TORONTO, ONTARIO–(Marketwired – April 13, 2017) – Purepoint Uranium Group Inc. (the “Company” or “Purepoint“) (TSX VENTURE:PTU) today provided an update on their successful expansion drilling at the Spitfire Zone and the encouraging drill results from the Dragon Zone at the Hook Lake JV, a project owned jointly by Cameco Corp. (39.5%), AREVA Resources Canada Inc. (39.5%) and Purepoint Uranium Group Inc. (21%). The Hook Lake JV project resides within the Patterson Uranium District, host to recent high-grade uranium discoveries including Fission Uranium’s Triple R, NexGen’s Arrow and Harpoon and the Hook Lake JV’s Spitfire.
“We have now correlated the Spitfire and recent Harpoon results to interpret a deposit that bridges the claim line with our neighbour NexGen,” said Chris Frostad, President and CEO of Purepoint. “In February, after outlining additional mineralization at Spitfire, the JV Partners prioritized exploration efforts on the untested portion of the Patterson Shear Zone. Our exploration to date has just scratched the surface and we have considerable room within the project for more Tier 1 deposits along strike.”
Spitfire High Grade Results
| Hole ID | From (m) | To (m) | Width (m) | U3O8(wt %) |
| HK15-27 | 389.0 | 391.8 | 2.8 | 2.23 |
| includes | 390.4 | 390.8 | 0.4 | 12.9 |
| HK16-37 | 269.6 | 275.0 | 5.5 | 1.21 |
| includes | 269.6 | 270.2 | 0.6 | 9.87 |
| HK16-43 | 244.05 | 247.6 | 3.1 | 4.07 |
| includes | 245.2 | 245.5 | 0.3 | 40.3 |
| HK16-47 | 216.5 | 236.6 | 20.1 | 0.88 |
| includes | 218.4 | 230.2 | 11.8 | 1.32 |
| HK16-52 | 240 | 250.0 | 10.0 | 1.28 |
| includes | 246 | 250.0 | 4.0 | 3.07 |
| HK16-53 | 237.6 | 251.9 | 14.3 | 7.57 |
| includes | 241.6 | 245.8 | 1.3 | 53.3 |
| HK16-55 | 221.9 | 231.4 | 9.5 | 2.90 |
| includes | 227.2 | 228.7 | 1.5 | 13.3 |
| HK17-60 | 208.2 | 218.7 | 11.0 | 0.47 |
| includes | 217.0 | 217.7 | 0.7 | 3.07 |
New maps and diagrams are now available on our website www.purepoint.ca.
“The Patterson Shear Zone is obviously well endowed with uranium and we are determined to demonstrate the shear’s potential to host additional high-grade deposits as we move the drills northwest,” said Scott Frostad, VP Exploration at Purepoint. “We now have a clear understanding of the geology and structural controls of the high-grade mineralization at Spitfire and have confirmed many of these key attributes at the Dragon Zone.”
Once again, Purepoint will be hosting a public webinar to present and discuss the results of this program:
When: Wednesday, April 19, 2017 at 12:00 pm ET/ 9:00 am PT
Registration: https://attendee.gotowebinar.com/register/7321475687990018050
Highlights:
- The 2017 drill program has currently conducted 9,162 metres of diamond drilling with 20 holes completed and four holes lost before reaching basement rocks.
- The Company is currently making plans to complete the drill program later this year with the remaining budget;
- The Hook Lake JV portion of the Patterson Shear Zone is now separated into five exploration target areas that are, from southwest to northeast,; The Spitfire Zone, the Hornet Zone, the Dragon Zone, the Hawk Zone and the Sabre Zone;
- The Spitfire Zone has been tested with 28 diamond drill holes, 16 of which are mineralized including 6 which returned high-grade uranium intervals;
- Neighbouring Harpoon results have now been correlated with Spitfire and the strike length of the Spitfire/Harpoon Deposit is interpreted as being greater than 550 metres (see website longitudinal section);
- Dragon Zone results are promising with the discovery of favourable clay alteration of basement hosted rocks that host hydrothermal quartz, graphitic shears and elevated radioactivity;
- No drilling has yet been completed at the Hawk Zone or the Sabre Zone
Spitfire/Harpoon Deposit
Six drill holes totalling 2,152 metres were completed this season in the Upper Spitfire mineralized zone with two holes (HK16-55 and HK17-60) returning high-grade uranium intercepts (Purepoint PR of Feb 2, 2017). The three holes testing the Upper Spitfire mineralization down-dip, HK17-57, 58 and 62, intersected the graphitic shear but it was not associated with radioactivity. One of the six holes, HK17-64, targeted the Spitfire graphitic shear on the northern side of an interpreted east-west fault. The HK17-64 hole intersected a major structure but did not intersect the graphitic shear or anomalous radioactivity.
The Spitfire mineralization has been correlated with the recent NexGen results from their Harpoon discovery (NexGen PR of March 23, 2017) by Purepoint and both a long section and plan map are available on the Purepoint website. No drilling was conducted by Purepoint during 2017 proximal to the Harpoon discovery. A review of the recent Spitfire geochemical and televiewer results along with the recent Harpoon results will be completed before further drilling is recommended for this area.
