A high-grade uranium discovery beneath Pele Mountain Resources (GEM-V) Main conglomerate bed at its Elliot Lake project has prompted the company to start an 11-hole, 2,400-metre drill program to test what appears to be an unmapped fault zone at the unconformity.
Located 15 metres below the main conglomerate bed is the Basal conglomerate bed, where the best intercepts were 1.26 metres grading 0.218% U3O8 and 0.32 metres grading 0.572% U3O8.
Pele shares shot up 15% in Toronto today to $1.15 on a volume of nearly 2.8 million shares.
Whats interesting about the discovery, says company president Al Shefsky, is not the high-grade uranium but the source of it.
We knew the unconformity was present, he says. We didnt know that there was secondary uranium that was running up to ten times higher than the average grade we were seeing in the main conglomerate bed.
The Main conglomerate bed, which has an inferred resource of more than 33 million lbs. U3O8, or 30.5 million tonnes grading 0.05% U3O8 is made up predominantly uranium that was put down when the paleoplacer was formed. The uranium in the basal conformity bed is secondary, as none of the original primary minerals are present.
Its quite different, Shefsky says. The uranium minerals are secondary so thats something at requires some checking and understanding.
Scott Wilson Roscoe Postle will start the follow-up drilling immediately.
It is thought the fault is an extension of the Canyon Lake fault, a southeast striking fault that is shown on government maps to the northwest.
The results from the Basal conglomerate bed were a part of a 3,000-metre, 22-hole drill program, within the 600 by 800-metre Adit Block to increase resource of the Main zone. Pele released the results last week.
The results confirmed near-surface, higher-grade uranium. Widths ranged from 2.06 metres to 2.95 metres with U3O8 ranging from 0.029 to 0.125% and average total rare earth oxide grades from 0.149% to 0.322% U3O8.
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