Pele Mountain Intersects Higher-Grade Uranium & Rare Earths; Discovers Wide Mineralized Zone in Step-Out Drilling at Eco Ridge
January 29, 2013 - Toronto - Pele Mountain Resources Inc.. (TSX Venture: GEM; 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)
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 http://www.pelemountain.com/pdfs/PEA_ResTable.pdf
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.