Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

April 20, 2010 09:40 ET

Wallbridge Completes 60-Percent Earn-In and Publishes Updated NI 43-101 Report at Pele Mountain’s Sudbury Nickel Project

TORONTO, ONTARIO--(Marketwire - April 20, 2010) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") announced today that Wallbridge Mining Company Ltd. (TSX:WM) ("Wallbridge") has funded the required minimum expenditure of $ 1,200,000 necessary to earn its initial 60-percent interest at Pele's Sudbury Nickel Project in Northern Ontario (the "Sudbury Project"). The two companies expect to form a joint-venture shortly, to be followed by planning for the 2010 field season. Wallbridge will continue as the project operator during the anticipated joint venture.

Also, Wallbridge has published an updated NI 43-101 technical report on the Sudbury Project. In its report, Wallbridge reiterates that Pele's Sudbury Project and its four known Sudbury Igneous Complex (SIC) related Offset dykes constitutes a "prime exploration environment for Offset-style Ni-Cu-PGE mineralization" and that "the 8-kilometre belt of Sudbury Breccia … also holds promise for other styles of SIC-related mineralization."

The primary objectives of the 2009 field season were to drill test two of the best anomalies delineated by the 2008 IP survey, map and prospect the magnetic anomalies in northern portions of the property, and drill priority targets outlined during 2009 mapping and prospecting. 

As reported previously, Wallbridge demonstrated that the Hess Offset Dyke has a significant branch that extends across the Pele's Sudbury Project for approximately 2.5 kilometres and is up to 35 metres wide. In late-2009, Wallbridge drilled two holes into the Hess Offset Dyke, focusing on an approximately 100-metre segment exhibiting a strong magnetic anomaly. Although these holes, along with two holes focusing on the IP anomalies from the 2008 survey, failed to intersect significant sulphide mineralization, Wallbridge notes that none of the dykes have been explored deeper than about 150 metres and only two of the dykes have been explored in any detail. The report also states that "The sulphide occurrence at Rivers Option is evidence that the Hess Offset Dyke in this area is fertile and indicates that the Pele limb has some potential to host sulphide mineralization concentrations."

Also in 2009, Wallbridge discovered a quartz-gabbro dyke in the northeastern corner of the property, near an historic Inco intersection of Ni-Cu-PGE mineralization, also likely related to the SIC. The report states, "If the dyke parallels the orientation of the Foy Offset Dyke (2.5 kilometres east) then there is the potential for a 6-kilometre north-south oriented segment of the dyke on the Pele Property which has not been explored."

Finally, regarding the belt of Sudbury Breccia on the property, the report states, "Selected samples … contained weakly anomalous concentrations of PGE and pathfinder elements in recent sampling, similar to enrichments encountered in breccias that host Cu-PGE mineralization at Xstrata's Strathcona Mine and FNX's McCreedy West Mine in the Levack Trough about 8 kilometres to the south."

The full NI- 43-101 technical report can be downloaded from the SEDAR website, or from Pele's website at http://www.pelemountain.com/pdfs/2009TR.pdf.

The Sudbury Project covers 14,000 acres on the North Range of the prolific Sudbury Mining Camp of Northern Ontario. Past exploration by Pele and Wallbridge has confirmed the presence of multiple Offset dykes and an extensive belt of Sudbury Breccia on the property. Offset dykes in the Sudbury area have hosted extensive Ni-Cu-PGE mineralization as well as several successful mining operations. Sudbury Breccia is a host lithology often associated with footwall-style Ni-Cu-PGE mineralization.

The Sudbury Mining Camp is the most productive nickel mining district in the world, continuing to deliver world-class base and precious metal output after more than a century of operation. The camp's dominant feature is the Sudbury Basin, a 60-kilometre long elliptical structure that features Ni-Cu-PGE deposits along the contact and footwall of the SIC, which forms the outer rim of the Sudbury Basin, as well as within Offset dykes that emanate radially outward from it.

About Pele

Pele Mountain Resources is discovering and developing the mineral wealth of Northern Ontario. At its Eco Ridge Mine uranium project, Pele is advancing toward the sustainable development of a safe, secure, and reliable operation near Elliot Lake. At its East Highland Gold project, Pele is focused on identifying mineable gold resources. The Company also holds the Ardeen Gold and Sudbury Nickel projects, which are actively explored under option agreements with Coventry Resources Ltd. and Wallbridge Mining Company, respectively. Pele's shares are listed on the TSX Venture Exchange under the symbol "GEM".

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.

Common Shares Outstanding: 101,843,608

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.

Contact Information