TORONTO, May 13, 2021 /CNW/ - Purepoint Uranium Group Inc.
(TSXV: PTU) ("Purepoint" or the "Company") today
provided an overview of the exploration targets scheduled to be
initially drill tested on its 100%-owned Red Willow project in the
eastern uranium mine district of the Athabasca Basin, Saskatchewan Canada. By
far, the Company's largest project, Red Willow is located close to
several uranium deposits including Orano Resources Canada Inc.'s
JEB mine, approximately 10 kilometres to the southwest, and
Cameco's Eagle Point mine that is approximately 10 kilometres due
south.
"The Red Willow property covers numerous high value targets over
which we have performed extensive preparatory geophysical surveys
and, in some instances, first pass drilling" said Chris Frostad, Purepoint's President and CEO.
"Drill permits are in place and it is our intention to begin
diamond drilling at this project as soon as possible."
Highlights
- The 100%-owned Red Willow project consists of 17 claims
totaling 40,116 hectares on the eastern side of Canada's Athabasca Basin
- Purepoint is currently assembling a diamond drill program and
will initially focus on the Osprey Zone
- Additional priority exploration areas include – the Geneva
Zone, the Radon Lake Zone, the Golden Eye Zone, Topping Island, the
333 Zone and the CBA Zone
- A Technical Report on the project can be obtained from the
Company's web site
- A video tour of the Red Willow project can be viewed at
https://youtu.be/5Rte6E3Ht7g
Osprey Zone
Drilling on the Osprey Zone conductor has discovered a lens of
uranium mineralization that returned up to 0.20% eU3O8 over 5.8
metres from a shallow depth of 70 metres. The 6-kilometre long
"S"-shaped Osprey conductor, host to numerous intercepts of
anomalous uranium, has excellent exploration potential at depth
below the known mineralized zone and towards the west.
The main mineralized zone has only been drill tested at shallow
depths (average hole length < 160 metres) and is open at depth
for further stacked, parallel lenses of mineralization. Favourable
sedimentary rocks are also interpreted to lie immediately west of
the Osprey conductor and will be targeted for uranium hosted by
sub-vertical structures and sub-horizontal stacked lenses.
The fold hinge of the Osprey conductor requires further drilling
after a fence of three holes by Purepoint (2008) intersected a
vertical, weakly radioactive fault zone (Hinge Fault) associated
with strong chlorite and hematite alteration and intervals of lost
core. The fault zone returned 138 ppm U over 0.6 metres between
75.7 and 76.3 metres from hole RW-29 and 358 ppm U over 0.4 metres
between 159.1 and 159.5 metres from hole RW-41. Alteration of the
basement rocks increases along the northern fold limb towards the
fold nose where one of the three holes drilled, RW-28, encountered
strong clay alteration.
Geneva Zone
The Geneva Zone represents a priority target based on ground
geophysics and first pass drilling. Historic drilling by Eldorado
Resources Ltd (Eldorado)
intersected very strong basement alteration and anomalous
radioactivity in the Geneva Zone with RAD-27 returning 0.22% U3O8
over 1.0 metres within a graphitic fault zone. Although
Eldorado completed numerous holes
in the area, most were stopped at less than 100 metres into the
basement rock.
Hole 14RDW008 also intersected uranium mineralization associated
with the Geneva conductor
returning 0.68% U3O8 over 0.3 metres at a depth of 90 metres.
Follow-up drilling will continue to test the radioactive graphitic
shear towards the south.
Radon Lake Zone
Gulf (1968) conducted an airborne radiometric survey that
covered the Radon Lake zone and followed-up with a reconnaissance
geochemical soil survey, radon-in-water survey and prospecting
during 1971 and 1972. Extremely high concentrations of radon (a
product of decaying uranium) were found in the surface water just
west of a waterbody that Gulf named "Radon Lake". Subsequent
drilling by Gulf failed to located the source of the radon-in-water
anomaly.
