Mountain Lake announces near-surface gold in thick alteration envelope at J. Frank zone

Mountain Lake Resources (CVE:MOA) said Tuesday that an intersection with thick intervals of near-surface gold-bearing mineralization was hit during initial shallow drilling at the J. Frank Zone, part of the joint venture Valentine Lake project with Marathon Gold (TSE:MOZ) in central Newfoundland, Canada.
Highlights of the results include 3.49 grams per tonne (g/t) of gold over 3.75 metres in hole VL-11-366, including 10.23 g/t gold over 0.75 metres; and 4.47 g/t gold over 2.25 metres, including 13.3 g/t gold over 0.75 metres in hole VL-11-376.
The companies said the new J. Frank Zone discovery will benefit them, as the intersections contain high grade gold intervals within an over 80-metre thick quartz-tourmaline-pyrite alteration envelope.
The style and intensity of the mineralization found is also "identical" to that of the main Leprechaun gold deposit of the Valentine project, which is located 1.5 kilometres along strike to the north-east, said operator of the joint venture Marathon, in a statement Tuesday.
Marathon also said it plans to carry out a drilling program in 2012 that will focus on identifying and expanding the wider and higher grade gold areas within the J. Frank zone.
The Valentine Lake project, including the Leprechaun gold deposit, is a 50/50 split joint venture between Marathon and Mountain Lake. Both companies were equal contributors to the recently completed 25,250 metre 2011 drilling program at the property.
A revised resource estimate for the project is expected early in the first quarter of 2012.
The Leprechaun gold deposit is situated at the south-western end of the Valentine Lake project, and the Valentine East Gold Zone is located 17 kilometres along strike running in a north-easterly direction.
The J. Frank Zone currently extends over an area in excess of 850 metres in length and 250 metres in width, and is located up to 1.5 kilometres southwest along strike from the current resource boundary of the Leprechaun deposit, which has NI 43-101 compliant measured and indicated resources of 277,000 ounces gold, as well as an estimated 285,000 ounces of inferred gold.
All of these gold occurrences form part of a 23 kilometre long, prospective gold-bearing mineralized corridor.
A 40,000 metre drilling program is due to begin at Valentine Lake in 2012.