metres, strongly chlorite altered to 372 metres and then unaltered to the completion depth of 439 metres.

Drill hole HK15-21A was collared 60 metres behind HK15-18 to test the graphitic units and associated elevated radioactivity at depth. The hole was drilled with a similar azimuth of 307 degrees and dip of -70 degrees and the unconformity was intersected at 181 metres. Strongly hematized and chloritized Quartz-rich Semi-pelitic Gneiss was encountered to 281 metres then a Graphitic-pyritic Pelitic Gneiss to 291 metres. Three intervals of elevated radioactivity, ranging in width from 0.7 to 1.2 metres, were intersected between 262 and 269 metres returning 24 ppm U over 7.0 metres. Moderate to strongly clay altered, quartz-poor Pelitic Gneiss was then drilled from to 407 metres with a sericite-rich interval returning 105 ppm U over 3.1 metres between 390.0 and 393.1 metres. Quartz-rich Semi-pelitic Gneiss was strongly chloritized to 421 metres then unaltered to the end of hole at 444 metres.

Drill hole HK15-22 was collared approximately 400 metres northeast of HK15-21A using an azimuth of 307 degrees and a dip of -70 degrees. Overburden was cased to a depth of 109 metres, and then moderately bleached, locally unconsolidated Athabasca sandstone was encountered to the unconformity at 200 metres. Quartz-rich Semi-pelitic Gneiss displaying moderate, pervasive clay alteration was drilled to 245 metres then became strongly hematite altered to 277 metres with a 7 metre interval displaying strong shearing and minor fault gouge. Strongly chloritized Pelitic Gneiss was encountered to 368 metres then strongly sheared graphitic bands (2 to 9 metres in width) were present to a depth of 402 metres. Moderately chloritized Quartz-rich Semi-pelitic Gneiss was then drilled to the completion depth of 528 metres. No significant radiation was encountered.

Drill hole HK15-25 was drilled 100 metres southwest of hole HK15-21A with an azimuth of 307 degrees and dip of -70 degrees. The unconformity was intersected at 160 metres then Pelitic Gneiss, displaying various degrees of chlorite, hematite and clay alteration, was drilled to 223 metres and hosted two fault zones that measured 0.9 and 8.2 metres in width. Quartz-rich Semi-pelitic Gneiss with strong chlorite alteration was drilled to 295 metres before becoming clay-rich to a depth of 310 metres. The quartz-rich gneiss was strongly sheared locally, hosted three fault zones measuring 2 to 4 metres in width, and returned 0.13% U3O8 over 1.2 metres from 253.2 to 254.4 metres. Strongly sheared Graphitic-pyritic Pelitic Gneiss with minor fault gouge and bands of crushed core was intersected between 310 and 347 metres and returned 0.10% U3O8 over 4.3 metres between 312.7 and 317.0 metres. Chloritized Pelitic Gneiss with local strong shearing and clay/quartz-rich intervals was then encountered to 400 metres and hosted a 3-metre graphitic-pyritic shear and a 2-metre fault zone. Granitic Gneiss was then drilled to the completion depth of 464 metres.

Drill hole HK15-27 tested the radioactive structure intersected by HK15-25 at depth by backing the drill up 70 metres. The hole was drilled with an azimuth of 304 degrees and dip of -70 degrees. The unconformity was reached at a depth of 158 metres, Quartz-rich Pelitic Gneiss with strong hematite alteration was encountered to 203 metres, became moderately clay altered to 232 metres with a fault zone being intersected between 213 and 220 metres, then chloritic until reaching Graphitic-pyritic Pelitic Gneiss at 391 metres. At the upper contact of the Graphitic unit, between the depths of 389.0 and 391.8 metres, 2.23% U3O8 was intersected over 2.8 metres that includes 12.90% U3O8 over 0.4 metres. Contained within the 0.4 m high grade interval is 20 cm of semi-massive pitchblende. The strongly sheared Graphitic unit persisted to a depth of 415.9 metres, followed by chloritic Quartz-rich Pelitic Gneiss to 498.0 metres, then unaltered Granitic Gneiss to the completion depth of 533.0 metres.

Core samples are submitted to the Saskatchewan Research Council (SRC) Geoanalytical Laboratories in Saskatoon. The SRC facility is ISO/IEC 17025:2005 accredited by the Standards Council of Canada (scope of accreditation #537). The samples are analyzed using partial and total digestion inductively coupled plasma methods, for boron by Na2O2 fusion, and for uranium by fluorimetry.

All drill intercepts are core width and true thickness is yet to be determined.

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 depth to the Athabasca unconformity is very shallow, ranging from zero to 350 metres. Three prospective structural "corridors" have been defined on the property, each corridor being comprised of multiple EM conductors that have been confirmed by drilling to result from graphitic metasediments that intersect the Athabasca unconformity.

Current exploration is targeting the Patterson Lake Corridor, the same conductive trend which not only hosts Fission's Triple R deposit, but as well produced two new uranium showings last winter. Those showings included the Arrow Discovery by NexGen Energy Ltd. where hole AR-14-30 returned 10.3% U3O8 over 46 metres (NexGen press release of October 6, 2014) and the Spitfire Discovery by the Hook Lake JV with drill hole HK14-09 returning 0.32% U3O8 over 6.2 metres including an interval of 1.1% U3O8 over 0.5 metres.

About Purepoint

Purepoint Uranium Group Inc. is focused on the precision exploration of its eight 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. Mr. Frostad has supervised the preparation of, and approved the scientific and technical disclosures in, this news release.

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Contact Information

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