|Pele Mountain Announces Strategic Alliance at|
TORONTO, ONTARIO--(CCNMatthews - Apr 13, 2004) - Pele Mountain
Resources Inc. (TSX Venture:GEM) ("Pele" or the "Company") is
pleased to announce that it's wholly owned subsidiary, Pele
Diamond Corporation ("Pele Diamond"), has entered into a
strategic alliance (the "Strategic Alliance") with 2043423
Ontario Inc.("2043423"), an arms length private company. The
purpose of the Strategic Alliance is to stake mining claims in
the vicinity of the Attawapiskat cluster of diamond bearing
kimberlite pipes and to pursue opportunities involving the staked
claims for the benefit of both parties.
In furtherance of the Strategic Alliance, a total of 47 mining
claims comprising 645 claim units (each claim unit covers
approximately 40 acres) have been staked in a single block of
contiguous mining claims that has been named the Turtle Pond
Diamond Property (the "Turtle Pond Property"). The Turtle Pond
Property was staked by contractors engaged by Pele Diamond who
filed applications to record the mining claims in the names of
Pele Diamond and 2043423, each as to an undivided 50% interest.
2043423 earned its undivided 50% interest in the Turtle Pond
Property by reimbursing Pele Diamond for substantially all
out-of-pocket costs incurred in staking the mining claims
comprising the Turtle Pond Property.
The Turtle Pond Property is strategically located to the south of
De Beers' Victor Kimberlite Pipe and ties on to mining claims
owned by De Beers where four known diamond bearing kimberlite
pipes have previously been found, including the X-Ray 1, Zulu,
Alpha North and Alpha 1 kimberlite pipes. The Turtle Pond
Property also ties on to the boundary of mining claims owned by
other joint ventures involving Metalex Ventures Ltd. that are
exploring in the area.
Pele Diamond and 2043423 have agreed that neither participant in
the Strategic Alliance will have or be entitled to an interest in
any mining claims now owned or hereafter acquired by the other
outside of the Turtle Pond Property. Pele's interest in the
Turtle Pond Property adds to the existing claim holdings at the
Company's Attawapiskat River Project which is comprised of five
100% owned claim blocks. Pele's claim holdings in the area cover
the largest wholly-owned group of mining claims within a 30
kilometre radius of De Beers' Victor Kimberlite Pipe, which is
advancing towards planned commercial diamond production in 2007.
Pele also announced today that is has staked 3 additional mining
claim blocks totaling 48 mining claim units at its 100% owned
West River Property, bringing the total number of mining claims
wholly-owned by Pele Mountain Resources Inc. in the area to
approximately 1750 units (in addition to its 50% interest in the
Turtle Pond Property).
Pele has also successfully completed approximately three hundred
(300) kilometers of line cutting and ground magnetic geophysics
and has intersected from 1 to 8 meters of predominantly limestone
in four additional drill holes at its West River Property since
the Company's February 13, 2004 press release. Each of these
drill holes encountered approximately 20 to 30 meters of
overburden before intersecting limestone and then reaching the
practical depth limit of the small portable core drill being
used. Three other drill holes were attempted; however, overburden
conditions were too difficult for the small portable drill to
penetrate through to bedrock.
Pele has demobilized the small portable drill from its camp and
has allowed the joint venture of Spider Resources Inc./ KWG
Resources Inc. ("Spider/KWG") to mobilize a large drill capable
of drilling several hundred meters along with a drill crew into
Pele's camp. Spider/KWG began drilling last week and has already
successfully intersected a new kimberlite body beginning at a
depth of 47.5 meters down its first drill hole. According to the
Spider/KWG press release dated April 12, 2004, "a 250 meter deep
magnetic linear feature traceable for 7 kilometers within the
joint venture property will be tested during this drill program.
This deep linear magnetic feature has been interpreted as a
"possible" kimberlite filled fissure or Dike." The Structure that
hosts this deep linear magnetic feature appears to extend onto
Pele's 100% owned West River Property within 2 kms of the
Spider/KWG property boundary and appears to continue for more
than 10 kilometers on Pele's ground.
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. Ed Walker, P.Geo.of Petrologic Inc., an
independent consultant and qualified person.
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.
Common Shares Outstanding: 43,571,014
FOR FURTHER INFORMATION PLEASE CONTACT:
Pele Mountain Resources Inc.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.