Tuesday, 1 May 2012

Mountain Lake announces termination to Bobby's Pond sale

Mountain Lake Resources (CVE:MOA) (OTC:MLKRF) said late Monday that the agreement to sell its 100 percent interest in the Bobby's Pond base metals project in central Newfoundland to SG Spirit Gold (CVE:SG) has been terminated.

The initial deal was announced late last year.

Under the terms of that agreement, Mountain Lake would have received 3.65 percent of the issued and outstanding shares of SG, a 0.5 percent NSR, and a one-time, $100,000 cash payment.

Concurrent to the Mountain Lake deal, SG announced that it would also purchase a full interest in the Buchans property, including the Lundberg deposit and the Daniels Pond deposit, and a 49 percent interest in the Tulks Hill deposit, from Buchans Minerals (CVE:BMC).

These transactions have also been terminated. No details of the decision were disclosed.

The latest NI 43-101 compliant report for Mountain Lake's Bobby's Pond property, which is located about 20 kilometres southeast of the town of Buchans in central Newfoundland, estimates 1.095 million tonnes grading 4.61 percent zinc, 0.44 percent lead, 0.86 percent copper, 16.6 g/t silver, and 0.2 g/t gold in the indicated category, and 1.177 million tonnes at 3.75 percent zinc, 0.27 percent lead, 0.95 percent copper, 10.95 g/t silver, and 0.06 g/t gold in the inferred category.

Earlier this month, Mountain Lake 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.

Its other projects include the 50/50 joint venture Valentine Lake gold property with Marathon Gold Corp. (TSE:MOZ) and an option to earn a 100 percent interest in the Little River gold-antimony exploration property.

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