Pele Mountain Resources Inc.

Pele Mountain Resources Inc.

September 16, 2010 10:15 ET

Pele Mountain Reports Progress at Eco Ridge Mine Uranium and Rare Earth Elements Project

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2010) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") today reported that it has achieved significant progress on several fronts at its Eco Ridge Mine uranium and rare earth element ("REE") project near Elliot Lake in Northern Ontario. Eco Ridge is owned 100-percent by First Canadian Uranium, a wholly owned subsidiary of Pele.

Pele President Al Shefsky stated, "Since our initial NI 43-101 Preliminary Economic Assessment ("Scoping Study") in late-2007, Pele has methodically pursued opportunities to improve the economics of the project as recommended by Scott Wilson Roscoe Postle Associates ("Scott Wilson RPA") in the Scoping Study. We also expect to release an updated Resource Estimate that will include REE resources for the first time, by year-end. Eco Ridge has remained our flagship project through recent years of turbulence in the uranium and financial markets and we are very excited about its prospects at this time."

Pele management is optimistic that the Eco Ridge Mine project may benefit significantly from the considerable work undertaken since the first NI 43-101 Technical Report was published, including the following:

  • Detailed engineering and economic studies to optimize mine design, with particular focus on using an electric monorail system for mine transportation to improve efficiency compared to the original plan that provided for transportation on ramps using rubber-tired, diesel vehicles.

  • Replacing conventional milling that included crushing and grinding with well-established underground bioleaching and surface heap leaching to optimize processing methods for the recovery of uranium and REE. 

  • Recent REE market developments have resulted in sharply higher prices for many elements found at Eco Ridge in significant quantity, as described in Pele's press release dated September 13, 2010. Led by its renowned Rare Metals Advisor, Dr. William Bird, Pele is pursuing opportunities for REE by-products at Eco Ridge.

Pele's Eco Ridge Mine project includes a NI 43-101 compliant resource of 6.4 million pounds of "indicated" U3O8 (5.68 million tonnes grading 0.051-percent U3O8) and 36.1 million pounds of "inferred" U3O8 (37.26 million tonnes grading 0.044-percent U3O8). Drilling by Pele has also confirmed the presence of extensive REE, in significant quantities at Eco Ridge. 

Since the initial NI 43-101 Technical Report and Scoping Study was completed by Scott Wilson RPA in October 2007, Pele's progress at Eco Ridge has also included:

  • Submission of a Project Description detailing Pele's approach to sustainable development at Eco Ridge with the Federal Government's Major Projects Management Office in September 2008.

  • Conceptual technical studies performed by SNC-Lavalin, Total Mine Development Inc., SRK Consulting and others relating to processing design optimization, mine design optimization and hydrogeology.

  • Completion of more than 21,000 metres of drilling in 130 core drill holes with results used to create a detailed Block Model for mine planning purposes.

  • Detailed REE analysis on 30 drill holes.

  • Long term uranium and REE recovery studies underway at MIRARCO and Cardiff University.

  • Conceptual design of a processing and recovery plant for REE by SNC Lavalin.

  • Formation of Rare Metals Advisory Board and the engagement of Dr. William Bird P. Geo.

  • Commencement of terrestrial and aquatic environmental studies.

  • Acquisition of additional mining claims through staking.

  • Entering into a 21-year lease, with option to purchase, with the City of Elliot Lake for certain patented surface rights.

  • Continued constructive engagement with the local communities, including First Nations.

This press release has been reviewed and approved by Fergus Kerr, P.Eng., Vice President of Uranium Operations for Pele and a qualified person under NI 43-101.

About Pele

Pele Mountain Resources is focused on the sustainable development of its Eco Ridge Mine Uranium and Rare Earth Elements ("REE") project, located in the Elliot Lake mining camp of Northern Ontario. Pele's expert team of technical personnel, advisors, and consultants is working to optimize mining, processing, and waste management techniques at Eco Ridge. With well-understood geology, excellent regional infrastructure, and strong local support, Eco Ridge provides an ideal location for a safe, secure, and reliable long-term supply of Uranium and REE. Additionally, Pele has, or is actively seeking, qualified strategic partners to advance its other high-potential exploration projects, including high-grade gold properties at Highland and Ardeen. 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.

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