Mountain Lake metal bet optioned by Joutel Res.

Two zones, one of which contains massive galena, sphalerite, pyrite and chalcopyrite with associated precious metal values in widths of up to 4 ft., have been reported on the 21-claim property. The property also contains a 350-ft shaft with three levels of development recording values as high as 30% lead, 10% zinc and 0.10 oz gold per ton.

A second zone, 2,000 ft south of the shaft, has already yielded values ranging as high as 0.58 oz gold, 13.9 oz silver, 4.6% zinc, 0.28% copper and 1.5% lead across 3.2 ft.

To earn its interest, Joutel has tentatively agreed to spend $1 million on exploration over four years and make cash payments of $250,000. The agreement also requires Joutel to make cash payments of $250,000 and issue 500,000 subordinate voting shares during a 3-year period after the deal is signed.

In return, Mountain Lake has granted Joutel the right to acquire 1,443,332 common shares of Mountain Lake during the option period at prices ranging from 30 cents to $1.25 per share. In addition, Mountain Lake would have the right to acquire an identical number of Joutel shares at similar prices.

When Joutel has exercised its option to earn 50% in the property, the companies will embark on a joint venture. But by subscribing to a $2-million private placement of Mountain Lake common shares at a price that has ye t to be determined, Joutel can eventually increase its stake in the property to 70% from 50%

Before drilling begins, a mapping and detailed geophysics program is planned for the property.

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