Pele took a 9.4t sample in Wawa and has a 'deal' with kennecott
Pele Mountain begins testing of bulk sample
Pele Mountain Resources Inc YPN
Shares issued 17,806,738 Jan 12 close $0.35
Mon 15 Jan 2001 News Release
Mr. Al Shefsky reports
A 9.4 tonne bulk sample has been mined from the Destiny Showing at the
Festival property, 25 kilometres north of Wawa, where Pele controls a
100-per-cent exclusive interest in the mineral rights. The bulk sample has
been transported to Lakefield Research, 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, as reported in Stockwatch Oct. 24, 2000, and Jan. 3, 2001, the
discovery of 108 diamonds.
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. The
containers were then transported, and have arrived at Lakefield, with all
security seals intact. Lakefield has systems in place to monitor security,
quality control and quality assurance at every stage of processing
throughout the lab.
Pele has also announced that Kennecott has agreed to pay the $25,000 cost
of processing the bulk sample at Lakefield. In return, Kennecott will have
the exclusive right to negotiate a joint venture for 60 days following
receipt of the final results of the bulk sample. Kennecott will notify Pele
within 10 days of the final results whether or not they elect to pursue
negotiations. If Kennecott elects not to proceed with negotiations, then
Pele would be free of any obligation. If Kennecott elects to proceed with
negotiations, then Pele must not solicit or entertain offers on the
Festival property from any party for 60 days. During the 60 day period both
Kennecott and Pele must make best efforts to arrive at a mutual agreement
for entering a joint venture. If no agreement is reached during this 60 day
period, and Pele does reach an agreement with another third party within
one year, then best efforts must be made to reimburse Kennecott for the
cost of processing the bulk sample in cash or at Pele's option, but subject
to regulatory approval, common shares.
(c) Copyright 2001 Canjex Publishing Ltd. stockwatch.com |
