Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

June 13, 2005 15:24 ET

Pele Mountain Provides Northern Ontario Exploration Review

TORONTO, ONTARIO--(CCNMatthews - June 13, 2005) - Pele Mountain Resources (TSX VENTURE:GEM) ("Pele" or the "Company") today provided a review of its gold, diamond and nickel exploration projects in northern Ontario.

Pele's President and CEO, Al Shefsky, stated "Pele is successfully advancing our corporate strategy of forming strategic alliances that leverage spending on our properties while continuing to focus on the Company's core strengths, especially the generation of high-potential exploration projects. This approach has resulted in millions of dollars of non-dilutive expenditures on our properties as we have concurrently increased the size and quality of our project portfolio. Pele now has more projects and more active exploration programs underway than at any time in our ten-year history."

Pele has option agreements covering four of its projects with potential overall expenditures of $10-million during the respective option periods. The following is a brief review of each of the Company's six active projects.

Ardeen Project

On June 8, Pele announced the signing of an option agreement on Ardeen with Maple Minerals Corp ("Maple") and East West Resource Corporation ("East West"). Maple and East West have since reported to Pele that a Versatile Time-Domain ElectroMagnetic (VTEM) airborne survey has commenced at Ardeen. The VTEM survey is intended to identify VMS targets similar to the discovery earlier this year by Freewest Resources Canada on its nearby Sungold property, within the same belt of Archean age bimodal volcanic rocks that cover much of the Ardeen property. Induced polarization (IP) surveys are also planned for selected areas along shear structures to map shear-hosted gold as well as alteration systems associated with VMS mineralization. Exploration at Ardeen is funded and operated by Maple and East West which can earn up to a 60-percent interest in the project.

Highland Gold Project

On June 2, Pele announced the commencement of field work at Highland, now the largest wholly-owned mining claim group along the Goudreau Localsh Deformation Zone ("GLDZ"), including several gold occurrences on either side of the neighboring Island Gold Project of Richmont Mines and Patricia Mining. Prospecting and surface sampling is advancing on gold occurrences at recently-acquired western Highland claims. These samples have been shipped to the laboratory for assay and results are expected imminently. Field work is continuing at other gold occurrences further to the east along the GLDZ in advance of a planned summer drill program.

Timmins Nickel Project

On May 12, Pele announced drilling at Timmins Nickel. Two targets were selected for drilling, the first was based on a ground HLEM survey and the second was based on an airborne VTEM survey. Both geophysical surveys indicate a strong conductor related to sulfides at the base of komatiitic flows in a stratigraphic setting similar to that reported at the adjacent Texmont Nickel Mine property. The first hole, which was intended to test a relatively shallow conductor identified on the ground HLEM survey, did not return any significant nickel mineralization. The second hole which was intended to test a deeper conductor identified in the VTEM Survey was lost due to poor ground conditions before reaching its targeted depth and without intersecting any significant nickel mineralization. Management believes this project remains highly prospective for hosting nickel mineralization and will review its opportunities to advance the project in order to add shareholder value.

Festival Diamond Project

On May 16, Pele announced that a 4-hole drill program was successfully completed at the Deutz and Dom Perignon diamond occurrences in Festival's South Zone, confirming its subsurface continuity and demonstrating that the suite of diamond-bearing ultramafic rocks forms a gently dipping sheet. Three of the holes indicate that this sheet is up to 70 meters thick, with mass flow units of at least 20 to 30 meters, within a fault-bounded block in the central portion of the South Zone, estimated to be roughly 600 by 300 meters in size. Drill core from three of the holes was sampled and sent to SGS Lakefield for processing, with results expected this month. Exploration at Festival is funded by Goldcorp which can earn up to a 60-percent interest in the project.

Alliance and Attawapiskat Diamond Projects

On June 10, Pele announced that Trigon Exploration Canada Ltd. ("Trigon") has reported on its preliminary work at Alliance and has presented its summer work plans. The program will feature closely-spaced high-resolution airborne geophysical surveys over high priority areas, followed by targeted heavy mineral and geochemical sampling to prioritize drill locations. Drilling at Alliance and Attawapiskat is expected to commence this winter. Exploration at Alliance is funded and operated by Trigon which can earn up to a 60-percent interest in the project.

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

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: 46,624,237

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
    (416) 368-7224
    (416) 368-7230 (FAX)