Purepoint Uranium Group Inc.
TSX VENTURE : PTU

Purepoint Uranium Group Inc.

February 01, 2011 08:03 ET

Purepoint Uranium Group Inc: Rio Tinto Commences Drilling at Red Willow Project

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2011) - Purepoint Uranium Group Inc. (TSX VENTURE:PTU) announced today that a preliminary winter drilling program has commenced at the company's Red Willow Project in Saskatchewan's Athabasca Basin. The program, managed by Rio Tinto under a recently announced option agreement, will initially focus on the Geneva Synform; a high priority target situated SW of the Osprey Zone. 

"The geophysical data has provided evidence of large scale faulting including the north-east striking Geneva Fault that cuts three separate conductors." said Scott Frostad, Purepoint's Vice President, Exploration. "The Geneva Fault is a possible pathway for uranium-rich hydrothermal fluids and will be tested where cross-cutting structures may have formed traps of these fluids".

Since December, technical resources from Rio Tinto have been analyzing data from the Red Willow project and its surroundings in order to determine their planned approach to its exploration. Additional geophysics and drilling may be planned for the summer.

Highlights

  • The Geneva area has shallow overburden and an estimated 30 to 100 metres of Athabasca Sandstone with the targets being both unconformity-type and basement-hosted uranium mineralization;
  • An airborne electromagnetic survey (VTEM) has delineated 3.8 kilometers of conductors within a fold structure that is evident in the aeromagnetic results;
  • Drilling will commence near Geneva Lake, which appears to be formed over the intersection of the north-northeast striking Jake Fault and the Geneva Fault.

Geneva Zone

The Geneva Zone is located near the southwest corner of the Red Willow property. An airborne electromagnetic survey (VTEM) delineated 3.8 kilometers of conductors that are within a distinct fold structure highlighted by the aeromagnetic results and on trend with the Mallen Lake uranium showing (5.9% U3O8 over 0.3m).

Three separate EM conductors have been interpreted from the VTEM survey results. The first is approximately 2 kilometers in length and is a moderate to strong, arcuate conductor believed to represent graphitic sediments. All the EM profiles indicate that it has a plate source dipping at a shallow angle inward and conforms to basement geology (i.e. magnetic and gradient resistivity). The second and third conductors are both approximately 900 metres in length and roughly parallel to each other. All three conductors appear to be cut by the Geneva Fault.

The results of a gravity survey has identified areas with gravity lows that coincide with low apparent resistivity chimneys (LARC Principal, R.Koch, PDAC Convention 2007) in the sandstone and may represent zones of hydrothermal alteration. The resistivity results from a gradient induced polarization (IP) survey and the pole-dipole array IP survey also appear to be reflecting basement geology with pelitic sediments as resistivity lows that are locally faulted.

Drilling is being conducted by Aggressive Drilling Ltd. of Prince Albert, SK.

About Purepoint

Purepoint Uranium Group Inc. is focused on the precision exploration of its twelve 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.

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