Archived Data Reveals Mineralization Nearly 2-Kilometres Beyond Previously Outlined Limits, Toward Newly-Acquired Mining Claims
Pele has an inferred resource totaling over 33-million pounds U3O8 at Elliot Lake, where the Company is focused on its near term objective to develop a world-class mine.
Archived drill logs for two holes by Stancan Exploration in 1955 have been located at the Ministry of Northern Development and Mines (MNDM) and demonstrate that the down-dip extension of uranium bearing conglomerates continues significantly farther than the zones outlined in the Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") NI 43-101 Technical Report completed in January, 2007 (the "Report"). The two holes were located approximately 530 metres and 1,830 metres north of what has been termed the "potential mineral deposit" in the Report, and intersected radioactive conglomerates at depths of about 800 and 900 metres, respectively. Pele's newly-staked claims extend the property to the north, well beyond the locations of the Stancan holes, where the deposit remains open.
The project is now comprised of 313 mining claim units covering approximately 12,500 acres. The package includes:
- A 30.05-million tonne inferred mineral resource grading 0.05-percent U3O8, totaling 33.05-million pounds U3O8 comprised of the near-surface portion of the Main Conglomerate Bed, some of which will be upgraded to "indicated" following the receipt of pending assays, geological interpretation and block modeling.
- An additional potential mineral deposit of 25 to 30 million tonnes at grades ranging from 0.04 to 0.05 percent U3O81 comprised of the down-dip extension of the mineral resource, some of which may be upgraded to "inferred mineral resource" pending the success of a planned drill program.
- The continuation of the down-dip extension of uranium bearing conglomerates at least 1,830 metres north of the current boundary of the "potential mineral deposit" toward the new northern claims.
Pele President and CEO Al Shefsky stated, "With uranium prices surging to all time highs, the implications of these historic drill holes are particularly significant. This data confirms the promising exploration potential of our northern claims and suggests that the overall size of the deposit may be significantly larger than currently realized."
Technical, economic, and environmental scoping studies and exploration assessments continue to advance at Elliot Lake under the supervision of Scott Wilson RPA. The studies are focused on determining the optimal mining and processing methods for the deposit while establishing an effective environmental management plan. Assay results from Pele's initial 22-hole drill program are expected later this month.
This press release has been reviewed and approved by Robert MacGregor, P.Eng., an independent Qualified Person under NI 43-101 with 14 years experience working in the Elliot Lake area during its time as an active uranium mining camp. Any reference to the Report has been reviewed and approved by Lawrence B. Cochrane, Ph.D., P. Eng. of Scott Wilson RPA, a "Qualified Person" under NI 43-101.
About Pele Mountain Resources
Pele Mountain Resources is focused on developing a world-class mining and processing facility at its 100-percent owned Elliot Lake Uranium Project in Northern Ontario The project hosts a NI 43-101 compliant inferred resource of over 33 million pounds of U3O8 with the potential for significant near-term upgrade and expansion. Scott Wilson RPA is collaborating with experienced professionals from a wide range of disciplines to lead its recommended technical, economic, and environmental scoping studies.
The Elliot Lake camp was once known as "the uranium capital of the world" and has produced more than 270 million pounds of U3O8 from stratigraphically-bound deposits that demonstrate remarkable consistency over extensive areas. The uranium market is currently experiencing a strong upward price trend due to surging global demand and increasingly uncertain supply.
Pele also holds a diverse portfolio of gold, diamond, and base metal projects located across Northern Ontario, including the Highland Project where drilling has outlined several high-grade, narrow-vein gold zones within an historic mining camp. Through project generation and mineral discovery, Pele provides shareholders with exposure and leverage to the ongoing bull market in natural resources. Pele stock trades on the TSX Venture Exchange under the symbol "GEM".
For further information please contact Al Shefsky, President, at 416-368-7224
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.
The TSX Venture Exchange has not reviewed and does not accept 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.
Related project: elliot lake
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