New High-Grade Discovery Marks Major Breakthrough in Athabasca Basin Exploration

• Purepoint Uranium announced a significant uranium discovery at the Nova zone on their joint venture Dorado project with IsoEnergy, hitting 14 meters of 11,000 counts per second with peaks over 110,000 CPS
• The company successfully stepped out 70 meters northeast from initial holes, finding wider and higher-grade mineralization, indicating the discovery is growing in size and intensity
• Partnership with IsoEnergy provides more aggressive development approach and better access to capital compared to traditional major company partnerships, enabling faster advancement
• The Dorado project encompasses structural areas around IsoEnergy's Hurricane deposit in Saskatchewan's Athabasca Basin, providing access to proven uranium-bearing geology
• Seasonal drilling constraints require waiting until January for frozen access, but this allows deployment of heavier drilling equipment and reduces helicopter costs for systematic exploration

Purepoint Uranium Group (TSXV:PTU) has emerged from the exploration wilderness with what appears to be a significant uranium discovery in Saskatchewan's prolific Athabasca Basin. In a recent interview, President and CEO Chris Frostad detailed the company's Nova discovery at the Dorado project, a joint venture with IsoEnergy that has yielded some of the most promising results in the company's exploration history.

The discovery represents a potential inflection point for Purepoint, transforming the company from a pure exploration play into a prospect with genuine development potential. With uranium markets showing renewed strength and institutional support growing for nuclear energy, the timing of this discovery could prove fortuitous for investors seeking exposure to the uranium sector's recovery.

The Nova Discovery: High-Grade Results & Growing Confidence

The Nova zone discovery emerged from Purepoint's systematic exploration of the Dorado project, which strategically encompasses structural areas around ISO Energy's Hurricane deposit. The initial results have exceeded expectations, with the company reporting increasingly robust mineralization as drilling progresses.

"Before where we were coming up with maybe 4 meters of 11,000 counts per second, now we're coming up with 14 meters of 11,000 counts per second and with a peak that is up over 110,000 counts per second." 

This suggests significant expansion in both width and intensity of mineralization. The technical aspects of the discovery point to substantial uranium mineralization. While counts per second cannot be directly converted to grades without calibration specific to each area and instrument, Frostad indicated confidence in the results: "It's more than a percent. We're pretty sure of that." The company has rushed samples to Saskatoon for assaying, with results expected within weeks of the interview.

What makes this discovery particularly compelling is its growth trajectory. The company successfully executed a 70-meter stepout to the northeast, encountering even better mineralization than in initial holes. This expansion suggests the discovery extends beyond isolated pockets, potentially indicating a substantial mineralized system.

Geological Significance & Structural Controls

The Nova discovery presents interesting geological characteristics that differentiate it from typical Athabasca Basin deposits. Unlike conventional uranium deposits that are directly associated with graphite horizons, the Nova mineralization appears to be structurally controlled, positioned vertically against granite.

"In this case though, the mineralization is vertical against granite and there is graphite we were targeting, but it's more associated with the structure like it's been pushed through a structure, as opposed to being associated directly with the graphite."

This structural association aligns with emerging trends in the basin, where companies are discovering uranium mineralization in previously unconsidered geological settings. The alteration patterns observed at Nova have particularly excited the company's geologists, as extensive rock alteration typically indicates significant mineralization events in the geological past.

The discovery's geological uniqueness extends beyond Purepoint, with neighboring explorer NextGen Energy reporting similar structural associations in their recent discovery south of Purepoint's Hook Lake project. This suggests a potentially new model for uranium mineralization in the region, expanding the exploration paradigm beyond traditional graphite-hosted targets.

Strategic Partnership with IsoEnergy

Purepoint's joint venture structure with IsoEnergy represents a significant strategic advantage compared to the company's other partnerships with major mining companies. Unlike relationships with Cameco and Orano, which operate on rigid annual budgets and conservative timelines, the ISO partnership provides greater flexibility and entrepreneurial approach.

"ISO is a little more entrepreneurial and they've got access to capital as well. So, we're in a situation where we've got the people and the time and the money to actually go at it more aggressively than we could before."

This partnership structure could prove crucial for rapid advancement of the Nova discovery. While major mining companies typically take measured approaches to exploration advancement, ISO's more aggressive stance may enable faster progression toward resource definition and development decision-making. The partnership allows for real-time adjustment of exploration programs based on results, rather than waiting for annual budget cycles.

The financial structure also benefits Purepoint, as the company only needs to fund half of exploration costs while maintaining significant project ownership. This leverage amplifies the company's exploration capacity while reducing capital requirements for advancement.

Interview with CEO, Chris Frostad

Operational Challenges & Winter Planning

The Nova discovery faces immediate operational constraints that highlight both challenges and opportunities in northern Saskatchewan exploration. The discovery's northeastern trend extends into bog and swampy terrain, preventing summer drilling operations and forcing a seasonal pause until January when ground conditions freeze sufficiently for heavy equipment access.

