Drilling underway at Mountain Lake's Glover Island property

Mountain Lake Resources (CVE:MOA) announced Monday that drilling at its wholly-owned Glover Island gold project in Newfoundland was well underway.

The 7,000-metre program, intended to upgrade and expand the current historical resource estimate, is the company's first drill campaign since acquiring the property in October in a cash-and-share deal, valued at approximately $2.2 million.

President and CEO, Gary Woods said: "I feel confident that the program to re-evaluate the historic resource will be completed this year in spite of the delayed startup, and we are working closely with various government agencies to ensure that our exploration work is conducted in a manner that minimizes any impact on the area."

Historical resources from 1994 for the 5,100-hectare Glover Island property included 450,000 tonnes at 2.3 grams per tonne (g/t) gold for 33,276 troy ounces on the Kettle Pond South area of the property.

Meanwhile, the resource estimate for the Lunch Pond South area includes 2.73 million tonnes at 2.1 g/t gold for 184,321 troy ounces on the Main zone, and 900,000 tonnes at 1.6 g/t gold for 46,297 troy ounces on the West zone.

Mountain Lake said the property hosts several gold prospects over its eleven-kilometre strike length. Notable intercepts include 16.7 metres grading 5.31 g/t gold at the Lunch Pond South East prospect, 10 metres grading 4.93 g/t gold at Kettle Pond South, and 10.18 g/t gold over 8.0 metres at the Luck Smoke deposit.

Based in Vancouver, B.C., Mountain Lake shares on the TSX-Venture rose 5.56% as of 12:57 pm EDT, to trade at $0.57 per share.