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Pele Mountain Developing Uranium and Rare Earths

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Pele Mountain is making excellent progress at its Eco Ridge Mine in Elliott Lake, Ontario that has a resource of uranium, rare earths and scandium.  The company has completed a successful drill program at the end of 2012.  The company is updating its resource estimate on the project.  The mine is located in a proven mining camp which produced uranium and rare earths in the past.  The mineralogy and the geology are well understood.  The demand for rare earths is growing rapidly in the use of clean energy, smart phones and defense industries.  Uranium is also seeing a strong pick up in demand as China is building new reactors and Japan is planning to turn back on additional reactors possibly as early as this summer.  The Russian HEU agreement which supplied converted uranium from warheads is set to expire by the end of this year.  Having the uranium and the rare earths together in the same deposit at Eco Ridge is quite unique and has economic advantages.  The uranium can pay for most of the operating costs and it provides diversification to the investor.  Historically, Pele Mountain is highly levered to the price uranium and rare earths.
Disclosure: Author/Interviewer Is long Pele Mountain and the company is a sponsor on my website.