January 9, 2009 - Toronto - Pele
Mountain Resources Inc. (TSX Venture: GEM)
("Pele" or the "Company")
today announced drill results from its Eco Ridge Mine Project in the
historic Elliot Lake uranium mining camp of Northern Ontario. Since
its last drilling update in March 2008, Pele has completed an
additional 84 holes, totaling nearly 15,000 metres. The
program included both in-fill and step-out drilling, along with
additional drilling to acquire core for metallurgical testing, to
identify a site for a bulk sample, to test ground conditions beneath an
area proposed for processing facilities, and to acquire
hydro-geological data required for the mine permitting process.
With its excellent regional
infrastructure, well-understood geology, and politically-stable and
mining-friendly jurisdiction, Elliot Lake
is an ideal location for the development of a long-term uranium
supply. Pele's 100-percent owned Eco Ridge Mine property contains
a NI 43-101 compliant resource of 6.4 million pounds of
"indicated" U3O8 (5.68 million
tonnes grading 0.051 percent U3O8) and 36.1 million
pounds of "inferred" U3O8 (37.26 tonnes
grading 0.044 percent U3O8) with the potential
for significant expansion. More than 300 million pounds of U3O8
were mined from similar deposits near Elliot Lake by Rio Algom
and Denison Mines from 1956 to 1996.
Pele commenced the permitting process for the Eco Ridge Mine by filing
a Project Description (see Pele website at www.pelemountain.net)
with the Canadian Nuclear Safety Commission and the Federal
Government's Major Project Management Office. (See Pele press
release dated September 8, 2008.) The document details Pele's
approach to the sustainable development of uranium operations at Eco
Ridge. Since the release of that document, Pele also announced the
postponement of its pre-feasibility study and certain components of the
permitting process as cost-cutting measures, in response to difficult
market conditions. (See Pele press release dated October 28,
2008.) Other aspects of development continue to advance at the project.
Most of the newly-reported holes are from in-fill drilling within the
Adit Block, a near-surface area of relatively higher-grade
mineralization within the Main Conglomerate Bed ("MCB") that
presents a favorable location for initial mining and areas to the north
and east of the Adit Block. The MCB, which contains the higher
grade uranium mineralization outcrops on the property and extends over
a strike length of 6,000
meters. The uranium mineralization has
been intersected in holes at a depth of 1,000 meters
and over a dip length of about 3,800 meters. The
drilling provided further confirmation of uranium mineralization
continuity and delineated relatively higher-grade trends that run from
southeast to northwest and which remain open. The in-fill drill
program was designed by SRK Consulting to create a block model for mine
design purposes.
Drill holes PM08-100, 101 and 108 were step-outs that successfully
intersected the projected northwest trend of relatively higher grade
uranium mineralization. This trend extends out from the region of
higher density drilling of the Adit Block. PM08-108, located beyond the
boundaries of the NI 43-101 compliant resource, returned 0.072% U3O8
over 2.48
metres, once again confirming outstanding
potential for resource expansion downdip and towards the north-west.
Drill holes PM08-105, 106, 107,
109-115, and 117-119 provided approximately 200 kilograms
of core for metallurgical testing by SGS Lakefield Research for processing
circuit design and by MIRARCO for closure study purposes. Drill
holes PM08-165 and 166 were located near the deposit outcrop to
identify a site for the extraction of a 35-tonne bulk sample for
additional metallurgical testing.
Drill Results - Main Conglomerate Bed- Adit Block &
Extensions to North & East
|
Hole
ID
|
From
(m)
|
Length
(m)
|
Est. True Width (m)
