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

To: kidl who wrote (1637)	12/3/2003 9:54:16 PM
From: rdww	Respond to of 16206

Bulk Sampling Advances to Next Stage FOR IMMEDIATE RELEASE December 3, 2003 Toronto: Pele Mountain Resources Inc. (TSX Venture: GEM) ("Pele" or the "Company") is pleased to announce that the bulk sampling program undertaken by De Beers Canada Exploration Inc. ("De Beers") pursuant to its Option and Joint Venture Agreement with Pele (the "Option Agreement") (see Pele's press release of July 31, 2003), has advanced to the next stage. The first samples from the Genesis diamond occurrence have been shipped to De Beers' DMS plant in Grande Prairie and processing will begin during the week of December 3, 2003. The processing circuit in Grande Prairie will be modified to include magnetic separation after Dense Media Separation in order to reduce the amount of concentrate and to expedite diamond recovery at De Beers' facilities in South Africa. Additional bulk samples are continuing to be crushed on-site at the Festival Property in preparation for shipment to, and processing in, Grande Prairie. Due to a number of factors, including the commencement of bulk sampling late in the field season and the current inclement weather conditions, De Beers expects approximately 250 tonnes of bulk sampling will be taken from the Festival Property by year end rather than the 300 tonnes that was contemplated in the Option Agreement. The bulk sampling program undertaken by De Beers was initiated with the intent to acquire more information about the relationship between the distribution of micro diamonds and commercial size diamonds within the diamond occurrences of the Festival Property. Increasing the confidence level of modeled grade calculations based on micro diamond data will assist in prioritizing the extensive suite of diamond occurrences discovered within the Festival Property. Exploration work completed to-date has discovered more than 20 significant diamond occurrences and the majority of the Festival Property has yet to be prospected. Much more information will be required before the economic potential of the diamond deposits within the Property can be determined with confidence. The diamond discoveries in the southwest corner of the Festival Property are part of a suite of diamond-bearing rocks that can be traced in intermittent outcrop along a specific stratigraphic horizon for more than 5 kilometres with surface widths up to and exceeding 100 metres. Petrological studies suggest that particular geological, textural, mineralogical and chemical data can be directly correlated with specific rock types, and most importantly, there appears to be a correlation between this data and the size distribution of the diamonds. As this type of work advances, it is anticipated that it may be possible to prioritize the diamond occurrences and the different facies of diamond-bearing rock for additional bulk sampling that will test the economic potential of a particular occurrence. Results obtained to-date including micro diamond samples processed throughout the 2003 field season indicate that the distribution of diamonds recovered from total extraction techniques with a bottom cut-off screen of 0.1 mm vary from barren to frequencies of more than 10 diamonds per kilogram. Commercial size diamonds have been recovered from the Festival Property including a 0.72 carat white gem quality diamond from a 13 tonne sample collected from the Cristal diamond occurrence (see Pele's press release dated January 22, 2003). 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 Pele's future plans, objectives or goals, including words to the effect that Pele 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. None of the Company's properties have any known ore body of economic or commercial value.