Purepoint Uranium Group Inc. · TSXV:PTU
Purepoint Uranium — Investor Presentation (May 2018)
22 slides from Purepoint Uranium's investor presentation, May 2018
Slide 1: Investor Presentation & Introduction Q2 2018
Investor Presentation & Introduction Q2 2018
Slide 2: Forward Looking Statements & Qualified Person
Forward Looking Statements & Qualified Person Forward Looking Statements This presentation contains certain “forward-looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that Purepoint believes, expects or anticipates will or
Slide 3: Introduction: Strategically Positioned
Introduction Strategically Positioned High Grade Discoveries in Saskatchewan’s Patterson Uranium District • Spitfire Discovery (53.3% U3O8 over 1.3 metres within a 10.0 metre interval of 10.3% U3O8) by the Hook Lake JV • Patterson Uranium District hosts Fission’s Triple R Deposit (indicated mineral
Slide 4: Athabasca Basin Portfolio
Introduction Athabasca Basin Portfolio • 10 Projects – All Active • Advanced stage of exploration – Dozens of drill targets well defined – Low priority property all exited – Assessment requirements current • Support and Continued Spending by the 2 Largest U Producers in the world Most Speculative Ph
Slide 5: Capitalization
Introduction Capitalization Fully Funded to continue aggressive programs in the Patterson Uranium District As at March 31, 2018 Market Capitalization $14,336,215 Share Price $0.07 52 Week Range $0.055 - $0.185 Basic Shares Outstanding 204,803,072 Options (@ $0.08 weighted avg.) 18,180,000 Warrants (
Slide 6: Leadership
Introduction Leadership • Chris Frostad (President, CEO, Director) • Roger Watson (Chief Geophysicist) – Previous: 40 yrs Geophysical Consultant and founder of – Current: President & CEO of Minera Alamos Inc. the firm Patterson Grant & Watson – Previous: 30 yrs in various exec. roles in both public
Slide 7: Partnerships
Introduction Partnerships Hook Lake Project Smart Lake Project – Ownership – Ownership • 21% Purepoint Uranium (project operator) • 23% Purepoint Uranium (project operator) • 39.5% Cameco Corporation • 77% Cameco Corporation • 39.5% Orano Canada Inc. 2018 Hook Lake Drill Program Budget – Cameco Corp
Slide 8: Uranium Prices – Current Status
Industry Uranium Prices – Current Status U3O8 Spot Price, 15 Years Cigar Lake Flood Fukushima Disaster Marginal Cost of Production Two primary factors driving and holding Uranium prices down: 1. Excess inventory – created by 5 years of increasing production (16%) following the loss of >10% of the wo
Slide 9: Uranium Production
Industry Uranium Production Tonnes U per year Global Uranium Production Since the Fukushima shut-down in 2011 to 2016: Japanese • Kazakh annual production has increased Tsunami 34% (6,000 t / yr.) • The rest of the world showed a marginal reduction of 4% (1,424 t / yr) Kazakhstan Production 2017/18
Slide 10: Reactor Demand
Industry Reactor Demand Global Nuclear Power Generation GW.h (Does not include Japanese Re-Starts) • Nuclear power generation has now returned to pre-Fukushima levels • 70% of construction projects in China, Russia & India • Uranium demand must take into consideration a 30 month lead time on initial
Slide 11: Uranium Prices – The Tipping Point
Industry Uranium Prices – The Tipping Point The following factors are prompting a U3O8 price turn around: SUPPLY DEMAND 1. Reduction of Production – All major 1. Increase in Reactor Demand – During uranium miners are proactively reducing 2017 (and in the absence of Japanese re- production during 201
Slide 12: Hook Lake Project: Location
Hook Lake Project Location Current Priority Spitfire High-Grade Discovery Patterson Uranium District (12)
Slide 13: Hook Lake Project: Neighbours and Topography
Hook Lake Project Neighbours and Topography (13)
Slide 14: Hook Lake Project: Underlying Geology
Hook Lake Project Underlying Geology (14)
Slide 15: Spitfire/Harpoon Deposit
Patterson Uranium District Spitfire/Harpoon Deposit Adequate drilling has now been completed to interpret the Spitfire/Harpoon Deposit that bridges the claim line with NexGen High-grade Intersections Hole ID From (m) To (m) Width U3O8 (wt %) (m) HK15-27 389.0 391.8 2.8 2.23 includes 390.4 390.8 0.4
Slide 16: Spitfire/Harpoon Deposit
Patterson Uranium District Spitfire/Harpoon Deposit (16)
Slide 17: Spitfire/Harpoon Deposit: Inclined Longitudinal Section
Patterson Uranium District Spitfire/Harpoon Deposit Inclined Longitudinal Section (17)
Slide 18: Dragon Zone – 2018 Drilling and Geology
Patterson Uranium District Dragon Zone – 2018 Drilling and Geology (18)
Slide 19: 2018 Discoveries
Patterson Uranium District 2018 Discoveries This year’s drilling discovered an untested, previously unidentified, mineralized shear on trend with, and with identical attributes to, Spitfire Indicated mineral resource 179,500,000 lbs U3O8 at an average grade of 6.88% U3O8 indicated mineral resource 8
Slide 20: Derkson Corridor
Patterson Uranium District Derkson Corridor Geophysical Survey Winter 2018 d r ete e rp • Derkson represents the third and most p let nte I easterly band of graphitic conductors C om ing crossing through the Hook Lake Project v ey ly be r t S u r r en • Diamond drill hole DER-04 was the earliest s C
Slide 21: Project Pipeline
Project Pipeline Purepoint Size Ownership Stage of Investment to Next Steps Held Until • Precise and strategic Project (hectares) Partners Completion Date approach, securing 21% Follow Up March highly prospective Hook Lake 28,598 Cameco & Orano Discovery $6,750,000 Drilling 2028 areas of defined pot
Slide 22: Contact
Investor Presentation & Introduction Contact Chris Frostad President & CEO cfrostad@purepoint.ca 416.603.8368 120 Adelaide St. West. Suite 2500 Toronto . Ontario . Canada . M5H 1T1
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