|
Company Data
|
| Address: | Suite 212, 20 Richmond St. East |
| Tel No.: | (416) 368-7224 |
| Fax No.: | (416) 368-7230 |
| Toll Free No.: | 1-800-315-7353 |
| Web Site: | www.pelemountain.com |
| Email: | |
| Contact Person: | Al Shefsky |
| Position: | President |
| Traded Market: | CDNX |
| Symbol: | YPN |
| Outstanding Shares: | 18,770,648 |
| 52 Week High: | $0.60 |
| 52 Week Low: | $0.12 |
| Present Price: | $0.20 (03/07/2001) |
Pele Mountain Resources Inc. is an expertly managed, exploration and mining company that owns outstanding gold and diamond exploration properties in Northern Ontario. Pele is actively continuing its diamond exploration activities and will provide news updates as material developments occur.
Pele Wawa Project
Pele Wawa Project is loacted at the heart of an area that is currently receiving intensive diamond exploration activity from several junior and major diamond mining companies following a series of
exciting new diamond discoveries near
Wawa. Kennecott Canada Inc., a wholly owned subsidiary of The RTZ Corporation
PLC, announced that it has agreed to spend $25,000,000 in the area on
diamond exploration, and they are currently conducting a drill program to the south of Pele Wawa Project. During February, 2000, Band-Ore Resources Ltd. announced a significant new diamond discovery to the southwest of Pele Wawa Project. Spider Resources Limited, located to the west of Pele Wawa Project has also announced several diamond discoveries on its Wawa area
property since 1996. Pele also received a news article published in the Fort William Daily Times Journal during 1933, from a representative at the Ministry of Northern Development and Mines, of a historic diamond occurrence to the north of Pele Wawa Project.
Pele own works has generated very encouraging results that indicate a potential for diamonds at the Wawa Project. While drilling a gold deposit at the A zone, Pele intersected a kimberlitic dike in 5 different drill holes. Kimberlite is known to be an excellent host rock for diamond deposits. Pele submitted the drill core from the kimberlitic dike to De Beers for analysis. De Beers reported to Pele that the dike did in fact contain several kimberlite indicator minerals including G-10, spinel, and ilmenite among others. The mineral chemistry of these indicators was found to be consistent with a source that may be diamond bearing. Pele has since advanced the exploration for diamonds at the Wawa Project by retaining consulting geophysicists to review and interpret the airborne geophysics on the Wawa Project. According to Paterson, Grant and Watson, diamond exploration experts, Pele Wawa Project does in fact have 8 high priority kimberlite pipe targets.
Wawa Project
The Wawa Project is located at the heart of a gold belt that has been host to at least eight producing gold mines. Pele Wawa Project is located to the east of the Renabie Mine which produced more
than 1,000,000 ounces of gold. The Wawa Project is also located to the west of the currently producing, high grade Edwards Gold Mine, which is operated by River Gold Mines Ltd.
(TSE:RIV).
The deformation zone that hosts the Edwards Gold Mine passes right through Pele property. During the first quarter of the current fiscal year, Pele mined a 10,000 tonne bulk sample of gold ore at the Markes Zone, which is located 200 meters from the west boundary of Pele Property, in the same deformation zone as the Edwards Gold Mine. Pele entered into a custom
milling agreement with Battle Mountain Canada Inc. and processed the gold ore at the Golden Giant Mill at
Hemlo. The bulk sample project was very successful and Pele received $685,000 during the first quarter of fiscal 2000 from the sale of gold.
Ardeen Mine Project
The Ardeen Mine Project is located in northwestern Ontario, 110 km west of Thunder Bay in the Moss Lake area. The property is owned 100% by Pele
and covers more than a 20Km strike length of the Shebandowan greenstone and is centred around the Ardeen Mine, northern Ontario first producing gold mine (formerly called the Huronian
Mine). During the 1930 a shaft was sunk to 1250 feet and 30,000 oz gold and 175,000 oz silver were produced from a 200 ton per day Mill.
An independent report carried out by Richard Murphy, B.Sc. and Doug Hunter, M.Sc. of Minescape Exploration Inc. evaluated the gold resources of the Ardeen Mine Project in August 1998. The Resource Estimation covered portions of five zones of gold mineralization in close proximity to the mine workings including the Pele, Fisher, Fisher North, Fisher South and Trench #2 zones. The indicated resource from Pele drilling on these zones combined was 90,650 tonnes at an uncut grade of 15.3 grams Au/tonne (84,904 tonnes at 11.6 grams Au/tonne assays cut to 2 oz Au/tonne). The inferred resource on these zones totalled 1,082,939 tonnes at 14.4 grams Au/tonne (991,739 tonnes at 11.2 grams Au/tonne cut to 2 oz Au/tonne). Less than 10% of the known strike length of the Pele Zone had sufficient drilling to be included in the resource calculations. Murphy and Hunter stated: work to date has focused on relatively high grade narrow vein type mineralization. It is reasonable to expect that further drilling will encounter significant gold values both under present holes and in step out holes from known zones. Work to date has not outlined the full extent of the gold bearing structures. The potential for expanding the known mineralized zones as well as outlining new zones is very high.
