NEWS
Mountain Lake Resources Inc - News Release
Mountain Lake to start exploring Valentine Lake
Mountain Lake Resources Inc MOA
Shares issued 14,567,314 Jun 25 2002 close $ 0.63
Wednesday June 26 2002 News Release
Mr. Allen Sheito reports
MOUNTAIN LAKE COMMENCES DRILL PROGRAM TO COMPLETE 50% EARN-IN ...
Mountain Lake Resources will immediately commence a diamond drilling program on its Valentine Lake gold property located in Newfoundland. Once the program is completed in late July, 2002, Mountain Lake will have earned a 50-per-cent interest in the property. The program will focus on two areas, the Leprechaun Pond and Valentine East prospects.
Gold mineralization, associated with quartz veining, silicification and pyrite, was initially discovered in outcrops by BP Canada in 1986 while following up anomalous gold in soil anomalies near the contact between the Rogerson Lake conglomerate and trondjemite. Subsequent exploration between 1987 and 1991 focused on evaluating gold anomalies elsewhere along the contact. BP Canada completed 47 holes totalling 5,975 metres on the property. Mountain Lake completed a further 29 holes totalling 4,215 metres in 1998 and 1999.
The Leprechaun Pond deposit has been drill tested with 49 drill holes over a strike length of three kilometres. Higher-grade intersections of 9.1 grams per tonne of gold over 9.6 metres and 14.9 grams per tonne over 2.1 metres are found in wider zones of lower grade mineralization of 4.6 grams per tonne gold over 23.1 metres and 2.1 grams per tonne gold over 29.5 metres. The zone remains open along strike and at depth.
Gold mineralization at the Valentine East prospect, located along the same geological contact approximately 12.5 kilometres to the northeast, is the same as at Leprechaun Pond. Previous trenching carried out by BP Canada uncovered gold mineralization assaying up to four grams per tonne gold over four metres in channel sampling and up to 25.4 grams per tonne gold in grab samples. Mountain Lake drilled 12 holes and detected two parallel zones of gold mineralization in the area.
The Valentine Lake property consists of 178 square kilometres covering a 25-kilometre strike length of the mineralized contact. Mountain Lake signed an option in 1999 to earn a 50-per-cent interest in the property by spending $750,000 in exploration expenditures. In order to acquire the remaining 50-per-cent, Mountain Lake will have to spend an additional $2.5-million by July, 2006, and pay Noranda a 3-per-cent net smelter royalty on gold and a 2-per-cent net smelter royalty on base metals.
Allen Sheito, president and chief executive officer of Mountain Lake, stated: "I am very excited about the enormous potential of this property. The overall strike length of Valentine Lake exceeds 25 kilometres and only 20 per cent of the mineralized contact has been drill tested to date. The objective of this drilling program is to test other geophysical-geochemical targets on the property and I am confident that we will be successful." |
