Mountain Lake Resources (CVE:MOA) announced Thursday the discovery of a new gold-bearing vein structure that extends over an 80 metre strike length in an area outside the current resource boundary at the Leprechaun gold deposit.
The Leprechaun deposit is part of the Valentine Lake property in central Newfoundland, which is under a 50/50 joint venture with Marathon Gold Corp, the operator of the project.
The new vein discovery is located in an area up to 1.4 kilometres southwest of the current resource boundary at Leprechaun.
Mountain Lake and Marathon said that numerous bedrock grab samples, which consisted of quartz-tourmaline-pyrite with coarse visible gold, returned high grade results of up to 113.3 grams per tonne (g/t) of gold, 28.01 g/t gold, and 15.33 g/t gold.
“This new mineralized zone is in an area of the property that returned the highest concentration of gold anomalies in the soil survey," said Mountain Lake president and CEO, Gary Woods.
"In the past, it was thought that the high concentration of gold in the soils in this area was glacially transported from the Leprechaun Deposit."
"While still early stage, this certainly indicates that there are locally-derived sources for gold within the larger anomaly.”
The high-grade samples were collected from sub-crop directly overlying and in contact with the newly uncovered vein structure. According to the companies, the vein is part of a larger gold-bearing vein system that extends over an area 600 metres long by 200 metres wide.
Additional high-grade samples have been collected throughout the area, as historical trenching and drilling did not intersect the new vein, nor did it test other surrounding mineralization, Mountain Lake said.
Drill testing of this new area is also planned, and will be added to the 25,000 metre program this year, which is being jointly funded by both Marathon and Mountain Lake.
The Leprechaun deposit is situated at the south-western end of the Valentine Lake property, and has an NI 43-101 compliant resource of 277,000 ounces of gold in the measured and indicated category, and another 285,000 ounces in the inferred category. The deposit is open at depth and along strike, with 74% of the current measured and indicated ounces occurring within 150 metres of surface.