TORONTO, ONTARIO — (Marketwire) — 01/17/13 — Pele Mountain Resources Inc. (TSX VENTURE: GEM)(OTCQX: GOLDF) („Pele“ or the „Company“) today announced initial results from the recent drill program at its Eco Ridge Mine Rare Earths and Uranium Project at Elliot Lake, Ontario. 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 with an objective of adding Inferred Resources. Pele targeted areas where wide-spaced historical drilling successfully intersected the Main Conglomerate Bed („MCB“). Highlights from the first five holes drilled in the Northwest Extension (northwest of the Resource Wireframe) include:
Although Pele was reasonably certain that the MCB was present in the Northwest Extension based on historical drilling, these results exceeded expectations.
Both holes drilled in the West Extension (west of the Resource Wireframe) intersected the MCB, returning typical REO grades over thicknesses below the MCB Resource Wireframe average. The U3O8 grade for Hole PM217 was, at 0.08-percent, well above the MCB Resource Wireframe average. Management is encouraged by these results which confirm the deposit continues to the western boundary of the Company-s mining leases at Eco Ridge.
. Additional results will be announced as they become available.
Pele President and CEO Al Shefsky stated, „These results conclusively demonstrate that the Main Conglomerate Bed continues to the north and west of the current Resource Wireframe, which can potentially add significant resources and years of mine-life to the project. We are particularly pleased to see higher-than-average grades of U3O8 and Heavy REO in the Northwest Extension.“
Drilling Highlights from Northwest Extension
Assay results for Critical Rare Earths (from Northwest Extension)
Drilling Highlights from West Extension
Assay results for Critical Rare Earths (from West Extension)
Mineral resources for the MCB at Eco Ridge were estimated by Roscoe Postle Associates (as of April 16, 2012), as summarized in the table below.
Mineral Resource Estimate for Main Conglomerate bed at Eco Ridge
Notes:
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 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.
The geological information in this press release has been reviewed and approved by Edward C. Walker, Ph.D., P. Geo., an independent Qualified Person as defined by NI 43-101.
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 located in Elliot Lake, the only Canadian mining camp to have ever achieved commercial rare earth production. Elliot Lake was once the major source of heavy rare earth, yttrium and uranium production in North America. With well-understood geology, mineralogy, and metallurgy, excellent regional infrastructure, and strong local support, Eco Ridge is an ideal location for the development of a safe, secure, and reliable long-term supply of critical rare earths and uranium. Pele-s shares are listed on the TSX Venture Exchange under the symbol „GEM“ and on the OTCQX under the symbol „GOLDF“.
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.
Shares Outstanding: 153,151,246
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.
Contacts: Pele Mountain Resources Inc. Al Shefsky President (800) 315-7353
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