Pele Mountain Resources Inc. ("Pele" or the "Company") announced today that it has retained Roscoe Postle Associates Inc. ("RPA") to prepare an update to the NI 43-101 mineral resource estimate for its Eco Ridge Mine Rare Earth and Uranium Project ("Eco Ridge") in Elliot Lake, Ontario. Pele has completed a positive Preliminary Economic Assessment ("PEA") for Eco Ridge that demonstrates its potential to become a profitable producer of rare earth oxides ("REO") and uranium oxide ("U3O8").
The updated resource estimate is expected this quarter and will include recently drilled areas of higher-grade and thicker mineralization to the northwest of the current Resource Wireframe. All 11 holes drilled in this area late last year successfully intersected the Main Conglomerate Bed ("MCB") over a 3-kilometre strike length, with 9 of the 11 holes significantly exceeding the average total REO grades and 9 of the 11 holes significantly exceeding the U3O8 grades reported in the current Resource Wireframe. For more information on the recent drill program please see Pele's press release dated January 29, 2013.
Pele is also pleased to announce that Jacob Securities has initiated coverage on Pele and has issued a report which states "We believe Pele's current market valuation leaves room for considerable upside, particularly in view of the completed PEA, and the potential for expansion and medium-term production at Eco Ridge. Pele is positioned for success as a producer of a geopolitically secure supply of U3O8 and Critical REO." To view a copy of the Jacob Securities report, please click here: http://research.jacobsecurities.com/wp-content/uploads/2013/03/GEM-Pele-Mountain-Resources-Inc.-Initiation-Watch-List-Report-March-22-2013-JSI.pdf.
The technical information in this press release has been reviewed and approved by Edward C. Walker, Ph.D., P. Geo., an independent Qualified Person as defined by NI 43-101.