FOR IMMEDIATE RELEASE
Purepoint Uranium Group Inc: Discovers wide radioactive structure at
Red Willow
Toronto, December 4, 2007 - Purepoint Uranium Group
Inc. (TSX:PTU.V) is pleased to announce the results of this season's
first-pass drill program at their Red Willow project in the Athabasca Basin. Those
results returned 0.20% eU3O8 over a wide interval of 5.8 metres, including
1.01% eU3O8 over 0.1 metres at a depth of only 71 metres.
"We were encouraged when our initial holes into the 'Q' structure
intersected uranium mineralization at vertical depths of 105 metres and again
at 150 metres" said Scott Frostad, Purepoint's Vice President
Exploration. "RW-07 then went on to prove that this same structure not
only continues at least 100 metres to the south, it also widens and hosts
significant concentrations of uranium".
Crews are scheduled to resume drilling at the discovery zone in a
matter of weeks.
"There are four notable attributes to the Red Willow discovery -
its uranium grade, structure width, shallow depth and proximity to existing
infrastructure" said Chris Frostad, President and CEO Purepoint Uranium
Group Inc.. "The Rabbit Lake mine, which produced 41 million lbs. of
U3O8 at an average ore grade of 0.27%, is a mere 30 km south of this
zone".
Highlights:
- Three
of the five holes targeting the Q conductor intersected radioactive
structure, with the final hole returning 5.8 metres of 0.20% eU3O8
including 0.1 metres at 1.01% eU3O8
- Five
major uranium deposits, JEB, Midwest, Cigar Lake, McArthur River and
Millennium, are located along a NE to SW mine trend that extends through
the Red Willow Project
- The
Red Willow project adjoins AREVA 's claim group that contains the JEB,
Sue, McClean and Caribou deposits to the west and, to the south, adjoins
UEX's Hidden Bay project surrounding the Rabbit Lake, Collins Bay and
Eagle Point deposits
- Approximately
3,000 line kilometres of airborne radiometric survey, 150 line
kilometres of Gradient Induced Polarization Survey, and the collection
of 170 water samples were performed
- Since the claims were first
acquired, Purepoint has invested $3,760,000 (or $160 per hectare) in
geophysical and geochemical surveys over 12 distinct target areas at Red
Willow
Project
Summary
Drill holes RW-01 and
RW-02 targeted a break on the West Zone conductor located 100 metres from the
Wolly property, an Areva/Denison joint venture. These holes intersected
bleached sandstone before reaching the unconformity at a depth of
approximately 30 metres. Graphitic pelites and favourable structures were
encountered, however, neither hole intersected anomalous radioactivity.
Drill holes RW-03, 04, 05
and 06 targeted the Q conductor, a target initially identified by Cameco in
1993. The original Cameco holes intersected a narrow radioactive structure,
hosted by graphitic and pyritic pelites, at depths of 35 metres and 90
metres. Purepoint's RW-03 and 06 holes succeeded in confirming this
radioactive structure at a vertical depth of 105 metres and 150 metres,
respectively. Although radioactivity increased with depth, the host structure
remained narrow. Hole RW-04 tested the structure 15 metres south of RW-03 to
determine its strike direction and intersected 12 metres of unmineralized
quartz at the target depth. RW-05 was lost at a depth of 51 metres.
Drill hole RW-07 targeted
the Q conductor 100 metres south of RW-3. The hole intersected a zone of
elevated radioactivity between 71.6 and 77.6 metres within strongly black
chlorite altered, pyritic pelite. The mineralized Q structure has now been
proven to extend 115 metres down dip and 100 metres along strike, and still
remains open in all directions.
All drill holes were
probed with a total counts gamma probe recently calibrated at the total gamma
test pits in Grand Junction, Colorado and corroborated with results from the
SRC test pits in Saskatoon. All the drill core samples have now been
forwarded to the SRC laboratory in Saskatoon for analysis.
Key drill findings are
summarized below:
Hole
|
From (m)
|
To (m)
|
Width (m)
|
% eU3O8
|
RW-03
|
123.4
|
123.7
|
0.3
|
0.20
|
|
125.7
|
126.0
|
0.3
|
0.17
|
|
161.5
|
161.7
|
0.2
|
0.14
|
|
|
|
|
|
RW-06
|
154.9
|
155.6
|
0.6
|
0.06
|
|
157.0
|
157.2
|
0.2
|
0.05
|
|
172.9
|
173.1
|
0.2
|
0.10
|
|
|
|
|
|
RW-07
|
67.5
|
68.7
|
1.2
|
0.05
|
|
71.4
|
77.2
|
5.8
|
0.20
|
|
includes
|
|
|
|
|
71.8
|
72.3
|
0.5
|
0.44
|
|
73.2
|
73.7
|
0.4
|
0.58
|
|
74.2
|
74.3
|
0.1
|
1.01
|
Line cutting of grid
areas over three new VTEM airborne anomalies at Red Willow, namely the
Geneva, Dancing Lake and Big Bay conductors, was completed this summer. A new
grid was also cut over the Radon Lake area, so named in 1971 due to very high
concentrations of radon in the surface water.
Gradient Induced
Polarization surveying at Red Willow covered the Lyon Lake conductor, which
is associated with boulders assaying up to 1.02% U3O8, and the 333 conductor,
which returned up to 0.31% U3O8 from an overburden hole drilled by Gulf
Minerals in the 1970's. The survey also covered the newer Geneva, Radon Lake
and Dancing Lake grids.
Sampling of water from
springs, streams and bogs was performed over the Red Willow grid areas this
summer. The purpose of the survey was to detect mobile ions sourced from
uranium deposits at depth. Of the 170 samples analyzed, 15 samples returned
anomalous dissolved uranium concentrations. The results of the water sampling
survey will be used to prioritize this winter's drill targets.
A drill program designed
to follow up the RW-07 intercept and test several of the other untested Red
Willow targets is scheduled to commence in early 2008.
The Red Willow project
consists of eight claims covering 23,000 ha on the eastern edge of the
Athabasca Basin. Proterozoic sandstone on the property is found to cover the
Archean and Aphebian basement rocks at depths of 0 to 80 metres. The basement
is composed of intensely deformed and metamorphosed sedimentary, volcanic and
plutonic rocks trending NE to SW. Five major uranium deposits, JEB, Midwest,
Cigar Lake, McArthur River and Millennium, are located along a NE to SW mine
trend that extends through the Red Willow Project.
The Red Willow project
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 project that surrounds the Rabbit Lake, Collins Bay and Eagle
Point deposits.
About Purepoint
Purepoint Uranium Group
Inc. is focused on the precision exploration of more than 42 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 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.
For further
information please contact:
Purepoint Uranium
Group Inc.
Chris Frostad, President and CEO
(416) 603-8368
www.purepoint.ca
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