Mountain Lake Resources (CVE:MOA) announced Wednesday it intersected strong gold mineralizations at its Leprechaun gold deposit in central Newfoundland, indicating the continuity of the main zone mineralization.
The Leprechaun gold deposit is located on Mountain Lake's Valentine Lake property, a 50-50 joint venture with Marathon Gold, the property's operator. Both companies are jointly funding the project's $7.1 million budget, which includes 25,000 metres of drilling.
The deposit sits on the southwestern edge of the property, with the Sprite zone and the Valentine East zone located about 700 metres and 13 metres, respectively, along strike to the northeast of the Leprechaun deposit.
The junior gold exploration company released results from assays on the property including 32.2 metres grading 2.18 grams per tonne (g/t) gold, including 2.8 metres grading 11.36 g/t gold, in hole VL-11-296.
Hole VL-11-291 returned 14.4 metres grading 3.53 g/t gold, including 8.86 g/t gold over 5.6 metres.
Other notable results include 5.4 metres grading 2.46 g/t gold, including 0.9 metres grading 13.24 g/t gold in hole VL-11-297; and in hole VL-11-294, 2.1 metres grading 2.2 g/t gold, and 7.0 metres grading 5.4 g/t gold, including 3.5 metres grading 10.07 g/t gold.
Each of these assay results confirmed the mineralization at the deposit, with hole VL-11-296 confirming the northeast portion of the resource, and the northeast portion confirmed by results from hole VL-11-294.
"Whenever a hole drilled between two existing holes provides positive results such as VL-11-296, it increases the confidence level of the resource," explained Mountain Lake president and CEO, Gary Woods.
"We are continuing to focus the balance of the 2011 drill program on the Leprechaun Deposit area and drill holes such as VL-11-291 and -294 demonstrate that the Deposit remains open both along strike and at depth."
The Leprechaun deposit, which remains open at depth and along strike, has a resource estimate of 3.28 million tonnes grading 2.62 g/t gold for an estimated 277,000 ounces of gold in the measured and indicated category, and 4.41 million tonnes grading 2.01 g/t gold, totaling an estimated 285,000 ounces of gold, in the inferred category.