Purepoint Uranium Group Inc.: Rio Tinto Options Purepoint's Red Willow Project
December 21 2010 - 8:00AM
Marketwired
Purepoint Uranium Group Inc. ("Purepoint") (TSX VENTURE: PTU) is
pleased to announce that they have entered into a definitive option
agreement with Rio Tinto Exploration Canada Inc. allowing Rio to
earn a controlling interest in Purepoint's Red Willow Project by
spending up to $22.5 million in exploration and development
expenses. Rio Tinto Exploration Canada Inc. is a wholly owned
subsidiary of RioTinto, the world's third largest producer of
uranium.
"Recent increases in nuclear power projections have put
significant pressure on major uranium producers to explore for
large, high value mineral deposits" said Chris Frostad, Purepoint's
President and CEO. "We are excited that Rio has confirmed that
level of potential in Purepoint's Red Willow project and chosen it
as their entry point to the Athabasca Basin".
Highlights:
-- Rio is currently finalizing plans for a drill program on the property
during the first quarter of 2011
-- Rio may earn a 51% undivided interest in the project by incurring $5
million in expenditures by December 31, 2015;
-- Rio may earn an additional 19% undivided interest by incurring an
additional $7.5 million by December 31, 2018;
-- Rio may earn an additional 10% undivided interest by incurring an
additional $10 million by December 31, 2021;
Red Willow
The Red Willow property consists of nine claims on the eastern
edge of the Athabasca Basin. The Athabasca sandstone is shallow and
the depth to unconformity varies from 0 to 80 metres. The basement
rocks are composed of intensely deformed and metamorphosed
sedimentary, volcanic and plutonic rocks trending NE to SW. Five
major uranium deposits are located along a NE to SW mine trend that
extends through the Red Willow Project. To date only five of Red
Willow's 21 delineated target zones have been subject to first pass
drilling.
The Red Willow property adjoins AREVA Resource Canada Inc.'s
claim group that contains the JEB, Sue, McClean and Caribou
deposits to the west and, to the south adjoins UEX's Hidden Bay
property that surrounds Cameco Corporation's Rabbit Lake, Collins
Bay and Eagle Point deposits.
About Rio Tinto
Rio Tinto is a leading international mining group whose business
is finding, mining and processing the Earth's mineral resources.
The Group's interests are diverse both in geography and product.
Rio Tinto's activities span the world but are strongly represented
in Australia and North America and have significant businesses in
South America, Asia, Europe and southern Africa. Businesses include
open pit and underground mines, mills, refineries and smelters as
well as a number of research and service facilities.
The Group combines Rio Tinto plc, which is listed on the London
Stock Exchange, and headquartered in London, and Rio Tinto Limited,
which is listed on the Australian Securities Exchange and has
executive offices in Melbourne. The Group consists of wholly and
partly owned subsidiaries, jointly controlled assets, jointly
controlled entities and associated companies.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision
exploration on its eleven projects in the Canadian Athabasca Basin.
The company proudly maintains project partnerships with the three
largest uranium producers in the world, Cameco Corporation, AREVA
and Rio Tinto. 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 www.purepoint.ca
Purepoint Uranium (TSXV:PTU)
Historical Stock Chart
From Jun 2024 to Jul 2024
Purepoint Uranium (TSXV:PTU)
Historical Stock Chart
From Jul 2023 to Jul 2024