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Pele Resources - Eco Ridge Mine

Eco Ridge Mineral Resources

Nov 6, 2014
In June 2013, Pele announced an updated NI 43-101 Resource Estimate for Eco Ridge.

Highlights include:
• A 116-percent increase to Inferred Resource tonnage to 36.56-million tonnes at an increased average grade of 0.047-percent uranium oxide (“U3O8”) and 1,554 ppm Total rare earth oxides (“REO”). This includes a 136-percent increase in • U3O8 to 37.62-million pounds and a 130-percent increase in Total REO to 125.25-million pounds.
• An 11-percent increase to Indicated Resource tonnage to 22.74-million tonnes at an average grade of 0.045-percent U3O8 and 1,606 ppm Total REO. This includes a 10-percent increase in U3O8 to 22.55-million pounds and a 10-percent increase in Total REO to 80.51-million pounds.
• Expanded higher-grade zones identified for production early in the mine life, which can positively impact project economics.
• Substantial increases in critical REO resources including neodymium, dysprosium, yttrium, terbium and europium oxides as well as in scandium oxide resources.


Roscoe Postle Associates (“RPA”) reports the following mineral resources for the Main Conglomerate Bed (“MCB”) at Eco Ridge:
 
 
 
Notes:
• CIM definitions were followed for Mineral Resources.
• Mineral Resources are estimated within the Main Conglomerate Bed (MCB) at a cut-off value of $90 per tonne. Values were calculated based on prices and recoveries of uranium and rare earths, net of rare earth separation costs.
• Mineral Resources are estimated using an average long-term uranium price of US$70 per lb U3O8, a rare earth “basket price” of $55 per kg (net of separation charges), and a C$:US$ exchange rate of 1.00:1.00.
• U3O8 Equivalents are calculated by converting rare earths values (net of prices, recoveries, and separation charges) to uranium values.
• A minimum mining thickness of 1.8 metres was used.
• Total Rare Earth Oxides include light oxides La2O3, CeO2, Pr6O11, and Nd2O3, and heavy oxides Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Y2O3, and Lu2O3. Sc2O3 is also included, as it occurs in low concentrations and carries high unit values like a heavy rare earth oxide.
 

REO price assumptions for the Resource Estimate were reduced from a basket price of $78 per tonne previously used in the PEA, to a revised basket price of $55 per tonne (both net of separation charges).  With uranium maintained at $70 per lb., in keeping with analyst forecasts, the combined uranium and rare earth resources have a uranium equivalent grade of 0.1-percent U3O8, which is comparable to the average grade mined during four decades of productive operations in Elliot Lake.
 
RPA also outlined two higher grade zones within the MCB that come up to the surface allowing for higher grade production in the early years of the mine life that can facilitate accelerated repayment of project start-up capital along with improved project economics compared to the PEA, (all other things being equal). Click here for a map of the higher grade resources.
 
RPA reports the following mineral resources for the higher grade zones in the MCB at Eco Ridge:
 
 
 
Notes:
1. CIM definitions were followed for Mineral Resources.
2. This subset of Mineral Resources was estimated within a portion of the Main Conglomerate Bed (MCB) at a cut-off value of $90 per tonne.  Values were calculated based on prices and recoveries of uranium and rare earths, net of rare earth separation costs.
3. Mineral Resources are estimated using an average long-term uranium price of US$70 per lb U3O8, a rare earth “basket price” of $55 per kg (net of separation charges), and a C$:US$ exchange rate of 1.00:1.00. 
4. U3O8 Equivalents are calculated by converting rare earths values (net of prices, recoveries, and separation charges) to uranium.
 
 
The Resource Wireframe (“Resource Wireframe”), which contains both Indicated and Inferred U3O8 and REO resources within the near surface portion of the MCB, increased by nearly 59-percent from 37.4-million to 59.3-million tonnes. The mineral resources at Eco Ridge continue to have excellent potential for expansion with lower-than-normal exploration risk in the historically drilled areas outside of the resource wireframe. To-date, infill drilling at Eco Ridge has been 100-percent successful in upgrading Inferred resources to the Indicated category in the MCB.
 
The hanging wall mineralization along with two small lower-grade areas contained in the previous Resource Wireframe were removed from the Resource Estimate in order to focus on the higher-grade areas in the MCB.  The hanging wall mineralization remains a potential opportunity for future resources and increased mine life.

Source: http://www.pelemountain.com/ecoridge_mineral_resources.php