HALIFAX, Nova Scotia--(BUSINESS WIRE)--Mountain Lake Resources Inc. (TSX-V: MOA) (Pink Sheets: MLKRF) (“Mountain Lake” or the “Company”) is pleased to report the latest results from step-out and infill drilling at the Leprechaun Gold Deposit (Figure 1) on the Valentine Lake Property in central Newfoundland. Step-out drill holes in the southwest “Heart of Gold” area returned wide intervals of mineralization with high grade intervals including 3.70 grams per tonne (g/t) gold (Au) over 9.0 metres (m) with 10.59 g/t Au over 3.0m and 32.24 g/t Au over 3.0m in VL-11-324, as well as 2.31 g/t Au over 16.2m including 11.67 g/t Au over 2.90m in VL-11-325.
The Valentine Lake Property Project is a 50/50 joint venture between Marathon Gold and Mountain Lake with the Leprechaun Gold Deposit situated at the south-western end of a 23 kilometre (km) long gold-bearing mineralized corridor. Marathon is the operator of the Project, and the Partners are jointly funding a $7.1 million resource expansion and exploration budget in 2011. Year to date, a total of 117 drill holes totaling 19,915m (80%) of the planned 25,000m drilling campaign have been completed. The balance of the 2011 drilling is expected to be completed in October with assay results being released as available into the fall, and an updated resource estimate for the Leprechaun Deposit is scheduled for completion before year’s end.
Highlights:
- Step-out and infill drill holes in the southwest “Heart of Gold” area of the Leprechaun Deposit returned wide intervals of mineralization including 3.70 g/t Au over 9.0m with 10.59 g/t Au over 3.0m and 32.24 g./t Au over 3.0m with 94.2 g/t Au over 1.0m in VL-11-324, 2.31 g/t Au over 16.2m including 11.67 g/t Au over 2.90m in VL-11-325, and 1.93 g/t Au over 17.1m with 4.21 g/t Au over 4.8m in VL-11-320.
- Step-out drill holes in the northeast area of the Leprechaun Deposit returned up to 1.10 g/t Au over 10.4m with 3.35 g/t Au over 2.40m and 10.16 g/t Au over 2.4m with 29.90 g/t Au over 0.8m in VL-11-321.
- The continued success of intersecting mineralization with both step-out and in-fill drilling confirms the continuity of mineralization both along strike and down-dip in the Leprechaun Gold Deposit.
TABLE 1: Latest analytical results for the Leprechaun Gold Deposit
|
DDH |
Section | Zone* |
From |
To |
Core Width |
True Width |
Gold |
||||||||||||||||||||||||
| VL-11-319 | 10313 | MZ | 36 | 39 | 3 | 2.1 | 2.44 | ||||||||||||||||||||||||
| MZ | 67 | 70 | 3 | 2.1 | 1.55 | ||||||||||||||||||||||||||
| VL-11-320 | 10025 | HW | 7.71 | 13 | 5.29 | 5.2 | 0.75 | ||||||||||||||||||||||||
| HW | 142 | 145 | 3 | 2.9 | 0.93 | ||||||||||||||||||||||||||
| MZ | 205 | 223 | 18 | 17.1 | 1.93 | ||||||||||||||||||||||||||
| including | MZ | 207 | 212 | 5 | 4.8 | 4.21 | |||||||||||||||||||||||||
| VL-11-321 | 10363 | MZ | 149 | 162 | 13 | 10.4 | 1.10 | ||||||||||||||||||||||||
| including | MZ | 152 | 155 | 3 | 2.4 | 3.35 | |||||||||||||||||||||||||
| MZ | 174 | 177 | 3 | 2.4 | 10.16 | ||||||||||||||||||||||||||
| including | MZ | 175 | 176 | 1 | 0.8 | 29.90 | |||||||||||||||||||||||||
| VL-11-322 | 10025 | HW | 114 | 128 | 14 | 13.3 | 1.48 | ||||||||||||||||||||||||
| MZ | 188 | 191 | 3 | 2.7 | 2.57 | ||||||||||||||||||||||||||
| MZ | 223 | 238 | 15 | 13.5 | 0.99 | ||||||||||||||||||||||||||
| including | MZ | 231 | 238 | 7 | 6.3 | 1.59 | |||||||||||||||||||||||||
| VL-11-323 | 10375 | MZ | 173 | 179 | 6 | 4.8 | 1.24 | ||||||||||||||||||||||||
| VL-11-324 | 10050 | HW | 8 | 14 | 6 | 6 | 1.37 | ||||||||||||||||||||||||
| including | HW | 10 | 12 | 2 | 2 | 4.07 | |||||||||||||||||||||||||
| HW | 39 | 48 | 9 | 9 | 3.70 | ||||||||||||||||||||||||||
| including | HW | 40 | 43 | 3 | 3 | 10.59 | |||||||||||||||||||||||||
| MZ | 128 | 131 | 3 | 3 | 32.24 | ||||||||||||||||||||||||||
| including | MZ | 129 | 130 | 1 | 1 | 94.2 | |||||||||||||||||||||||||
| VL-11-325 | 10050 | MZ | 169 | 172 | 3 | 2.9 | 1.06 | ||||||||||||||||||||||||
| MZ | 195 | 212 | 17 | 16.2 | 2.31 | ||||||||||||||||||||||||||
| including | MZ | 209 | 212 | 3 | 2.9 | 11.67 | |||||||||||||||||||||||||
| VL-11-326 | 10300 | HW | 62 | 65 | 3 | 3 | 1.13 | ||||||||||||||||||||||||
| MZ | 202 | 211 | 9 | 6.3 | 1.36 |
“ *” denotes: MZ – main zone and HW – hanging wall 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 estimate 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 (750 metre strike length) is situated at the south-western end of the 30 kilometre Valentine Lake Property with the Sprite Zone and the Valentine East Zone located ~700 metres and ~13 km respectively along strike to the northeast. 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 are jointly funding a $7.1 million resource expansion and exploration budget in 2011 that includes 25,000 metres of drilling.
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 (see news release of December 16, 2010). The 2010 resource was estimated using a 0.5 g/t gold minimum cut-off over a 3 metre minimum width. The Deposit is open at depth and along strike with 74% of the current Measured & Indicated ounces occurring within 150 metres of surface. For more information see the news releases detailing the 2011 exploration results which have been announced: February 3, February 18, March 2, March 8, March 29, April 26, May 4, June 29, July 27, August 9, August 25 and August 30.
Gary Woods, P. Geo, is the Company’s Qualified Person on the Valentine Lake Joint Venture 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 (drilling in progress) under the joint venture with Marathon Gold Corp.; a 100% interest in the Glover Island gold exploration property (drilling in progress); an option to earn a 100% interest in the Little River gold-antimony exploration property; 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.