Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

December 03, 2009 09:45 ET

New Drilling Hits 11.6 Metres of 27 g/t Gold at Pele Mountain's Ardeen Project

TORONTO, ONTARIO--(Marketwire - Dec. 3, 2009) – Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") today announced that Coventry Resources Ltd. ("Coventry") has reported further exploration progress at Pele's Ardeen Gold Project in Northern Ontario. Coventry is earning into the project pursuant to its option agreement with Pele and is the project operator during the option period. Please click here to view details of the option agreement or see Pele's press release dated July 20, 2009. Ardeen is 100-percent owned by Pele Gold Corporation, a wholly-owned subsidiary of the Company.

Coventry reports that it has finished its fall drilling campaign at Ardeen, completing 53 holes totalling 6,435 metres. Results for the initial 10 holes were reported in Pele's press release dated November 05, 2009 Assay results have been received for 23 additional holes. Significant near-surface gold mineralization has been encountered in 13 of the 23 holes primarily focused on the Fisher zone, where 12 of 16 holes intersected significant near-surface gold mineralization. Best results include:

  • 11.6 metres of 27.0 grams per tonne (g/t) gold & 41.1 g/t silver, including 0.5 metres of 291.0 g/t gold & 504.0 g/t silver and 1.1 metres of 101.9 g/t gold & 80.4 g/t silver.
  • 9.1 metres of 8.5 g/t gold and 24.2 g/t silver, including 1.0 metre of 50.7 g/t gold and 157.0 g/t silver.

Coventry reports that these results demonstrate the continuity of the mineralized system at the Fisher Zone and confirm the interpreted westerly-plunge to the high-grade mineralized shoots. The mineralization comprises chalcedonic quartz vein material with pyrite with accessory galena, and sporadic sphalerite, chalcopyrite and visible gold in bonanza intervals. Subsequent drilling was deeper, along strike, and down-plunge of the high-grade shoot intersected in the holes highlighted above. Assay results for the 20 remaining holes, 14 of which were drilled at Fisher, are expected over the next one or two months.

Coventry has announced plans for a winter drilling program, to commence in February, primarily to follow up on first-phase results from the Fisher, Post, and McKellar zones. Several areas of interest, including the McKellar zone, were difficult to drill in the fall due to swamp and marsh areas, but are easily accessible after winter freeze-up. Previous drilling at McKellar intersected near-surface, high-grade gold mineralization, including 3.7 metres of 41.7 g/t gold and 4.3 metres of 37.3 g/t gold.

Coventry also reported that it was encouraged by preliminary results from one of three holes drilled at the previously untested Post prospect and that it plans to accelerate its program of re-sampling and analysis of the approximately 12,000 metres (from 153 drill holes) of historic drill core from Ardeen.

Ardeen Drill Results

Results from significant drill intercepts using a 0.5 g/t gold lower cut-off and internal dilution of one metre are as follows:

Drill HoleFrom
09CADD011No Significant AssaysFisher
09CADD013No Significant AssaysFisher
09CADD014No Significant AssaysFisher
09CADD018ANo Significant AssaysFisher
09CADD025No Significant AssaysMartin
09CADD026No Significant AssaysMartin
09CADD028No Significant AssaysPost
09CADD029No Significant AssaysPost
09CADD030No Significant AssaysMatt Berry
09CADD031No Significant AssaysMatt Berry

The Ardeen Gold Project covers more than 10,000 acres along the Shebandowan Greenstone Belt west of Thunder Bay and includes Northern Ontario's first gold mine. The Ardeen Mine was developed to a depth of 380 metres with three shafts on eight levels over a strike length of 850 metres, with recorded production of approximately 30,000 ounces of gold and 140,000 ounces of silver.

Coventry recently completed an oversubscribed A$5-million capital raising and is well-positioned to further advance the Ardeen Gold Project. Coventry reports that it continues to evaluate opportunities to grow by way of acquisition of additional gold properties in close proximity to Ardeen Gold and elsewhere within the Archaean Superior Province of Canada.

Coventry reports that all drill core (NQ and HQ) is geologically logged and marked up on site prior to being sent to its facility in Thunder Bay to be cut in half by company personnel. The half core samples are prepared and analyzed by Activation Laboratories (Actlabs) of Thunder Bay, an ISO 17025 Accredited Laboratory. The remaining half core is stored at Coventry's facility in Thunder Bay.

The information in Coventry's announcement that relates to exploration results is based on information compiled by Anthony Brendon Goddard, a Member of the Australian Institute of Geoscientists and a Competent Person for the purposes of the JORC Code. Mr. Goddard is Technical Director of Coventry.

This news release has been reviewed and approved by Peter Dimmell, P. Geo. (Temporary Ontario), a Pele director and a qualified person under National Instrument 43-101. The drill intervals reported herein are core lengths and do not necessarily represent true widths.

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 Highland Gold project, Pele has located several high-grade showings and is working to identify 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: 101,296,942

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.

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