Mountain Lake Resources Inc V.MOA

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[brianjames]

News Releases
Step Out Drilling Hits New High Grade Gold Lens at Mountain Lake's Leprechaun Deposit Visible gold identified in 8 of 9 latest holes at depths less than 75 m below surface for which assays are pending HALIFAX, Nova Scotia, Jul 05, 2010 (BUSINESS WIRE) -- Mountain Lake Resources Inc. (TSX-V: MOA) ("Mountain Lake" or the "Company") is pleased to report three significant developments in recent drilling at the Leprechaun Deposit (the "Deposit") on the Valentine Lake Gold Property (the "Property") located in Central Newfoundland. The first development is that step out drill hole VL-10-190 has intersected a 2 metre wide interval with over 20 sites of visible gold indicating a new high grade lens within the mineralized zone. The second development is that closely spaced holes have defined a sub horizontal lens that extends outside of the main zone and into the hanging wall. Finally, assays from 7 drill holes reported below have hit multiple intersections of gold mineralization and have extended the near surface mineralization to more than 550 metres (m) along strike. Highlights: -- more than 20 flecks of visible gold occur from 78 to 80 m down hole VL-10-190 (click here to see images) -- visible gold identified in 8 of 9 latest holes at depths less than 75 m below surface for which assays are pending -- drilling has shown continuous near surface mineralization over a 550 m strike length and is open in both directions -- shallowly dipping mineralization extends beyond the main steeply dipping mineralized structure and into the hanging wall. -- new assays include 8.37 grams per tonne (g/t) gold across 3.5 m (true width) in hole VL-10-179 (click here to see drill map) Marathon PGM 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. "This new find confirms our view that the 2 kilometre long southeast main structure has the potential to host many such high grade lenses," said Phillip Walford, President of Marathon PGM. David Good, VP of Exploration commented, "Early on in the project we recognized the possibility that sub horizontal mineralization could continue from the main mineralized zone and into the hanging wall and so proving up a lens with a series of closely spaced holes was a big step forward and demonstrates the potential for mineralized zones in the hanging wall and not just waste rock." Latest analytical results from the Leprechaun Deposit are as follows: Best Results type From To Core Width True Width Gold (m) (m) (m) (m) (g/t) ------------ ---- ---- ---- ---------- ---------- ----- VL-10-172 flat 14.5 18 3.5 3.5 3.03 ------------ ---- ---- ---- ---------- ---------- ----- VL-10-172 25 26 1 1 7.26 ------------ ---- ---- ---------- ---------- ----- VL-10-173 5 8 3 3 0.76 ------------ ---- ---- ---------- ---------- ----- VL-10-173 flat 31 33 2 2 1.10 ------------ ---- ---- ---- ---------- ---------- ----- VL-10-174 5 10 5 5 3.30 ------------ ---- ---- ---------- ---------- ----- VL-10-174 flat 25 31 6 6 1.05 ------------ ---- ---- ---- ---------- ---------- ----- VL-10-175 29 31 2 1.5 5.21 ------------ ---- ---- ---------- ---------- ----- VL-10-175 39 41 2 1.5 2.62 ------------ ---- ---- ---------- ---------- ----- VL-10-175 53 58 5 3.75 0.84 ------------ ---- ---- ---------- ---------- ----- VL-10-175 62 66 4 3 1.01 ------------ ---- ---- ---------- ---------- ----- VL-10-175 71 77 6 4.5 2.27 ------------ ---- ---- ---------- ---------- ----- VL-10-175 92 97 5 3.75 0.80 ------------ ---- ---- ---------- ---------- ----- VL-10-175 101 103 2 1.5 2.94 ------------ ---- ---- ---------- ---------- ----- VL-10-175 109 119 10 7.5 1.58 ------------ ---- ---- ---------- ---------- ----- VL10-176 flat 9 12 3 3 0.93 ------------ ---- ---- ---- ---------- ---------- ----- VL10-176 22 25 3 3 0.74 ------------ ---- ---- ---------- ---------- ----- VL-10-177 3 7 4 3 3.94 ------------ ---- ---- ---------- ---------- ----- VL-10-177 18 23 5 3.5 3.68 ------------ ---- ---- ---------- ---------- ----- VL10-178 39 48.5 9.5 9.5 2.30 ------------ ---- ---- ---------- ---------- ----- VL10-179 44 48 3.5 3.5 8.37 ------------ ---- ---- ---------- ---------- ----- Generalized Geology - Leprechaun Deposit and On-Strike Extensions: The Leprechaun Deposit is hosted by sub horizontal and steeply dipping