FOR IMMEDIATE RELEASE
Purepoint Uranium Provides Update on Red Willow North Project in Athabasca Basin
October 13, 2011 - Purepoint Uranium Group Inc. (TSX:PTU.V) reported today that it has expanded their Red Willow North property by staking an additional 2,057 hectares in the Hatchet Lake area of Canada's Athabasca Basin. The Red Willow North property is contiguous with Purepoint�s Red Willow Project being advanced under a joint venture (JV) agreement with Rio Tinto and, to the west, is contiguous with the Denison Mines/Virginia Energy JV Hatchet Lake project.
Exploration will target basement-hosted, structurally controlled uranium deposits similar to the Eagle Point deposit situated 30 kilometers south of the Red Willow North Project.
Highlights:
- Very little drilling has been conducted on the Red Willow North property with most being drilled to relatively shallow depths.
- The newly interpreted Golden Eye Shear Zone extends for over 6 kilometers and joins the historic FDL showing (up to 1.43% U3O8) and the AJ showing (up to 0.46% U3O8).
- Recent airborne electromagnetic (EM) and magnetic survey results indicate that the Red Willow Osprey conductor, on which drilling by Purepoint has returned intercepts of up to 0.20% eU3O8 over 5.8 metres, continues on the Red Willow North property for over 5 kilometers
- The historic Turkey conductor, which has returned intercepts of up to 0.16% U3O8 over 1.0 meters, is now interpreted to continue untested for over 5 kilometers on the Red Willow North property
Red Willow North
The Red Willow North property, located on the eastern edge of the Athabasca Basin, is 15,493 hectares in size and consists of four claims that cover favourable metasedimentary basement rocks. Current target areas are:
Golden Eye Shear Zone
The Golden Eye target area is located between two historic uranium occurrences, the FDL showing and the AJ showing. At the FDL showing, uranium mineralization is associated with a 1 metre wide, northeast trending shear zone that crosscuts an outcrop of graphitic biotite-rich pelitic gneiss. The best assay from the shear zone returned 1.43% U3O8. In 1979, Canadian Superior Exploration Ltd tested the showing with a single drill hole that intersected a weakly radioactive fault zone (0.09% U3O8 over 1.0 meters) within chloritized pelitic gneiss.
The AJ showing was originally identified as a target area in 1977 by Canadian Superior during a regional geochemical survey. Two small lakes located 1 kilometer apart, returned anomalous uranium concentrations in both lake water and lake bottom sediments. Follow-up prospecting led to the discovery of a large (3m-by-1m) radioactive molybdenite-garnet-biotite schist subcrop that assayed up to 0.46% U3O8.
Interpretation of the detailed magnetic pattern provided by a recent airborne EM and magnetic survey (VTEM) suggests that a 6 kilometer long, northeast trending structure links the FDL and AJ uranium showings. The newly named �Golden Eye Shear� will be targeted where interpreted crosscutting faults have potentially created structural traps for uranium-rich fluids. Short discontinuous EM conductors lie immediately south of the Golden Eye shear and highlight the structural complexity of the area.
FDL Conductor
A portion of the FDL conductor (1.5 kilometers) was originally outlined by Canadian Superior in 1979 with a ground VLF-EM survey. Recent airborne EM survey results have provided evidence that the FDL conductor is the northern extension of Purepoint�s Osprey conductor (with intercepts up to 0.20% eU3O8 over 5.8 metres) and has a 5 kilometer strike length on the Red Willow North property. The FDL conductor was tested by Canadian Superior in 1979 with two drill holes and although both holes encountered graphitic schist, no anomalous activity was encountered. The conductor appears to have large structural offsets, in one instance by up to 400 meters, and will be targeted in these areas of structural disruption.
Turkey North Conductor
The northeast trending Turkey North conductor roughly parallels the FDL conductor, located 2 kilometers south. The conductor is considered to be the northern extension of the Turkey conductor where historic drilling has returned intercepts of up to 0.16% U3O8 over 1.0 meter. On the Red Willow North project, the conductor has a strike length of over 5 kilometers and has not been drill tested. A primary target area is an interpreted structural break with a related offset of approximately 250 meters.
Smith Bay
The northwesterly striking Richardson-Crooked Lake belt of conductors extends for over 7 kilometers through the most westerly claims. At Smith Bay on Hatchet Lake, this conductive trend is associated with outcrops of graphitic and pyritic pelitic gneisses, radon-in-soil gas anomalies and soil anomalies (uranium, arsenic, copper, cobalt, and nickel). During 2011, the Richardson-Crooked Lake conductive belt was drilled by the Denison Mines/Virginia Energy JV on the neighbouring Hatchet Lake project (Virginia Energy Resources Press Release, April 27, 2011). The 3-hole, 802 metre diamond drill program intersected anomalous radioactivity (up to 0.15% eU3O8 over 0.8 m) in the basement rock of all three holes. Historic drill holes in the Richardson-Crooked Lake target area have also intersected uranium as well as polymetallic base-metals (Co, Cu, Ni, Zn, As, Au).
Additional Exploration Targets
The Topping Island target area appears to be the eastern terminus of the Richardson-Crooked Lake conductive trend. A historic five kilometer long EM conductor, arcuate in shape, has been outlined on the island.
The South Hatchet target area is defined by 3.5 kilometers of north to northwest trending EM conductors. Radon-in-water anomalies are located in a stream just south of the conductors as are boulders with illite enrichment (>30% illite).
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.
For further information please contact:
Purepoint Uranium Group Inc.
Chris Frostad, President and CEO
(416) 603-8368
