Purepoint Announces Rio Tinto Winter Exploration Plan on Red Willow Option
November 30 2011 - 8:00AM
Marketwired
Purepoint Uranium Group Inc. (TSX VENTURE:PTU) is pleased to report
the Winter 2012 exploration plan from Rio Tinto Exploration Canada
Inc. for Purepoint's Red Willow Project in Saskatchewan's Athabasca
Basin. Purepoint optioned the property to Rio Tinto late last year,
allowing them to earn a controlling interest in the Red Willow
Project by spending up to $22.5 million in exploration and
development expenses.
"Drilling is planned at the Osprey and Geneva Areas, both of
which have returned anomalous intercepts of uranium, pathfinding
elements and basement alteration" said Scott Frostad, Purepoint's
Vice President, Exploration. "Rio Tinto's drill program has been
defined by a year of detailed analysis and the completion of a
regional 3D model that incorporates the extensive geophysical data
collected to date".
Highlights
-- Approximately 1,500 metres of diamond drilling on targets within the
Osprey (intercepts up to 0.20% eU3O8 over 5.8 metres) and Geneva areas
(intercepts up to 0.33% U3O8 over 0.5 metres);
-- Gravity survey in the Geneva area to infill and extend the known gravity
low targets that are potential zones of hydrothermal alteration.
Osprey Area
The Osprey Conductor is an "S"-shaped electromagnetic conductor
that is over six kilometres in length. Ground geophysics conducted
over the area includes 3D resistivity, fixed-loop EM, stepwise
moving-loop, gravity and magnetics. Rio Tinto conducted additional
Gradient Induced Polarization (IP) this summer to further define
exploration targets prior to the winter drill program.
A primary drill target this winter will be a weak EM conductor,
approximately 700 metres in length, that lies beneath Osprey Lake
and is seen to cross-cut the main Osprey conductor near the 0.20%
eU3O8 over 5.8 metres intercept. The east-west trending conductor
follows the shape of Osprey Lake and is coincident with a magnetic
low, a gravity low as well as a resistivity low. This area is
previously untested by diamond drilling.
Geneva Area
A gravity survey and follow-up diamond drilling is currently
planned this winter for the Geneva area located near the southwest
corner of the Red Willow property. An airborne electromagnetic
survey (VTEM) delineated 3.8 kilometers of conductors at Geneva
that are within a distinct fold structure highlighted by the
aeromagnetic results. Eldorado Resources, a predecessor to Cameco,
intersected a graphitic fault zone that returned 0.22% U3O8 over
1.0 metres in the Geneva area during a 1984 drill program.
A gravity survey is planned early this winter to infill and
extend gravity low targets identified by Purepoint in 2007. The
three known gravity lows coincide with low apparent resistivity
chimneys (LARC Principal, R. Koch, PDAC Convention 2007) in the
sandstone that may represent zones of hydrothermal alteration. In
1995, Cameco ranked basement alteration of drill holes on their
Rabbit Lake project, which once included a portion of the Red
Willow project, using pathfinding elements (Pb, Ni, Cu, U, total
clay and chlorite) and a hole from the Geneva area, RAD-17,
returned the highest alteration score of the 366 drill holes
ranked.
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 known 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. The resistivity results
from a gradient 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.
Red Willow
The Red Willow property covers 25,612 hectares on the eastern
edge of the Athabasca Basin. The Athabasca sandstone is shallow and
the depth to unconformity varies from zero 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.
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 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.
Contacts: Purepoint Uranium Group Inc. Chris Frostad President
and CEO (416) 603-8368www.purepoint.ca
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