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URANIUM STUDY – Scoping positive for Pele Mountains Elliot Lake project

ONTARIO - PELE MOUNTAIN RESOURCES of Toronto has received a positive scoping study for its 100%-owned Elliot Lake u...


ONTARIO – PELE MOUNTAIN RESOURCES of Toronto has received a positive scoping study for its 100%-owned Elliot Lake uranium project near the town of the same name. The study was prepared by SCOTT WILSON RPA.

The study focused on U3O8 mineralization in the Main conglomerate bed (MCB) that lies within the Adit block. The Adit block is a 600- by 800-metre area of near-surface and relatively higher-grade mineralization that presents a favourable location for initial mining. The MCB lies about 10 to 15 metres above the basement rocks and extends across a strike length of 6,000 metres, and a dip length of at least 3,800 metres, all within the Pele property.

The mineral resources, according to the study, include 5.7 million tonnes of indicated material grading 0.051% U3O8 and 37.3 million tonnes of inferred material grading 0.044% U3O8. All resources at Elliot Lake are hosted within the MCB.

A likely scenario may involve developing a mine that would produce 826,000 lb of U3O8 annually at a cash operating cost of US$55.51/lb for 18 years. Initial capital requirements would be Cdn$195 million, and a further Cdn$63 million would be spent on sustaining capital needs. The study calls for 40% of the ore to be mined conventionally and acid leached, and for the rest to be treated with underground bioleaching.

Additional details of the scoping study are available at www.PeleMountain.com.


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