Purepoint Uranium Group Inc. · TSXV:PTU
Purepoint Uranium — Investor Presentation (October 2005)
20 slides from Purepoint Uranium's investor presentation, October 2005
Slide 1: Precision Prospecting
Precision Prospecting October 2005 www.purepoint.ca
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Except for the statements of historical fact contained herein, the information presented constitutes “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements involve known and unkn
Slide 3: Introduction
Introduction Purepoint Uranium – Premier Inventory of Uranium Projects • After nearly 3 years of detailed research and analysis, Purepoint Uranium Group Inc. (“Purepoint” or the “Company”) now holds 100% of some of the most prospective uranium projects in the Athabasca Basin – An area producing 1/3
Slide 4: The Company
The Company Financial Summary Stock Exchange Listing PTU (TSX-V) Shares Outstanding1 Issued 36.0 mm Fully Diluted 38.1 mm Share Price $0.49 Market Cap Basic $17.6 mm Fully Diluted2 $18.6 mm Cash (as at September 30, 2005) $1.5 mm Note: All figures are presented in Canadian dollars (C$) unles
Slide 5: Investment Highlights
Investment Highlights Established Portfolio of Premier Exploration Prospects • 100% ownership of 7 Athabasca Basin Uranium projects • Land package covers approximately 120,000 hectares in the world’s richest uranium region Highly Prospective Advanced Targets • Extensive 2005/06 winter drilling progr
Slide 6: Uranium Market Overview
Uranium Market Overview World Demand • Electricity demands in 2020 expected to be twice that of 1990 • Nearly 50 new nuclear reactors to be brought on-line over the next 10 years • Current annual uranium consumption of 175-180 million lbs – Annual demand is expected to reach 210 million lbs by 2013
Slide 7: Uranium's Long Term Outlook
Uranium’s Long Term Outlook Rising Spot Prices • Uranium spot prices have shown continued strength since 2003 – In 2003, uranium spot prices rose 42% – Spot prices began 2004 at US$14.50/lb, finishing 43% higher at US$20.70/lb – Current spot price of US$30.75 (September 12, 2005) reflects a further
Slide 8: Athabasca Basin Overview
Athabasca Basin Overview One Third of the World’s Uranium Production Comes from the Athabasca Basin • Considered one of the most favourable places in the world for exploring and mining uranium – More than $3.4 billion spent on mine development and exploration in Saskatchewan since 1980 • 4.1 mm hect
Slide 9: Athabasca Basin Overview
Athabasca Basin Overview One of the Most Favourable Places in the World for Exploring and Mining Uranium 9
Slide 10: Highly Prospective Advanced Targets
Highly Prospective Advanced Targets Turnor Lake Project 9 Twenty-four km of known conductors; previous drilling has intersected graphitic pelites and zones of hydrothermal alteration. 9 2005 geophysical survey delineated an untested zone of flat lying conductivity; possibly indicative of clay altera
Slide 11: Highly Prospective Advanced Targets
Highly Prospective Advanced Targets Turaco Grid 9 Eight km of untested conductors and a unique zone of flat lying conductivity possibly representing clay alteration 9 Depth to basement interpreted to change from 250m to 175m at the NW termination of high priority targets representing a potential str
Slide 12: Highly Prospective Advanced Targets
Highly Prospective Advanced Targets Red Willow 9 Over 20 km of known conductors with previous drilling intersecting graphitic/pyritic pelites and zones of hydrothermal alteration 9 Excellent potential to extend EM anomolies traced by COGEMA to Red Willow’s western claim line 9 Contains Long Lake Rad
Slide 13: Experienced Management Team
Experienced Management Team 70 years of experience in the Athabasca Basin Peter Hooper, Director • COO Afcan Mining Corporation • Eldorado Nuclear Uranium Mines Ltd. – Oversaw all uranium production in the Athabasca Basin John Steele, Geophysicist • 20 year career on 7 continents • Denison Mines – M
Slide 14: Exploration Objectives
Exploration Objectives Exploration Plan now Staking Geophysics 2004 2005 2006 2007 Drilling Block A Turnor Lake, Red Willow >> Block B Umfreville, McEwen, S. Newnham >> Block C Fire Eye Lake, William River TBD Exploration Budget (C$ mm) Coming Season $4.0 Next Season $4.0 14
Slide 15: Exploration Objectives
Exploration Objectives One of the Largest Winter Drilling Programs of the Junior Exploration Companies in the Athabasca Basin • Turnor Lake and Red Willow Properties: – 7 drill targets across 6 grids – 3 to 6 holes to be drilled per target in winter 2005/06 – Budget of 35 holes with 9,500 m of drill
Slide 16: Attractive Early Investment Opportunity
Attractive Early Investment Opportunity Market Cap Comparision September 2005 Athabasca Junior Uranium Explorers $800 $180 $693 $700 $160 $600 $140 $120 $106 Mkt Cap (C$mm) $100 $82 $80 $71 $60 $40 $28 $24 $22 $20 $19 $17 $20 $0 UEX Corp. Southern JNR Strathmore Uravan Nothern Dejour Triex Canalaska
Slide 17: Investment Highlights
Investment Highlights Established Portfolio of Premier Exploration Prospects • 100% ownership of 7 Athabasca Basin Uranium projects • Land package covers approximately 120,000 hectares in the world’s richest uranium region Highly Prospective Advanced Targets • Extensive 2005/06 winter drilling progr
Slide 18: Precision Prospecting
Precision Prospecting October 2005 www.purepoint.ca
Slide 19: Appendix - Established Portfolio of Premier Exploration Prospects
Appendix - Established Portfolio of Premier Exploration Prospects Foundational Research Established in the Athabasca Basin Before the Resurgence in Uranium • Commenced Dec 2002 • Exhaustive examination of all known major deposits • Objective to reduce the cost of discovery • 1988 – 1998: Cdn cost of
Slide 20: Appendix - Established Portfolio of Premier Exploration Prospects
Appendix - Established Portfolio of Premier Exploration Prospects Methodical Assessment Established in the Athabasca Basin Before the Resurgence in Uranium Q4 – 2003 Q3 – 2003 • NE basin edge • SE corridor • Abandoned • no historic programs indicators • Significant indicators • rejected • 2 projects
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