Pele Mountain Resources Inc.
TSX VENTURE : GEM

Pele Mountain Resources Inc.

August 03, 2005 13:00 ET

Highland Drilling Confirms Near-Surface High-Grade Gold; Pele Intersects 8.36 Grams per Tonne Over 8.16 Metres at Talisker

TORONTO, ONTARIO--(CCNMatthews - Aug. 3, 2005) - Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") today announced initial drilling results from the Highland Gold Project in northern Ontario. The Highland Gold Project is 100-percent owned by Pele Gold Corporation, a wholly-owned subsidiary of the Company.

As reported on June 22, high-grade samples from Highland's Springbank and Talisker gold occurrences prompted an immediate drill program at both locations. First-phase drilling included eight holes, six at Springbank and two at Talisker. Assay results from the two Talisker holes have confirmed near-surface, high-grade mineralization and included an intersection of 8.36 grams per tonne (g/t) gold over 8.16 metres beginning from a depth of just over 3 meters, carried primarily by the intersections of two quartz veins. Highlights from the Talisker drill holes are included in the table below. Results from Springbank are expected within a week.



Talisker Zone Drill Results

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Drill Hole From (m) To (m) Length (m) Gold (g/t)
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PP-DH05-07 5.23 5.66 0.43 2.54
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12.30 13.62 1.32 4.34
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PP-DH05-08 3.21 11.37 8.16 8.36
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including 10.05 10.60 0.55 95.52
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The Talisker occurrence consists of a gold-bearing quartz vein in a shear zone, exposed in an historic shaft sunk into the hanging wall of the host sheared granodiorite. Pele's drilling has discovered another gold-bearing quartz vein along the footwall of this shear zone. The 8.16-metre interval in Drill Hole 05-08 represents an intersection across the shear zone and includes both the hanging wall and footwall quartz veins.

Based on the encouraging results received to date, Pele intends to initiate second-phase drilling at Highland Gold following receipt of Springbank drill results and a lifting of temporary work restrictions due to extremely dry bush conditions.

Both the Talisker and Springbank gold occurrences are within Pele's recently-acquired, royalty-free Porter-Premier property in the western Goudreau-Lochalsh Deformation Zone ("GLDZ"). The GLDZ is host to several past producing gold mines and is re-emerging as an important Ontario gold camp, led by the efforts of Richmont Mines and Patricia Mining to restart mining and milling operations at the nearby Island Gold project by mid-2006. Please see the Highland project map at http://www.pelemountain.com/projects/highland/highland_map.htm for location details.

Pele has also completed a mechanical stripping and channel sampling program at the Oban gold occurrence, four kilometres northeast of Springbank and Talisker. A total of 27 channel samples returned gold values between zero and 0.9 g/t and a composite grab sample returned 98 g/t gold from a narrow (1 to 2 centimetres wide) quartz vein carrying pyrite. As reported on June 22, another grab sample of quartz with sulphides from Oban returned 128 g/t gold.

All samples were assayed for gold by Accurassay Laboratories, Thunder Bay, Ontario, an ISO 17025 accredited laboratory.

This press release has been reviewed and approved by Dr. Edward Walker, P.Geo., an independent consultant and Qualified Person.

Pele Mountain Resources is an exploration play on the abundant mineral wealth of northern Ontario. Pele has acquired and developed a diverse portfolio of diamond, gold, and base metal properties which provide exposure and leverage both to discovery and to the increased global demand for natural resources. Pele is active on six project fronts, including diamond exploration at Festival, Alliance and Attawapiskat River with partners Goldcorp and Trigon Exploration Canada, gold and base metal exploration at Ardeen with partners Maple Minerals Corp and East-West Resource Corporation, and in-house exploration at its Highland Gold and Timmins Nickel properties. Pele stock trades 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. None of the Company's properties have any known ore body of economic or commercial value.

Common Shares Outstanding: 46,744,237

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pele Mountain Resources Inc.
    Al Shefsky
    President
    (416) 368-7224
    (416) 368-7230 (FAX)
    www.pelemountain.com