Pele Mountain Intersects Higher-Grade Uranium & Rare Earths; Discovers Wide Mineralized Zone in Step-Out Drilling at Eco Ridge
Published : January 29, 2013
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TORONTO, ONTARIO--(Marketwire - Jan. 29, 2013) - Pele Mountain Resources Inc. (News - Market indicators) (OTCQX:GOLDF) ("Pele" or the "Company") today announced additional results from the recent 13-hole drill program at its Eco Ridge Mine Rare Earths and Uranium Project at Elliot Lake, Ontario. Pele announced the initial results of the first seven holes of this program on January 17, 2013. Pele has completed a positive Preliminary Economic Assessment ("PEA") for Eco Ridge that demonstrates its potential to become a profitable producer of rare earth oxides ("REO") and uranium oxide ("U3O8").

The program included step out drilling to the northwest and west of the existing resource wireframe. Pele targeted areas where wide-spaced historical drilling successfully intersected the Main Conglomerate Bed ("MCB"). Highlights from the Northwest Extension (northwest of the resource wireframe), include:

  • all eleven holes intersected the MCB along a strike length exceeding three kilometres;

  • nine of the eleven holes significantly exceeded the average U3O8 grade, and nine of the eleven holes significantly exceeded the total REO grade, of the resource wireframe;

  • hole PM227 returned 0.069-percent U3O8 and 2,065 ppm total REO over a true thickness of 3.44 metres, including 299 ppm neodymium oxide ("Nd2O3"), 100 ppm yttrium oxide ("Y2O3"), and 22 ppm dysprosium oxide ("Dy2O3"); and

  • hole PM222 returned 0.057-percent U3O8 and 1,949 ppm total REO over a true thickness of 3.71 metres, including 279 ppm Nd2O3, 94 ppm Y2O3, and 20 ppm Dy2O3.

Eight of the eleven holes drilled in the Northwest Extension also intersected significantly mineralized pyritic bands within the Stinson member, roughly 150 metres above the MCB. The Stinson member and the Ryan member (which hosts the MCB) are part of the Matinenda Formation, the lower part of the Huronian sequence, known to host the U-REE uranium deposits in the Elliot Lake area. Highlights from Stinson member intersections include:

  • the significantly mineralized zones ranged from 4.79 to 27.97 metres in true thickness, much wider than the MCB average true thickness of 2.76 metres within the resource wireframe. Assay results returned U3O8 grades nearly half, and total REO grades nearly two-thirds, of the average MCB grades within the resource wireframe;

  • hole PM222 returned 0.020-percent U3O8 and 1,045 ppm total REO over a true thickness of 27.97 metres, including 150 ppm Nd2O3, 49 ppm Y2O3, and 10 ppm Dy2O3; and

  • several intersections contained elevated levels of barium oxide (BaO), with Hole PM222 returning 2.69-percent BaO over a true thickness of 14.48 metres.

Pele President and CEO Al Shefsky stated, "These results continue to exceed expectations and have the potential to add substantial resources and years of mine-life to the project. The MCB clearly continues to the northwest and the mineralized intersections appear to be increasing in thickness and grade to the northwest, as depth increases. We are also greatly encouraged and intrigued by the discovery of much thicker zones of mineralization in the Stinson member. With true thicknesses up to nearly 28 metres, this new discovery represents an exciting new exploration opportunity for the project."

Click here to view a map showing the location of the recent drill holes.

