Mountain Lake reports new gold-bearing veins southwest of Leprechaun, samples return up to 581.88 g/t gold

Mountain Lake Resources (CVE:MOA) announced Thursday the discovery of multiple, stacked "hanging-wall" veins during a trenching program in an area around 1.5 kilometres southwest and along strike from the southern end of the Leprechaun gold deposit's resource boundary.

The new gold-bearing quartz veins, which occur 100 metres into the hanging wall, were exposed over a 150 metre strike length southwest of the deposit, which is part of the joint venture Valentine Lake property in Newfoundland.

A total of 103 bedrock grab samples were collected from the trenching area, all of which were assayed, with 34 returning results of more than 1 gram per tonne (g/t) of gold. Four of the samples showed coarse visible gold, the company said, returning assays of 581.88 g/t, 287.95 g/t, 152.75 g/t, and 88.6 g/t gold.

The high grade samples were collected from outcrops of the newly exposed, multiple stacked veins, which form part of a larger gold-mineralized alteration called the J. Frank zone that now extends over an area in excess of 850 metres in length and 250 metres in width.

Mountain Lake said the trenching program has continued to expand the strike length of the mineralized corridor to more than 2.1 kilometres, together with the Leprechaun deposit. Drilling of the area is planned during the next two weeks, as the mineralized zone remains open to the southwest, the company said.

The Valentine Lake property is a 50/50 joint venture between operator Marathon Gold (TSE:MOZ) and Mountain Lake, with the Leprechaun deposit situated at the south-western end of a 23 kilometre long gold-bearing mineralized corridor.  The partners of the venture are currently jointly funding a $7.1 million resource expansion and exploration budget for the year, which includes 25,000 metres of drilling.
The remainder of drilling this year is expected to be completed this month, with a new resource estimate for Leprechaun planned before year-end. In 2010, the deposit was estimated to have an NI 43-101 compliant measured and indicated resource of 3.28 million tonnes grading 2.62 g/t gold, for a total of 277,000 ounces of gold, and an inferred resource of 4.41 million tonnes grading 2.01 g/t gold for an estimated 285,000 ounces.
Mountain Lake said that ongoing prospecting and stripping has continued to expose additional quartz veining along strike, and into the hanging wall. Channel sampling is also ongoing in the expanded J. Frank zone, with assays pending.