|Pele Begins Drilling at Attawapiskat River Diamond Project|
FOR IMMEDIATE RELEASE
January 5, 2004, Toronto, ON, Pele Mountain Resources Inc. (TSX
Venture:GEM) ("Pele" or the "Company") is pleased to announce that drilling
has begun at its 100% owned Attawapiskat River Diamond Project to test
targets identified in the on-going ground geophysics program announced by
Pele on October 30 and December 5, 2003. The drill currently in use is a
lightweight, mobile drill that has been equipped to recover BQ size core
samples of bedrock that can be readily examined to determine whether or not
the drill target is kimberlite. This direct approach to acquisition of
bedrock samples will provide the opportunity to test a number of targets
prior to spring breakup.
Drilling of magnetic geophysical targets is an established method for the
discovery of the known kimberlite pipes in the Attawapiskat cluster. Pele's
current exploration program is designed to drill-test shallow ground
magnetic anomalies within or adjacent to primary structures that appear to
have controlled the emplacement of the diamondiferous kimberlites.
A total of 70 line kilometers of grid has been cut to date straddling the
extension of important structures related to the diamond bearing kimberlite
pipes along strike and within a few kilometers of De Beers' Victor and
Tango kimberlite pipes. Pele's detailed ground magnetic survey has already
identified a range of magnetic targets including relatively strong magnetic
anomalies (similar in magnetic strength to known kimberlites in the
cluster) and more subtle and weaker magnetic signatures (which may
potentially be related to variably altered crater facies kimberlite).
At least 18 diamond-bearing kimberlites have already been discovered in the
cluster, including De Beers' Victor kimberlite pipe which, according to
published information, is advancing towards planned commercial diamond
production in 2007. Pele's Attawapiskat River Diamond Project comprises the
largest 100% owned claim holdings within a 30 kilometre radius of the
Victor pipe. Kimberlite discoveries announced by a number of junior
exploration companies working in the area over the past few years suggest
the possibility that additional kimberlites are likely to be present in the
Pele is a Canadian mining exploration and development company and a leader
in the search for economic diamond and gold deposits in Northern 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 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.