Pele Mountain Projects Up to 218,000 Kilograms of Recoverable Rare Earth Oxides Annually, in Addition to 826,000 Pounds of U3O8 at Eco Ridge Mine
Pele Mountain Reports Heavy Rare Earth Oxides Plus Yttrium Comprise 50% of Total Rare Earth Oxides Recoverable at Eco Ridge Mine
September 28, 2010 – Toronto – Pele Mountain Resources Inc. (TSX Venture: GEM) (“Pele” or the “Company”) today announced projections that, based on the production rate used in Pele‟s October 2007 NI 43-101 Scoping Study (the“Scoping Study”) by Scott Wilson Roscoe Postle Associates (“Scott Wilson RPA”), Eco Ridge leach solutions could contain up to 218,000 kilograms of recoverable total Rare Earth Oxides (“TREO”) annually, in addition to 826,000 pounds of uranium oxide. These projections are based on the Scoping Study and on rare earth oxide (“REO”) assays from 30 widely spaced drill holes and the results of leach tests performed at SGS Canada Inc. Fifty percent of this TREO would be heavy rare earth oxides (“HREO”) plus Yttrium. The Eco Ridge Mine project is 100-percent owned by First Canadian Uranium Inc., a wholly owned subsidiary of Pele.
Recent extraordinary REO market developments have resulted in sharply rising prices for several of the rare earth oxides, which are all found at Eco Ridge in significant quantities. Led by its renowned Rare Metals Advisor, Dr. William Bird, Pele is pursuing opportunities for REO by-products at Eco Ridge.
Regarding REO market developments, Dr. Bird commented, “China, which produces about 97-percent of the worldwide supply of REO, has recently reduced its REO export quotas by up to 70-percent. These new export restrictions have sparked a rush to find and bring to production new sources of REO outside of China.
Extensive REE mineralization in Main Conglomerate Bed. Every one of 30 drill holes analyzed returned significant REEs; Combined average total REE concentration 2.1 kg per tonne.