Purepoint's first pass diamond drill hole RAD08-09 returned 283
ppm U over 1.1 metres from sandstone just above the unconformity.
The offset conductors within the Radon Lake area are suggestive of
structural complexity and additional drilling here is considered
warranted.
Golden Eye Zone
The Golden Eye target area hosts interpreted crosscutting faults
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. Assays from the shear zone returned
trace to 1.43% U3O8.
The AJ showing was originally identified in 1977 by Canadian
Superior during a regional geochemical survey. Two small
lakes, located 1 kilometre 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 returned
trace to 0.46% U3O8.
Topping Island
The Topping Island area was explored during the early 1980's
after a pitchstone cobble was discovered down-ice of the arcuate
shaped EM conductor. The Topping Island conductor appears to be the
eastern terminus of the conductive trend that hosts the Richardson
Lake and Crooked Lake Zones on Denison Mines Hatchet Lake
property. Denison's diamond drill program on that property
intersected mineralization in drill hole RL-13-16 returning 0.45%
U3O8 over 2.3 metres.
Purepoint flew a VTEM survey over Topping Island in two
different directions using a close line spacing of 125 metres to
provide detail of the arcuate, 6-kilometre long, EM anomaly. The
results of the airborne survey will be used to plan Purepoint's
initial drill program.
333 Zone
In 1975, Gulf Minerals Canada Ltd. (Gulf) carried out a
regional, reverse circulation (RC) overburden drilling program
across most of the eastern Athabasca Basin. Over 350 overburden holes
were drilled with the most anomalous hole being located on the Red
Willow property; hole #333 returning an assay of 0.31% U3O8. Gulf
recommended additional RC drilling to trace the uranium-rich
overburden to its source, but that follow-up work was not
completed.
Based on geophysical results performed by Purepoint, the source
of the anomalous till may be a newly outlined EM conductor that
lies only 200 metres northeast of drill hole #333. The strong
conductor trends north-south, is 1.1 kilometres in length and
appears to be crosscut by a northeast trending fault.
CBA Zone
In 1980, CanLake Explorations Ltd. drilled 14 holes
(CBA-03 to 10 and CBA-15 to 20) in the northeast area of the Red
Willow project. Favourable mineralization was intersected in the
last hole of the program with hole CBA-20, located at the fold nose of a granitic
dome and sedimentary rock contact, returning 0.17% U3O8 over 0.8
metres before being lost at a depth of 20 metres.
Red Willow Project
The 100% owned Red Willow property is situated on the eastern
edge of the Athabasca Basin in
Northern Saskatchewan, Canada and
consists of 17 mineral claims having a total area of 40,116
hectares. The property is located close to several uranium deposits
including Orano Resources Canada Inc.'s JEB mine, approximately 10
kilometres to the southwest, and Cameco's Eagle Point mine that is
approximately 10 kilometres due south.
Geophysical surveys conducted by Purepoint at Red Willow have
included airborne magnetic and electromagnetic (VTEM) surveys, an
airborne radiometric survey, ground gradient array IP, pole-dipole
array IP, fixed-loop and moving-loop transient electromagnetics,
and gravity. The detailed airborne VTEM survey provided magnetic
results that are an excellent base on which to interpret structures
while the EM results outlined over 70 kilometres of conductors that
in most instances represent favourable graphitic lithology. A total
of twenty-one conductive zones have been identified as priority
exploration targets of which only seven have been subject to first
pass drilling.
Annual General Meeting
The Company also announced today that it has scheduled a virtual
annual and special meeting of shareholders (the "Meeting") on
June 24, 2021 at 10:00 am (ET). The Company's board of directors
has set May 10, 2021 as the record
date for determining the shareholders entitled to receive notice
and vote at the Meeting.