On February 15, 2001, Pele Mountain Resources Inc. ("Pele") announced the results of a bulk sample mined from the Destiny Showing, at Pele’s Festival Property, 25 kms north of Wawa, where Pele controls a 100% exclusive interest in the mineral rights. Lakefield Research Limited has reported to Pele that a total of 55 macro diamonds ranging in size from 0.51 mm to 2.65 mm have been recovered. The bulk sample consisted of 7.5 tonnes (dry weight) of weathered and unweathered xenolith-bearing lamprophyre bedrock.
The biggest diamond measured 2.65 x 2.39 x 2.09 mm and weighed 0.10 carats. Seventy three percent (73%) of the macro diamonds were described as white and ninety three percent (93%) of the white macro diamonds were described as transparent.
On February 13, 2001, Pele announced that it has closed its previously announced (February 9, 2001) private placement with an arm’s length subscriber of 600,000 units in the capital of Pele at $0.25 per Unit for total aggregate consideration of $150,000.
On January 15, 2001, Pele announced that a 9.4 tonne bulk sample has been mined from the Destiny Showing at the Festival Property. Mining of the bulk sample was conducted with the participation and under the supervision of two geologists. The bulk sample was loaded into Endurapak containers at the Destiny Showing which were immediately sealed with security seals provided by Kennecott Canada Exploration Inc.
For further information please access to Pele website: www.pelemountain.com
On January 15, 2001, Pele Mountain Resources
Inc. announced that a 9.4 tonne bulk sample has been mined from the Destiny
Showing at the Festival Property, 25 kms north of Wawa, where Pele controls a
100% exclusive interest in the mineral rights. The bulk sample has been
transported to Lakefield Research Limited, where it is expected to be
processed for macro diamond recovery within 30 days. The bulk sample
consists of hard rock and weathered outcrop of xenolith bearing lamprophyre,
mined from the Destiny Showing, where Pele previously announced (October 24,
2000 and January 3, 2001) the discovery of 108 diamonds.
On January 8, 2001, Pele Mountain Resources Inc. announced that a new diamond bearing lamprophyre body has been discovered at Pele’s Festival Property, 25 kms north of Wawa, where Pele controls a 100% exclusive interest in the mineral rights. The new diamond bearing body was discovered during the mapping of Pele’s diamondiferous Destiny Showing and has been named the P.C. Showing. The first and only sample collected to date from the P.C. Showing was processed by Kennecott Canada Exploration Inc. in their Thunder Bay lab and returned 9 diamonds including two macro diamonds. The sample consisted of 1 kg of concentrate which was manually processed from approximately 32 kgs of weathered outcrop. Seven of the diamonds were clear white fragments that derived from larger diamonds.
For further detail information, please access to www.pelemountain.com
On November 7, 2000, Pele Mountain Resources Inc. announced that it has issued 90,910 common shares from its capital stock to Geocanex Ltd. pursuant to the terms of the acquisition of an exclusive exploration license agreement relating to the 12 square km Festival Property, located 25 km north of Wawa as previously described in the press release of July 6, 2000.
On October 24, 2000, Pele Mountain Resources Inc. announced a new discovery of diamonds on its Festival Property, 25 km north of Wawa. Pele controls a 100% interest in the mineral rights at the 12 square km Festival Property. The new diamond discovery is in a zone of outcrop that was discovered by prospectors Kevin and Calvin Keats in the southern part of the Festival Property. The discovery outcrop consists of xenolithic facies of lamprophyre that strikes east west and is located approximately 1.75 km east of the Sandor diamond showing. The new diamond discovery has been named the Destiny Showing.
The first diamond recovered from the Destiny Showing was a macro diamond that was panned from a 5 kg sample of the weathered residuum of the outcrop lying below the soil and glacial material. The clear, colourless macro diamond measures 0.8 mm in length and was identified as a diamond through several tests, including X-ray defraction, by the Earth Sciences Department at the Royal Ontario Museum (“ROM”). A second diamond, a white micro diamond, was recovered from the caustic residue of a hard rock sample, 53 kg in size that was processed by Saskatchewan Research Council.
