Jan. 13, 2011 (Filing Services Canada) --
Mountain Lake Resources Inc (MOA - TSX Venture, MLKRF - OTCBB_Pink_Sheets), is pleased to provide a 2010 year-end review and the outlook for exploration activity and corporate development in 2011.
2010 Highlights include:
* First Measured and Indicated gold resource completed on the Valentine Lake Property, where drilling is imminent to further resource expansion
* Drill results confirmed antimony in two areas of interest on the Little River Project, where drilling will recommence later this quarter
* Focus on gold exploration in Newfoundland expanded with acquisition of Glover Island Project where a historical gold resource will be upgraded to NI 43-101 compliance
* Over $7.8 million in financing raised to fully fund 2011 drilling campaigns
Status of Projects:
Valentine Lake Project (gold) - Central Newfoundland
Further to the news release of December 16, 2010,: http://www.mountain-lake.com/2010_MOA_news/MOA-NR-121610_VLake-Resource-Estimate.html the Leprechaun Deposit, which is situated near the south-western end of the highly prospective 30 kilometre ("km") Valentine Lake Property, hosts a NI 43-101 compliant Measured and Indicated resource of 277,000 ounces of gold plus an additional Inferred resource of 285,000 ounces of gold. The mineral resource estimate was prepared by Sam Shoemaker, MAusIMM, of Micon International, who is the independent qualified person for this mineral resource estimate. The associated Technical Report is pending.
Marathon Gold Corp. (TSX: MOZ) ("Marathon") is the operator of the Valentine Lake Project under the sub-option and joint venture agreement ("OJVA") between Mountain Lake and Marathon. For more information on the OJVA see the news release of December 23, 2009: http://www.mountain-lake.com/2009_MOA_News/MOA-NR-122309_VLake-MarathonJV.html.
Approximately 11,000 metres ("m") of drilling was completed on the Leprechaun Deposit area in 2010 and 74% of the Measured & Indicated ounces and 73% of tonnes are within 150 m of surface, where the 2010 drill holes were concentrated. The strike length of resource is now 750 m with an additional 750 m of gold mineralization ready for drilling. The Resource is open down-dip and along strike to the southwest and northeast.
A 25,000 m drill campaign is planned for 2011 with two rigs slated to commence drilling this month on the northeast arm of the Leprechaun Deposit, the Sprite Prospect (800 m along strike from Leprechaun), and Valentine East Gold Zone (13 km along strike from Leprechaun).
Plans for 2011 also include: further metallurgical testing, drilling of geotechnical holes to assess the competency of potential pit walls so that a preliminary economic assessment can be completed by the 1st quarter of 2012, and base line environmental studies will also commence.
Little River (gold-antimony) - South Coast of Newfoundland
Originally optioned in 2008 for its numerous gold occurrences, Mountain Lake continues to encounter interesting antimony ("Sb") values on the Little River Property and antimony bearing veins having now been identified intermittently over a 20 km strike length. Grab samples from a vein exposed in shallow pits during the 2010 prospecting campaign returned values from 27.6 % to 50 % Sb with gold ("Au") values up to 24.1 grams per tonne ("g/t"). Follow-up drill results announced December 21, 2010: http://www.mountain-lake.com/2010_MOA_news/MOA-NR-122110_LR_Drill-Results.html confirmed antimony in the Le Pouvoir Zone, located in the northeast area of the Property, and the Southern Zone, located 21 km southwest of the Le Pouvoir Zone. The best intercept occurred in drill hole LR-10-16, which contained a 0.92 m interval (true width) of 30.6 % Sb at a vertical depth of 18 m. The intervals of high grade antimony are significant and are typical of the material being mined at the Beaver Brook Mine situated 80 km to the north of the Le Pouvoir Zone.
Beaver Brook is one of the world's largest antimony deposits outside China, and the only primary antimony mine in North America. The alteration assemblage associated with the Sb veins at both Beaver Brook and the Le Pouvoir Zone is sericite and chlorite, with significant fuchsite. The mineralization at Beaver Brook is found in narrow veins and breccia zones. The nature of the narrow, high grade mineralized intervals in some of the early drill holes at the Beaver Brook property can be viewed on the Newfoundland and Labrador Department of Natural Resources (NLDNR) website at:
The Company will commence follow-up drilling on both of these Zones later this quarter. Additional, drilling will also be carried out this year on yet untested areas where interesting Sb and Au values have been encountered in the soil sampling and trenching programs situated between the two Zones of interest drilled in 2010.
