SOURCE: Pele Mountain Resources Inc.

April 20, 2006 11:18 ET

Pele Mountain Expands Exploration at Highland Gold Project

TORONTO -- (MARKET WIRE) -- April 20, 2006 -- Pele Mountain Resources (TSX-V: GEM) ("Pele") announced today that Pele Gold Corporation ("Pele Gold"), a wholly owned subsidiary of the Company, is expanding the ongoing exploration program at its 100-percent owned Highland Gold Project in northern Ontario.

The new campaign will encompass a larger part of the Goudreau Localsh Deformation Zone ("GLDZ") into an area that is known to host several high grade gold zones. An airborne survey will begin within the week and be followed by prospecting, mapping, surface sampling and an active drill program shortly after the current spring break up conditions subside.

Pele Gold will focus on the resource potential of an approximately 2-kilometre long trend extending from the recently acquired western extension of the historic Murphy Gold Mine, an area that has seen more than 20,000 metres of drilling (see Pele press release dated March 3, 2006), to the Talisker and Springbank gold zones, where recent drilling by Pele has outlined high grade gold mineralization in a geological setting similar to other past producing mines in the area.

Pele President and CEO Al Shefsky stated, "Our exploration success at Highland, along with our recent acquisition of high-grade gold zones extending from the Murphy Mine, present a compelling opportunity to outline near-surface, high-grade gold resources. The strong upward trend in the price of gold and the outstanding infrastructure available in the area, including nearby milling facilities provide advantages that enhance the potential of our Highland project."

Pele also announced that recent drill results indicate that the gold-bearing shear zone at both the Talisker and Springbank gold occurrences are continuing at depth and along strike from the last announced drilling. The most recent drilling completed prior to spring breakup targeted primarily the macrodiamond-bearing Talisker mica kimberlite (see Pele press release dated March 22, 2006). During this drilling program, two additional drill holes were completed at both the Talisker and Springbank gold occurrences intersecting the gold-bearing shear zone at both locations. At Talisker, PP-DH06-13 intersected 6.1 g/t gold across 1.25 metres and PP-DH06-16 intersected 1.8 g/t gold across 0.86 metres. At Springbank, PP-DH06-11 intersected 7.0 g/t gold across 0.73 metres and PP-DH06-12 tested a third shear zone situated to the northwest of the previous drilling and intersected 0.9 g/t gold across 1.48 metres.

All gold assays are of split drill core that was securely shipped to Accurassay Laboratories, an ISO 17025 accredited laboratory, where all sample preparation and analysis was performed.

This press release has been reviewed and approved by Dr. Edward Walker, P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101.

Pele Mountain Resources is focused on mineral exploration within the established mining camps of northern Ontario. Pele has acquired and developed a diverse portfolio of diamond, gold, base metal, and uranium properties which provide exposure and leverage both to discovery and to the increased global demand for natural resources. Pele is active on five project fronts, including diamond exploration at Festival and Alliance funded by partners Goldcorp and Trigon Exploration Canada, gold and base metal exploration at Ardeen funded by partners Maple Minerals Corp and East-West Resource Corporation, and in-house exploration at its Highland Gold and Sudbury Offset properties. Pele stock trades on the TSX Venture Exchange under the symbol "GEM."

For further information please contact Al Shefsky, President, at (416) 368-7224, or visit the Pele website at

The TSX Venture Exchange has not reviewed and does not accept 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. None of the Company's properties have any known ore body of economic or commercial value.

Common Shares Outstanding: 54,687,145

Contact Information

  • Contact:
    Al Shefsky
    (416) 368-7224