Initial results from Pele Mountain Resources' core resampling program at Eco Ridge Mine Rare Earths and Uranium Project have revealed extended rare earth oxide mineralization with one drill hole revealing more than 140 metres of continuous mineralization.
Pele has also learned that total REO grades maintain elevated levels well into the main conglomerate bed (MCB) hanging wall, averaging more than 750 grams per tonne (g/t) (1 g/t=1 ppm) over more than 20 metres as measured from the base of the MCB, through the MCB, and into the MCB hanging wall.
It's positive news for the company, which is aiming to focus primarily on REO production, with uranium oxide as a byproduct.
“This is a remarkable discovery,” Shefsky said in a news release. “The expansion of rare earths mineralization, by up to several multiples, presents the potential for a significantly larger operation at Eco Ridge.”
“In view of the increasing importance of critical REO, Pele is advancing new work initiatives with particular focus on optimizing REO production,” he continued. “Along with our recent successful lateral expansion of the deposit through step-out drilling and our ongoing testing into increased REO recoveries from monazite using an acid-baking process, we are rapidly advancing studies on opportunities to improve our already robust PEA (preliminary economic assessment).”
Released on Sept. 7, the PEA—a precursor to the pre-feasibility and feasibility stages which, together, help determine whether to mine—revealed the potential for a 9,000-ton-per-day operation with production of 10.7 million pounds of total REO and 24.9 million pounds of uranium over 15 years.
Located 160 km west of Sudbury, the $219-million project has an indicated resource of 51,859,000 pounds of total REO and 15,182,000 pounds of uranium, and an inferred resource of 96,352,000 pounds of total REO and 31,444,000 pounds of uranium.
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