New Resource Estimate Completed for Leprechaun Deposit on Valentine Lake
Mountain Lake Resources
Inc. is pleased to report
the completion of an updated National Instrument (NI) 43-101 compliant resource
estimate for the Leprechaun Gold Deposit, which is situated near the
south-western end of the highly prospective, 30 kilometre
(�km�) strike length of the Valentine Lake Gold Property (the �Property�)
located in central Newfoundland. This is the first Measured and Indicated
(�M+I�) resource that has been developed within the Property and is a major
advance for the project.
Company would like to announce that a fully funded 25,000 metre
drill program is planned for the Property in 2011. The program will
include aggressive resource expansion and exploration drilling to more fully
evaluate the Property�s potential.
strike length of
resource is now 750 m with an additional 750 m of gold mineralization ready for
resource is open
down-dip and along strike to the southwest and northeast
74% of the M+I ounces
and 73% of tonnes are within 150 m of surface where
the 2010 drill holes were concentrated
25,000 m drill campaign
using two drill rigs planned for 2011
drilling to commence in
January on the northeast arm of the Leprechaun Deposit, and the Sprite Prospect
and Valentine East Gold Zones
plans for 2011 also
include: further metallurgical testing, drilling of geotechnical holes to
assess the competency of potential pit walls so that a preliminary economic
assessment can be completed by the 1st quarter of 2012, and base line
environmental studies will also commence
Marathon Gold Corp.
(TSX: MAR) (�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.
"Phillip Walford, President and CEO of Marathon commented, "The
results demonstrate clearly that there is open pit potential at the Leprechaun
deposit. Both Marathon Gold and Mountain Lake believe that the geological
model developed is working well and indicating where additional resources can
be found. We are now poised to rapidly develop resources with what will be the
largest drilling campaign to date on the Property.�
resources which are not mineral reserves do not have demonstrated economic
viability. The estimate of mineral resources may be materially affected
by environmental, permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues.
(2)The quantity and grade of reported inferred resources
in this estimation are conceptual in nature and there has been insufficient
exploration to define these inferred resources as an indicated or measured
mineral resource and it is uncertain if further exploration will result in
upgrading them to an indicated or measured mineral resource category.
In order to better
represent the geology of the Leprechaun Gold deposit, a block model was
constructed which used an unfolding technique on the sample search
ellipsoid. This approach allows a search ellipsoid to better reflect the
actual trend of the mineralization. In addition, smaller block sizes were
used in the mineralized zones to further help delineate the overall potential
resource. Most of the previous drill holes were not completely sampled in all
the mineralized zones and that has had a negative effect on the resource.
Any unsampled intervals were considered as having a
gold assay of 0.0 g/t. All of the new drill holes from this year were
sampled in for every interval down the hole. Grade estimates were run
using krigging, inverse distance squared, and
polygonal and all compared favorably with each other. For the reported
resources, the kriged gold estimate was used.
High grade gold outlier values (76 g/t or higher) were given a limited area of
influence. All of the geologic modeling and resource estimation were completed
using the Vulcan mine planning software package. Details of the resource
estimation will be available in an NI 43-101 compliant resource report to be
filed within 45 days of this press release.
The mineral resources
in this news release were estimated using the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and
Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on
Reserve Definitions and adopted by CIM Council December 11, 2005.
Both Mountain Lake and
Marathon Gold are pleased with the advancement of the Valentine Lake Project
over the past year and have agreed to an aggressive exploration and resource
definition drilling program of 25,000 m in 2011 to more fully evaluate the Property�s
potential. This program will begin in January with two drills on site.
Drilling will be concentrated on developing and expanding the Leprechaun
Deposit resources as well as the nearby Sprite Zone, 800 m along strike from
Leprechaun. IP surveys over both zones indicate that the mineralization
extends below 400 m in depth and some holes will be drilled to test these
deeper geophysical targets to determine the potential for development of an
underground resource. The Valentine East Zone, 13 km along strike from
the Leprechaun Deposit, will be drilled as well to test mineralization
intersected over a 700 m strike length where historic drill holes are known to
contain up to 1 g/t over 60 m near surface.
The mineral resource
estimate was prepared by Sam Shoemaker, MAusIMM, of Micon International, and is the independent qualified
person (QP) for the mineral resource estimate.
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
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.
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. 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
For corporate, media,
or investor inquiries, please contact:
Mountain Lake Resources
toll-free: (866) 285-5817
International & Vancouver: (604) 839-6946
ON BEHALF OF THE BOARD
President & CEO