TORONTO, May 17 /PRNewswire/ - Pele Mountain
Resources Inc. (TSX Venture: GEM; OTCQX: GOLDF)
("Pele" or the "Company") announced today that the
Province of Ontario has granted two mining leases (the "Mining
Leases") to Pele's wholly owned subsidiary, First Canadian Uranium
Inc., for its Eco Ridge Mine Rare Earths and Uranium Project.
The Mining Leases give Pele the exclusive right to mine the Eco
Ridge deposit and include surface rights that allow for siting of
project infrastructure and processing facilities. The Mining
Leases are for a period of 21 years (commencing on March 1, 2011)
and are renewable.
Pele President and CEO Al Shefsky stated, "The
receipt of our Mining Leases marks another important milestone on
the path to development at Eco Ridge. We recently updated the
project's NI 43-101 compliant resources with the inclusion of rare
earth oxide ("REO") resources for the first time, along with a
significant upgrade in uranium oxide ("U3O8")
resources. We remain on schedule to deliver an updated NI
43-101 Preliminary Assessment ("PA") next month that will
incorporate design enhancements achieved since the initial positive
Scoping Study in 2007 and, for the first time, providing an
economic model based on revenues from both REO and
U3O8. The PA will also include a
schedule of activities necessary to advance the project through the
feasibility and licensing stages. We believe Eco Ridge contains an
important future source of heavy REO and U3O8
and we are determined to rapidly advance its development."
The Eco Ridge Resource Estimate was prepared by
Roscoe Postle Associates and can be viewed at:
http://www.pelemountain.com/mineral-resources.php.
The Mining Leases cover an area of 3831 acres that
includes substantially all of the Resource Wireframe. The Eco Ridge
Mine project covers approximately 20,000 acres in total, including
areas down dip from the Resource Wireframe where historic drilling
has intersected the mineralized reef, indicating excellent
potential to significantly expand REO and
U3O8 resources. The total rent payable under
the Mining Leases is $4,651.62 annually.
In addition to the Mining Leases granted from the
Province of Ontario, As previously announced, Pele's subsidiary has
also entered into a 21-year lease for surface patents on mining
claims at Eco Ridge (the 'Surface Lease'), where mine portals and
other mining and processing infrastructure may be located (see
Pele's press dated July 27, 2009). The Surface Lease was
granted in 2009 for surface patents held by the City of Elliot Lake
and is indicative of Pele's excellent community relations and
strong local support for its Eco Ridge Mine project.
Recent extraordinary REO 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 contains
the full range of naturally occurring REO, including the highly
valued "heavy" REO. The mining and processing method to
recover uranium at Eco Ridge will also recover heavy REO (including
scandium and yttrium) into the leach solutions at no extra
cost. Eco Ridge is located within a proven mining camp at
Elliot Lake, formerly known as "the uranium capital of the world"
and an important source of heavy REO and yttrium.
About Pele
Pele Mountain Resources is focused on the sustainable development
of its 100-percent owned Eco Ridge Mine Rare Earths and Uranium
Project. Eco Ridge is one of very few North American deposits with
NI 43-101 compliant REO resources and is located in Elliot Lake,
the only Canadian mining camp to have ever achieved commercial REO
production. An updated Preliminary Assessment is on schedule for
expected delivery during the second quarter of 2011, incorporating
design enhancements achieved since the initial positive Scoping
Study in 2007 and, for the first time, providing a detailed
economic model based on revenues from both REO and
U3O8. With well-understood geology, excellent
regional infrastructure, and strong local support, Eco Ridge is an
ideal location for a safe, secure, and reliable long-term supply of
REO and U3O8. Pele also holds interests in a portfolio of Northern
Ontario gold properties at Highland and Ardeen. Pele's shares are
listed on the TSX Venture Exchange under the symbol "GEM"
and on the OTCQX under the symbol "GOLDF".
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.
SOURCE Pele Mountain Resources Inc.
