Mountain Lake rallies on initial drill results from Gover Island in Newfoundland

Mountain Lake Resources (CVE:MOA) reported Thursday the initial results from its first drill program on its wholly owned Glover Island gold property, located in western Newfoundland.
Significant assays found 130.9 metres at 0.7 grams per tonne (g/t) gold, in hole LPSE 11 44, located in an area outside of the historical Lunch Pond South East prospect resource boundary. Hole LPSE 11 36 also intersected 26 metres at 1.48 g/t gold, including nine metres at 1.84 g/t gold, and including 12 metres at 1.81 g/t gold.
The company acquired a full interest in the 5,100-hectare property in October this year, in a cash-and-share deal valued at $2.2 million. Earlier this year, it launched its ongoing 7,000-metre drill program at the site, intended to validate and expand the historical resource estimate on the Lunch Pond South East prospect, and to complete an NI 43-101 compliant resource estimate.
Mountain Lake said it has added a second rig to expedite the program. The plan is to focus on the upper 200 metres of the deposit to determine the open pit potential.
"We are very pleased with the early results from our initial drill program," said president and CEO, Gary Woods.
"The grades are coming in roughly as expected from the historical work on the property but we are surprised at how thick the mineralization can be, relative to the historical widths.
"We also think there is potential to improve the resource by additional sampling within the historical resource boundaries."
Other notable results from the property include 16.5 metres at 2.03 g/t gold, and 10.5 metres at 1.99 g/t gold, in hole LPSE 22 40, and 11.3 metres grading 1.54 g/t gold, and eight metres at 2.26 g/t gold, in hole LPSE 11 41. Hole LPSE 11 42 also intersected four metres at 2.19 g/t gold, and 9.8 metres at 1.35 g/t gold.
Currently, three areas on the Gover Island property have historical resource estimates completed. The Kettle Pond South area has a historical resource of 450,000 tonnes grading 2.3 g/t gold, for 33,276 troy ounces of gold; the Lunch Pond South Main Zone has 2.73 million tonnes at 2.1 g/t gold for 184,321 troy ounces of gold; and the Lunch Pond South West Zone has 900,000 tonnes grading 1.6 g/t gold for 46,297 troy ounces of gold.
Mountain Lake said it expects to complete an NI 43-101 compliant resource estimate by the first quarter of 2012.
Based in Vancouver, B.C., Mountain Lake shares on the TSX-Venture Exchange spiked 11.54 percent to $0.58, as of 11:17 am EDT.