TORONTO, May 24, 2011 /PRNewswire/ - Pele Mountain
Resources Inc. (TSX Venture: GEM; OTCQX: GOLDF)
("Pele" or the "Company") today announced the arrival
of two drill rigs and the commencement of a 7,000-metre drill
program at its Eco Ridge Mine Rare Earths and Uranium Project at
Elliot Lake, Ontario. Eco
Ridge is 100-percent owned by First Canadian Uranium Inc., a wholly
owned subsidiary of the Company.
As the mineralized reefs of the Elliot Lake mining camp are well known for
their consistency and size, the mineral resources at Eco Ridge have
excellent potential for upgrade and expansion. The program
will include in-fill drilling within the existing Resource
Wireframe with an objective of upgrading up to 5-million tonnes of
Inferred Resources into the Indicated category. Indicated
Resources will be required for mine planning purposes in NI 43-101
reports subsequent to the pending updated Preliminary Assessment,
which is on schedule for delivery next month. The program
will also include step-out drilling to the north and east of the
Resource Wireframe with an objective of bringing up to 10-million
additional tonnes of the mineralized reef into the Inferred
Resource category.
Pele recently received an updated NI 43-101
Resource Estimate for Eco Ridge, which for the first time included
both rare earth oxides ("REO") and uranium oxide
("U3O8").
- The Indicated Resources include 51.9-million pounds of total
rare earth oxides ("TREO") (14.3-million tonnes at 0.164-percent)
and 15.2-million pounds U3O8 (14.3-million
tonnes at 0.048-percent).
- The Inferred Resources include an additional 96.3-million
pounds TREO (33.1-million tonnes at 0.132-percent) plus
31.4-million pounds U3O8 (33.1-million tonnes
at 0.043-percent).
The Eco Ridge Resource Estimate was prepared by Roscoe Postle
Associates and can be viewed at:
http://www.pelemountain.com/mineral-resources.php.
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 REO 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 a historically 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.
