Mountain Lake drills gold at Valentine Lake property

A first phase of drilling at the Valentine Lake gold property in central Newfoundland has returned encouraging results for operator Mountain Lake Resources (MOA-V).

Mountain Lake is earning a half-interest in the property from Noranda (NOR-T), which entails spending $750,000 over four years. Of that amount, $150,000 must be spent by 1999 (T.N.M., Aug.10-16/98).

Seven holes tested the Valentine East and Leprechaun Pond zones, both of which were discovered by BP Minerals in the late 1980s. Five of the holes were collared at Valentine East; three, at Leprechaun Pond.

Highlights from Valentine East include two near-surface intervals of 5 metres averaging 2.2 grams gold per tonne and 1.8 metres grading 10.7 grams. Previous efforts were limited to trenching but returned up to 4 grams over 4 metres and up to 25.4 grams in grab samples.

At Leprechaun Pond, hole 6 hit two separate intervals of 6 metres grading 4 grams and 2.2 metres grading 14.9 grams. The hole was collared between two BP holes, which had returned 23 metres of 4.6 grams and 3 metres of 13.55 grams.

Though hole 7, which was collared 440 metres to the east, intersected the targeted horizon, grades were low. Above that horizon, however, two intervals of 2 and 1.6 metres assayed 2.04 and 3.1 grams, respectively. Both occur in 23.5 metres of iron carbonate-altered mafic intrusives situated between roughly 22.5 and 46 metres below surface.

Drilling in the new year will test the depth extensions of both zones as well as the strike extent of Valentine East. Also, several soil anomalies will be tested by geophysics.

In related news, Vaaldiam Resources (VRL-A) has signed an agreement with Mountain Lake to earn half-interests in all of that company’s diamond concessions, which are in South Africa’s Transvaal state. The deal calls for $1 million in exploration expenditures, funds for which must be raised by year-end.