MCB - Drilling Highlights from Northwest Extension
Hole ID From (m) True Width (m) Total REO (ppm) Light REO (ppm) Heavy REO (ppm) U3O8 (%)
PM214* 530.1 2.99 2,125 1,878 247 0.063
PM216* 600.8 2.76 1,887 1,668 219 0.055
PM218* 537.2 3.43 1,856 1,635 221 0.057
PM219** 589.2 3.05 1,390 1,205 184 0.048
PM220** 494.5 2.19 2,065 1,808 257 0.069
PM221 586.0 3.11 1,481 1,306 175 0.042
PM222 614.1 3.71 1,949 1,720 229 0.057
PM223 629.5 3.09 1,897 1,670 227 0.064
PM225 559.0 2.64 1,574 1,359 214 0.071
PM226 413.1 2.82 2,005 1,786 219 0.045
PM227 420.1 3.44 2,065 1,815 250 0.069
* Previously reported in Pele's press release dated January 17, 2013.
** Updated from previously reported results.
PM224 was abandoned in overburden and moved to a different location.
PM215 and PM217 are not part of the Northwest Extension drilling and reported in the table titled West Extension.
MCB - Assay Results for Critical Rare Earths (from Northwest Extension)
Hole ID Nd2O3 (ppm) Eu2O3 (ppm) Tb4O7 (ppm) Dy2O3 (ppm) Y2O3 (ppm)
PM214* 313 2.5 4.6 22 102
PM216* 258 2.4 4.1 19 90
PM218* 277 2.6 4.2 20 89
PM219** 201 2.1 3.5 16 75
PM220* 296 3.0 5.0 23 105
PM221 219 1.8 3.2 16 72
PM222 279 2.5 4.2 20 94
PM223 279 2.5 4.2 20 91
PM225 238 2.1 3.9 19 88
PM226 286 2.5 4.0 18 87
PM227 299 2.9 4.7 22 100
* Previously reported in Pele's press release dated January 17, 2013.
** Updated from previously reported results.
Stinson Member - Drilling Highlights from Northwest Extension
Hole ID From (m) True Width (m) Total REO (ppm) Light REO (ppm) Heavy REO (ppm) U3O8
PM218 367.1 10.61 996 884 111 0.019
PM220 314.8 5.88 933 828 105 0.002
PM221 416.6 7.86 816 722 93 0.017
  434.2 6.28 1,135 1,013 121 0.019
PM222 443.6 27.97 1,045 927 118 0.020
PM223 475.7 4.90 748 661 87 0.015
PM225 401.7 5.97 1,447 1,297 150 0.024
PM226 258.5 4.79 764 673 91 0.018
PM227 263.3 5.45 961 856 105 0.018
Stinson Member - Assay Results for Critical Rare Earths (from Northwest Extension)
Hole ID Nd2O3 (ppm) Eu2O3 (ppm) Tb4O7 (ppm) Dy2O3 (ppm) Y2O3 (ppm)
PM218 146 1.6 2.1 10 43
PM220 135 1.5 2.0 9 43
PM221 118 1.0 1.7 8 39
  165 1.6 2.2 10 49
PM222 150 1.3 2.2 10 49
PM223 106 1.2 1.5 7 35
PM225 206 1.8 2.7 13 60
PM226 107 1.3 1.6 7 37
PM227 134 1.4 1.9 9 43

Drill results for the MCB from the two holes completed in the West Extension (west of the resource wireframe near the western property boundary) were reported previously in Pele's press release dated January 17, 2013. The tables below contain updates to those results.

Drilling Highlights from West Extension
Hole ID From (m) True Width (m) Total REO (ppm) Light REO (ppm) Heavy REO (ppm) U3O8 (%)
PM215** 179.6 2.35 1,579 1,412 167 0.023
PM217** 82.8 2.29 1,476 1,313 163 0.023
Assay Results for Critical Rare Earths (from West Extension)
Hole ID Nd2O3 (ppm) Eu2O3 (ppm) Tb4O7 (ppm) Dy2O3 (ppm) Y2O3 (ppm)
PM215** 232 2.1 3.0 14 63
PM217** 213 2.0 3.0 14 65
** Updated from previously reported results.

To view the 43-101 Resources at Eco Ridge please visit

The mineral resources at Eco Ridge have excellent potential for upgrade and expansion with lower-than-normal exploration risk in the historically drilled areas, as demonstrated by the results announced today. The deposit remains open down dip and there is excellent potential to add new resources in other historically drilled areas of the property. The mineralized reefs of Elliot Lake are well known for their vast size and consistency. To-date, infill drilling at Eco Ridge has been 100-percent successful in upgrading Inferred resources to the Indicated category in the MCB.

The geological information in this press release has been reviewed and approved by Edward C. Walker, Ph.D., P. Geo., an independent Qualified Person as defined by NI 43-101.

About Pele

Pele Mountain Resources is focused on the sustainable development of its 100-percent owned Eco Ridge Mine Rare Earths and Uranium Project. Eco Ridge is located in Elliot Lake, the only Canadian mining camp to have ever achieved commercial rare earth production. Elliot Lake was once the major source of heavy rare earth, yttrium and uranium production in North America. With well-understood geology, mineralogy, and metallurgy, excellent regional infrastructure, and strong local support, Eco Ridge is an ideal location for the development of a safe, secure, and reliable long-term supply of critical rare earths and uranium. Pele's shares are listed on the TSX Venture Exchange under the symbol "GEM" and on the OTCQX under the symbol "GOLDF".

For further information please visit the Pele website at

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.

Shares Outstanding: 153,151,246

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.

Pele Mountain Resources Inc.
Al Shefsky
(800) 315-7353

Pele Mountain Resources Inc

ISIN : CA7059071034
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Pele Mountain Res. is an exploration and uranium company based in Canada.

Pele Mountain Res. develops rare earth in Canada, and holds various exploration projects in Canada.

Its main asset in development is ECO RIDGE in Canada and its main exploration properties are HIGHLAND (EAST / WEST), ARDEEN, ALLIANCE, SUDBURY and FESTIVAL in Canada.

Pele Mountain Res. is listed in Canada and in United States of America. Its market capitalisation is CA$ 12.6 millions as of today (US$ 9.6 millions, € 7.9 millions).

Its stock quote reached its highest recent level on December 31, 2007 at CA$ 1.62, and its lowest recent point on June 02, 2017 at CA$ 0.01.

Pele Mountain Res. has 210 000 000 shares outstanding.

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