Purepoint Uranium Group Inc: Drill Results at Smart Lake Prompt Extension of Program
November 04 2008 - 8:00AM
Marketwired
Purepoint Uranium Group Inc. (TSX VENTURE: PTU) is pleased to
announce that encouraging results from its first drill program at
the Smart Lake JV project have lead to the company's decision to
drill several additional holes prior to moving camp. Purepoint
operates the Smart Lake project in the Athabasca Basin under the
terms of an agreement with Cameco that permits Purepoint to acquire
up to a 50% interest in the project. The most recent program
expenditures completed Purepoint's earn-in of its initial 20%
interest in the Smart Lake project.
The company has budgeted a further $450,000 for three to four
additional holes to follow-up along strike of the strongly altered
basement structure associated with radioactivity intersected by
SMT08-01. "To have indicators of a large-scale uranium mineralizing
event from our very first hole at Smart Lake is tremendously
exciting" said Chris Frostad, President and CEO of Purepoint.
"Following Turnor Lake and Red Willow, this is our third project to
report outstanding results from a first pass drill program. These
results continue to validate our heavy emphasis on geophysics and
analyses before drilling."
Smart Lake Highlights:
- Hole SMT08-01 intersected a 54 metre wide, strongly altered
structure hosting anomalous radioactivity (up to 2,238 cps, or 25
time background)
- This structure was intersected 96 metres below the
unconformity and contains evidence of multiple episodes of
alteration
- The strong EM conductor targeted by SMT08-01 was explained by
a graphitic horizon proximal to the radioactive structure
- This conductor has been outlined over 1.0 kilometer by a
ground EM survey and over 1.3 kilometers by an airborne EM
survey.
Smart Lake Project
The Smart Lake property includes two claims with a total area of
9,800 hectares situated in the southwestern portion of the
Athabasca Basin, approximately 60 km south of the former Cluff Lake
mine. Depth to the unconformity is shallow, at zero to 350 metres.
Aeromagnetic and electromagnetic patterns at Smart Lake reflect an
extension of the patterns underlying the Shea Creek deposits (max.
grade of 58.3% U3O8 over 3.5 m) 55 km north of the property. Recent
exploration by Purepoint and Cameco has firmly established the
presence and location of a number of basement electromagnetic
conductors never drill tested.
SMT08-01 targeted a step-wise moving loop anomaly on the Centre
Zone of the Smart Lake property. The hole encountered 120 m of
overburden, intersected the unconformity at 125.7 m and then
drilled strongly chloritized pelitic gneiss to 222.5 m. The hole
intersected a structure over 54 meters (true width estimated at 35
m), which displayed intense clay alteration, silicification and
hematization between 222.5 and 276.5 m. The zone was brecciated and
healed with an overprinting of alteration styles suggesting
multiple episodes of alteration. The structure is associated with
elevated radioactivity returning a maximum downhole gamma probe
reading of 2,238 cps at a depth of 222.7 m, an average of 1,145 cps
over 3.0 m from 230.4 m to 233.4 m, and 1,260 cps over 1.0 m from
240.3 to 241.3 m. The conductor was explained by graphitic pelitic
gneiss intersected between 276.5 m and 285.5 m and the hole was
completed at a depth of 300 m. The background radioactivity of the
basement rocks was approximately 80 cps.
Both SMT08-02 and 03 targeted a different conductor on the South
Zone. In SMT08-02, the conductor is likely explained by a weakly
clay altered graphitic pelitic gneiss (up to 10% graphite)
intersected between 110.7 and 116.3 m. Lower radioactivity (less
than 250 cps from the downhole gamma probe) was returned from this
hole. For hole SMT08-03, the EM conductor remains unexplained, with
only pelitic gneiss being encountered until the completion depth of
213.0 m. The downhole probe for this hole returned a peak reading
of 1,590 cps at 135.0 m corresponding to a hematite stained
fracture.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision
exploration of more than 55 defined target areas on its seven 100%
owned projects in the Canadian Athabasca Basin,and its two Basin
projects joint ventured with Cameco Corporation and UEM Inc. a
company owned equally by 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.
Contacts: Purepoint Uranium Group Inc. Chris Frostad President
and CEO (416) 603-8368 Website: www.purepoint.ca
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