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Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: Diamond Daze who wrote (374)	12/11/2002 5:26:11 PM
From: rdww	Read Replies (1) \| Respond to of 16207

property update and plant relocated FOR IMMEDIATE RELEASE December 11, 2002, Toronto: Pele Mountain Resources Inc. (TSX Venture:GEM) ("Pele") (the "Company") is pleased to announce the relocation and upgrading of its on-site commercial diamond recovery facility from the Festival Property to a dedicated indoor location at SGS Lakefield Research Ltd. ("SGS Lakefield"). Modifications to the processing circuit at the new location include the addition of larger bins, conveyors and mechanized equipment that will increase throughput capacity, enhance operational efficiencies and reduce costs. Bulk sample processing is scheduled to begin at the new location next week and will continue during the winter months at the SGS Lakefield facility. During the 2002 exploration field season, Pele's on-site diamond recovery facility showed that promising geological and micro diamond data could be quickly followed-up with bulk sampling to demonstrate whether or not a significant population of commercial size diamonds is present within the targeted rock types. Pele's objective in processing such exploration bulk samples is to prioritize sample sites based on the presence of commercial size diamonds for larger bulk samples. Pele's focus on using the presence of commercial size diamonds to prioritize occurrences has led to the development of an effective exploration tool that utilizes high intensity magnetic separation of crushed and sized samples to separate diamonds from the host rock. Non-magnetic concentrates of only a few grams can be produced from several tonnes of rock and the diamonds can then be readily recovered from the concentrates. Studies are currently underway to confirm overall recovery using this cost effective and environmentally friendly technique and to assess the potential of a magnetic separation circuit for higher tonnage applications and larger scale programs. Significant populations of commercial size diamonds have been recovered from Pele's Genesis and Cristal (3 kilometres east/southeast of Genesis) diamond occurrences within the Festival Property. These diamond occurrences are part of an extensive suite of diamond-bearing volcanoclastic rocks that are being referred to as the Musquash Metavolcanic Unit. Individual diamond-bearing volcanoclastic units have been observed within the Festival Property in intermittent outcrops that range in size up to and exceeding 100 metres in width and up to and exceeding 800 metres in length. Stratigraphic variation of the volcanoclastic units within the southwest corner of the Festival Property suggests that they are part of a volcanic eruptive that exceeds 2 kilometres in diameter. During the 2001 and 2002 exploration field seasons a total of 61 relatively small samples (typically less than 20 kilograms) of the volcanoclastic units have been processed for micro diamond extraction by caustic digestion at four different independent laboratories. Positive diamond results were reported from 58 of the 61 samples returning 2,434 diamonds from a total of 1,074 kilograms processed. Diamond size distribution analysis of these samples has been effective in targeting bulk sample sites containing commercial size diamonds. Diamonds recovered to-date from the Festival Property contain significant populations of white, clear, well preserved diamonds and a broad spectrum of colored stones that include pink, green, yellow and brown diamonds. 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, P.Geo., 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. Symbol: GEM Listing: TSX Venture Exchange Common Shares Outstanding: 30,486,354