Purepoint Announces Commencement of Drilling at Red Willow Option
February 5, 2014 (Source: Marketwired) — 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.”
- 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.
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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.
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.
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.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>