Mountain Lake confirms continuity of Leprechaun deposit in Newfoundland

Mountain Lake Resources (CVE:MOA) announced Tuesday that infill drilling on the Leprechaun deposit at its Valentine Lake joint venture, which is located in central Newfoundland, has confirmed the continuity of the mineralization along strike.

Infill drill hole VL-11-310, which was drilled in the northeast section of the property, returned 32.3 metres grading 1.88 grams per tonne (g/t) gold, including 4.41 g/t gold over 2.9 metres.

Also in the northeast portion of the property, , VL-11-313 intersected 2.4 metres at 6.53 g/t gold, including 22.63 g/t gold over 0.6 metres, proving the down-dip expansion of the deposit.

Notable results in the southwestern region include hole VL-11-314, which intersected 16.2 metres at 2.38 g/t gold, including 5.7 metres grading 4.33 g/t gold, and hole VL-11-317 which reported 2.7 g/t gold over 12.8 metres, and 2.6 g/t gold over 10.69 metres.

Each of these results confirm the continuity of the gold mineralization between adjacent sections of the Leprechaun deposit, the junior explorer said.

To date, a total of 111 holes totaling 18,098 metres of the planned 25,000-metre drill program have been completed. The remaining work will be completed in October, Mountain Lake said, with results released shortly after. A completed updated resource estimate is expected by the year's end.

The Leprechaun deposit, which remains open at depth and along strike, currently has a resource estimate of 3.28 million tonnes grading 2.62 g/t gold, for a total of 277,000 ounces of gold in the measured and indicated category.

The Valentine Lake property is a 50/50 joint venture between Mountain Lake and Marathon Gold (TSE:MOZ), which acts as operator for the property. Each partner is jointly funding a $7.1 million resource expansion program, and the 2011 exploration budget.

The Leprechaun gold deposit is situated at the southwestern end of the 30-kilometre property, and has a strike length of approximately 750 metres. The gold occurrences, found largely at Leprechaun form part of a 23-kilometre long gold-bearing corridor.

Mountain Lake's stock on the TSX-Venture fell 12% or 8 cents at $0.57 at 9.57am EDT.