HALIFAX, Nova Scotia--(BUSINESS WIRE)--Mountain Lake Resources Inc. (TSX-V: MOA) (“Mountain Lake”) is pleased to announce the intersection of further, significant intervals of gold mineralization in the northeast and southwest sections of the Leprechaun Gold Deposit (the (“Deposit”) on the Valentine Lake Property in Central Newfoundland. Drill hole VL-11-296 intersected 2.18 grams per tonne (g/t) gold (Au) over 32.2 metres (m), VL-11-291 intersected 3.53 g/t Au over 14.4m, and VL-11-292 intersected 1.60 g/t over 12.0m. All reported intersections are true widths; see Figure - LP for a plan view of the latest drill holes. The Valentine Lake Project is a 50/50 joint venture between Marathon Gold Corporation (“Marathon”) and Mountain Lake.
“Whenever a hole drilled between two existing holes provides positive results such as VL-11-296, it increases the confidence level of the resource. We are continuing to focus the balance of the 2011 drill program on the Leprechaun Deposit area and drill holes such as VL-11-291 and -294 demonstrate that the Deposit remains open both along strike and at depth,” said Gary Woods, President and CEO of Mountain Lake.
Highlights:
- In-fill drill hole VL-11-296 with 2.18 g/t Au over 32.2m including 11.36 g/t Au over 2.8m confirms the continuity of main zone mineralization over a 40m down dip gap in the northeast portion of the current Leprechaun Deposit resource.
- Step-out drill hole VL-11-291 with 3.53 g/t Au over 14.4m including 8.86 g/t Au over 5.6m is 20m down dip from previous drill hole VL-11-259 and proves continuation of the major lens of main zone mineralization identified over 50m along strike to the northeast in adjoining sections 10487.5 to 10537.5.
- Step-out drill hole VL-11-294 with 5.40 g/t Au over 7.0m including 10.10 g/t Au over 3.5m identifies significant mineralization for up to 185m down dip from previous drilling on section 10,462.5 in this northeast part of Deposit.
- In-fill drill hole VL-11-297 with 2.46 g/t Au over 5.4m including 13.24 g/t Au over 0.9m confirms the continuity of mineralization over a 140m down-dip space in the main zone mineralization between VL-11-293 and VL-11-295 on the adjacent section.
- In-fill drill holes VL-11-290 with 1.10 g/t Au over 8.8m and VL-11-292 with 1.60 g/t Au over 12.0m including 6.04 g/t Au over 3.0m confirm continuity within a lens of near surface mineralization that is open along strike along the southeast boundary near the western limit of the Leprechaun Deposit.
TABLE 1: New Significant Assay Results for the Leprechaun Gold Deposit
| DDH | Section | Zone* |
From
|
To
|
Core Width |
True Width
|
Gold
|
|||||||||||||||||||||
| VL-11-290 | 9900 | MZ | 57 | 68 | 11 | 8.8 | 1.10 | |||||||||||||||||||||
| VL-11-291 | 10475 | MZ | 182 | 200 | 18 | 14.4 | 3.53 | |||||||||||||||||||||
| including | 10475 | MZ | 182 | 189 | 7 | 5.6 | 8.86 | |||||||||||||||||||||
| VL-11-291 | 10475 | FW | 216 | 220 | 4 | 3.2 | 1.77 | |||||||||||||||||||||
| VL-11-292 | 9900 | MZ | 17 | 29 | 12 | 12 | 1.60 | |||||||||||||||||||||
| including | 9900 | MZ | 22 | 25 | 3 | 3 | 6.04 | |||||||||||||||||||||
| VL-11-293 | 9887.5 | HW | 62 | 75 | 13 | 13 | 0.58 | |||||||||||||||||||||
| VL-11-293 | 9887.5 | MZ | 254 | 258 | 4 | 3.2 | 1.26 | |||||||||||||||||||||
| VL-11-294 | 10462.5 | MZ | 257 | 260 | 3 | 2.1 | 2.20 | |||||||||||||||||||||
| VL-11-294 | 10462.5 | FW | 307 | 317 | 10 | 7 | 5.40 | |||||||||||||||||||||
| including | 10462.5 | FW | 310 | 315 | 5 | 3.5 | 10.07 | |||||||||||||||||||||
| VL-11-295 | 9888 | MZ | 115 | 120 | 5 | 5 | 0.72 | |||||||||||||||||||||
| VL-11-296 | 10500 | HW | 85 | 88 | 3 | 3 | 0.91 | |||||||||||||||||||||
| VL-11-296 | 10500 | MZ | 107 | 153 | 46 | 32.2 | 2.18 | |||||||||||||||||||||
