News

May 14, 2008

Pele Mountain Would Like To See The Price Of Uranium A Lot Higher By The End Of This Year

By Charles Wyatt

Patience is invaluable in the mining business, and Al Shefsky of Pele Mountain Resources has got it in spades. A brief trip back into history shows that his company was once involved in gold, diamonds, and nickel, but nothing matured into a profitable mining operation. In fact only last week an option was agreed with Fletcher Nickel whereby it can acquire 100 per cent of Pele's Timmins nickel project, subject to a 1.5 net smelter royalty in favour of Pele. The project consists of certain unpatented mining claims and interests located approximately 35 kilometres south of Timmins in Northern Ontario. This deal still leaves Pele with some gold, diamond, and base metal projects in Northern Ontario, but these non-core assets from the old days will be divested as opportunities arise.

The focus now is on the Elliott Lake uranium project  south west of Sudbury in Ontario, and this is where patience comes in as the spot price of uranium is just about half  the US$136 per pound that it was trading at in June last year. Most pundits reckon that it will not stay this low for long, given the present price of oil, and considering the fact that uranium is the ultimate green energy source since a nuclear reactor emits no carbon. In a very timely manner for Al Shevsky, the...