Indicated U3O8 Resources Up 138-Percent to 15.2-Million Pounds;
Inferred U3O8 Resources at 31.4-Million Pounds
Listing: TSX Venture Exchange
Common Shares Outstanding: 130,330,357
TORONTO, Jan. 24 /CNW/ - Pele Mountain Resources Inc. (TSX Venture: GEM) ("Pele" or the "Company") today announced a major increase in Indicated uranium oxide resources
as part of an updated NI 43-101 Resource Estimate ("Resource Estimate") at its Eco Ridge Mine uranium and rare earth elements ("REE") project near Elliot Lake in Northern Ontario. The Resource Estimate
supersedes the previous estimate contained in the 2007 Preliminary
Assessment authored by Scott Wilson Roscoe Postle Associates ("Scott Wilson RPA"). Pele is focused on the sustainable development of Eco Ridge, which is
owned 100-percent by First Canadian Uranium, a wholly owned subsidiary
Pele President and CEO Al Shefsky stated, "We are very excited about the
significant upgrade of our resources at Eco Ridge. We have retained
Scott Wilson RPA to provide an updated Preliminary Assessment ("PA") which is expected in the second quarter of 2011. The PA will feature
a detailed economic model based on combined revenues from uranium oxide
("U3O8") and rare earth oxides ("REO") and will include mining, processing, and waste management design
enhancements achieved since the initial 2007 Scoping Study. The PA
will also include a schedule of activities to advance the project
through the feasibility and licensing stages. We believe Pele's Eco
Ridge Mine project contains an important future source of uranium and
rare earth elements and we are determined to rapidly advance its
The Resource Wireframe ("Resource Wireframe"), which contains both Indicated and Inferred U3O8 resources within the near surface portion of the Main Conglomerate Bed
("MCB"), increased in size from the previous resource estimate. The Indicated
U3O8 resource has more than doubled to 15.2-million pounds (14.3-million
tonnes at 0.048-percent U3O8) with an additional Inferred U3O8 resource of 31.4-million pounds (33.1-million tonnes at 0.043-percent U3O8).
Scott Wilson RPA is continuing to evaluate 1537 REO assays (each
containing up to 17 elements) from 123 holes, the last of which were
received earlier this month. Within the Resource Wireframe, every drill
hole analysed has contained significant total rare earth oxides ("TREO") and the average grade of all of the samples is 3.7 pounds per tonne.
Average grades for each individual REO are available on Pele's website
at www.pelemountain.com/pdfs/RPAT2012411.pdf The REO resource estimate will be announced when it is available.
Scott Wilson RPA reports the following mineral resources at Eco Ridge:
TABLE 1 MINERAL RESOURCES - JANUARY 24, 2011
Pele Mountain Resources Inc. - Eco Ridge Project
CIM definitions were followed for Mineral Resources.
Mineral Resources are estimated at a cut-off grade of 0.028% U3O8.
Mineral Resources are estimated using an average long-term uranium price
of US$60 per lb, and a C$:US$ exchange rate of 0.95:1.00.
A minimum mining thickness of 1.8 metres was used.
Pele's Eco Ridge Mine deposit also extends down plunge and to the east
beyond the boundaries of the Resource Wireframe. Based on historical
wide-spaced drilling, Scott Wilson RPA estimates that these areas could
contain an additional 30 to 50 million tonnes grading from 0.03 to 0.05
percent U3O8 as a potential mineral deposit.1 There is no historical data on rare earths in this area, however,
Scott Wilson RPA expects that rare earths grades would be similar to
other portions of the deposit - from 3 to 4 pounds per tonne TREO. The
deposit also remains open beyond the drilled areas with potential for
Recent extraordinary REE 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 has competitive advantages that may assist its
development ahead of other projects. Elliot Lake is the only mining
camp in Canada to have achieved commercial production of REO and was
the most important source of heavy REO in North America. From 1956 to
1996, Rio Algom and Denison Mines produced more than 300 million pounds
of U3O8, along with significant quantities of Yttrium and REO, from Elliot Lake
deposits similar to Eco Ridge. As a primary uranium mine that would
produce REO as by-products, Eco Ridge is not wholly dependent on the
volatile REO market. Furthermore, the REO would go into solution
without addition mining or processing costs. With competitive
advantages, outstanding regional infrastructure, well-understood
geology and strong local support for the project, Eco Ridge provides an
ideal location for a safe, secure, and reliable long-term supply of
Uranium and REE.
The technical information relating to the Resource Estimate, rare earth
samples, and potential mineral deposit in this press release has been
reviewed and approved by Tudorel Ciuculescu, P.Geo of Scott Wilson RPA,
an independent Qualified Person under NI 43-101. The balance of this
press release has been reviewed and approved by Fergus Kerr, P.Eng.,
Vice President of Uranium Operations for Pele and a qualified person
under NI 43-101.
Pele Mountain Resources is focused on the sustainable development of its
Eco Ridge Mine Uranium and Rare Earth Elements ("REE") project, located in the Elliot Lake mining camp of Ontario. Pele's
expert team of technical personnel, advisors, and consultants is
working to optimize mining, processing, and waste management techniques
at Eco Ridge. With well-understood geology, excellent regional
infrastructure, and strong local support, Eco Ridge provides an ideal
location for a safe, secure, and reliable long-term supply of Uranium
and REE. Pele's shares are listed on the TSX Venture Exchange under the
The potential quantity and grade of the potential mineral deposit are
conceptual in nature and there has been insufficient exploration to
define a mineral resource and it is uncertain if further exploration
will result in the targets being delineated as a mineral resource.
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.
For further information:
please contact Al Shefsky, President, at (800) 315-7353, or visit the Pele website at www.pelemountain.com.