Mountain Lake has an option to earn a 100% interest in the Property, which consists of 382 mining claims comprising 9,550 hectares over a strike length of ~31 km in the Baie D'Espoir area of southern Newfoundland.
Glover Island (gold) - South-Central Newfoundland
Mountain Lake acquired a 100% interest in the Glover Island Project in October 2010. The Property is located on the south-central portion of Glover Island and consists of two mineral licenses and one mining lease covering a total of 5,100 hectares.
The Property has a history of gold exploration dating back to 1953 and is host to several significant gold prospects over an 11 km strike length. Significant drill intercepts include 16.7 m of 5.31 g/t Au at the LPSE Prospect, 10 m of 4.93 g/t Au at Kettle Pond South, and 8.0 m of 10.18 g/t Au at the Lucky Smoke deposit. Non-NI 43-101 compliant resources have been calculated at the LPSE and Kettle Pond South Prospects. Mountain Lake's goals for 2011 are to upgrade the historical resources to NI 43-101 compliance standards, and drill additional prospects on the Property.
Bobby's Pond Deposit / Cornerstone Option (base metals) - Central Newfoundland
Mountain Lake owns a 100% interest in the Bobby's Pond Deposit, which is located approximately 45 km west by road of Teck Cominco's Duck Pond mine/mill complex: http://www.teck.com/Generic.aspx?PAGE=Operations+Pages%2FCopper+Pages%2FDuck+Pond. The latest NI 43-101 compliant resource (July 2008) estimates the Deposit contains an Indicated resource of 1,095,000 tonnes of 0.86 % Cu, 4.61 % Zn, 0.44 % Pb, 16.6 g/t Ag, and 0.2 g/t Au in addition to an Inferred resource of 1,177,000 tonnes of 0.95 % Cu, 3.75 % Zn, 0.27 % Pb, 10.95 g/t Ag and 0.06 g/t Au. The mineral resource estimate was prepared by Hrayr Agnerian, M.Sc, (Applied), P.Geo., of Scott Wilson Roscoe Postle Associates Inc., who is the independent qualified person for this mineral resource estimate. See associated NI 43-101 Bobby's Pond Technical Report: http://www.sedar.com/CheckCode.do;jsessionid=000029dtHNIRiXGlv4Sf8uAhpL2:-1. The Deposit remains open at depth.
The continued recovery in base metals prices and resurgence in exploration funding for base metals projects of similar size to the Bobby's Pond Deposit is very encouraging, and Mountain Lake continues to evaluate the potential of joining forces with one or more other base metals explorers/producers for regional consolidation.
Mountain Lake completed financings in 2010 to raise a total of $7,817,873. The Company currently has approximately $7,000,000 in working capital and a market capitalization (as of yesterday's closing stock price) of approximately $32,000,000 on a fully diluted basis.
Mountain Lake President and CEO Gary Woods commented, "The Company is well positioned for another year of aggressive growth through exploration, with 30,000 metres of drilling planned and a fully funded exploration budget. We will also continue our strategy of growth through the evaluation of new projects for possible acquisition or joint venture; while remaining committed to the preservation of the Company's capital structure and the avoidance of excessive shareholder dilution."
About Mountain Lake Resources Inc.
Mountain Lake Resources Inc. (TSX-V: MOA) is a diversified junior exploration company, whose corporate strategy is to build shareholder value through the exploration and development of economically viable mineral properties. Mountain Lake's current projects include: a 30% interest in the Valentine Lake gold property (Newfoundland) with an option to acquire the remaining 70% interest from Richmont Mines Inc. and a subsequent sub-option and joint venture agreement whereby Marathon Gold Corp. can earn a 50% interest in the property; a 100% interest in the Glover Island gold exploration property (Newfoundland); an option to earn a 100% interest in the Little River gold-antimony exploration property (Newfoundland); a 100% interest in the Bobby's Pond base metals property (Newfoundland); and a minority (~6.4%) stake in Etruscan Diamonds Ltd., an alluvial diamond project (South Africa). For more information visit: www.mountain-lake.com
For corporate, media, or investor inquiries, please contact:
Lytle & Associates
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Source: Mountain Lake Resources Inc (TSX-V: MOA) http://www.mountain-lake.com
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