Symbol: GEM
Listing: TSX Venture Exchange
Common Shares Outstanding: 133,938,746
TORONTO,
July 21, 2011 /PRNewswire/ - Pele
Mountain Resources Inc. (TSXV: GEM)( OTCQX: GOLDF)
("Pele" or the "Company") announced today that it has
engaged Foundation Opportunities Inc. ("FOI") of
Toronto, on a non-exclusive basis,
to assist and advise Pele with its evaluation of strategic
alternatives regarding its Ontario
gold assets. Pele's gold assets, which are held in its
wholly-owned subsidiary, Pele Gold Corporation ("Pele Gold"), include a 100-percent interest
in the East & West Highland Gold projects, as well as a
49-percent interest in the Ardeen Gold project.
Pele's Preliminary Economic Assessment (the
"PEA") of its Eco Ridge Mine Project ("Eco Ridge")
demonstrates that it has the potential to become a profitable
producer of rare earth oxides ("REO") and uranium oxide
("U3O8").
Pele is focused on transitioning into the feasibility and licensing
stages as it advances Eco Ridge toward development and
production. For more information on the PEA of Eco Ridge,
please see Pele's press release dated July 5, 2011.
Pele President and
CEO Al Shefsky stated, "As we
advance Eco Ridge toward development, we believe that the time is
right to begin a strategic process to separate Eco Ridge from
Pele Gold. Our Highland gold
properties have demonstrated great potential for the discovery of
significant gold resources as well as near-term cash flow
opportunities, but may not be providing full value to shareholders
as we focus at Eco Ridge. With gold near its all-time highs
and the resurgence of exploration and development on the
Michipicoten Greenstone Belt ("MGB") and across the region,
we believe that our shareholders could benefit from holding our
considerable gold assets and Eco Ridge in separate vehicles."
Mr. Shefsky continued, "The relentless increase in
the gold price over the last decade has presented new mining
opportunities across Northern Ontario. While the important
historical gold mines of the MGB were high-grade, narrow-vein,
underground operations, at today's higher gold price, lower-grade,
open-pit deposits are also becoming economically attractive.
At the nearby Magino Mine, Prodigy Gold Inc. has reported an
Indicated Resource of nearly two million ounces of gold within wide
zones of lower grade mineralization at a past-producing underground
mine. A recent Preliminary Economic Assessment of Magino
indicates robust economics. In light of these developments and
past exploration results, we believe that our Highland properties
present a compelling investment opportunity."
Pele's Highland gold properties are located about
100 kilometres southeast of Hemlo
along the MGB, home to several past producing gold mines including
the Renabie Mine (more than one-million ounces produced) and where
Richmont Mines Inc. is now operating the Island Gold Mine. The
Highland properties have excellent geologic potential for the
discovery of high-grade narrow-vein gold deposits similar to the
Island Gold Mine and lower-grade high tonnage deposits similar to
Magino. At East Highland, Pele has received updated
engineering plans for the extraction of a high-grade, near-surface
bulk sample at the 'A' zone and has discovered widespread stockwork
quartz veining that includes visible gold at the Lone Ranger
zone. Past drilling and sampling at West Highland has
returned high-grade gold at numerous showings, including the
Springbank, Farquhar, Talisker, and Bowmore zones near the southern
contact of the Gutcher Lake Stock.
The Ardeen Gold Project is located along the
Shebandowan Greenstone Belt west of Thunder Bay and includes Northern Ontario's first gold
mine. Australian-based Coventry Resources Limited has notified
Pele that it has completed its initial 51-percent earn-in at Ardeen
and, as project operator, plans to resume exploration in 2011,
seeking to increase its project interest to 75-percent and then
forming a joint venture with Pele. Recent drilling by Coventry,
primarily at the Fisher zone, returned high-grade assays of up to
11.6 metres of 27.0 grams per tonne (g/t) gold and 41.1 g/t
silver. Coventry has reported that high-grade gold
mineralization at the Fisher zone extends over a strike length
exceeding 300 metres and remains open at depth. More than
12,000 metres of drilling at Ardeen by Pele in the 1990s also
returned numerous high-grade gold intercepts.
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 Rare Earths
deposits that has completed a NI 43-101 Preliminary Economic
Assessment with robust economics and is located in Elliot Lake, the only Canadian mining camp to
have ever achieved commercial REO production. 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".
About Foundation Opportunities Inc.
Foundation Opportunities Inc. ("FOI") is a Toronto-based boutique merchant bank and
corporate finance advisory firm. The firm is focused on working
with small and medium-sized companies with rapid growth potential,
specializing in assisting in mergers and acquisitions transactions,
and strategic advisory services. FOI is a wholly owned subsidiary
of Foundation Financial Holdings Corp. and the sister company of
the Toronto-based boutique
investment bank and exempt market dealer Foundation Markets
Inc.("FMI")
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.
