Pele Mountain (TSX.V - GEM) Announces Total Rare Earth Oxide Resources of 52-Million Pounds Indicated Plus 96-Million Pounds Inferred - Video Highlights Now Available
(Thomson Reuters ONE) -
Toronto, Ontario, February 24, 2011 - Pele Mountain Resources Inc. (TSX.V -
GEM) announced the completion of a NI 43-101 Resource Estimate which for the
first time includes both uranium oxide and rare earth oxides at its Eco Ridge
Mine Uranium and Rare Earths Project in Elliot Lake, Ontario. Eco Ridge is
owned 100-percent by First Canadian Uranium, a wholly owned subsidiary of Pele.
The Resource Estimate was prepared by Roscoe Postle Associates.
To view the video highlights of this release, including maps, etc., please click
here. If the link is not enabled, please visit www.investmentpitch.com and enter
"Pele" in the search box.
Highlights from the News Release:
The Resource Estimate includes 51.9-million pounds of "Indicated" total rare
earth oxides plus an additional 96.3-million pounds of "Inferred" total rare
earth oxides. These resources are in addition to 15.2-million pounds of
Indicated uranium oxide plus an additional 31.4-million pounds of Inferred
uranium oxide, which was announced in Pele's press release dated January
24, 2011.
Pele President and CEO Al Shefsky stated, "Our new REO resource is exciting
because it provides a potentially significant source of by-product revenue at
Eco Ridge and it places Pele on a short list of emerging North American rare
earth developers. Our next priority at Eco Ridge is the completion of an
updated NI 43-101 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 U3O8 and REO and will include significant mining,
processing, and waste management design enhancements achieved since our initial
2007 Scoping Study. We believe Eco Ridge contains an important future source of
U3O8 and REO and we are determined to rapidly advance its development."
Recent extraordinary rare earth oxide 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 inherent competitive advantages that may assist its development ahead of
other projects, such as:
· It is located within a proven mining camp with historic production
exceeding 300 million pounds of U3O8. Elliot Lake is the only mining camp in
Canada to achieve commercial production of REO.
· It contains the full range of naturally occurring REO, including the highly
valued "heavy" REO. The Elliot Lake camp was one of the most important sources
of heavy REO in North America.
· The project has the potential to be a primary uranium mine that would produce
REO as by-products, and would not be wholly dependent on the volatile REO
market.
· The mining and processing method to recover uranium at Eco Ridge will also
recover REO into the leach solutions, at no extra cost.
· It has well-understood geology and lies within a mining-friendly
jurisdiction. The project enjoys strong local support and is an ideal location
for a safe, secure, reliable long-term supply of uranium and REO.
Roscoe Postle Associates reports the following Resource Estimate at Eco Ridge:
+------------------------------------------------------------------------------+
| Mineral Resources - February 23, 2011 |
| Pele Mountain Resources Inc. - Eco Ridge Mine Project |
+--------------+----------+--------+----------+----------------+---------------+
| | | | | Total Rare | Total Rare |
| | | | U(3)0(8) | Earth | Earth Oxides |
| | Tonnes |U(3)0(8)| (pounds) | Oxides((5)) | (pounds) |
|Classification|(millions)| (%) |(millions)| (%) | (millions) |
+--------------+----------+--------+----------+----------------+---------------+
| Indicated | 14.3 | 0.048 | 15.182 | 0.164 | 51.859 |
+--------------+----------+--------+----------+----------------+---------------+
| Inferred | 33.121 | 0.043 | 31.444 | 0.132 | 96.352 |
+--------------+----------+--------+----------+----------------+---------------+
|Notes: |
|1. CIM definitions were followed for Mineral Resources. |
|2. The Qualified Person for this Mineral Resource estimate is Tudorel |
|Ciuculescu, P.Geo. |
|3. Mineral Resources are estimated at a cut-off grade of 0.028% U3O8. |
|4. 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. |
|5. Total Rare Earth Oxides include La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, |
|Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, and Lu2O3. Y2O3 and Sc2O3 are|
|also included in TREO. |
|6. The resource wireframe at Eco Ridge contains both Indicated and Inferred |
|U3O8 and TREO resources within the near surface portion of the Main |
|Conglomerate Bed. |
|7. The U3O8 resource estimate is based on a total of 237 drill holes. These |
|comprise 152 recent drill holes drilled by Pele Mountain between 2006 and |
|2009, and 85 historic drill holes drilled between 1954 and 1974. |
|8. The REO resource estimate is based on a total of 123 recent drill holes. |
| |
+------------------------------------------------------------------------------+
Resource estimates for individual rare earth oxides are available on Pele's
website at www.pelemountain.com/pdfs/Table2_RareEarthOxides.pdf
The resource wireframe at Eco Ridge contains 14.3-million tonnes of Indicated
resources plus 33.1-million tonnes of Inferred resources. The deposit extends to
the north and east, beyond the resource wireframe boundaries. Based on
historical wide-spaced drilling and extrapolation of the resource area, RPA
estimates that these extensions could contain an additional 30 to 50 million
tonnes grading from 0.03 to 0.05-percent U3O8 and 0.12 to 0.18-percent TREO as a
"potential mineral deposit". Although there is no historical REO data in this
area, RPA expects that REO grades would be similar to other portions of the
deposit. The deposit also remains open beyond the drilled areas with potential
for significant expansion. 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.
The technical information relating to the NI 43-101 resource estimate in this
press release has been reviewed and approved by Roscoe Postle Associates. 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.
For further information please contact Al Shefsky, Pele's President, at (800)
315-7353, or visit the Pele website at www.pelemountain.com.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
BMorgan(at)investmentpitch.com
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: InvestmentPitch via Thomson Reuters ONE
[HUG#1491955]
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Datum: 24.02.2011 - 15:01 Uhr
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News-ID 51880
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