GEM newsPele Mountain Resources Inc.: Drilling Intersects High Grade Gold within 1,200-Metre Long Structure at Pele Mountain's Highland Project New Structural Interpretation Leads to Exciting Discovery
9/7/2006
Toronto, Ontario CANADA, Sep 07, 2006 (M2 PRESSWIRE via COMTEX News Network) --
Pele Mountain Resources Inc. (GEM - TSX Venture), ("Pele" or the "Company") today announced assay results from the first 18 holes of its ongoing drill program at the Highland Project in northern Ontario. Highland is 100-percent owned by Pele Gold Corporation ("Pele Gold"), a wholly-owned subsidiary of the Company.
Drilling from west of the Farquhar gold zone eastward toward the Bowmore gold zone has identified a gold-bearing shear-hosted vein system within a structure that extends for more than 1,200 metres. Analysis of high-resolution aerial photographs identified structures in the area that had not been previously tested. The structural analysis also suggests the potential to extend the recent discovery in both directions along strike and to discover new gold-bearing shear zones within parallel structures. This structural discovery was made possible by the recent consolidation of five properties that had remained separate since gold was discovered in the area in the 1920s.
Pele President and CEO Al Shefsky stated, "This discovery represents an important breakthrough in our gold exploration at Highland. While we have repeatedly encountered near-surface, high-grade gold occurrences throughout the project area, the structure that includes the Farquhar gold zone and the Bowmore discovery zone is the largest and most continuous yet discovered. This large-scale gold system, with wide zones of strong alteration and shearing, provides that type of environment capable of hosting a significant gold deposit."
Assays have been received for holes drilled west of and within the Farquhar zone at roughly 50-metre spacing, intersecting the shear at vertical depths ranging up to 80 metres, including three holes that contain visible gold. About one-kilometre to the east, another drill hole intersected visible gold in multiple quartz veins at the Bowmore gold zone. Shearing within the structure is more than 40 metres wide with higher gold assays associated with visible gold and sulfides in quartz veins and lenses that pinch and swell. The drill results confirm the presence of high-grade gold in a structural setting very similar to past producing mines in the area, as well as to the Island Gold Mine where production is now resuming.
All of the 18 holes reported today intersected gold mineralization and results are reported in the tables below, along with two historic holes that indicate eastward continuity of the Farquhar zone.
Farquhar Gold Zone
https://www.usetdas.com/maps/pelemountain/FarquharGoldZone.pdf
Farquhar Gold Zone (Historical)
https://www.usetdas.com/maps/pelemountain/FarquharGoldZoneHistorical.pdf
* Gold assay data reported by Rio Tinto Canada Exploration from drill core results obtained in 1981.
** Gold assay data reported by McAdam Resources Inc. of drill core results obtained in 1988.
Bowmore Gold Zone
https://www.usetdas.com/maps/pelemountain/BowmoreGoldZone.pdf
Other Drill Holes (west of Farquhar)
https://www.usetdas.com/maps/pelemountain/Other.pdf
The true width of the intersections has not yet been determined.
The ongoing drill program at Highland has objectives of in-fill drilling to delineate resources within gold-bearing zones and extending gold-bearing zones along strike and at depth. A mechanical stripping program along the structure from Bowmore to Farquhar is also planned. Additional drill core from the Farquhar and Bowmore areas, along with other gold and gold-copper occurrences on Pele's western Highland properties, is in the process of being sampled and shipped to the lab for assay analysis.
Pele also announced today the launch of its new corporate website. The Company wishes to invite its current and future shareholders to visit the new site at www.pelemountain.com.
All the current gold data reported was processed and assayed using standard 50 gram pulp fire assaying techniques by Accurassay Laboratories in Thunder Bay, Ontario, an ISO 17025 accredited laboratory. This press release has been reviewed and approved by Dr. Edward Walker, P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101.
About Pele Mountain Resources
Pele Mountain Resources is discovering and developing the mineral wealth of northern Ontario. Pele is focused on the exploration and development of high-grade gold zones at its 100-percent owned Highland project, within the prolific Goudreau-Lochalsh mining camp. Exploration results at Highland indicate outstanding potential for significant near-surface gold resources and existing regional infrastructure provides clear opportunities for revenue generating operations. Pele is a generative exploration company holding a diverse portfolio of gold, diamond, base metal, and uranium projects, providing exposure and leverage to discovery and to the increased global demand for natural resources. Four Pele projects are currently funded through agreements with strategic partners, including Goldcorp, Wallbridge Mining, Trigon Exploration, East West Resources and Maple Minerals (a division of Mega Uranium). Pele stock trades on the TSX Venture Exchange under the symbol "GEM".