TORONTO, May 17 /CNW/ - 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
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
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.
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.
For further information:
please contact Al Shefsky, President, at (800) 315-7353, or visit the Pele website at www.pelemountain.com