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Purepoint Uranium Drilling At Hook Lake Joint Venture

|Includes:PUMGF, Rio Tinto plc (RIO)

A $2.5-million, two-rig, 5,000-metre campaign has begun at Purepoint Uranium's (OTC:PUMGF) Hook Lake project. Of three prospective corridors on the 28,683-hectare property, drilling will focus on the same electromagnetic trend that hosts the PLS discovery five kilometres southwest, the company stated on January 30.

With a 21% interest in Hook Lake, Purepoint acts as project operator in joint venture with Cameco and AREVA Resources Canada, which hold 39.5% each.

On January 30 Purepoint also announced 2.51 million options to insiders at $0.075 for five years. The following day the company stated 1.94 million options granted last April would be repriced from $0.10 to $0.07.

In November Purepoint announced winter drilling plans for Red Willow, a 25,612-hectare project on the Basin's eastern rim. Rio Tinto (NYSE:RIO) acts as operator under an option to earn 51% by spending $5 million before the end of 2015.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: RIO, PUMGF