Chris Frostad, President & CEO of Purepoint Uranium (TSXV:PTU), sat down with Sonia Madigan from The Market Herald to discuss the upcoming drill program at Red Willow Project in Saskatchewan.
The company’s 2021 winter drill program included 12 holes totalling 2,088 metres at Red Willow’s Osprey Zone. Nine of the twelve holes encountered anomalous radioactivity, suggesting the potential for significant uranium deposits. Purepoint, together with joint Venture partner Cameco, is preparing for a drill program at the Hook Lake Project. The Hook Lake JV Project is considered one of the highest quality uranium exploration projects in the Athabasca Basin.
Since most drilling occurs in the winter, weather can pose a challenge to the team, but the company has noted that it is fully funded for all 12 projects underway, which is enough to keep going. There is a supply and demand imbalance with uranium, more than we need in recent history.
CEO Frostad commented that though they are currently producing 30 per cent less than they did previously, the price is moving up to incentive levels of US$60 to US$70 to open mine and is currently around US$50. He sees positive momentum over the next few years; that is good news for investors looking for an engaging opportunity. Red Willow sees a significant uranium lens tracked for nearly 1 mile, hopefully ending in a deposit in a significant mineralization event.