Mountain Lake Resources - Valentine Lake

Valentine Lake Project
Little River Project
Etruscan Diamonds
Bobby's Pond Project

Valentine Lake

The Valentine Lake Gold Property is located in central Newfoundland, ~55 kilometres(km) south of the town of Buchans. The Property consists of four (4) mineral licenses covering a total area of 13,475 hectares.

The Leprechaun Pond deposit, the largest undeveloped gold deposit in Newfoundland (see resource estimate details below), is situated at ~kilometre 3 of the Property's overall geological structure that has been delineated by soil geochemical surveys to extend for 29 km in a north-easterly strike.

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Project Status

On February 19, Mountain Lake and its joint venture partner Marathon PGM Corp. (TSX: MAR) ("Marathon") announced encouraging initial results from the ongoing drill program on the Property to evaluate the potential for developing an open pit mine. Analytical results reported included a wide interval of gold mineralization near surface in the area of the Leprechaun Pond Deposit, and the presence of visible gold in drill core from 5 holes not yet reported. Click on the link below to read the full news release of February 19, 2010.

Highlights from the initial results:

hole VL-10-139 intersected 3.94 grams per tonne (g/t) gold (Au) over 9.0 metres (m) at a depth of 50 m below surface

hole VL-10-137 hit the top of the Main Zone on section 10,000

hole VL-10-138 intersected 2.97 g/t Au over 9.38 m at a depth of 70 m below surface

3.92 g/t Au over 2 m and quartz veining in hole VL-10-138 validates the upside potential of sediments as a previously little tested host rock

the Leprechaun Deposit is to date the only resource defined within the entire 30 kilometre (km) strike length of Valentine Lake

see photo of the visible gold in drill core from hole VL-10-145 upper right

the Leprechaun Deposit drilling map can be viewed by clicking here

The focus of the drilling is to test the plane of the mineralized horizon at 30 to 40 metre spaced intervals on each 25 metre spaced section and the pattern of the drill holes will be offset by 15 to 20 metres from section to section producing a diamond shaped pattern on the horizon. This is the most cost efficient method to evaluate the resource.

Project Access

The Property can be accessed by way of a 75 km gravel road from Millertown via the Buchans Highway and the Company completed 20 km of road work in the Fall of 2008 to connect the area of the Main Gold Zone to the gravel road.

Ownership

On December 23, 2009, Mountian Lake and Marathon PGM Corporation (TSX: MAR) announced an option and joint venture agreement granting Marathon a sub-option to earn a 50% interest in the Valentine Lake Property. Mountain Lake currently owns a 30% interest in the Property and has an exclusive option (see news release of February 11, 2009) to purchase the remaining 70% interest (the “Richmont Option”) from Richmont Mines Inc. (TSX: RIC) and consolidate 100% ownership in the Property. Marathon can earn the 50% interest by assisting Mountain Lake in exercising the Richmont Option, through total option payments of $3,000,000 in installments over the next three years and incurring a total of $3,000,000 in exploration and development expenditures on the Property over the next three years.

Current Resource Estimate

According to the latest resource estimate (Jan 12, 2005 when the spot gold price was $425 per/oz), the Property's Leprechaun Pond Deposit hosts a NI 43-101 compliant inferred mineral resource of 1,314,780 tonnes grading 10.5 grams per tonne (gpt) gold using a 5 gpt gold minimum cut-off and a 3 metre minimum width for a total estimated mineral resource of 443,000 ounces of gold. Cutting individual assays to 58 gpt gold, the average grade is 8.51 gpt gold, for a total estimated mineral resource of 359,000 ounces of gold at the cut grade. The Deposit is open at depth and in all directions.

Potential

“We are extremely pleased to have the opportunity to join forces with an aggressive partner at Valentine Lake and welcome the expertise and enthusiasm Marathon brings to the project. Examining the project’s open pit potential, particularly with the improving gold price, brings a new dimension to the property’s existing resource and other bedrock prospects over a 14 kilometre strike length,” said Gary Woods, Mountain Lake’s President and CEO.

“In my 30 plus years of gold exploration and mining experience, the resource development potential of Valentine Lake ranks as one of the best opportunities I have seen in Canada. Mountain Lake’s experience and knowledge of the Property will play an integral role in future exploration,” said Phillip Walford, Marathon’s President and CEO. “We took the Marathon Project from resource drilling to feasibility in less than four years. Our exploration team that brought success at Marathon is focused on repeating that achievement at Valentine Lake.”

NI 43-101 Technical Report - Exploration Summary March 2009

NI 43-101 Technical Report - Resource Estimate January 2005