FOR IMMEDIATE RELEASE
February 5, 2008 - Toronto - Pele Mountain Resources (TSX Venture:GEM) (“Pele” or the “Company”) announced today that Pele Gold Corporation (“Pele Gold”), a wholly-owned subsidiary of the Company, has made its final payment to the former licensees of a property that includes portions of the mineralized westward extension of the historic Murphy Gold Mine. The property (the “Licensed Area”) is part of Pele Gold’s 100-percent owned Highland Project in Northern Ontario.
The third scheduled payment of $15,000 in cash and 80,000 common shares of Pele was made pursuant to a Memorandum of Agreement explained in Pele’s press release dated March 3, 2006. Furthermore, the parties have agreed that in consideration of this payment, Pele is released from all future obligations in respect of the Memorandum of Agreement, including the final scheduled payment of $20,000 in cash and 80,000 common shares of Pele which would have otherwise been due on January 15, 2009.
Pele President and CEO Al Shefsky stated, “While we continue to focus on advancing our Elliot Lake Uranium Mine Project, our diverse portfolio of Northern Ontario exploration projects remains intact. With gold prices near all-time highs, we are continuing discussions on several fronts regarding how to best advance our excellent gold projects at Highland and Ardeen in order to realize their value for our shareholders..”
The gold-bearing shear zones of the Murphy Gold Mine occur at the eastern contact of the Gutcher Lake Stock within the Goudreau-Lochalsh Deformation Zone (“GLDZ”). The property includes the western extension of the Main Vein and the entire North Vein of the Murphy Gold Mine. In the late-1980s, Orequest Consultants Ltd. drilled 51 holes totaling nearly 12,000-metres to the west of the Murphy No.1 shaft, demonstrating that both veins contain ore-grade gold values over 1 to 2-metre widths at depths of 300 metres or less. Additional drilling on both veins will be required to determine their resource potential in compliance with NI 43-101.
The Highland project covers more than 10,000 acres of the GLDZ, giving Pele the one of the largest land positions within this historic and re-emerging mining camp. The Company has drilled over 10,000 metres at Highland to-date and has successfully mined a 10,000-tonne bulk sample that was transported to Hemlo for processing and gold recovery. With encouraging exploration results, nearby custom milling facilities and outstanding local infrastructure, Pele management believes that this project is well positioned to benefit from the current rising trend in gold prices.
About Pele Mountain Resources
Pele Mountain Resources provides investors with leverage to uranium as it advances its 100-percent owned Elliot Lake Uranium Project toward objectives of development and production. The project hosts more than 42-million pounds of NI 43-101 compliant U3O8 resources (6.4 million pounds “indicated” at a grade of 0.051-percent and 36.1 million pounds “inferred” at a grade of 0.044-percent) and has received a positive Scoping Study, providing the basis for economically-viable, environmentally-compliant uranium mining and processing operations.1 The Elliot Lake mining camp has produced more than 300 million pounds of U3O8 and was formerly known as the “Uranium Capital of the World”. 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 Scoping Study is preliminary in nature and includes both indicated and inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Scoping Study will be realized.
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 resource at Pele's Elliot Lake Project has not yet been demonstrated by a preliminary feasibility study.