|
U3O8
(%)
|
|
PM08-83
|
240.07
|
2.85
|
2.47
|
0.056
|
|
PM08-84
|
234.69
|
2.36
|
2.19
|
0.025
|
|
PM08-85
|
207.22
|
2.59
|
2.50
|
0.037
|
|
PM08-86
|
192.65
|
1.56
|
1.51
|
0.035
|
|
PM08-87
|
198.39
|
2.58
|
2.49
|
0.043
|
|
PM08-89*
|
237.48
|
2.52
|
2.49
|
0.112
|
|
PM08-90*
|
317.80
|
1.75
|
1.72
|
0.010
|
|
PM08-100
|
299.28
|
2.82
|
2.72
|
0.059
|
|
PM08-101
|
309.62
|
2.58
|
2.50
|
0.056
|
|
PM08-105
|
22.30
|
2.80
|
2.54
|
0.045
|
|
PM08-106
|
21.80
|
2.56
|
2.55
|
0.040
|
|
PM08-107
|
24.12
|
2.54
|
2.45
|
0.035
|
|
PM08-108*
|
335.33
|
2.59
|
2.48
|
0.072
|
|
PM08-109
|
42.70
|
5.25
|
2.46
|
0.052
|
|
PM08-110
|
41.96
|
7.94
|
3.72
|
0.058
|
|
PM08-111
|
138.80
|
4.60
|
2.51
|
0.062
|
|
PM08-112
|
143.40
|
9.30
|
5.07
|
0.048
|
|
PM08-113
|
113.30
|
5.10
|
2.78
|
0.061
|
|
PM08-114
|
111.00
|
6.40
|
3.49
|
0.046
|
|
PM08-115
|
110.76
|
5.16
|
2.81
|
0.068
|
|
PM08-116
|
105.63
|
4.38
|
2.39
|
0.041
|
|
PM08-117
|
70.30
|
5.70
|
2.67
|
0.082
|
|
PM08-118
|
75..20
|
5.50
|
2.58
|
0.065
|
|
PM08-119
|
65.05
|
5.25
|
2.46
|
0.078
|
|
PM08-124
|
83.03
|
3.64
|
3.63
|
0.048
|
|
PM08-125
|
56.98
|
3.09
|
3.08
|
0.076
|
|
PM08-126
|
164.56
|
2.16
|
2.15
|
0.040
|
|
PM08-127
|
146.84
|
2.46
|
2.42
|
0.051
|
|
PM08-128
|
135.74
|
2.60
|
2.60
|
0.047
|
|
PM08-130
|
88.41
|
2.40
|
2.39
|
0.041
|
|
PM08-131
|
98.61
|
2.58
|
2.57
|
0.034
|
|
PM08-132
|
58.40
|
4.17
|
3.72
|
0.046
|
|
PM08-133
|
225.67
|
2.27
|
2.26
|
0.029
|
|
PM08-134
|
126.54
|
2.17
|
2.16
|
0.038
|
|
PM08-135
|
186.45
|
2.61
|
2.45
|
0.033
|
|
PM08-136
|
211.23
|
2.18
|
2.05
|
0.042
|
|
PM08-137
|
63.64
|
2.45
|
2.44
|
0.040
|
|
PM08-138
|
75.40
|
3.35
|
3.33
|
0.043
|
|
PM08-139
|
108.54
|
3.15
|
3.13
|
0.046
|
|
PM08-141
|
191.13
|
2.17
|
1.90
|
0.037
|
|
PM08-142
|
185.50
|
2.43
|
2.42
|
0.045
|
|
PM08-143
|
241.71
|
3.06
|
3.05
|
0.027
|
|
PM08-144
|
185.10
|
1.33
|
1.32
|
0.038
|
|
PM08-145
|
294.42
|
2.51
|
2.50
|
0.035
|
|
PM08-146
|
236.91
|
2.76
|
2.75
|
0.042
|
|
PM08-147
|
150.50
|
2.53
|
2.53
|
0.041
|
|
PM08-148
|
237.24
|
2.63
|
2.63
|
0.037
|
|
PM08-149
|
176.03
|
2.49
|
2.48
|
0.040
|
|
PM08-150
|
242.88
|
3.37
|
3.36
|
0.044
|
|
PM08-151
|
165.50
|
3.30
|
3.29
|
0.046
|
|
PM08-152
|
295.28
|
2.45
|
2.43
|
0.058
|
|
PM08-153
|
192.91
|
2.86
|
2.85
|
0.057
|
|
PM08-154
|
275.89
|
2.31
|
2.30
|
0.050
|
|
PM08-155
|
181.28
|
2.77
|
2.76
|
0.071
|
|
PM08-156
|
232.22
|
2.66
|
2.65
|
0.034
|
|
PM08-157
|
220.38
|
2.44
|
2.42
|
0.062
|
|
PM08-158
|
265.00
|
2.71
|
2.70
|
0.040
|
|
PM08-159
|
188.85
|
2.66
|
2.65
|
0.064
|
|
PM08-160
|
253.40
|
2.40
|
2.40
|
0.053
|
|
PM08-161
|
165.09
|
2.99
|
2.98
|
0.051
|
|
PM08-162
|
208.48
|
2.55
|
2.54
|
0.051
|
|
PM08-163
|
140.05
|
2.67
|
2.51
|
0.027
|
|
PM08-164
|
268.92
|
2.45
|
2.44
|
0.059
|
|
PM08-165
|
1.89
|
3.14
|
3.13
|
0..051
|
|
PM08-166
|
3.47
|
3.45
|
3.44
|
0.050
|
* designed to test airborne geophysical
anomalies
This press release has been reviewed and approved by Fergus Kerr P.
Eng., Vice President Uranium Operations for the Company and a Qualified
Person under NI 43-101.
About Pele Mountain
Resources
Pele Mountain Resources is focused on the sustainable development of
its Eco Ridge Mine uranium project in the historic Elliot Lake mining
camp. The Company is developing a safe, secure, and reliable
long-term source of uranium in order to deliver lasting benefitsto
local communities and its shareholders. Pele also holds a diverse
portfolio of gold, diamond, and base metal projects in Northern Ontario. Pele stock is listed on
the TSX Venture Exchange under the symbol "GEM".
For further information please contact Al
Shefsky, President, at (800) 315-7353, or visit the
Pele website at www.pelemountain.com.
The TSX-V has not reviewed and does not accept
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 resources at Pele's Eco Ridge Mine has not yet been
demonstrated by a pre feasibility study.