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Gold/Mining/Energy : Pele Mountain

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To: rdww who wrote (239)9/22/2004 12:14:47 PM
From: rdww   of 241
 
Pele Mountain Reactivates Ardeen Gold Mine Project
TORONTO, ONTARIO--(CCNMatthews - Sept. 22, 2004) - Pele Mountain
Resources (TSX Venture:GEM) ("Pele" or the "Company") announced
today that Goldcorp (TSX:G; NYSE:GG) is on schedule to complete a
$400,000 exploration work program before the end of 2004 for the
Ardeen Gold Mine Project ("Ardeen") in northwestern Ontario. As
announced previously, Pele and Goldcorp have signed an option
agreement at Ardeen, pursuant to which Goldcorp may earn up to a
60-percent interest in the project by spending $4,500,000 before
the end of 2008.

The Goldcorp-led exploration program at Ardeen is underway with a
comprehensive review and compilation of previous exploration
data, and will include resampling of drill core stored at the
MNDM core library west of Thunder Bay for certain holes drilled
prior to Pele acquiring the Property where no assays are
available. Goldcorp is creating a comprehensive digitized
database which, in addition to Pele's work since 1996, also
includes a number of drill holes, geophysical surveys and other
information generated by other operators prior to Pele's
acquisition of the Property. This new database will be used to
prioritize drill targets in the first phase of drilling by
Goldcorp which is scheduled to begin during the fall of 2004.

Surface grab and channel sampling performed recently by Goldcorp
at Ardeen has returned assays with values from less than 50 ppb
gold and silver to more than 34 grams per tonne (g/t) gold and
100 g/t silver. Significant gold and silver mineralization is
consistent with historic production records from the Ardeen Gold
Mine which reported a silver-gold ratio of roughly 6-to-1.

The Ardeen property covers over 10,000 acres of the Shebandowan
Greenstone Belt west of Thunder Bay and includes northern
Ontario's first gold mine. The mine area and surrounding
mineralized zones are characterized by structurally-controlled,
high-grade gold and silver mineralization hosted in
quartz-carbonate vein systems and iron formation. The
southernmost claims at Ardeen have not been systematically
explored since the 1980s, although the geological setting
resembles that of the bulk-tonnage Snodgrass gold deposit, just
east of Ardeen, where a 2,000,000 ounce gold resource has been
reported.

Pele's 2004 work at Ardeen prior to entering into the option
agreement with Goldcorp focused on data compilation to
incorporate several decades of exploration records into a single
database. The effort has highlighted the outstanding gold and
base metal potential of under-explored areas on the property, as
well as unearthed some excellent exploration results from past
property owners. One example of such results was published in the
Northern Miner in mid-summer 1972. According to the published
reports, drilling near the Pele Zone by Belore Mines returned
strong gold assays including a 14-foot interval of 1.37 ounces
per ton (oz/t) and a proximate 12-foot interval of 1.32 oz/t.

Pele's exploration work at Ardeen began in 1996 and was centered
on the mine area and its extensions to the east and west, in
search of relatively narrow, high-grade gold deposits similar to
those historically mined from the property. Pele conducted
extensive ground geophysical and soil geochemical surveys,
prospecting, rock sampling, surface stripping, and geological
mapping, and also drilled more than 12,000 meters of core in
mostly-shallow holes on the property along a 3200-meter strike
length of the Ardeen Fault. Although the Ardeen fault and related
splays have demonstrated extensive mineralization both along and
across strike, on-strike targets to the northeast and southwest
remain relatively untested, as do parallel structures to the
north and south.

Most of the major vein-hosted gold mineralization found on the
property to date has been in close proximity to the mine,
including the Pele Zone (McKellar pits) to its west. The Beaver
and Minoletti zones and their extensions to the southwest and
northwest respectively of the Pele Zone and the Fisher Lake area
east of the mine also have vein-hosted gold potential.

Iron formation along and parallel to the Ardeen Fault, including
the Fisher Zone immediately east of the mine, have exhibited
high-grade mineralization and offer excellent targets for gold
and base metal discoveries. There are several relevant models for
structurally-controlled gold in iron formation, including
Canada's Lupin and Musselwhite mines and South Dakota's legendary
Homestake Mine.

/T/

Drilling highlights from Pele's work at Ardeen include the following:
---------------------------------------------------------------------
Drill Intersection Width Gold Value Width includes Gold Value
Hole (core (grams per (core length includes
length tonne uncut) in meters) (grams per
in meters) tonne uncut)
---------------------------------------------------------------------
96-8 19.20 - 24.08 4.88 75.26 0.60 598.53
---------------------------------------------------------------------
96-8A 27.98 - 29.87 1.89 33.23 0.60 99.34
---------------------------------------------------------------------
97-01 29.35 - 31.20 1.85 16.80 0.65 40.84
---------------------------------------------------------------------
97-06 71.55 - 72.82 1.27 39.98 0.45 111.20
---------------------------------------------------------------------
97-15 71.00 - 73.00 2.00 76.25 1.00 149.51
---------------------------------------------------------------------
97-35 69.26 - 71.22 1.96 14.17 0.76 17.58
---------------------------------------------------------------------
97-40 115.81 - 117.32 1.51 40.20 0.66 82.11
---------------------------------------------------------------------
97-56 19.71 - 27.05 7.34 20.20 0.75 116.34
---------------------------------------------------------------------
97-60 29.00 - 30.45 1.45 33.30 0.76 43.80
---------------------------------------------------------------------

/T/

In 1998 a Resource Estimation for selected areas was conducted by
Minescape Exploration Inc. ("Minescape Report"). The Minescape
Report covered parts of 5 mineralized zones in close proximity to
the Ardeen Gold Mine but did not include any estimate of ore
remaining in the mine or within the potential down plunge
extension of the orebody. Furthermore, the Minescape Report did
not include certain historical drill holes and was completed in
1998, prior to the implementation of NI 43-101. Accordingly,
readers are cautioned that the Minescape Report should not be
relied upon.

Exploration results, along with additional work plan details,
will be announced as they become available.

Pele Mountain Resources is a Canadian mineral exploration company
and a leader in the search for economic diamond and gold deposits
in northern Ontario. Pele stock trades on the TSX Venture
Exchange under the symbol "GEM". This press release has been
reviewed and approved by Peter Dimmell, P.Geo., a Qualified
Person and a Director of Pele.

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.

-30-

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