The Property consists of a Mining Lease (renewed to 2022) and one Mineral Exploration Licenses covering a total of 2,550 hectares on the south-central portion of Glover Island, which is located within Grand Lake in western Newfoundland.
Mountain Lake completed its Phase 1 drilling program in early 2012 that culminated in a National Instrument (NI) 43-101 Mineral Resource Estimation for the Glover Island Project (see table below). In an April 17, 2012 news release Paul Smith, President and CEO of Mountain Lake, said:
“The Company’s objective is to delineate near surface resources from the Glover Island Property’s 16 gold prospects that could be amenable to open pit mining and support a centrally located milling operation on the Island. The upgrade of the Lunch Pond Deposit to NI 43-101 resource status is a successful first step in achieving our objective and gives us a solid base resource to build upon.”
Phase I drilling focused entirely on the Lunch Pond South Extension deposit (“LPSE”) area (see drill hole map lower right) with results indicating thick mineralized drill core intercepts of up to ~130 metres (m). Several mineralized intervals at LPSE are also exposed in surface outcroppings. Deeper undercut drill holes demonstrate that the gold mineralization continues down-dip and remains open at depth.
Highlights from Phase I drilling include the following grade/thickness information:
- hole LPSE-11-55 intersected 1.74 g/t Au over 53.5m; and,
- hole LPSE-11-57, the deepest of the drill holes on Section 10,000E with the intercept situated 270m below the intercept in LPSE-11-55, intersected 1.67 g/t Au over 44.7m (see drill hole map below right).
LPSE Updated NI 43-101 Resource Estimate (June 2017)
In 2012 Mountain Lake Minerals and Mountain Lake Resources commissions a technical report* to determine gold resources contained by the 2011-2012 diamond drill campaigns. That resource estimation was published on SEDAR. On May 15, 2017 the British Columbia Securities Commission ("BCSC") determined that this report did not meet the strictest definition of NI 43-101 guidelines and asked that a new report be filed. A new NI 43-101 resource estimation report was prepared by P&E Mining Consultants of Brampton, Ontario, and files on June 26, 2017 (2017 NI 43-101 Technical Report).
Phase II Exploration Plan
The LPSE is the only prospect on the Property that Mountain Lake examined during earlier exploration. In addition to LPSE, there are 16 additional mineral prospects along the >11km long GI-Trend with known gold mineralization. Along this well-developed mineral trend, historical, high-grade gold prospects include Kettle Pond South and Lunch Pond prospects located near the LPSE Deposit and the Lucky Smoke (Quartz Pond) Zone located at the extreme north end of the highly prospective gold trend (see map upper right).
Based on exploration by previous operators, the Kettle Pond South Zone will be tested during Phase II drilling at the Glover Island property. Selected drill hole intercepts at Kettle Pond include, 6.62 g/t Au over 6.5m in hole KPS-2.
Additionally, historical exploration results suggesting excellent resource development potential along the GI-Trend include the following (from north to south along the GI-Trend; see map at upper right for location of each prospect):
- Jacamar Prospect (channel): - 8.96 g/t Au over 3.0m
- Keystone Prospect (channel): - 3.70 g/t Au over 4.0m
- Lucky Smoke Prospect (drill core); - 10.2 g/t Au over 8.0m
- Tomahawk Prospect (grab): - 22.00 g/t Au
- Tomahawk Prospect (grab): - 3.60 g/t Au
- Zone 2700 (drill core) - 1.1 g/t Au over 20.0m
- Zone 2700 (drill core) - 5.6 g/t Au over 2.8m
- Meadow Brook Prospect (channel): - 4.10 g/t Au / 3.8m
- Rusty Vein Prospect (channel): -11.2 g/t over 2.0m
- Rusty Vein Prospect (channel): - 6.80 g/t Au over 2.0m
- Discovery Vein: (channel): - 10.58 g/t Au over 3.6m
- Line 15 Prospect (drill core): - 3.50 g/t Au over 1.0m
- Lunch Pond North Vein: (drill core): - 1.10 g/t Au over 8.0m
- Lunch Pond Quartz Vein (channel): - 153.50 g/t Au over 1.4m
- Lunch Pond “C” Prospect (drill core): - 54.60 g/t Au over 1.2m
- Kettle Pond Brook (grab): - 20.00 g/t Au
The Company’s exploration strategy for Glover Island includes the delineation of further resource potential, near surface, along the entire length of the GI-Trend. The significant drivers in support of further exploration are the following three facts:
- the 16 prospects all occur along a narrow corridor forming the GI-Trend;
- these 16 prospects have been discovered along the GI-Trend despite less than 2% of the GI-Trend being exposed at surface; and,
- 13 of 16 of the prospects show evidence of high grade gold mineralization.
Property Location, Accessibility & Local Resources
The 2,550 hectares Property is located on the south-central portion of Glover Island. Glover Island measures approximately 40km long by 5.5km wide and is situated at the southern end of Grand Lake, the largest lake (135km long) in Newfoundland. The Island is situated ~30km southeast of the city of Corner Brook. Access is most easily afforded by helicopter from the town of Pasadena located ~40km to the north-northeast of the Property. Float plane access to Kettle Pond is also feasible. Boat and barge access is possible for the transportation of heavy equipment from Northern Harbour, around the northern tip of the island to a landing point on the east shore of the Island.
Mountain Lake constructed a 22 person all-weather field camp that is strategically located on the south shore of Kettle Pond near the center of the Island (photo above right) and power is supplied by 60kW diesel generator.
A 100% interest in the Glover Island Property was transferred to Mountain Lake Minerals pursuant to the acquisition of Mountain Lake Resources Inc. by Marathon Gold Corp. (see news release of July 9, 2012). A net smelter returns ("NSR") royalty is also payable upon commercial production.
Gold mineralization on the Property has similarities to orogenic, mesothermal style deposits in highly deformed greenstone belts worldwide. Gold is associated with discrete quartz veins with pronounced carbonate-silica-sericite altered zones superimposed on an earlier mineralization event characterized by wide (>100m) zones of pervasive silicification and variable potassic alteration. Both mineralization events are characterized by variably amounts (up to 5%) of auriferous pyrite occurring as aggregates, stringers and disseminations, and late stage quartz-carbonate-chlorite veinlets. The best grades occur in areas of greatest alteration intensity, ubiquitous structural deformation, multiple stages of brecciation and where multiple phases of mineralization (including silicification, multiple cross-cutting quartz veins, multiple quartz infill and pyrite content) is most prolific.
Dave Barbour, P.Geo., an independent geological consultant and Qualified Person as defined in NI 43-101, said: “In addition to working on the Glover Island Property the gold mineralization formed the basis of my Master of Science studies and in my opinion it’s the most overlooked project on the island of Newfoundland for its gold exploration potential.”
(Note: * On May 15, 2017, the BCSC determined that the Company's 2012 technical report did not meet compliance requirements as outlined under NI 43-101 guidelines and thus, any reference to this report is intended for historical information only. Furthermore, as a consequence of this determination by the BCSC, any reference to mineral resources shown on all diagrams on this website should be considered as either non-compliant or historical in nature until further notice.