Mountain Lake secures water at Klipgat

Mountain Lake Resources (MOA-V) has drilled a well that has eliminated the need for water to be trucked into its Klipgat 18 alluvial diamond mine, now in production along the Mooi River in northeastern South Africa.

The 160-metre deep well provides a continuous flow of 5,000 gallons per hour, and the junior is drilling three more holes in search of additional water sources.

The operatorship of Klipgat has changed hands, with South African-based heavy-equipment operator B&E International replacing Joek Diamante.

In other news, Mountain Lake has become involved in its first kimberlite project with the signing of a preliminary agreement with South African-based Poortjie Consolidated Diamonds and Ashton Mining (Africa) for the exploration and development of a kimberlite pipe situated between the Koffiefontein and Jagersfontein diamond mines near Kimberley, South Africa. Under the agreement, Mountain Lake will issue 600,000 shares to Poortjie for 20% equity in the project. Ashton, to earn a 60% interest, must pay 1 million rand in cash to Poortjie, which will then hold the remaining 20% interest. Ashton must also finance the project to production, at which time the Australian major will serve as both mine operator and marketer. As well, a royalty of up to 15% is payable to the owner of the pipe’s surface and mineral rights.

A bulk-sampling program is expected to be completed in six months, at which time a decision to proceed to full feasibility will be made.