Press Release Source: PELE MOUNTAIN RESOURCES INC.
Pele Mountain Begins Bulk Sampling Campaign
Wednesday October 16, 8:03 am ET
TORONTO, ONTARIO--Pele Mountain Resources Inc. ("Pele") (TSX Venture:YPN - News) is pleased to announce the successful completion of the 2002 summer diamond exploration program and the initiation of an autumn bulk sample collection and processing campaign at its Festival Property. Pele is confidently advancing diamond exploration following its recent discovery of the Genesis diamond occurrence ("Genesis"). The measured and modeled grade of the first 4.5 tonne bulk sample processed from Genesis (see Pele's press release of September 12, 2002) is within the range of currently producing diamond mines in other parts of the world. Additional samples will be processed during the autumn campaign to assess the potential of this important new diamond discovery.
During the 2002 field season, Pele discovered more than 25 volcanic units (ranging up to greater than 100 meters wide by greater than 800 meters long on the surface) and has successfully designed and implemented an on-site diamond recovery processing facility. The autumn exploration campaign has already begun with the completion of an access road from the Trans Canada Highway to Genesis. This access road has facilitated the collection and transportation of more than 40 tonnes from Genesis to Pele's on-site facility. Samples have also been collected and transported from volcanic units located elsewhere on the Festival Property. The diamond recovery facility is being winterized and processing of samples is expected to be under way within the next few weeks.
The processing flowchart at Pele's diamond recovery facility is a simple and direct method for the recovery of commercial size diamonds from non-magnetic concentrates that was successfully designed and implemented specifically for the diamond deposits outcropping within the Festival Property. The effectiveness of this method is attributable to the magnetic properties of the metamorphosed mineralogy of the diamond-bearing host rocks and has been confirmed by tracer recovery (including uniquely identifiable diamonds) and by third party laboratories. The current processing conditions are configured to recover diamonds less than 6mm and greater than 0.8mm square mesh size. Quality control, quality assurance and security protocols have been independently monitored during previous operations at the facility and will continue to be rigorously implemented throughout all stages of the autumn campaign. No officers, directors or insiders of Pele participate in the physical collection or processing of samples.
Mapping and sampling of bedrock in the southwest corner of the Festival Property has discovered a high concentration of diamond-bearing volcanic units outcropping intermittently over an area of approximately 4 kilometers by 4 kilometers. Systematic variation of the matrix and fragments across a 2 kilometer wide section perpendicular to the regional northwest trend suggests the presence of diamond-bearing crater facies rock types in this area. Every volcanic unit sampled within this area has been diamond-bearing including the exciting new Genesis discovery.
During the past three field seasons, the diamond discoveries made by Pele on the Festival Property have progressed in a purposeful and systematic manner in a search designed to locate commercial size and gem quality diamonds in economic concentrations. The discoveries have advanced from hypabyssal facies of rock, to intrusive breccias to a variety of volcanic deposits within what has been described as volcanic complexes. As the understanding of the deposits advanced and each rock type was discovered and tested, the diamond content and dimensions of the diamond deposits have increased remarkably. Work to date has not outlined the full extent of the diamond deposits on the Festival Property. The potential for expanding the size and the grade of the volcanic units within the Festival Property remains high.
Pele is a Canadian mining exploration and development company and a leader in the search for economic diamond deposits in Northern Ontario. Pele controls a 100% mineral rights interest in the 101 square km Festival Property, which is located 20 kilometers north of Wawa. Pele also owns a 100% interest in two gold projects in northwestern Ontario. This press release has been reviewed and approved by Dr. Edward Walker, of PetroLogic Inc., an independent consultant and Qualified Person.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
--------------------------------------------------------------------------------
Contact:
Pele Mountain Resources Inc.
Al Shefsky
President
Phone: (416) 368-7224
www.pelemountain.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
