Rising Gold Price Prompts Pele to Reactivate Highland Project
Friday, March 20th, 2009
Pele Mountain Resources Inc. announce that it has reactivated its Highland Gold Project in response to a robust gold market. The Company initiated detailed data compilation, supported by field work during the fall of 2008, and in the upcoming field season, is planning follow up exploration with the objective of outlining near-term mineable resources.
Pele Mountain President and CEO Al Shefsky stated, “With three operating mill facilities nearby and outstanding local infrastructure, we believe there is excellent potential to rapidly develop revenue generating operations at Highland. We intend to activate this ‘second front’ to realize value from our gold assets without compromising our primary focus, which is continuing to advance our Eco Ridge Mine uranium project at Elliot Lake toward development and production.”
The Highland Project, covering more than 10,000 hectares, is located in the Michipicoten Greenstone Belt, approximately 100 kilometres to the southeast of Hemlo in Northern Ontario. The Michipicoten Belt, where Richmont Mines Inc. is operating the Island Gold Mine and milling complex, is also home to several past producing gold mines, including the one-million ounce plus Renabie Mine. Over the past 12 years, Pele has consolidated fragmented mining claims covering favorable geology through acquisitions and staking and has now accumulated one of the largest mining claim holdings in the area.
The property covers shear-hosted gold occurrences, mainly quartz veins commonly containing visible gold, along the Goudreau-Localsh Deformation Zone (“GLDZ”) within intensely deformed and altered Archean metavolcanic, metasedimentary, and intrusive rocks. Eighteen (18) gold occurrences, two of which have historic underground workings (Murphy, Kozak) and two of which have seen surface bulk sampling (Markes, A zone), have been found to date on the property.
At East Highland, a number of gold occurrences occur along 4 to 5 kilometre wide parallel zones along the GLDZ, representing the hanging wall (north) and footwall (south). North Zone occurrences include the Markes North, McCall, Laughlin, and ‘A’ zones on the Highland property and the Cline Shaft No. 2, Pine, Morrison and Kremzar Mine occurrences on adjacent properties to the west. South Zone occurrences include the Markes, ‘B’, and ‘E’ zones on the Highland property and the Cline, Edwards, Island, and Magino mines on adjacent properties to the west.
In late-2008, a 40 metre-wide, rhyolite hosted, sheared, silicified, and sericitized, gold mineralized zone, the Lone Ranger occurrence, was discovered in an under-explored area of the property. A single composite chip sample across the 40 metres gave a gold assay of 0.49 g/t Au. The zone has been traced along strike for more than 3 kilometres. This new discovery will be a focus of exploration in the upcoming field season.
At West Highland, Pele focused its exploration efforts from 2004 to 2006 primarily within and along the contacts of the Gutcher Lake Stock (“GLS”) where several gold occurrences were discovered during the first gold rush to the area in the early 1920s. The Farquhar, Bowmore, Doublewood, Springbank, and Talisker zones along the southern contact of the GLS, host high grade, narrow vein gold mineralization.
Drilling from west of the Farquhar, to the east toward Bowmore, has defined a gold-bearing, shear-hosted vein system in a structure extending for more than 1,200 metres. The Farquhar / Bowmore zones show strong alteration and shearing, providing an environment capable of hosting a significant gold deposit. Drilling at Farquhar in the 1980s by Rio Tinto and McAdam Resources returned several high-grade gold intercepts with a best value of 85.8 g g/t over 1.6 metres and visible gold reported. Pele’s drilling confirmed the presence of high grade gold in the system with a best value of 23.3 g/t Au over 1.9 m.
Pele’s Murphy Mine extension property is located near the eastern contact of the GLS. Exploration by Orequest Consultants Ltd. in 1989, which included 51 drill holes totaling 12,000 metres, drilled to the west of the Murphy No.1 shaft, indicate that the Main Vein on the Pele claims has a strike length of approximately 200 metres, with a best intercept of 1.8 metres at 2 oz/t uncut. They also reported a North Vein with a strike length of approximately 100 metres. Both veins are open at depth and along strike to the west, onto Pele’s ground.
For further information visit: www.pelemountain.com