Mountain Lake unveils updated resource estimate at Leprechaun gold deposit

Junior explorer Mountain Lake Resources (CVE:MOA) reported Thursday an updated resource estimate for its Leprechaun gold deposit, in Central Newfoundland.

The Valentine Lake property, including the Leprechaun gold deposit, is a 50/50 joint venture between Mountain Lake and Marathon Gold Corp. (TSE:MOZ), who is operator of the project.

Mountain Lake said the global resource estimate stands at 424,000 ounces of gold with a grade of 2.05 grams per tonne (g/t) in both the measured and indicated categories.

In the inferred category, the updated resource estimate pegs it at 305,000 ounces of gold with a grade of 1.65 g/t.

Estimates had been based on samples composited to two metres, while grade capping thresholds were determined after a detailed statistical analysis of data within seven geological domains.

Indicated mineral resources include all mineralized blocks within the variogram range and estimated using a minimum of three
composites and a maximum of 15 composites.

Marathon worked through several challenges with the 2012 updated resource estimation. This included the removal of 22 historic drill holes from the database, the company said.

Also, as a result of previous drill campaigns using magnetic based down hole survey equipment, some of the hole locations were suspect and the hole errors became obvious when new holes were drilled near them.

In an effort to rectify the errors made by historic operators, Marathon began replacing the old drill holes in late 2011 and continues to do so as part of an aggressive 40,000 meter 2012 drilling program.

It is also focusing on the discovery and definition of the high grade zones to increase the grade and gold content in the Leprechaun deposit.

Mountain Lake Resources, whose current projects aside from Valentine Lake, include a 100 percent stake in the Glover Island gold exploration property, and an option to earn a 100 percent stake in the Little River gold-antimony asset.