Partners size up Valentine Lake (January 03, 2005)

Following nearly 7,000 metres worth of drilling in 24 holes, partners Richmont Mines (RIC-T) and Mountain Lake Resources (MOA-V) have tabled an inferred resource figure for their Valentine Lake property, 55 km south of Buchans, Nfld.

Based on a cutoff grade of 5 grams gold per tonne, the inferred resource figure is pegged at 1.3 million tonnes grading an uncut 10.5 grams gold. The average grade falls to 8.5 grams gold when high assay values are cut to 58 grams gold. A minimum true thickness of 3 metres was used in the calculation.

Most of the resource is found in the Main zone, specifically 968,988 tonnes grading an uncut 10.9 grams gold (8.3 grams cut grade).

The resource is contained in three parallel, mineralized zones, with the Main zone exhibiting the best continuity. That zone extends some 200 metres laterally, and is drill-indicated to a depth of more than 400 metres. The system remains open at depth and to the east.

Earlier this fall, drilling on the main zone was highlighted by a 5.2-metre section (all widths given are estimated true width) grading 34.2 grams gold per tonne, and 5.76 metres grading 31.66 grams gold.

Eleven holes totalling 3,048 metres tested two zones. The main gold zone has a 200-metre strike, varies from 3 to 12 metres in width, and extends down to at least 250 metres. It is still open at depth. Two hundred metres northeast of the main zone is a separate zone, which yielded up to 19.4 grams gold over 3.4 metres.

A couple of holes intersected multiple gold zones with significant gold grades in the range of 6-25.8 grams over 0.3-7.1 metres. Eight of the 11 holes contained visible gold. Four of these assayed up to 1.7-6.5 grams gold over 1-8 metres.

The latest round of drilling cost about $1 million and was funded by Richmont; the company is earning a 70% interest in the property from Mountain Lake by spending $2.5 million on exploration by the end of October 2007. Mountain Lake is itself earning a 100% interest from Noranda (NRD-T), which has retained a 1.5-3% net smelter return royalty. Some of the property is subject to a net profits royalty.

The property is home to a system of quartz-tourmaline veins containing high grades of gold, including intersections of 24 grams gold per tonne over 3.1 metres and 9.3 grams over 9.5 metres.

Richmont is currently working up an exploration program aimed at verifying extensions of the zones at depth and eastward. In all, the Valentine Lake property covers the favourable geological contact hosting the mineralized zone over a distance exceeding 40 km.