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Gold/Mining/Energy : Pele Mountain

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To: rdww who wrote (231)3/19/2004 12:28:42 AM
From: rdww  Read Replies (1) of 241
 
Pele Mountain Bulk Sample Returns Big Diamond

TSX VENTURE SYMBOL: GEM

MARCH 17, 2004 - 17:06 ET

TORONTO, ONTARIO--Pele Mountain Resources Inc. (TSX Venture: GEM)
("Pele" or the "Company") is pleased to announce that De Beers
Canada Exploration Inc. ("De Beers") has reported the recovery of
a 0.9 carat diamond from the Genesis diamond occurrence
("Genesis") located within the Festival Property, north of Wawa,
Ontario. The 0.9 carat diamond was recovered from an ultramafic
facies of rock that is comparable to the facies of rock from
which the 0.72 carat, white, gem quality diamond "The Big Goose"
was recovered in March 2003 from the Cristal Diamond Occurrence
("Cristal").

In late 2003, De Beers collected four bulk samples weighing a
total of 258 tonnes and processed them at their DMS facilities in
Grande Prairie. The processing circuit recovered diamonds greater
than 1mm square mesh sieve size which is a routine practice for
bulk samples in this size range. The 0.85mm to 1.00mm size
fraction was collected and retained at Pele's request but has not
yet been processed and any commercial size diamonds in this size
fraction are not included in the bulk sample results reported to
date.

The bulk sample sites were selected from different facies to
acquire information about the diamond distribution relationship
between micro diamonds and commercial size diamonds. Two of the
samples collected are ultramafic facies of rock from different
locations at Genesis and the other two samples collected are a
mafic facies of rock, one from Genesis and the other from the
Moet diamond occurrence. The four bulk samples also represent
locations with variable micro diamond results including locations
with relatively high (greater than 10 diamonds per kilogram) and
relatively low (less than 0.1 diamonds per kilogram) micro
diamond frequencies.

A total of 875 kilograms of diamond concentrate was produced in
Grande Prairie and then shipped to South Africa for final diamond
extraction and reporting of the results. Concentrates from three
(3) of the samples representing 203.4 tonnes of head feed weighed
328 kilograms, a concentrate weight of only 0.16% of these
samples. De Beers achieved the relatively smaller concentrate
weight (compared to the previous 100 tonne bulk sample from
Cristal with a concentrate weight of 3.3% of the sampled rock) by
modifying its standard processing circuit with the introduction
of a high power permanent magnet roll separator to process the
DMS concentrates. The magnetic separator used in Grande Prairie
was the same machine that Pele had used at its on-site processing
facility in 2002 and Pele was in full agreement with the use of
this magnet in the processing flow chart.

Each of the four bulk samples successfully returned commercial
size diamonds greater than 1mm square mesh sieve size as
indicated in the table below and the diamond recorded in the +13
sieve class screen size for the Genesis-2 sample is the 0.9 carat
diamond. As a routine practice at the Grande Prairie facility,
10% of the DMS rejects are reprocessed by De Beers for auditing
purposes. No diamonds were reported for three (3) out of the four
(4) routine audits (one per bulk sample), however, the audit
sample of the DMS rejects from the Genesis-2 sample returned
seven (7) of the 46 diamonds reported for this sample.

De Beers also reported that 100% of the diamonds for the
Genesis-3 sample and 100% of the diamonds from the Genesis-2
audit sample were not recovered by the diamond x-ray sorter. All
of the Genesis-3 diamonds and all of the diamonds recovered from
the audit of the Genesis-2 sample were recovered from the
non-magnetic x-ray rejects for each of these samples. To ensure
full recovery of all diamonds, to include low luminescence
diamonds, the standard flow sheet at De Beers' GEMDL facility in
Johannesburg includes magnetic separation of all x-ray rejects,
with full sorting of the non-magnetic fraction. In total, 44% of
all diamonds reported from the bulk samples were not recovered by
the diamond x-ray sorter. The following chart contains the
results of the bulk samples as reported by De Beers:

/T/

--------------------------------------------------------------------
Occurrence Rock Sample Sieve Class Screen Size(a) Total Total
Type Wt. +1 +2 +3 +5 +6 +13 Dia- Carat
Tonnes monds Wt.
--------------------------------------------------------------------
Genesis-1 Mafic 54.6 1 3 1 3 2 - 10 0.34
Genesis-2 Ultra- 82.9 16 16 10 3 - 1 46 1.75
mafic
Genesis-3 Ultra- 72.7 4 2 2 - - - 8 0.13
mafic
Moet Mafic 47.8 1 2 2 - - - 5 0.13
--------------------------------------------------------------------
(a) As reported by De Beers

/T/

Both the 0.9 carat diamond from Genesis and 0.72 carat diamond
from Cristal were recovered from a suite of rocks that are
considered to be a "primary facies" of diamond-bearing ultramafic
volcanic rock within the Festival Property. These rocks have been
identified in intermittent outcrop along a stratigraphic horizon
for more than 5 kilometers within the Festival Property with
surface widths up to and exceeding 100 metres. Based on all
results to date, the next sampling program will focus on testing
a number of the diamond bearing ultramafic facies within this
horizon.

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.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Pele Mountain Resources Inc.
Al Shefsky
President
(416) 368-7224
Visit our website at www.pelemountain.com
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