While this creates near-term delays, Frostad views the pause as strategically beneficial. Winter operations will enable deployment of heavier, more precise drilling equipment rather than helicopter-supported lightweight rigs that have posed directional challenges. Additionally, eliminating helicopter support will substantially reduce operational costs, as "the helicopter costs about as much as the drilling costs at the end of the day."

The operational pause also allows time for comprehensive geological interpretation and target refinement. The company plans to utilize advanced geophysical reinterpretation services from Condor Consulting to integrate new geological data with historical information, potentially identifying additional targets within the broader Dorado property.

Project Generation Strategy

Beyond the Nova discovery, Purepoint operates a diversified portfolio of uranium projects through various joint venture structures. The company currently manages six joint venture projects with combined annual drilling budgets approaching $7 million, providing steady management fee income while advancing multiple exploration programs.

The company's evolution toward a project generator model appears deliberate and strategic. Rather than simply acquiring and flipping properties, Purepoint invests sufficient resources to demonstrate project value before attracting senior partners for advancement. This approach has proven successful across multiple partnerships, validating the company's geological expertise and project selection capabilities.

"We've evolved into that because that's the only way you really can. You can't wake up one morning and say "I'll be a project generator”, because the true notion of that is to take an asset and invest in it so that it has enough value to attract a strong senior partner."

This strategy provides multiple advantages: diversified exploration exposure, reduced capital requirements, steady management income, and maintained upside exposure to discoveries. The Nova discovery exemplifies this model's potential, where initial investment and geological work attracted IsoEnergy partnership, leading to discovery and potential development.

Uranium Sector Recovery

The Nova discovery emerges amid renewed institutional and governmental support for nuclear energy, particularly in the United States. Department of Defense & Department of Energy initiatives aimed at securing domestic uranium supply chains have created supportive market conditions for Canadian uranium developers.

Frostad acknowledges this macro support while noting supply reality: 

"They can support uranium all they want down there (USA). They're still trying to turn on a very small tap. And most of their uranium is going to have to come out of Canada and/or Australia."

Recent market response to Purepoint's discovery announcements suggests significant investor appetite for legitimate uranium discoveries. The company reported surprise at the positive market reaction to initial Nova results, indicating pent-up demand for quality uranium exploration success stories.

This market dynamic could prove favorable for Purepoint's advancement timeline, as stronger uranium markets typically accelerate development decisions and improve project financing conditions. The combination of supply constraints, policy support, and growing nuclear energy acceptance creates a constructive environment for uranium project advancement.

The Investment Thesis for Purepoint Uranium

• Proven Discovery: Nova zone represents a genuine uranium discovery with expanding high-grade mineralization, moving beyond typical exploration speculation into measurable results
• Strategic Location: Positioned within proven uranium-bearing geology surrounding IsoEnergy's Hurricane deposit in the world-class Athabasca Basin
• Advantageous Partnership: Joint venture with IsoEnergy provides aggressive development approach, flexible capital deployment, and shared risk while maintaining significant ownership
• Diversified Portfolio: Six active joint ventures provide steady management income, reduced capital requirements, and multiple discovery opportunities beyond Nova
• Operational Leverage: Management fee income covers overhead costs while exploration upside remains with Purepoint, creating favorable risk-reward dynamics
• Market Timing: Discovery coincides with strengthening uranium markets, supportive government policies, and growing nuclear energy acceptance
• Development Pathway: Unlike pure exploration plays, Nova discovery provides clear advancement pathway toward resource definition and potential development decisions
• Geological Expertise: Proven ability to identify and advance projects to joint venture stage demonstrates consistent geological and commercial judgment
• Capital Efficiency: Joint venture model maximizes exploration exposure while minimizing capital requirements, enabling advancement of multiple projects simultaneously
• Scalability: Winter drilling program and systematic target testing could significantly expand Nova discovery scope and grade

The global nuclear renaissance, driven by net-zero carbon commitments and energy security concerns, has created unprecedented demand for secure uranium supply chains. Government initiatives, particularly in the United States, recognize nuclear power's critical role in achieving climate goals while maintaining grid reliability. The Department of Defense and Department of Energy's focus on domestic supply chain security has elevated uranium from commodity to strategic resource status.

However, supply reality presents significant challenges. Decades of underinvestment in uranium exploration and development have created supply deficits that cannot be quickly resolved. Existing production centers face depletion, while new projects require years of development and substantial capital investment. This supply-demand imbalance particularly affects countries like the United States, which lacks sufficient domestic production capacity.

Canada's Athabasca Basin represents the world's highest-grade uranium district, making Canadian uranium developers strategically valuable in this environment. Projects like Purepoint's Nova discovery become increasingly important as governments and utilities seek to diversify supply sources away from geopolitically sensitive regions. The combination of high-grade potential, political stability, and established nuclear infrastructure positions Canadian uranium assets favorably in the emerging market structure.