A further 62 diamonds have been recovered from a sample of approximately 340 kg of weathered residuum of the outcrop that was manually concentrated down to 15 kg by placer specialist - geomorphologist and geologist Michael Milner, using sieves and a conical pan on site.
On July 7, 2000, Pele Mountain Resources Inc. (“Pele”) announced that a new diamond discovery on the Festival Property, located 25 km north of
Wawa. A beautiful yellow macro diamond measuring 0.68mm x 0.68mm x 0.39mm was recovered from a 35.20 kg surface sample collected at the Jubilee showing.
Pele is immediately moving ahead with the exploration program on the Property. An experienced team of professionals are already on site conducting prospecting, mechanical stripping, geophysics, mapping and an extensive sampling program at the Jubilee showing. The
area all around Wawa is very busy with exploration activity as a result of the recent diamond discoveries. Several junior and major mining companies are joining in the rush to develop the first diamond mine in Northern Ontario.
On May 08, 2000, Pele Mountain Resources Inc. announced that Pele has entered into an exclusive exploration license agreement with 3011651 Nova Scotia Limited (the Property Owner)
relating to an area of 12 square kilometres in Lalibert township, 25 kms north of Wawa (the Festival Property). The exploration license provides Pele with the exclusive right to conduct mineral exploration and bulk sampling on the Festival Property and, at the option of
Pele, to have portions of the licensed area brought to lease and into commercial production
subject to a 3% Royalty in favor of the Property Owner.
The License Agreement is for an original term of five (5) years with a right to renew for a further five (5) year term. The license fee for the first year (the lease fee) is $500 per square kilometre or $6,000 in the aggregate. The fee for each of the remaining
four (4) years of the initial term is based on a formula of 50% of the base fee plus $250 per square kilometre remaining under license. For each year of the five (5) year renewal term, the license fee is 60% of the base fee plus $300 per square kilometre remaining under license.
In conjunction with the License Agreement, Pele has agreed to pay Geocanex Ltd., an arm length mineral exploration and consulting firm and the former licensee of the Festival Property, $25,000 upon full execution of the License Agreement plus an additional $275,000
payable in cash or stock over the next three years. Geocanex will have a 5% carried interest in the net profits actually received by Pele from any mining operations on the Festival Property. Pele has also retained Geocanex Ltd. as a consultant to provide its expertise and familiarity with the Festival Property and to assist Pele in its exploration
activities to be conducted thereon, and in consideration therefor, Pele granted to Geocanex Ltd. an option to purchase 200,000 common shares of Pele at $0.40 per share under its 1997 Stock Option Plan.
The License Agreement and the agreements with Geocanex Ltd. remain conditional at the option and for the sole benefit of Pele until May 31, 2000 to allow for the postponement and subordination in favour of Pele of certain other interests registered on title to the Festival
Property.
Investor’s Digest Article prepared by leading Broker discusses Attractiveness of Pele Mountain Resources Inc.
The article was prepared by Stephan
Katmarian, CFA, is a Vice President with Rampart Securities in Toronto and specializes in small-cap stocks. Parts of the article are quoted as follow:
“One junior resource exploration company with excellent potential and significant assets that I consider worth review is Pele Mountain Resources Inc. A few weeks ago, a major diamond discovery near
Wawa, Ontario, dramatically enhanced the potential value of Pele’s
substantial gold-oriented landholdings in the area.
In February of this year, a diamond recovery of 45 diamonds with 10 macrodiamonds from a 63.4 kilogram rock sample taken near Wawa was announced by Band-Ore Resources.
The results were confirmed by a major mining company, as well as by Lakefield Research – a world-class laboratory in Ontario specializing in diamond recovery.
North-central Ontario has had diamond finds and rumors for more than a century, but this discovery is the first that clearly indicates the region has the potential for economic diamond recovery.
Some experts are quietly suggesting that this discovery is one of the most important in Canada in the last 20 years.
Pele’s president, Al
Shefsky, has done an excellent job of advancing Pele during a very difficult time for junior mining firms. The firm owns all its properties and is funded for the next few years.
I believe the coming months could see a flurry of diamond-related activity and news in the Wawa region of Ontario. Kennecott alone is spending up to $25 million on diamond exploration in the area over the next few years. Band-Ore will also be actively exploring
and drilling.
I like this idea of owning Pele shares because of its attractive price, excellent management, excellent gold assets, good financial condition and a serious land position in an emerging diamond play.
I predict this area play will be the sleeper win of 2000.”
(If any interested investors want to see the full report of this article, please access to Pele Mountain Resources Inc. web-site. The site address is www.pelemountain.com.)