ONTARIO – Pele Mountain Resources of Toronto has entered into a tentative deal with a Chinese company in the hopes of finally developing its Echo Ridge rare earth property in Elliot Lake. The aim is to create a joint venture to build a state-of-the-art monazite processing plant and value added facilities.
The deal is with Sheng Kang Ning (Shanghai) Mining Investment (SKN), a foreign investment arm and 90% owned subsidiary of Shenghe Resources Holding Co. Both SKN and its parent own proprietary technologies for low cost treatment of rare earth ore. They also posses the expertise and experience to design, guild and operate such a plant.
Pele’s flagship property is the 100% owned Eco Ridge rare earths and uranium project. The company updated the preliminary economic assessment in 2013, and suggested the project could produce 141.6 million lb of rare earth oxides over a 14-year life. Over that period 20.7 million lb of neodymium oxide, 1.3 million lb of dysprosium oxide, 60.0 million lb of yttrium oxide, and quantities of terbium, europium and scandium oxides. Roughly half the project revenues will be generated by the sale of REOs, the balance by uranium.
Additional information about the Eco Ridge project are available at PeleMountain.com.