Pele Mountain Provides Gold Projects UpdateTORONTO, March 7 /CNW/ - Pele Mountain Resources Inc. (TSX Venture symbol: GEM) ("Pele" or the "Company") today provided an update on its Ardeen and East Highland gold projects. Pele is pursuing strategies to unlock value at its gold projects as it focuses on the sustainable development of its Eco Ridge Mine Uranium and Rare Earths project.
Australian-based Coventry Resources Ltd. ("Coventry")has notified the Company that it has satisfied all conditions necessary to complete its initial 51-percent earn-in at Pele's Ardeen Gold Project, along the Shebandowan Greenstone Belt in Northern Ontario. Furthermore, Coventry has advised Pele that it intends to increase its project interest to 75-percent by making additional required exploration expenditures by January 2013, and then forming a joint venture with Pele. Coventry will continue as the project operator during the option period and plans to resume exploration at Ardeen in the spring.
In late 2009, Coventry completed a 53-hole, 6,435-metre diamond drill program at Ardeen, targeting along strike and down-plunge extensions of known high-grade gold mineralization, returning assays of up to 11.6 metres of 27.0 grams per tonne (g/t) gold and 41.1 g/t silver. More than 12,000 metres of drilling at Ardeen by Pele in the 1990s also returned numerous high-grade gold intercepts. Coventry has completed its initial earn-in, and the Ardeen project is now 49 percent owned by Pele Gold.
Pele also announced that it has received updated engineering plans for the extraction of a high-grade, near-surface bulk sample which is expected to return up to 2,500 ounces of gold at the 'A' zone at East Highland. In the late-1990s, approximately 3,800 tonnes of material was mined from a shallow open pit at the 'A' Zone, returning an average gold grade of about 5 grams per tonne (g/t). Plans for the bulk sample include widening and deepening the existing pit under the existing closure plan. The selection of a mill for processing ore from the bulk sample has not been finalized.
Pele President and CEO Al Shefsky stated, "We continue to seek a qualified partner to explore and develop our Highland gold properties as we concentrate on the development of Eco Ridge. We believe that Highland has excellent potential for near-term cash flow opportunities as well as the delineation of significant gold resources."
Pele also announced results from drilling at the 'A' zone which was planned, performed, and paid for by an arm's-length third party. Drilling sought to extend the known mineralized zone to the east through a series of shallow core holes totaling approximately 500 metres. The results extended the high grade ore zone in the pit by an additional 5 meters and also confirmed that the shear zone which hosts the A zone mineralization remains open to the east.
Drill results can be viewed on Pele's website at www.pelemountain.com/pdfs/AZone Extension.pdf
Pele's Highland gold properties are located approximately 100 kilometres southeast of Hemlo in Northern Ontario, along the Michipicoten Greenstone Belt, home to several past producing gold mines including the million-ounce plus Renabie Mine and where Richmont Mines Inc. is currently operating the Island Gold Mine. East and West Highland are 100-percent owned by Pele Gold Corporation ("Pele Gold"), a wholly owned subsidiary of the Company.
Pele also announced today that further to the Company's press release announcing certain option grants to directors, officers, employees and consultants of the Company on December 21, 2010, Pele confirms that it granted to an officer of the Company, 300,000 stock options exercisable at
.325 per share on January 1, 2011 and 50,000 stock options exercisable at
.43 per share on February 1, 2011. All of the forgoing stock options expire on December 31, 2012.
This news release has been reviewed and approved by Peter Dimmell, P.Geo. (NL, ON), a Pele Director and a Qualified Person under National Instrument 43-101.
About Pele
Pele Mountain Resources is focused on the sustainable development of its Eco Ridge Mine Uranium and Rare Earths project, located in the Elliot Lake mining camp of Ontario. Pele's expert team of technical personnel, advisors, and consultants is working to optimize mining, processing, and waste management techniques at Eco Ridge. With well-understood geology, excellent regional infrastructure, and strong local support, Eco Ridge provides an ideal location for a safe, secure, and reliable long-term supply of Uranium and Rare Earths. Additionally, Pele has, or is actively seeking, qualified strategic partners to advance its other high-potential exploration projects, including high-grade gold properties at Highland and Ardeen. Pele's shares are listed on the TSX Venture Exchange under the symbol "GEM".