Pele Mountain Engages Advisor for Strategic Process to Separate Gold Assets

Pele Mountain Resources Inc. (TSXV:GEM) reports that it has engaged advisor to assist and advise Pele with its evaluation of strategic alternatives regarding its Ontario gold assets.

The press release is quoted as saying: 

Pele’s gold assets, which are held in its wholly-owned subsidiary, Pele Gold Corporation (“Pele Gold“), include a 100-percent interest in the East & West Highland Gold projects, as well as a 49-percent interest in the Ardeen Gold project.

Pele Mountain’s President and CEO, Al Shefsky says:

“As we advance Eco Ridge toward development, we believe that the time is right to begin a strategic process to separate Eco Ridge from Pele Gold. Our Highland gold properties have demonstrated great potential for the discovery of significant gold resources as well as near-term cash flow opportunities, but may not be providing full value to shareholders as we focus at Eco Ridge. With gold near its all-time highs and the resurgence of exploration and development on the Michipicoten Greenstone Belt (“MGB“) and across the region, we believe that our shareholders could benefit from holding our considerable gold assets and Eco Ridge in separate vehicles.”

The relentless increase in the gold price over the last decade has presented new mining opportunities across Northern Ontario.  While the important historical gold mines of the MGB were high-grade, narrow-vein, underground operations, at today’s higher gold price, lower-grade, open-pit deposits are also becoming economically attractive.  At the nearby Magino Mine, Prodigy Gold Inc. has reported an Indicated Resource of nearly two million ounces of gold within wide zones of lower grade mineralization at a past-producing underground mine. A recent Preliminary Economic Assessment of Magino indicates robust economics. In light of these developments and past exploration results, we believe that our Highland properties present a compelling investment opportunity.”

Click here to access the entire news release.

Click here to access Pele Mountain’s company profile.(TSXV:GEM)