TORONTO, May 24, 2011 /CNW/ - 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
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
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.
For further information:
Al Shefsky, President, at (800) 315-7353, or visit the Pele website at www.pelemountain.com.