One more old gold project is being dusted off and revived: Pele Mountain Resources (GEM-V) is planning a new drilling campaign next month at its wholly owned Ardeen Mine project situated 110 km west of Thunder Bay, Ont.
The property is in the Shebandowan greenstone belt and is the site of northern Ontario’s first gold and silver mine, which was most productive during the 1932-36 period, when a 200-ton-per-day mill was in operation.
In 1936, reported total mine production was 29,948 oz. gold and 172,376 oz. silver.
Pele describes the property’s high-grade gold and silver mineralization as being structurally controlled and hosted in quartz veins and an iron formation.
According to an resource estimate completed by consultants Minescape Exploration in 1998, one zone, named Fisher, hosts an inferred resource of 605,200 tonnes grading 13.0 grams gold per tonne. The estimate was based on 16 holes.
Combining Fisher with portions of other zones, the property is said to host total inferred resources of 1.1 million tonnes grading 14.4 grams gold (uncut).
Pele believes that geophysical and structural data suggests the presence of a gold-bearing iron formation 1.6 km west of the Fisher zone and 800 metres west of the old Ardeen mine workings.
Pele is also active at its Festival diamond property north of Wawa, where the company is carrying out pioneering work in the delineation of diamond-bearing Archean ultramafic volcanic rocks (T.N.M., Dec. 2-8, 2002).
In December, Pele carried out a series of small equity financings, raising several hundred thousand dollars for exploration.
In early January, Pele granted its directors and employees options to acquire 1 million shares. The options, which are subject to a four-month hold period, are exercisable at 23 per share and expire at the end of 2005.
Pele shares have since soared and last traded at about 30. Pele has 32.6 million shares issued and outstanding.
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