Purepoint Announces Commencement of Drilling at Red Willow Option
February 05 2014 - 8:00AM
Marketwired
Purepoint Announces Commencement of Drilling at Red Willow Option
TORONTO, ONTARIO--(Marketwired - Feb 5, 2014) - Purepoint
Uranium Group Inc. (TSX-VENTURE:PTU) is pleased to report the
commencement of the winter drill program at its Red Willow Project
in the eastern side of Saskatchewan's Athabasca Basin. The project
is managed and operated by Rio Tinto Exploration Canada Inc. ("Rio
Tinto") under the terms of an option agreement allowing them to
earn a controlling interest in the Red Willow Project by spending
up to $22.5 million in exploration and development expenses.
"We are very pleased to see Rio Tinto's continued commitment to
the advancement of the Red Willow project," said Chris Frostad,
Purepoint's President & CEO. "This, in addition to the drill
program which commenced last month at Hook Lake, will result in
7,500 metres of drilling this winter with the full financial
backing and technical support of three of the largest uranium
producers in the world."
Highlights
- Approximately 2,500 metres of diamond drilling is planned for
this winter within four target areas identified from geophysics,
geochemistry and historic drill logs;
- Rio Tinto, as manager and operator, must incur exploration
expenditures of $5,000,000 before December 31, 2015 in order to
earn an initial 51% interest in the project. To date, Rio has
incurred expenses of approximately $2,250,000;
- On November 30, 2012 Purepoint filed a National Instruments
43-101 compliant technical report on its Red Willow uranium
project. The report can be found on SEDAR.com or on Purepoint's
website (www.purepoint.ca).
Exploration Target Areas
One of the drill targets this winter will be the electromagnetic
(EM) conductors at Geneva that are within a distinct fold structure
as highlighted by the aeromagnetic results. Eldorado Resources, a
predecessor to Cameco, intersected a graphitic fault zone in hole
RAD-27 that returned 0.22% U3O8 over 1.0 metres during a 1984 drill
program. Cameco ranked the basement alteration of 366 historic
drill holes on their Rabbit Lake project during 1995 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.
Like Geneva, the Osprey area is a fold structure locally
associated with strong hydrothermal alteration and anomalous
uranium mineralization. A primary drill target this winter will be
an interpreted E-W graphitic structure coincident with a
multi-point, multi-element soil anomaly east of the main Osprey
conductor where a 0.20% eU3O8 over 5.8 metres intercept was
previously identified.
Drill targets within the Lasby and Mustang areas are based on
historic diamond drill results where significant intercepts of clay
alteration were noted, interpreted as strong hydrothermal
alteration, however the shallow depths of the holes did not fully
test these prospective areas.
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 uranium
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 uranium 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
three of the 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.
Purepoint Uranium Group Inc.Chris FrostadPresident and CEO(416)
603-8368www.purepoint.ca
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