Pele Mountain: Bringing Back Uranium and Rare Earth Mining

The new resource update Pele Mountain published showed a major increase in uranium and rare earth resources which boosts shareholder exposure to clean energy metals. The world we live in today is looking to reduce air emissions and the carbon footprint. Utilities need uranium as a clean baseload power that does not produce noxious emissions. Rare earths are critical for clean energy such as hybrid vehicles, wind turbines, high efficiency lighting and solar. The source of these rare earths are currently being imported from China. Over the next few years there will be additional projects particularly in North America which could supply these critical rare earths which are in a near term supply shortfall. Pele Mountain is located in Elliot Lake, a proven mining camp which is a past producer of uranium and rare earths. Its the only place in North America which produced heavy rare earths. Pele Mountain provides leverage to both uranium and the critical rare earths. The company put out a robust PEA which shows impressive economics. This updated resource expansion should positively impact economics and Pele's path to production.  Remember Pele Mountain has a team who worked in Elliot Lake with Rio Algom for decades. Rio Algom was able to produce uranium for over 40 years when uranium averaged below $20 per pound and rare earth applications were relatively unknown.  Now the uranium price has doubled since Elliot Lake was in production and major institutions such as JP Morgan are predicting prices could move to $90 in 2016. This provides Pele Mountain shareholders with great potential leverage on both the uranium and rare earth price. It also suggests that the higher long term prices for uranium and rare earths will be the catalyst for the Elliot Lake Mining Camp to restart uranium and rare earth production.

 

Disclosure: Author/Interviewer Owns Pele Shares and Pele is a sponsor of website.