FOR
IMMEDIATE RELEASE
January 25, 2008 – Toronto
– Pele
Mountain Resources Inc. (TSX Venture: GEM)
("Pele" or the
"Company") today announced new drill results
from its Elliot Lake Uranium Mine Project in Northern
Ontario. Pele is advancing
the project to the licensing and feasibility stages, following
recommendations provided by Scott Wilson Roscoe Postle
Associates (“Scott Wilson RPA”) in its
recent positive Scoping Study. The ongoing 26-hole, 5,000-metre
in-fill drill program is designed to upgrade inferred resources to the indicated
classification for feasibility study purposes.
The Scoping Study focused on U3O8 mineralization
in the Main Conglomerate Bed (“MCB”) within
the Adit Block. The Adit
Block is a near-surface area of relatively higher-grade mineralization
that presents a favourable location for initial mining. The MCB
averages about 2.5
metres in thickness and extends across a strike
length of 6,000
metres and a dip length of at least 3,800 metres,
all within the Pele property.
As announced in Pele’s press
release dated September 19, 2007, the highest U3O8 grades
in the MCB, within the Adit Block, occur on
the western flanks of a topographic high in the basement rocks and
historic drill results on the north and east flanks of this same
feature indicated the potential for similar grades. The most
recent drill results show an arcuate shaped
extension of the near surface higher-grade mineralization within the Adit Block for approximately one kilometre around
the topographic basement high. Management is encouraged by these new
results and upon completion of the current phase of drilling, plans to
update the NI 43-101 resource estimate and projected economic models
for the project.
Additional assay results will be reported as they become
available, as will analyses of a recently completed VTEM
electromagnetic survey which was flown to help target conductive zones
capable of concentrating significantly higher-grade remobilized uranium
near the unconformity between the basement rocks and the overlying
sediments.
Drill
Results - Main Conglomerate Bed, North & East Flanks of Topographic
High
Hole
ID
|
From
(m)
|
Length
(m)
|
Est. True Width (m)
|
U3O8
%
|
|
|
|
|
|
PM-07-58*
|
276.68
|
2.08
|
1.98
|
0.039
|
PM-07-59*
|
185.96
|
2.31
|
2.20
|
0.034
|
PM-07-60
|
110.18
|
2.58
|
2.46
|
0.043
|
PM-07-61
|
101.46
|
2.54
|
2.35
|
0.042
|
PM-07-62
|
73.88
|
3.39
|
2.66
|
0.080
|
PM-07-63
|
81.97
|
3.03
|
2.85
|
0.055
|
PM-07-64
|
109.65
|
2.09
|
1.88
|
0.067
|
PM-07-65
|
Drilled south of MCB contact
|
PM-07-66
|
41.96
|
3.06
|
2.92
|
0.077
|
PM-07-67
|
168.35
|
2.89
|
2.75
|
0.046
|
PM-07-68
|
216.07
|
3.06
|
2.92
|
0.060
|
PM-07-69**
|
144.86
|
3.37
|
2.31
|
0.039
|
PM-07-70
|
205.00
|
2.50
|
2.38
|
0.069
|
PM-07-72
|
213.38
|
2.53
|
2.50
|
0.065
|
* Intersected outside higher grade zone
** Intersected outside Main Conglomerate Bed
This
press release has been reviewed and approved by Robert MacGregor
P.Geo., an independent Qualified Person under NI 43-101.
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.
1.
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.