by Mark Weaver
TORONTO, May 4 /PRNewswire/ - Pele Mountain Resources Inc. (TSX-V:GEM) (OTCQX: GOLDF) remains one of our top recommendations since we first introduced it to our readers in October, 2010. We remain very confident in Pele Mountain's growth potential. This is a company managing the exploration and development of rare earths, uranium and gold projects within the politically stable and mining friendly Province of Ontario, Canada. Our recent interview with Pele Mountain's President, Al Shefsky can be found at http://www.pelemountain.com.
Pele's flagship property is its 100-percent owned Eco Ridge Mine Rare Earths and Uranium Project located in Elliot Lake, Ontario. With well-understood geology, excellent infrastructure, and strong local support, Eco Ridge provides an ideal location for a safe, secure, and reliable long-term supply of rare earths and uranium. Pele Mountain's Eco Ridge Mine project contains strategic metals for which the underlying market prices are rapidly increasing, especially the rare earth oxides ("REO"). The most recent resource estimate for the Eco Ridge property identified 51.9-million pounds of "Indicated" total rare earth oxides ("TREO") plus an additional 96.3-million pounds of "Inferred" TREO. These resources are in addition to 15.2-million pounds of Indicated uranium oxide ("U3O8") plus an additional 31.4-million pounds of Inferred U3O8, as announced in Pele's press release dated February 24, 2011. Mr. Shefsky stated, "The Eco Ridge Mine deposit is exciting because it has the potential to provide diversified revenue from both REO and U3O8 and it places Pele on a short list of emerging North American rare earths developers."
In our May 3 interview with Mr. Shefsky, he identified his priorities in the development of the Eco Ridge property including the completion of an updated NI 43-101 Preliminary Assessment ("PA"), which is expected in the current calendar quarter. Mr. Shefsky stated, "The Preliminary Assessment will feature a detailed economic model based on combined revenues from REO and U3O8 and will include significant mining, processing and waste management design enhancements achieved since Pele's initial positive Scoping Study in 2007. We believe Eco Ridge contains an important future source of REO and U3O8 and we are determined to rapidly advance its development."
From the beginning, we identified Pele Mountain as a triple play in resources because it offers investors exposure to rare earths, uranium and gold projects. Pele holds a 100-percent interest in its Highland gold properties, which are among the largest property holdings in the prolific Goudreau Lochalsh Deformation Zone. Drilling at several high-grade occurrences has demonstrated the potential for significant resources at Highland. Recently announced engineering plans for a surface bulk sample, show the potential to generate near term revenue from the recovery of up to 2,500 ounces of gold at the 'A' zone. Pele's Ardeen gold project is operated by Australian-based Coventry Resources Ltd., which is in the process of increasing its ownership in the property from its current level of 51% to 75%. Click here for more details from our interview.
Pele Mountain began trading on the OTCQX under the symbol GOLDF on May 3, 2011 and is likely to benefit from enhanced visibility and liquidity in the United States.
Pele Mountain represents a long term buying opportunity to us. It is a lot like a portfolio-structured, resource play in that it offers shareholders a unique and diversified opportunity to invest in rare earths, uranium and gold all at once. Pele's excellent management team has demonstrated a commitment to advancing each of these projects and unlocking their value for shareholders. Through its listing on the OTCQX, shareholders can expect Pele's profile to grow as demand for safe, secure, and reliable long-term supplies of REO and U3O8 increases around the world.
Forward-Looking Statements: Some of the statements contained in the above article are forward‐looking statements and not statements of facts. Such statements are based on publically available information contained in Pele Mountain Resources Inc.'s press releases or assumptions made from other publicly available documents. Forward‐looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Readers must rely on their own evaluation of these uncertainties.
Mark Weaver is an equities analyst working in association with J Taylor, Taylor Hard Money Advisors. He has followed this stock since October 2010 when it traded at $0.17 per share.
SOURCE Money In Metals