TORONTO, Jan 5, 2005 -- Pele Mountain Resources Inc. (TSX VENTURE:GEM) (``Pele`` or the ``Company``) announced today several positive developments at its Festival Diamond Project (``Festival``). Highlights include:
- Goldcorp will continue to fund exploration in 2005. - Interim sampling results are positive and confirm the exploration model.
- Partial results from Sample CS-04-032 have returned 260 diamonds from 8 kilograms.
- Follow-up channel sampling is underway at key locations.
- Planning is under way for follow-up drilling at high priority targets.
Pele controls a 100-percent interest in the mineral rights at Festival, a 101-square kilometer patented land package along the Trans Canada Highway just north of Wawa in northern Ontario. Previous bulk sampling has confirmed the presence of commercial size and gem quality diamonds at Festival while surface exposure at its many diamond occurrences suggests the potential for significant near-surface tonnage.
In concluding the 2004 field season, a total of 132 channel samples from 12 different occurrences totaling over 2,300 kilograms were extracted from volcanogenic mass flow units overlying an interpreted paleosurface. The paleosurface is considered to be the primary diamond exploration target at Festival and appears repeatedly within a specific stratigraphic horizon over a 20 square-kilometer area in the southwest corner of the property. Continuous successions of intermittently outcropping mass flow units exhibit apparent thicknesses ranging from less than 5 meters to more than 300 metres along a strike length that exceeds one kilometer. Channel samples were collected across the mass flow units at the different occurrences to isolate the most favorable diamond depositional environment.
Interim results from 8-kilogram portions taken from 108 out of the 132 collected samples have yielded from zero to more than 30 diamonds per kilogram, including some of the best diamond size distributions yet seen at Festival. Diamonds have thus far been recovered from ten of the twelve sampled occurrences. Preliminary assessment of the initial data suggests that diamond sorting occurred within individual mass flow units as well as across the succession of mass flow units upward from the paleosurface. The basal sequence of mass flow units directly above the paleosurface has been identified as the most favorable diamond depositional environment on the property. Diamond results will be reported by sieve size upon the completion of the processing.
Dr. Edward Walker, P.Geo., and a field crew are currently at Festival collecting additional samples from the location which has thus far returned the most encouraging results. A total of at least 200 kilograms of additional rock will be collected and processed in order to obtain a larger population of diamonds for size distribution modeling purposes. Processing of the original 132 collected samples is continuing and larger follow-up samples will likewise be extracted and processed from other occurrences that also provide favorable results. Following the completion of processing next month, Pele will conduct a drill program at high priority targets to assess the thickness and extent of the most promising diamond-bearing units.
The Festival samples are being processed for diamond extraction by caustic digestion at the Saskatchewan Research Council, an independent, ISO 17025 accredited commercial laboratory.
Pele Mountain Resources is a Canadian mineral exploration company and a leader in the search for economic diamond and gold deposits in northern Ontario. Pele is actively exploring on four project fronts, including Goldcorp-funded programs at Pele`s Ardeen Gold Mine Project and Festival Diamond Project along with in-house programs at Highland Gold and James Bay Lowlands. Pele trades on the TSX Venture Exchange under the symbol ``GEM``.
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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Pele Mountain Resources Inc. (TSX VENTURE:GEM)
SOURCE: Pele Mountain Resources Inc.
Pele Mountain Resources Inc.
Al Shefsky President
(416) 368-7224
www.pelemountain.com
