Deal with Chinese Rare Earth Giant Sends Junior Soaring on Record Volume

For years, I have told my readers about Elliot Lake and its ideal location for rare earth mining and processing since it had a history of mining these radioactive materials.  However, as rare earth and uranium prices corrected the asset struggled to stay economically attractive.  The price traded below $.05 and was one of the stocks left for dead.

This changed drastically this week as the share prices skyrocketed on record volume.  It was reported that the major Chinese Rare Earth Player Shanghai Mining (SKN) signed an MOU with small cap Pele Mountain Resources (GEM.V or GOLDF) to develop a significant rare earth processing center in Elliot Lake.

The stock has broken above the critical 200 day moving average and yearlong downtrend on the highest volume in four years.  Look for a move above $.10 to further confirm a major change in trend.  Remember at the height of the rare earth rally in 201o, Pele Mountain was trading over $.60.

Al Shefsky, President & CEO, Pele Mountain Resources discusses the company’s joint venture with a major Chinese rare earth player to develop processing facilities in Elliot Lake with Canada’s BNN.

http://www.bnn.ca/Video/player.aspx?vid=582549

Disclosure: I own shares, warrants and options in Pele Mountain as I am a shareholder and consultant.  I would benefit if the share price increases.  Please do your own due diligence as there is a conflict of interest.