Pele aims drills at Ardeen gold project

Another old gold project is being dusted off and revived: Pele Mountain Resources (GEM-V) is about to begin drilling at its wholly owned Ardeen mine property, 110 km west of Thunder Bay, Ont.

Situated in the Shebandowan greenstone belt, Ardeen hosted the province’s first gold-silver producer. It was most active between 1932 and 1936 period, when a 200-ton-per-day mill was in operation. In 1936, 29,948 oz. gold and 172,376 oz. silver were produced.

Pele says the high-grade gold and silver mineralization is structurally controlled and hosted in quartz veins and an iron formation.

According to an estimate by Minescape Exploration in 1998, the Fisher zone has an inferred resource of 605,200 tonnes grading 13 grams gold per tonne, based on results from 16 drill holes. The total inferred resource is 1.1 million tonnes grading 14.4 grams gold (uncut).

Data suggest the presence of a gold-bearing iron formation 1.6 km west of the Fisher zone and 800 metres west of the Ardeen workings.

Meanwhile at its Festival property, north of Wawa, Ont., Pele is working to delineate diamond-bearing Archean ultramafic volcanic rocks (T.N.M., Dec. 2-8/02).

In December, Pele raised several hundred thousand dollars for exploration via a series of equity financings.

The company recently granted its directors and employees options to acquire 1 million shares. The options are exercisable at 23 per share. They expire at the end of 2005. Since the option deals and financings, Pele shares have soared to about 30.

There are 32.6 million shares issued and outstanding, up from 28.2 million shares in November 2002.

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