September
7, 2010 - Toronto - Pele Mountain
Resources Inc. (TSX Venture symbol: GEM) ("Pele"
or the "Company") announced today that drilling has
recommenced at its East Highland Gold project in Northern
Ontario. East Highland
is 100-percent owned by Pele Gold Corporation, a wholly owned
subsidiary of the Company.
As
announced on June 25, Pele
has received preliminary engineering plans for the extraction of an
additional high-grade, near-surface bulk sample at the 'A' zone. The drill program seeks to extend the known
mineralized zone to the east through a series of shallow core holes totaling
approximately 500 metres of diamond drilling. The program is
being funded by an arm's-length party with whom Pele is discussing a
possible transaction involving its Highland
gold properties. Pele is also actively engaged in discussions
with other companies regarding their possible involvement at Highland.
Pele
President and CEO Al Shefsky
stated, "Recent extraordinary events that have caused sharp price
increases for Rare Earth Elements ("REE"), along with
excellent progress toward the completion of long-term engineering
studies to optimize capital and operating parameters, have prompted us
to intensify our efforts to advance development of our flagship Eco
Ridge Mine Uranium and REE project. At East
Highland, we are pursuing opportunities to generate near
term, non-dilutive revenue, either through the pending bulk sample, a
new strategic partnership, or both. With a dominant land position
through the heart of a prolific gold belt, we believe that we have
excellent near-term prospects to realize value at Highland."
Drilling
by Pele has established that the 'A' zone has a minimum 65 metre strike
length and extends to a vertical depth of at least 200 metres.
Earlier
this year, 29 holes were drilled at approximately 5-metre spacing in
the existing pit to a vertical depth of approximately 22 metres to
delineate a near-surface, mineable gold bulk sample (News release dated
March 16, 2010). Highlights from the
recent drilling, all over estimated true widths, include:
<!--[if !supportLists]-->� <!--[endif]-->34.20 g/t gold over 2.78 metres,
including significant visible gold (Hole #27)
<!--[if !supportLists]-->� <!--[endif]-->10.61 g/t gold over 4.40 metres (Hole #10)
<!--[if !supportLists]-->� <!--[endif]-->17.15 g/t gold over 2.40 metres (Hole #18)
Pele's
Highland gold properties are located approximately 100 kilometres
southeast of Hemlo in Northern Ontario,
along the Michipicoten Greenstone Belt, home to several past producing
gold mines including the Renabie Mine (more than one-million ounces)
and where Richmont Mines Inc. is operating the Island Gold Mine.
The Highland properties include
shear-hosted gold occurrences associated with quartz veining commonly
containing visible gold . Significant geological potential
for the discovery of a mineable gold deposit and outstanding local
infrastructure, including nearby modern gold milling facilities, leads
management to believe there are good opportunities to establish revenue
generating operations at East Highland.
This news
release has been reviewed and approved by Peter Dimmell, P.Geo. (NL, Temp
ON), a Pele Director and
a Qualified Person under National Instrument 43-101.
About
Pele
Pele
Mountain Resources is intensifying its efforts and focus on the
sustainable development of its Eco Ridge Mine Uranium and Rare Earth
Elements ("REE") project, located in the Elliot Lake
mining camp of Northern 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. Additionally, Pele has, or is actively seeking,
qualified strategic partners to advance its other high-potential
exploration projects, including high-grade gold properties at Highland
and Ardeen. Pele's shares are 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.
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.