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Mountain Lake Says 8.06 G/T Gold Over 11.4 Metres Returned From Valentine Lake

Mountain Lake Resources (CVE:MOA) (OTC:MLKRF) Monday announced multiple intervals of high-grade gold from the final results of its 2012 winter drilling program at the joint venture Valentine Lake project in central Newfoundland.

Valentine Lake, including the Leprechaun deposit, is a 50:50 joint venture between Mountain Lake and Marathon Gold (TSE:MOZ), which is the operator of the project.

The company said that step-out drilling at the Leprechaun gold deposit has intersected high-grade gold mineralization up to 60 metres down-dip from previously defined Main Zone mineralization.

Exploration drilling at the J. Frank Zone also intersected wide intervals of mineralization, which are comparable to the Main Zone vein system at the Leprechaun gold deposit, Mountain Lake said, providing an "exciting target" for future drilling.

"We are very happy with the 2012 results from the Leprechaun gold deposit," said Mountain Lake COO Paul Smith.

"Based on the wide gold intersections encountered to date, we have every confidence that this style of mineralization will continue to be encountered along the prospective, Valentine Lake mineralized belt."

Step-out drilling in the northeast area of the Leprechaun deposit intersected multiple high-grade intervals up to 60 metres down-dip from the Main Zone. Hole VL-12-414 returned 9.07 grams per tonne (g/t) gold (Au) over 6.80 metres, including 66.63 g/t Au over 0.85 metres and 7.38 g/t Au over 2.55 metres, including 22.05 g/t Au over 0.85 metres.

Hole VL-12-409 revealed 22.05 g/t Au over 2.25 metres, including 66.03 g/t Au over 0.75 metres and 15.10 g/t Au over 2.25 metres, including 42.45 g/t Au over 0.75 metres.

Step-out drilling in the central area of the Leprechaun gold deposit returned high-grade intervals 40 metres down-dip from the Main Zone, with 8.06 g/t Au over 11.4 metres, including 29.54 g/t Au over 0.95 metres and 29.64 g/t Au over 0.95 metres in hole VL-12-410.

Mountain Lake also noted that significant new near surface high-grade hanging wall mineralization included 15.80 g/t Au over 6.0 metres, including 65.33 g/t Au over 0.75 metres in hole VL-12-416.

At the J. Frank Zone, the company said that new near surface high-grade hanging wall mineralization included 6.46 g/t Au over 3.0 metres including 19.14 g/t Au over 1.0 metres in hole VL-12-428.

New wide intervals of Main Zone style mineralization at the J. Frank Zone included 0.64 g/t Au over 61.75 metres with 12.90 g/t Au over 0.95 metres in hole VL-12-431, said Mountain Lake.

The Valentine Lake property has a 30 kilometre strike length, with the J. Frank Zone and Leprechaun gold deposit situated at the southwestern end of a gold-bearing mineralized corridor that extends for at least 23 kilometres in a northeasterly strike.

The Leprechaun deposit currently has an NI 43-101 compliant measured and indicated resource of 6.4 million tonnes grading 2.05 g/t gold for a total estimated 424,000 ounces of gold and an associated inferred resource of 5.7 million tonnes grading 1.65 g/t gold for an estimated 305,000 ounces of gold.

The mineral resource was estimated using a 0.5 g/t Au minimum cut-off over a three metre minimum width.
Mountain Lake is a junior exploration company engaged in the exploration and development of mineral properties located in Newfoundland.

The company's current projects include a 50 percent interest in the Valentine Lake gold property under the joint venture with Marathon Gold, a 100 percent interest in the Glover Island gold exploration property, an option to earn a 100 percent interest in the Little River gold-antimony exploration property and a 100 percent interest in the Bobby's Pond base metals property.