Pele Mountain (TSX.V - GEM) Announces Major Increase in Indicated Resources at its Eco Ridge Mine Uranium & Rare Earth Elements Project - Video Highlights Now Available
(Thomson Reuters ONE) -
Toronto, Ontario, January 25, 2011 - Pele Mountain Resources Inc., symbol GEM on
the TSX Venture Exchange announced a major increase in Indicated uranium oxide
resources as part of an updated NI 43-101 Resource Estimate at its Eco Ridge
Mine uranium and rare earth elements project near Elliot Lake in Northern
Ontario. The Resource Estimate supersedes the previous estimate contained in
the 2007 Preliminary Assessment authored by Scott Wilson Roscoe Postle
Associates. Pele is focused on the sustainable development of Eco Ridge, which
is owned 100-percent by First Canadian Uranium, a wholly owned subsidiary of
Pele.
To view the video highlights of this release, including maps, etc., please click
here. If the link is unavailable, please cut and paste:
www.investmentpitch.com/media/762/Pele_Mountain_Resources_TSX.V:_GEM_News_Alert/
Pele President and CEO Al Shefsky stated, "We are very excited about the
significant upgrade of our resources at Eco Ridge. We have retained Scott Wilson
RPA to provide an updated Preliminary Assessment ("PA") which is expected in the
second quarter of 2011. The PA will feature a detailed economic model based on
combined revenues from uranium oxide ("U(3)O(8)") and rare earth oxides ("REO")
and will include mining, processing, and waste management design enhancements
achieved since the initial 2007 Scoping Study. The PA will also include a
schedule of activities to advance the project through the feasibility and
licensing stages. We believe Pele's Eco Ridge Mine project contains an
important future source of uranium and rare earth elements and we are determined
to rapidly advance its development."
The Resource Wireframe ("Resource Wireframe"), which contains both Indicated and
Inferred U(3)O(8) resources within the near surface portion of the Main
Conglomerate Bed ("MCB"), increased in size from the previous resource estimate.
The Indicated U(3)O(8 )resource has more than doubled to 15.2-million pounds
(14.3-million tonnes at 0.048-percent U(3)O(8)) with an additional Inferred
U(3)O(8 )resource of 31.4-million pounds (33.1-million tonnes at 0.043-percent
U(3)O(8)).
Scott Wilson RPA is continuing to evaluate 1537 REO assays (each containing up
to 17 elements) from 123 holes, the last of which were received earlier this
month. Within the Resource Wireframe, every drill hole analysed has contained
significant total rare earth oxides ("TREO") and the average grade of all of the
samples is 3.7 pounds per tonne. Average grades for each individual REO are
available on Pele's website at www.pelemountain.com/pdfs/RPAT2012411.pdf The
REO resource estimate will be announced when it is available.
Scott Wilson RPA reports the following mineral resources at Eco Ridge:
Mineral Resources - January 24, 2011
-------------------------------------------------------------------------------
Pele Mountain Resources Inc. - Eco Ridge Project
---------------+-------+--------+----------------------------------------------
| | |
---------------+-------+--------+----------------------------------------------
Classification|Tonnes |U(3)O(8)|U(3)O(8)
|('000s)|(%) |('000 lbs)
---------------+-------+--------+----------------------------------------------
Indicated |14,312 |0.048 |15,182
---------------+-------+--------+----------------------------------------------
Inferred |33,121 |0.043 |31,444
---------------+-------+--------+----------------------------------------------
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a cut-off grade of 0.028% U(3)O(8).
3. Mineral Resources are estimated using an average long-term uranium
price of US$60 per lb, and a C$:US$ exchange rate of 0.95:1.00.
4. A minimum mining thickness of 1.8 metres was used.
Pele's Eco Ridge Mine deposit also extends down plunge and to the east beyond
the boundaries of the Resource Wireframe. Based on historical wide-spaced
drilling, Scott Wilson RPA estimates that these areas could contain an
additional 30 to 50 million tonnes grading from 0.03 to 0.05 percent U(3)O(8) as
a potential mineral deposit.(1) There is no historical data on rare earths in
this area, however, Scott Wilson RPA expects that rare earths grades would be
similar to other portions of the deposit - from 3 to 4 pounds per tonne TREO.
The deposit also remains open beyond the drilled areas with potential for
significant expansion.
Recent extraordinary REE market developments, sparked by China's reduction of
export quotas, have resulted in sharply higher prices, inciting a rush to find
and bring to production new sources outside of China. Eco Ridge has competitive
advantages that may assist its development ahead of other projects. Elliot Lake
is the only mining camp in Canada to have achieved commercial production of REO
and was the most important source of heavy REO in North America. From 1956 to
1996, Rio Algom and Denison Mines produced more than 300 million pounds of
U(3)O(8), along with significant quantities of Yttrium and REO, from Elliot Lake
deposits similar to Eco Ridge. As a primary uranium mine that would produce REO
as by-products, Eco Ridge is not wholly dependent on the volatile REO market.
Furthermore, the REO would go into solution without addition mining or
processing costs. With competitive advantages, outstanding regional
infrastructure, well-understood geology and strong local support for the
project, Eco Ridge provides an ideal location for a safe, secure, and reliable
long-term supply of Uranium and REE.
The technical information relating to the Resource Estimate, rare earth samples,
and potential mineral deposit in this press release has been reviewed and
approved by Tudorel Ciuculescu, P.Geo of Scott Wilson RPA, an independent
Qualified Person under NI 43-101. The balance of this press release has been
reviewed and approved by Fergus Kerr, P.Eng., Vice President of Uranium
Operations for Pele and a qualified person under NI 43-101.
About Pele
Pele Mountain Resources is focused on the sustainable development of its Eco
Ridge Mine Uranium and Rare Earth Elements ("REE") project, located in the
Elliot Lake mining camp of Ontario. Pele's expert team of technical personnel,
advisors, and consultants is working to optimize mining, processing, and waste
management techniques at Eco Ridge. With well-understood geology, excellent
regional infrastructure, and strong local support, Eco Ridge provides an ideal
location for a safe, secure, and reliable long-term supply of Uranium and REE.
Pele's shares are listed on the TSX Venture Exchange under the symbol "GEM".
1. The potential quantity and grade of the potential mineral deposit are
conceptual in nature and there has been insufficient exploration to define a
mineral resource and it is uncertain if further exploration will result in the
targets being delineated as a mineral resource.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. Some of the
statements contained in this release are forward-looking statements, such as
estimates and statements that describe Pele's future plans, objectives or goals,
including words to the effect that Pele or management expects a stated condition
or result to occur. Since forward-looking statements address future events and
conditions, by their very nature, they involve inherent risks and uncertainties.
Actual results in each case could differ materially from those currently
anticipated in such statements. The economic viability of the 43-101 mineral
resource at Pele's Elliot Lake Project has not yet been demonstrated by a
preliminary feasibility study.
CONTACT:
Pele Mountain Resources
Al Shefsky, President
800-315-7353
info(at)pelemountain.com
Investmentpitch.com
Barry Morgan, CFO
604-684-5524
bmorgan(at)investmentpitch.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: InvestmentPitch via Thomson Reuters ONE
[HUG#1482072]
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Datum: 25.01.2011 - 15:32 Uhr
Sprache: Deutsch
News-ID 50717
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