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Gold/Mining/Energy : A CANADIAN DIAMOND HUNT -- Ignore unavailable to you. Want to Upgrade?

To: Chas. who wrote (854)	9/12/2002 11:23:21 AM
From: rdww	Respond to of 930

Pele Mountain Resources Inc. Symbol: YPN Listing: The TSX Venture Exchange Common Shares Outstanding: 28,239,354 Genesis Diamonds Makes the Grade FOR IMMEDIATE RELEASE September 12, 2002, Toronto: Pele Mountain Resources Inc. (TSX Venture:YPN) (“Pele”) is pleased to announce that a 4.5 tonne sample from its Genesis diamond occurrence (“Genesis”) has achieved a diamond grade milestone. The results of this sample support management’s firmly held belief that Pele has discovered an important source of commercial size and gem quality diamonds. The sample also demonstrates that Pele has developed the capability to conduct on-site recovery of commercial size diamonds in a direct, cost-effective manner. A total of 53 commercial size diamonds were recovered from the Genesis sample down to a bottom screen size of 0.8 mm. The total weight of the diamonds was 0.52 carats and the largest diamond recovered was a broken stone that weighed 0.085 carats. The modeled grade for this sample was estimated to be 30 carats per hundred tonnes for diamonds larger than a 1mm square mesh cut off. Statistical modeling of the grade for this sample was performed by AMEC, an independent consulting and engineering firm and took into account the combined data from all 361 diamonds recovered from caustic digestion and bulk sample processing of samples collected and processed from Genesis to date. It should be noted that the modeled grade represents total diamond content with no recovery factor applied to account for the inefficiencies, which would be experienced in a commercial processing plant. In addition, because of the small sample sizes, the projected grades should be considered as indicative rather than absolute and AMEC recommended that this data be used by Pele to prioritize targets for future larger scale follow-up sampling. Occurrence Name Sample Weight # of Diamonds per Sieve Size Fraction in Millimeters Total # of Diamonds 0.106 0.150 0.212 0.300 0.425 0.600 0.850 1.18 1.70 Genesis* 17.0 kg 120 92 60 29 5 2 308 Genesis 4500 kg 32 16 4 1 53 *Diamonds recovered by caustic digestion previously announced by Pele in press release dated August 22, 2002 The 4.5 tonne Genesis sample was collected on September 4, 2002 from an outcrop within a volcanic unit that outcrops intermittently over an area up to 100 meters by 300 meters. It was mobilized by helicopter to Pele’s on-site processing facility the same day. The sample was crushed to minus 6mm, then screened on 3mm, 1.5mm and 0.8mm square mesh vibrating screens. Each size fraction was then passed over a 21,000 gauss magnet with a four stage separation process to create a non-magnetic concentrate. The magnetic –6 to +3mm fraction was then crushed to minus 3mm, screened on 1.5mm and 0.8mm and passed over the magnet. Each non-magnetic concentrate was observed and the diamonds were picked out and mounted on an adhesive card. The recovered diamonds were security-sealed and transported to SGS Lakefield Research Ltd. (“Lakefield”) for verification, weighing and sieving. The modeled grade for this sample is based exclusively on the square mesh sieve data as measured by Lakefield. Sample collection, processing and diamond recovery was supervised and performed by Dr. Edward Walker, of PetroLogic Inc., an independent consultant and Qualified Person. Quality control, quality assurance and security procedures were monitored throughout every stage of the process. According to Dr. Walker, “The recovery of 53 commercial size diamonds from a 4.5 tonne sample is a significant breakthrough for Pele’s diamond exploration program at the Festival Property. Given the abundance of commercial size and gem quality diamonds, the size of the volcanic units, and the outstanding infrastructure in the area, the Genesis sample further substantiates the strong economic potential of Pele’s large volcanic diamond deposits.” 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 kms 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. For further information please contact Al Shefsky, President at (416) 368-7224, or visit our website at www.pelemountain.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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.