Purepoint Uranium Group Inc. ("Purepoint") (TSX-V:PTU - News) 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.
Contact:
Contacts:
Purepoint Uranium Group Inc.
Chris Frostad
President and CEO
(416) 603-8368
www.purepoint.ca
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