RE: RE: This is a good step in the right direction
Roger Payne Named Executive Vice-President at Pele Mountain
July 27, 2011 - Toronto - Pele Mountain Resources Inc. (TSX Venture: GEM; OTCQX: GOLDF) (“Pele” or the “Company”) announced today that Roger Payne, P.Eng., has accepted an appointment to serve as Executive Vice-President of Pele, effective immediately.
Mr. Payne has more than 40 years of professional engineering experience in Europe, Africa, and the Americas, including nearly 20 years in the Elliot Lake mining camp with Rio Algom Limited. After serving in a number of technical positions, he ultimately oversaw the exemplary and precedent-setting mine closure process at Elliot Lake through the 1990s, serving as Manager of Environment & Decommissioning and then as General Manager. He has contributed to Pele as a consultant at its Eco Ridge Mine Rare Earths and Uranium Project since 2008.
Pele President and CEO Al Shefsky stated, “Roger’s experience in the Elliot Lake camp is unparalleled. His project management expertise and professional relationships with local communities, regulatory agencies, and technical consultants are invaluable as we prepare for sustainable development at Eco Ridge. His knowledge and proficiency regarding all facets of the mining life cycle in Elliot Lake adds great depth to our management team. It is a privilege to welcome Roger to Pele Mountain.”
Mr. Payne stated, “As a consultant to the Eco Ridge Mine project over the last several years, I’m impressed with its steady course of progress. The management and technical service providers at Eco Ridge are first-class and have clearly demonstrated the seriousness and outstanding potential of this project. Mr. Shefsky and his team should be commended for their efforts to-date. I’m very pleased to be associated with Pele and Eco Ridge.”
Mr. Payne joins Pele’s technical advisors Drs. Tony Mariano and William Bird along with several highly qualified consulting firms including SNC Lavalin, Roscoe Postle Associates (“RPA”), SRK Consulting, and MIRARCO. Pele is assembling a world-class team to advance mine development at Eco Ridge.
Pele also announced today that Fergus Kerr has stepped down as Vice President of Uranium Operations. Mr. Shefsky commented, “We would like to express deep gratitude to Mr. Kerr for his outstanding contributions at Eco Ridge. We look forward to a continued working relationship with Fergus as a consultant to the Company.”
Pele’s Preliminary Economic Assessment1 (the “PEA”) of Eco Ridge, prepared by RPA, demonstrates its potential to become a profitable producer of rare earth oxides (“REO”) and uranium oxide (“U3O8”). The PEA forecasts cumulative production of 10.7-million pounds of Total REO and 24.9-million pounds of U3O8 over a 14-year mine life with pre-tax cash flow of US$1.31-billion, a positive NPV of $662-million (at a 7.5% discount rate), and an IRR of 47-percent. For more details on the PEA, please see Pele’s press release dated July 5, 2011
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 one of very few North American Rare Earths deposits that has completed a NI 43-101 Preliminary Economic Assessment with robust economics and is located in Elliot Lake, the only Canadian mining camp to have ever achieved commercial REO production. With well-understood geology, excellent regional infrastructure, and strong local support, Eco Ridge is an ideal location for a safe, secure, and reliable long-term supply of REO and U3O8. Pele also holds interests in a portfolio of Northern Ontario gold properties at Highland and Ardeen. 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 contact Al Shefsky, President, at (800) 315-7353, or visit the Pele website at
www.pelemountain.com.
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. 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.