Pele Mountain drilling on Pigeon River property
April 29, 2010 - Toronto - Pele Mountain Resources Inc. (TSX Venture: GEM) ("Pele" or the "Company") today announced drilling plans for its Pigeon River property, 60 kilometres southwest of Thunder Bay in Northern Ontario. Pele has staked more than 1,700 mining claim units at Pigeon River and its 100-percent-owned claim group now exceeds 27,000 hectares (270 square kilometers). The property covers large unexplored magnetic targets, near the basal contact of the Duluth Complex, which have the potential to host nickel (“Ni”), copper (“Cu”), and platinum group elements (“PGE”) mineralization.
After the completion of a Versatile Time-Domain ElectroMagnetic (“VTEM”) airborne survey, Pele’s geological consultant, Wim Vanderklift of Vanex Exploration Inc., visited the property to map and prospect several high priority geophysical target areas. He found that the VTEM anomaly locations are, for the most part, coved by overburden or by numerous thin, flat-lying, olivine-rich, diabase sills indicating that drilling is required to test the anomalies. A 5-hole drill program has been designed to test the anomalies with drilling set to begin in mid-May. The first hole will test a VTEM-anomaly which occurs under a lake with a Geological Survey of Canada (“GSC”) lake bottom sample which gave highly anomalous values of 234 parts per million (ppm) Ni and 298 ppm Cu.
Pele President and CEO Al Shefsky stated, “We remain long-term believers in uranium and we continue to advance our flagship Eco Ridge Mine project at a measured, but determined pace. However, with uranium prices relatively weak at this time, we have returned to our roots as a generative mineral exploration company, focusing renewed internal efforts at Highland Gold and, more recently, at Pigeon River. We are excited to drill our 100-percent owned Pigeon River property, which is ideally situated in the Mid Continental Rift near the basal contact of the Duluth Complex. We believe this virtually untested property has outstanding potential for new discovery based on several factors including other important Ni/ Cu/ PGE discoveries made in the region in the past few years.”
The Pigeon River property lies in the Proterozoic Superior Mid Continent Rift, a geological setting with proven potential to host mafic/ultramafic igneous systems associated with the rifting of the Archean cratons. Recent discoveries in this setting include Kennecott`s Ni/Cu/PGE deposits at Eagle (Michigan) and Tamarac (Minnesota) and Magma Metals’ PGE deposit located to the northeast of Thunder Bay. Pele’s exploration target at Pigeon River is a massive sulphide deposit similar to the Eagle, Tamarac, and Magma deposits which are magmatic sulphide deposits hosted in an ultramafic body or conduit and disseminated sulfides similar to the vast lower grade Ni/Cu deposits of the Duluth complex located immediately to the south of the project.
This news release has been reviewed and approved by Peter Dimmell, P.Geo. (NL, Temp ON), a Pele Director and a Qualified Person under National Instrument 43-101.