quartz-tourmaline-pyrite veins that occur within a major regional fault zone that strikes for over 30 kilometres (km) across the Valentine Lake Project area. At the southeast end of the Property, gold mineralization has been identified by drilling in a zone that is up to 300 m wide and 2 km along strike. In this area, detailed drilling has occurred along only 550 m of the structure. The potential to improve the resource and introduce hanging wall mineralization into the up-coming resource estimate has significantly increased as a result of a better understanding of the orientation and good continuity of the mineralized veins near surface. Closely spaced drilling has resulted in a better structural understanding of the mineralization and shallowly dipping mineralization is now recognized to extend beyond the boundaries of the main steeply dipping mineralized structure and into the hanging wall (identified as 'flat' in the table). It is possible that some of the gold intercepts occurring in the hanging wall well away from the main zone and best interpreted as sub horizontal vein sets may prove to be so with further drilling. Drilling is focused on finding extensions of high grade lenses along the mineralized trend. To date, 22 holes have been completed for a total of 2,000 m of the current 8,000 m program. The plan is to continue moving the drill to the northeast and fill the 50-100 m wide gaps between current drilling and historical drill holes VL-05-115 and VL-99-7, which intersected multiple zones including 2.96 g/t gold across 11.1 m and 2.41 g/t gold across 11.8 m, respectively. The upcoming holes are generally near surface, less than 150 m in length and have an azimuth towards the southeast. Historical drilling has defined gold mineralization in widely spaced holes, often on the order of 100 to 200 m between holes to the southwest and northeast suggesting that the Leprechaun mineralization extends for over 2 km with only 550 meters drilled in any detail to date. All of the samples were sent to 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. Duplicate assays were made on all assays above 30 g/t. Assay results for the planned updated resource calculation will be determined by a metallic screening process to be conducted at a later date. About the Valentine Lake Gold Property: The Valentine Lake Property 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. About the Leprechaun Gold Deposit: To date, the Leprechaun Deposit (at ~km 3 going northeast along strike) is the first defined gold resource within the highly prospective Valentine Lake Property. The Deposit, which has a NI 43-101 compliant underground inferred mineral resource of 1,314,780 tonnes grading 10.50 g/t Au using a 5 g/t Au minimum cut-off and a 3 m minimum width for a total estimated mineral resource of 443,000 ounces of gold. Cutting individual assays to 58 g/t Au, the average grade is 8.51 g/t Au for a total estimated mineral resource of 359,000 ounces of gold at the cut grade. The Deposit is open at depth and along strike. The resource estimate was performed by Larry Pilgrim, P. Geo., Qualified Person, and presented in the NI 43-101 Valentine Lake Technical Report dated January 12, 2005, when the closing spot price for gold was US$ 425.50 per ounce. For highlights from the winter 2010 drill program visit the Valentine Lake page of the Mountain Lake website. 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) 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 PGM Corp. can earn a 50% interest in the property; a 100% interest in the Bobby's Pond base metals property (Newfoundland); an option to earn a 100% interest in the Little River gold exploration property (Newfoundland); and a 2,350,000 share (~6.5%) stake in Etruscan Diamonds Ltd., an alluvial diamond project (South Africa). For more information visit: www.mountain-lake.com For corporate, media, or investor inquiries, please contact: Greg Lytle, Lytle & Associates Corporate Communications North America toll-free: [phone] International & Vancouver: [phone] Email: [e-mail] 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. SOURCE: Mountain Lake Resources Inc. Lytle & Associates Greg Lytle, Corporate Communications North America toll-free: [phone] International & Vancouver: [phone] Email: [e-mail] Copyright Business Wire 2010

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