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 discovery of new multiple stacked hanging wall (quartz-tourmaline-pyrite-gold) veins exposed during a trenching program over a 150 metre (m) strike length in an area 1.5 kilometres (km) southwest and along strike from the southern end of the current resource boundary of the Leprechaun Gold Deposit on the Valentine Lake Property in Central Newfoundland (see Figure 1).
A total of 103 bedrock grab samples were collected from the trenching area. All were assayed with 34 (or 33%) of the samples returning assays of >1 gram per tonne (g/t) gold (Au) and four of the samples consisting of quartz-tourmaline-pyrite with coarse visible gold (see Plates 1, 2 and 3) returning assays of 581.88 g/t Au, 287.95 g/t Au, 152.75 g/t Au, and 88.60 g/t Au.
The high-grade gold samples were collected from outcrops of newly exposed, multiple stacked quartz-tourmaline-pyrite-gold veins (Plates 4 and 5). These gold-bearing veins are located 500m southwest of the area of trenching previously reported on (see news release of August 25) and form part of the larger gold-mineralized alteration zone called the J. Frank Zone, which currently extends over an area in excess of 850m in length and 250m in width. The highest grade grab samples were collected from hanging wall veins located 100m from the sediment contact and the trenching efforts have continued to expand the strike length of the mineralized corridor to more than 2.1 km, including the Leprechaun Gold Deposit. Historical trenching did not intersect these new veins. Drilling of the area is planned during the next two weeks.
Highlights:
- High-grade grab samples consisting of quartz-tourmaline-pyrite with coarse visible gold returned assays of up to 581.88 g/t Au, 287.95 g/t Au, 152.75 g/t Au and 88.60 g/t Au.
- The newly exposed quartz-tourmaline-pyrite-gold stacked veins occur 100m into the hanging wall, above the structurally controlled Main Zone mineralization near the contact with the Rogerson Lake conglomerate.
- The J. Frank Zone now extends over an area at least 850m by 250m in size, and together with the Leprechaun Gold Deposit, forms a gold-mineralized corridor in excess of 2.1km in strike length that remains open to the southwest.
- Ongoing prospecting and stripping continues to expose additional quartz veining along strike and into the hanging wall.
- Channel sampling continues in the new J. Frank Zone; assays pending.
Best assays for grab samples from expanded J. Frank Zone SW of Leprechaun Deposit:
| Tag# | Easting | Northing | Au g/t | |||
| 7392 | 485026 | 5355402 | 581.88 | |||
| 7385 | 485045 | 5355408 | 287.95 | |||
| 7393 | 485024 | 5355400 | 152.75 | |||
| 6977 | 485078 | 5355425 | 88.60 | |||
| 7395 | 485088 | 5355429 | 39.46 | |||
| 7389 | 484977 | 5355383 | 27.64 | |||
| 6975 | 485057 | 5355411 | 27.22 | |||
| 7394 | 485033 | 5355405 | 4.83 | |||
| 6978 | 485083 | 5355422 | 2.12 |
Assays for all 103 bedrock grab samples ranged from <5ppb Au (detection limit) to 581,875 ppb (1000 ppb Au = 1.0 g/t Au). Grab samples are selective in nature and are unlikely to represent averages grades of the deposit.
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. 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.
About the Valentine Lake Joint Venture: The Valentine Lake Property 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 23km 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 that includes 25,000m of drilling. The balance of 2011 drilling is expected to be completed this month with assay results being released as available, and a new resource estimate for the Leprechaun Deposit scheduled for completion before year’s end.
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 150m of surface. For more information see the news releases detailing the 2011 drill results announced to date: February 3, February 18, March 2, March 8, March 29, April 26, May 4, June 29, July 27, August 9, August 30, September 8, October 3 and October 6.
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
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President & CEO
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