Mountain Lake Resources (CVE:MOA)(OTC:MLKRF) Tuesday reported the completion of an initial NI 43-101 resource estimate for the Lunch Pond area of its 100 percent-owned Glover Island gold property in Newfoundland.
Compared to historical resources, the company said the NI 43-101
resource for Lunch Pond indicates a 27.8 percent decrease in grade,
offset by a 57.4 percent increase in tonnage, resulting in a 14.1
percent increase in contained gold ounces.
At a cut-off grade of 0.5 grams per tonne (g/t), Lunch Pond has an
estimated 66,400 ounces indicated gold grading 1.61 g/t, contained in
1.28 million tonnes. In the inferred category, the target has 196,900
ounces of gold grading 1.38 g/t, contained in 4.43 million tonnes.
"The company's objective is to delineate near-surface resources from
the Glover Island property's 17 gold prospects that could be amenable to
open pit mining and support a centrally located milling operation on
the island," Mountain Lake's COO and exploration manager Paul Smith
"The upgrade of the Lunch Pond Deposit to NI 43-101 resource status
is a successful first step in achieving our objective and gives us a
solid base resource to build upon."
The resource estimate was conducted by P&E Mining Consultants.
Glover Island represents an under-explored mineral belt near the west
coast of Newfoundland. This 11 kilometre mineral belt, termed the
GI-Trend, is host to 17 gold-bearing prospects in addition to numerous
gold anomalies that cross several rock types adjacent to a major terrain
Visible gold has been previously identified at six prospects along
the GI-Trend, suggesting there is considerable gold potential remaining
to be explored.
The company's phase I drill program consisted of 41 holes, in
addition to 35 historical holes at the Lunch Pond deposit, for a
combined total of 76 holes, or 15,452 metres.
Phase I drilling also confirmed the thinner zones of gold
mineralization as noted by historical exploration. At the conclusion of
this phase of drilling, several holes were drilled at the west margin
of the west grid in an attempt to locate the thicker mineralized breccia
zone as observed in hole LPSE-12-70, and to determine the offset
directions of the faulting in this area of the grid.
Mountain Lake said the results suggest that at this location, both
the thicker breccia zone and the coincident gold mineralization are
faulted to the north and are projected under a large bog. Further work
is required to locate this faulted extension, it added.
The company's phase II exploration program on the property, to be
carried out in 2012, will focus on the Kettle Pond South Zone and the
Lucky Smoke (Quartz Pond) Zone, which are located at the extreme ends of
the prospective GI-Trend.
The historical resource at the Kettle Pond South Zone is 450,000
tonnes at 2.3 g/t gold for 33,276 ounces of gold, and drill hole
intercepts include 6.62 g/t gold over 6.5 metres in hole KPS-2.
Historical drill hole intercepts at the Lucky Smoke Zone include 10.2 g/t gold over 8.0 metres in hole LS-1.
Additional exploration will target drill-ready prospects at Lunch
Pond C and Lunch Pond North - both located east of the Lunch Pond
Deposit - as well as the Discovery Vein & Rusty Vein Prospect, the
2700 Zone, the Tomahawk Zone and the Keystone & Jacamar Prospects.
Mountain Lake is a junior exploration company engaged in the
exploration and development of mineral properties located in