| Including | 10500 | MZ | 125 | 129 | 4 | 2.8 | 11.36 | |||||||||||||||||||||
| VL-11-296 | 10500 | FW | 196 | 199 | 3 | 2.1 | 1.62 | |||||||||||||||||||||
| VL-11-297 | 9887.5 | MZ | 164 | 170 | 6 | 5.4 | 2.46 | |||||||||||||||||||||
| including | 9887.5 | MZ | 165 | 166 | 1 | 0.9 | 13.24 | |||||||||||||||||||||
| VL-11-299 | 10487.5 | MZ | 120 | 123 | 3 | 2.4 | 1.03 | |||||||||||||||||||||
| VL-11-299 | 10487.5 | FW | 164 | 167 | 3 | 2.4 | 1.31 |
Hole VL-11-298 was abandoned; and “*” denotes: HW – hanging wall zone, MZ – main zone, FW – footwall zone
All of the samples were analyzed at Eastern Analytical Laboratory Ltd., in Springdale, Newfoundland. Samples were assayed using lead collection fire assay with AA (atomic absorption) finish. Results from fire assay are used for drill hole planning only. Assay results for the future updates of the December 2010 resource will be determined by an ongoing metallic screening process. Due to the coarse nature of the gold at the Leprechaun Deposit, the metallic screening method is used on economically important intersections using standard fire assay techniques. The reported values in this release are fire assay results. No lower cut off was applied during calculation of the composite grades.
About the Valentine Lake Joint Venture: The Valentine Lake Project is a 50/50 joint venture between Marathon Gold and Mountain Lake. The Leprechaun Gold Deposit is situated at the south-western end of the Valentine Lake Property with the Sprite Zone and the Valentine East Zone, located ~700 metres and ~13 kilometres (km) respectively along strike to the northeast from the Leprechaun Deposit. These gold occurrences form part of a 23 km long, highly prospective gold-bearing mineralized corridor. Marathon is the operator of the Project, and the Partners have agreed to jointly fund a $7.1 million budget in 2011 that will include a planned 25,000 metres of drilling. For more information and to see a plan view of the Deposit area and a longitudinal section of the Deposit visit the Valentine Lake page of the Mountain Lake website).
Leprechaun Gold Deposit: The Deposit has a NI 43-101 compliant Measured and Indicated Resource of 3,284,000 tonnes grading 2.62 g/t gold for a total estimated 277,000 ounces of gold; and an associated inferred resource of 4,409,000 tonnes grading 2.01 g/t gold for an estimated 285,000 ounces of gold. The resource was estimated using a 0.5 g/t gold minimum cut-off over a 3m minimum width. The Deposit is open at depth and along strike with 74% of the current M & I ounces occurring within 150m of surface (see news release of December 16, 2010).
Gary Woods, P. Geo, is the Company’s Qualified Person on the Valentine Lake Joint and has reviewed and verified the contents of this news release.
About Mountain Lake Resources Inc.
Mountain Lake Resources Inc. (TSX-V: MOA) is a diversified junior exploration company, whose corporate strategy is to build shareholder value through the exploration and development of economically viable mineral properties all located on the pro-mining island of Newfoundland. Mountain Lake’s current projects include: a 50% interest in the Valentine Lake gold property (currently drilling) under the joint venture with Marathon Gold Corp.; a 100% interest in the Glover Island gold exploration property (drilling this quarter); an option to earn a 100% interest in the Little River gold-antimony exploration property (currently drilling); a 100% interest in the Bobby’s Pond base metals property. For more information visit: www.mountain-lake.com
ON BEHALF OF THE BOARD OF DIRECTORS
s/“Gary Woods”
President & CEO
NEITHER THE TSX VENTURE EXCHANGE, NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED UNDER THE POLICIES OF THE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.