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Mountain Lake Resources Inc. (TSX-V:MOA.v - News) (“Mountain
Lake” or the “Company”) is pleased to announced today that the 2011
drilling campaign has commenced at the Valentine Lake Property in central
Newfoundland. The first drill rig began drilling at the Leprechaun Gold
Deposit on January 12, 2011, with the first three drill holes intersecting
multiple quartz veins with visible gold mineralization. The second drill rig
is scheduled to begin resource expansion and exploration drilling at the
Valentine East Gold Zone this week.
The Leprechaun Gold Deposit and
Valentine East Gold Zone are located 13 kilometres
(“km”) along strike from each other. These gold deposits form
part of a 23 km long, highly prospective gold-bearing mineralized corridor
that straddles the faulted contact between the older Valentine Lake Intrusive
and younger Rogerson Lake sedimentary rocks in the
Valentine Lake Property.
The 25,000 metre
drilling program at the Valentine Lake Property will focus on aggressive
resource expansion for the Leprechaun Deposit, delineation of a NI 43-101
compliant Measured and Indicated Resource for the Valentine East Gold Zone,
and exploration drilling to further evaluate the Property’s potential.
Marathon Gold Corp.
(“Marathon”) is the operator of the Valentine Lake Project under
the sub-option and joint venture agreement (“OJVA”) between
Mountain Lake and Marathon. For more information on the OJVA see the news
release of December
23, 2009. Marathon and Mountain Lake have agreed to a jointly (50/50)
funded budget of $ 6 million for 2011.
Highlights:
- First three drill holes VL-11-232, VL-11-233 and VL-11-234 at the
Leprechaun Deposit intersected mineralized quartz zones with visible
gold
- Planned 2011 drilling at the Leprechaun Deposit is aimed at
expanding the NI 43-101 compliant resource (see news release of December
16, 2010) and extending the current boundaries of the Deposit both
down-dip and along strike to the NE and SW
- Drilling at Valentine East Gold Zone is to begin within days,
focused on delineation drilling of a new resource
- Newly delineated IP drill targets will be tested: (1) for 1000 metres (m) along strike to the NE of the Leprechaun
Deposit; (2) within the Rogerson Lake
conglomerates 500 m east of the Leprechaun Deposit; and (3) over a 500 m
strike of the Valentine East Gold Zone
- Base line environmental studies to begin in February will include
water quality, waterfowl and fish surveys
- Plans for 2011 also include: further metallurgical testing;
additional IP surveying along strike of both the Leprechaun Deposit and
Valentine East Gold Zone; and geotechnical drilling to test slope
stabilities for pit wall design at the Leprechaun Deposit for inclusion
in the preliminary economic assessment currently planned for completion
by the 1st quarter of 2012
“With a strong exploration team in
place, two drills turning, initial drill holes showing visible gold, and the
Leprechaun Deposit wide open along strike and down dip, we are well
positioned for growth,” said Sherry Dunsworth,
V.P. Exploration of Marathon. “We are looking forward to exceeding the
success of the 2010 drilling campaign.”
About the Valentine
Lake Gold Property:
The Leprechaun Deposit situated
approximately 3 km northeast of the Property’s southwest claim boundary
is the first defined gold resource within the highly prospective Property,
which is over 30 km long and has anomalous gold values in rock and soils,
reflecting widespread gold mineralization. Preliminary investigation of these
areas has produced favourable drilling results that
require follow up. Both Mountain Lake and Marathon believe that the setting
of the Property is geologically analogous to other gold camps such as the
Abitibi Belt.
Gary Woods, P.Geo., President and CEO
of Mountain Lake, is the Company’s Qualified Person on the Valentine
Lake Project and has reviewed and verified the contents of this news release.
About
Mountain Lake Resources Inc.
Mountain Lake Resources Inc. (TSX-V:MOA.v - News) is a diversified junior
exploration company, whose corporate strategy is to build shareholder value
through the exploration and development of economically viable mineral
properties. Mountain Lake’s current projects include: a 30% interest in
the Valentine Lake gold property (Newfoundland) with an option to acquire the
remaining 70% interest from Richmont Mines Inc.
(TSX/NYSE-Amex: RIC) and a subsequent sub-option and joint venture agreement
whereby Marathon Gold Corp. can earn a 50% interest in the property; a 100%
interest in the Glover Island gold exploration property (Newfoundland); an
option to earn a 100% interest in the Little River gold-antimony exploration
property (Newfoundland); a 100% interest in the Bobby’s Pond base
metals property (Newfoundland); and a minority (~6.4%) stake in Etruscan
Diamonds Ltd., an alluvial diamond project (South Africa). 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.
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