TORONTO, May
17 /CNW/ - Pele Mountain Resources Inc. (TSX Venture: GEM;
OTCQX: GOLDF) ("Pele" or the "Company")
announced today that the Province of Ontario has granted two mining
leases (the "Mining Leases") to Pele's wholly owned
subsidiary, First Canadian Uranium Inc., for its Eco Ridge Mine Rare
Earths and Uranium Project. The Mining Leases give Pele the
exclusive right to mine the Eco Ridge deposit and include surface
rights that allow for siting of project infrastructure and processing
facilities. The Mining Leases are for a period of 21 years
(commencing on March 1, 2011) and are
renewable.
Pele President and
CEO Al Shefsky stated, "The receipt of our Mining Leases marks
another important milestone on the path to development at Eco Ridge. We
recently updated the project's NI 43-101 compliant resources with the
inclusion of rare earth oxide ("REO") resources for the first
time, along with a significant upgrade in uranium oxide ("U3O8")
resources. We remain on schedule to deliver an updated NI 43-101
Preliminary Assessment ("PA") next month that will
incorporate design enhancements achieved since the initial positive
Scoping Study in 2007 and, for the first time, providing an economic
model based on revenues from both REO and U3O8.
The PA will also include a schedule of activities necessary to advance
the project through the feasibility and licensing stages. We believe
Eco Ridge contains an important future source of heavy REO and U3O8
and we are determined to rapidly advance its development."
The Eco Ridge
Resource Estimate was prepared by Roscoe Postle
Associates and can be viewed at: http://www.pelemountain.com/mineral-resources.php.
The Mining Leases
cover an area of 3831 acres that includes substantially all of the
Resource Wireframe. The Eco Ridge Mine project covers approximately
20,000 acres in total, including areas down dip from the Resource
Wireframe where historic drilling has intersected the mineralized reef,
indicating excellent potential to significantly expand REO and U3O8
resources. The total rent payable under the Mining Leases is $4,651.62 annually.
In addition to the
Mining Leases granted from the Province of Ontario, As previously
announced, Pele's subsidiary has also entered into a 21-year lease for
surface patents on mining claims at Eco Ridge (the 'Surface Lease'),
where mine portals and other mining and processing infrastructure may
be located (see Pele's press dated July 27,
2009). The Surface Lease was granted in 2009 for surface patents
held by the City of Elliot Lake and is indicative
of Pele's excellent community relations and strong local support for
its Eco Ridge Mine project.
Recent
extraordinary REO market developments, sparked by China's reduction of
export quotas, have resulted in sharply higher prices, inciting a rush
to find and bring to production new sources outside of China. Eco
Ridge contains the full range of naturally occurring REO, including the
highly valued "heavy" REO. The mining and
processing method to recover uranium at Eco Ridge will also recover
heavy REO (including scandium and yttrium) into the leach solutions at
no extra cost. Eco Ridge is located within a proven mining camp
at Elliot Lake, formerly known as
"the uranium capital of the world" and an important source of
heavy REO and yttrium.
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 deposits with NI 43-101
compliant REO resources and is located in Elliot
Lake, the only Canadian mining camp to have ever achieved
commercial REO production. An updated Preliminary Assessment is on
schedule for expected delivery during the second quarter of 2011,
incorporating design enhancements achieved since the initial positive
Scoping Study in 2007 and, for the first time, providing a detailed
economic model based on revenues from both REO and U3O8.
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".
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.