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.
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.