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Mountain Lake Unveils Latest Results From Leprechaun, Extends Mineralization

Mountain Lake Resources (CVE:MOA) unveiled Friday the latest batch of 2012 drill results from its Leprechaun gold deposit, part of the joint venture Valentine Lake property in Central Newfoundland.

The company said Main Zone intercepts confirmed the extension of the mineralization in the area, down dip from the current resource boundary.

Highlights of these Main Zone intercepts included 8.04 grams per tonne (g/t) gold over 4.25 metres, including 35.71 g/t gold over 0.9 metres and 9.35 g/t gold over 2.6 metres, including 20.33 g/t gold over 0.9 metres in hole VL-12-397.

Hole VL-12-390 also returned 2.67 g/t gold over 12.0 metres, including 11.90 g/t gold over 2.3 metres, while hole VL-12-391 found 2.03 g/t gold over 9.8 metres, including 13.81 g/t gold over 0.8 metres.

In addition, Mountain Lake said that new Footwall Zone intercepts confirmed a high grade lens of mineralization, extending more than 50 metres in strike length and over 80 metres down dip.

Notable Footwall Zone assays included 4.11 g/t gold over 8.0 metres, including 24.76 g/t gold over 0.8 metres in hole VL-12-391. Hole VL-12-388 also returned 5.77 g/t gold over 3.4 metres, including 20.22 g/t gold over 0.85 metres and 2.08 g/t gold over 9.35 metres, including 6.96 g/t gold over 1.7 metres.

The Valentine Lake project, which includes the Leprechaun deposit, is a 50/50 joint venture between Mountain Lake and Marathon Gold Corp (TSE:MOZ).

Marathon is the operator of the venture, with the two parties jointly funding a work budget of $11.5 million in 2012.

Three drills are currently working on the property, focused on expanding the Leprechaun deposit both down dip and along strike to the southeast into the J. Frank Zone and to the northeast into the Sprite Zone.

The companies said that a total of 25 drill holes for 7,675 metres of the planned 40,000 metre 2012 drilling campaign have now been completed.

Valentine Lake Property has a 30 kilometre strike length with the J. Frank Zone and Leprechaun deposit situated at the southwestern end of a gold-bearing mineralized corridor that extends for at least 17 kilometres.

Currently, Leprechaun has an NI 43-101 compliant measured and indicated resource of 3.28 million tonnes grading 2.62 g/t gold for a total estimated 277,000 ounces of gold, and an associated inferred resource of 4.41 million tonnes grading 2.01 g/t gold for 285,000 ounces of gold.

The 2010 resource was estimated using a 0.5 g/t gold minimum cut-off over a three metre minimum width. An open pit resource estimate is expected the current quarter, which will include results from the 25,250 metres of drilling completed in 2011.

Mountain Lake Resources is a junior exploration company, whose current projects, aside from Valentine Lake, include a 100 percent interest in the Glover Island gold exploration property, an option to earn a 100 percent stake in the Little River gold-antimony asset and a 100 percent interest in the Bobby's Pond base metals property.