Canadian rare earths explorer Pele Mountain Resources (TSX-V:GEM) closed up 18% on Monday after the Toronto company announced an updated PEA on its Eco Ridge project.
The project near Elliott Lake, Ontario,is now looking at a 9,000 tpd operation with life-of-mine production of 97.2-million pounds of total REO and 27.5-million pounds of U3O8 over an 11-year mine life. Rare earth elements to be processed include neodymium, dysprosium, yttrium, terbium and europium.
Since publication of its previous PEA in July 2011 (the “2011 PEA”), Pele has pursued opportunities for processing circuit improvements at Eco Ridge. The updated PEA demonstrates that the projected financial benefits from sharply higher rare earth recoveries, as a result of conventional milling rather than leaching, far outweigh associated capital and operating cost increases and more conservative forecast pricing for rare earth oxides(“REO”) and uranium oxide (“U3O8”). All production and recovery figures below represent significant gains from the 2011 PEA for Eco Ridge.
"Our updated PEA demonstrates that Pele is one of the clear leaders in the ongoing race to develop new sources of critical rare earths outside of China. We are focused on transitioning into the feasibility and licensing stages as we advance Eco Ridge toward development and production," said Pele President and CEO Al Shefsky.
Pele says in its press release that Eco Ridge is the only Canadian mining camp to have ever achieved commercial rare earth production. The mine once supplied 35% of the world's yttrium, which is used in garnets, superconductors, and in medical applications, including cancer treatments.
