FOR IMMEDIATE RELEASE
May 01, 2008 - Toronto - Pele Mountain Resources Inc. (TSX Venture: GEM) ("Pele" or the "Company") announced
today that it will initiate a NI 43-101 compliant pre-feasibility study
for its Elliot Lake Uranium Mine Project. Pele is advancing its
100-percent owned project to the licensing and feasibility stages,
following recommendations provided by Scott Wilson Roscoe Postle
Associates ("SWRPA")
in its positive scoping study (the "Scoping Study").
Pele President and CEO Al Shefsky stated,
"On-going mining, processing, and waste management optimization
studies at Elliot Lake are advancing the project beyond last October's
Scoping Study, leading us to conclude that a pre-feasibility study will
add significant value. We continue to assess and pursue opportunities
to maximize the project's economic, environmental, and social benefits.
Our objective is to develop a safe, secure, and reliable uranium mine
at Elliot Lake, providing sustainable long-term growth for our
shareholders and the local communities."
Pele has requested proposals from SRK
Consulting and SNC-Lavalin Inc. to prepare the pre-feasibility study
with a target completion date of year-end 2008. Meanwhile, Pele is
continuing work programs to upgrade NI 43-101 resources that will be
included in the pre-feasibility study, preparations for the
Environmental Assessment and the licensing application process, and its
community relations activities.
Pele places great
value on its relationships within the City of Elliot Lake and the
Serpent River First Nation ("SRFN") with which it enjoys
regular, friendly, and productive communications. Chief Isadore Day of
the SRFN recently stated that: "The Serpent River First Nation is
optimistic that Pele's recent efforts at transparency and in publicly
acknowledging Serpent River First Nation interests; have created a
solid basis for future dealings, including Pele's willingness to
collaborate on the beginnings of the consultation process".
Pele has strived to
implement best practices in its dealings with the SRFN. The Company's
commitment to this process has been demonstrated by its ongoing and
frequent communications with the Chief and members of the SRFN Council,
engaging the Anishinabek/Ontario Fisheries Resource Centre (A/OFRC) to
conduct the aquatic environmental baseline studies, providing capacity
funding for the review of technical data, providing employment
opportunities for SRFN members, and actively working towards a
comprehensive framework for consultation. Pele intends to continue
strengthening its relationship with the SRFN as it proceeds with
exploration and development work at Elliot Lake, in compliance with all
applicable laws and regulations.
About Pele
Mountain Resources
Pele Mountain
Resources provides investors with superior leverage to uranium as it advances
its 100-percent owned Elliot Lake Uranium Project toward objectives of
development and production. The project hosts substantial 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 preliminary
assessment 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.