Pele Mountain strikes gold zone at Wawa

Pele Mountain Resources (GEM-V) has found significant gold while prospecting at its Highland gold property, northeast of Wawa, in Riggs township, Ont.

Eleven grab samples were taken, resulting in assays as high as 57.7 grams gold per tonne. Two other samples assayed 8-10 grams gold, and another two graded 2.1 grams gold and 3.6 grams gold per tonne, respectively. Six of the eleven samples assayed less than 1 gram gold per tonne.

The samples were taken within, and along the strike of, the Macallan zone. The zone is comprised of sheared, silicified, carbonatized and sulphidized mafic volcanic rock. Both pyrite and chalcopyrite are present.

Copper assays ranged from 26 parts per million to 2.1%.

The Highland gold property, formerly known as the Wawa gold property, covers 14 km of strike-length along the Goudreau Localsh deformation zone and is owned by Pele Gold, a unit of Pele Mountain.

The Macallan zone is within a group of ten patented claims that Pele Gold acquired in mid-December from the estate of Charles Lloyd Smith. The estate retains a 1.75% net smelter royalty on any production from the property.

Al Shefsky, president and CEO of Pele, explained that the latest prospecting was done as part of a due diligence program prior to acquisition of the patented claims. Pele holds over 200 claims in the area, some of which surround the patented claims. Shefsky says Pele tried for years to track down the owners of the claims. Luckily, once they succeeded in that, the owners were enthusiastic about the prospect of work being done on the property.

The company acquired "a wealth of information" in the form of historical reports from the previous owner. Based on that work gold is found on several of the claims, some of it associated with iron formation.

The Macallan zone is a new discovery, made in part because a bobcat exposed shallow subcrop while clearing a trail through the claims. Follow-up will entail line-cutting and ground geophysics to try to delimit the zone.