In addition to the annual general meeting matters relating to
the election of the board of directors of the Company and the
appointment of the Company's auditor for the ensuing year, the
Company will be seeking shareholders' approval for: (a)
continuation of the Company's rolling stock option plan, (b)
renewal of the Company's shareholder rights plan, (c) confirmation
of the repeal of the Company's outdated By-Law No. 1 which was
initially adopted by the Company's predecessor entity in 2004 and
the adoption of the Company's new By-Law No. 2 which better
reflects the Company's current corporate practice, (d) all acts of
directors and officers of the Company, and (e) authorization of the
board of directors, in their sole discretion if deemed in the best
interest of the Company, within two (2) years from the Meeting
date, to implement a consolidation of all of the issued and
outstanding Common Shares of the Company on the basis of a
consolidation ratio to be selected by the board of directors within
a range between two (2) pre-consolidation Common Shares for one (1)
post-consolidation Common Share and ten (10) pre-consolidation
Common Shares for one (1) post-consolidation Common Share.
Please note that the board of directors of the Company has no
present intention to implement a share consolidation but believes
that it would be prudent to have the necessary shareholder
authorization in place should the board determine at some point in
the following two-year period that a share consolidation would be
in the best interest of the Company. The decision to seek
authorization from the shareholders for a share Consolidation was
taken by the board after careful consideration of a number of
factors, including market activity, access to institutional
investors, prospective broadening of international investor
interest in the Company, and if advisable, the structuring of
potential future financings with strategic investors. If the
proposed share consolidation is approved by the shareholders at the
Meeting and the board decides to implement a share consolidation in
the prescribed period, the Company is required to obtain the
approval of the TSXV prior to implementing the share
consolidation.
The details of the meeting matters will be provided in the
management information circular for the Meeting to be made
available to the shareholders of the Company and to be filed on
SEDAR at www.sedar.com on or around May 18,
2021.
Options
The Company today approved the issuance of a total of 8,400,000
options to its Board of Directors, management and certain staff
members pursuant to the Company's stock option plan.
The options vest immediately, are exercisable at a price of
$0.13 per common share and expire on
a date that is five years from the date of grant.
About Purepoint
Purepoint Uranium Group Inc. (TSXV: PUC) actively operates an
exploration pipeline of 12 advanced projects in Canada's Athabasca Basin, the world's richest uranium
region. Purepoint's flagship project is the Hook Lake Project, a
joint venture with two of the largest uranium suppliers in the
world, Cameco Corporation and Orano Canada Inc. The Hook Lake
JV Project is on trend with recent high-grade uranium discoveries
including Fission Uranium's Triple R Deposit and NexGen's Arrow
Deposit and encompasses its own Spitfire discovery (53.3% U3O8 over
1.3m including 10m interval of 10.3% U3O8). Together with its
flagship project, the Company's projects stretch across
approximately 185,000 hectares of claims throughout the Athabasca
Basin. These claims host over 20 distinct and well-defined
drill target areas with advanced geophysical surveys completed, and
in some cases, have had first pass drilling performed.
Scott Frostad BSc, MASc, PGeo,
Purepoint's Vice President, Exploration, is the Qualified
Person responsible for technical content of this release.
Neither the Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this Press
release.
Disclosure regarding forward-looking statements
This press release contains projections and forward-looking
information that involve various risks and uncertainties regarding
future events. Such forward-looking information can include without
limitation statements based on current expectations involving a
number of risks and uncertainties and are not guarantees of future
performance of the Company. These risks and uncertainties could
cause actual results and the Company's plans and objectives to
differ materially from those expressed in the forward-looking
information. Actual results and future events could differ
materially from those anticipated in such information. These and
all subsequent written and oral forward-looking information are
based on estimates and opinions of management on the dates they are
made and expressly qualified in their entirety by this notice.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/purepoint-uranium-provides-overview-of-red-willow-project-targets-for-upcoming-diamond-drill-program-301290401.html
SOURCE Purepoint Uranium Group Inc.