Dragon Zone
Four drill holes totalling 2,087 metres were completed within the Dragon Zone that is located approximately 5 kilometres northeast of Spitfire. The initial hole at Dragon, HK17-70, intersected locally clay altered granodiorite gneiss, strongly hematized mafic intrusive rocks and a 20-metre wide graphitic shear zone before being completed within a carbonatite intrusive. Radiation spikes were returned from fractures located approximately 10 metres up-hole of the graphitic shear zone.
Hole HK17-72 was spotted by backing up the drill 80 metres from the HK17-70 collar location as a follow-up to the anomalous radioactivity and strong clay and chlorite alteration encountered in the basement rocks of that hole. The unconformity was reached at 310 metres, a strongly clay and chlorite altered granodiorite gneiss was drilled to 360 metres, mafic intrusive with strong clay and hematite alteration was then encountered to 385 metres followed by 6 metres of hydrothermal quartz. Elevated radioactivity (100X background) is associated with steeply dipping north-south trending structures (from televiewer results) between the depths of 378 and 380 metres. Clay-altered granodiorite gneiss was drilled from 391 to 432 metres, and then a mafic intrusive cut by two graphitic shear zones was encountered to 500 metres before the hole was completed within carbonatite at a depth of 530 metres.
Hole HK17-73 was drilled 600 metres northeast along strike of HK17-72 and intersected hydrothermal quartz, a 100-metre wide shear zone within granodiorite gneiss associated with clay and hematite alteration, a graphitic shear zone hosted by a mafic intrusive, and was completed within a carbonatite. HK17-74 was collared approximately 1.2 kilometres southwest of HK17-72 and intersected mafic dykes, graphitic shear zones and a wide chloritic shear before being completed in unaltered granodioritic gneiss. Holes HK17-73 and 74 did not encounter anomalous radioactivity.
Drill Hole HK17-75 was a follow-up to the favourable alteration and radioactivity encountered by HK17-72 and was spotted by moving the drill 200 metres southwest along strike from the HK17-72 collar location. Unfortunately, the hole was lost at a depth of 204 metres within a pressurized sand seam similar to those present within the Spitfire Zone.
Hornet Zone
Ten holes totalling 3,995 metres were completed within the Hornet Zone this winter. Three drill holes, HK17-56, 59 and 61, tested the Spitfire Shear along strike to the northeast. The graphitic shear intersected within these holes was still associated with chlorite altered granodiorite gneiss, however, the shearing was less well developed, clay alteration was spotty, and radioactivity was limited to weak gamma spikes associated with narrow cross-cutting fractures. Two drill holes that tested EM conductors within the large magnetic low anomaly (HK17-63 and 65) intersected relatively narrow, weakly sheared graphitic units within granodiorite gneiss. The explanation for the magnetic low is now considered to be a lack of magnetic mafic dykes that are common within the Spitfire Zone. Two holes, HK17-66 and 68, tested an apparent break in the Hornet EM conductor and encountered unaltered granodiorite gneiss that hosted graphitic shears with no significant radioactivity. Two holes, HK17-67 and 69, tested the Hornet EM conductor approximately 800 metres northeast of the Hornet showing and both intersected hydrothermal quartz and a wide mafic intrusive that hosted graphitic shears associated with weak radioactivity. One hole, HK17-71, was collared on the northeast shore of a lake (~ 1.1 km NE of HK17-67) to target a right-step in the EM conductor having the same orientation as the Arrow Deposit. The hole primarily drilled unaltered granodiorite gneiss and an explanation for the EM conductor at this location was not intersected. A follow-up hole to test the right-step in the conductor will need to be drilled from lake ice.
Glossary
eU3O8: a uranium equivalent grade derived from downhole gamma ray logging results and should only be regarded as an approximation.
Deposit: a natural occurrence of mineral or mineral aggregate, in such quantity and quality to invite exploitation (CIM Definition Standards, 2003).
Hook Lake JV Project
The Hook Lake JV project is owned jointly by Cameco Corp. (39.5%), AREVA Resources Canada Inc. (39.5%) and Purepoint Uranium Group Inc. (21%) and consists of nine claims totaling 28,683 hectares situated in the southwestern Athabasca Basin. The Hook Lake JV is considered one of the highest quality uranium exploration projects in the Athabasca Basin due to its location along the prospective Patterson Lake trend and the relatively shallow depth to the unconformity.
Current exploration is targeting the Patterson Lake Corridor that hosts Fission’s Triple R Deposit (indicated mineral resource 79,610,000 lbs U3O8 at an average grade of 1.58% U3O8), NexGen Energy’s Arrow Deposit (indicated mineral resource 179,500,000 lbs U3O8 at an average grade of 6.88%) and the Spitfire Discovery by the Hook Lake JV.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision exploration of its seven projects in the Canadian Athabasca Basin. Purepoint proudly maintains project ventures in the Basin with two of the largest uranium producers in the world, Cameco Corporation and AREVA Resources Canada Inc. 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.
Chris Frostad
President and CEO
(416) 603-8368
www.purepoint.ca
