Mountain Lake Resources Inc. (TSX-V: MOA) ("Mountain Lake") and
Richmont Mines Inc. (TSX: RIC) (NYSE Alternext US: RIC)
("Richmont") report that they have entered into an agreement
granting Mountain Lake an option to purchase (the "Option")
Richmont's 70% interest in the Valentine Lake Gold Property (the
"Property") located in Central Newfoundland. Mountain Lake
currently owns a 30% interest in the Property.
Mountain Lake has agreed to pay an option fee to Richmont of
2,500,000 common shares of Mountain Lake at a deemed value of
$625,000, or $0.25 per share.
Mountain Lake may exercise the Option over a five-year period by
making option payments to Richmont for an additional $3,000,000 in
total, and by incurring $1,000,000 in exploration and development
expenditures on the Property within that timeframe. The option
payments may be in cash, or 50% in cash and 50% in Mountain Lake
common shares, at the sole election of Mountain Lake. The option
payments can be made in instalments by the second, third, and
fourth years of the five-year period. During the Option period,
$500,000 of the exploration and development expenditures on the
Property must be incurred by the end of the second year and the
remaining $500,000 must be incurred by the end of the fifth
year.
The transaction is subject to acceptance by the TSX Venture
Exchange on behalf of Mountain Lake.
"Securing the right to consolidate a 100% ownership interest in
an advanced gold exploration project like Valentine Lake is a
significant opportunity for Mountain Lake. The Property, with the
Leprechaun Pond deposit situated at kilometre (km) 3 and the
Valentine East prospect located approximately 13 km NE along
strike, boasts a total strike length of 29 kms that remains
significantly underexplored. Total drilling completed to date on
the Property since it was discovered by BP Resources in 1985 is
only 22,000 metres. By comparison, vein gold properties located in
the Val d'Or - Malartic gold belt in Quebec typically see 50,000 to
100,000, and up to 200,000 metres of drilling annually. We believe
the potential for new discoveries and resource expansion at
Valentine Lake is excellent and the project can now receive the
aggressive level of exploration it has long deserved," stated
Mountain Lake President and CEO, Gary Woods.
Martin Rivard, President of Richmont, said, "This transaction
enables Mountain Lake to take a lead role where it can focus its
resources and move more rapidly on the development of this project,
while we are still able to benefit as one of the largest
shareholders of Mountain Lake. We believe Mountain Lake is an
excellent strategic partner on this project as they have
demonstrated the knowledge, skill and interest in developing
Valentine Lake. In the meantime, we will increase our exploration
focus at our Beaufor and Island Gold Mines."
About the Valentine Lake Property
The Valentine Lake Property's Leprechaun Pond deposit hosts a NI
43-101 compliant inferred mineral resource of 1,314,780 tonnes
grading 10.50 grams per tonne (g/t) gold using a 5 gpt gold minimum
cutoff and a 3 metre minimum width. Cutting individual assays to 58
g/t gold, the average grade is 8.51 g/t gold, for a total estimated
mineral resource of 359,000 ounces of gold. The resource estimate
of the Valentine Lake property presented in the NI 43-101 Technical
Report dated January 12, 2005 was performed by Larry Pilgrim, P.
Geo. a Qualified Person (see: NI 43-101 Valentine Lake Technical
Report). Strong and extensive soil geochemistry over more than 20
km indicate excellent potential for additional gold discoveries to
be made on the property.
Project development efforts in 2008 focused on establishing a
road and upgrading existing roads totaling 40 km to provide access
to the Leprechaun Pond deposit. The road was completed to within
500 m of the deposit and is expected to be finished this Spring.
The road will eliminate the need for helicopters during future
exploration programs and provide access for heavy equipment needed
for large tonnage sampling in the future. The road will also
provide access to much of the property's 29 km strike length
including the Valentine East prospect located approximately 13 km
NE of the Leprechaun Pond deposit.
About Mountain Lake Resources Inc.
Mountain Lake Resources Inc. (TSX-V: MOA) is a diversified
junior mining and exploration company whose corporate strategy is
to build shareholder value through the exploration and development
of economically viable mineral properties. Current projects
include: a 30% interest in the Valentine Lake gold project
(Newfoundland) with an option to acquire the remaining 70% interest
in the project from Richmont Mines Inc.; a 100% interest in the
Bobby's Pond Base Metal Project (Newfoundland); a 13.07% stake in
Etruscan Diamonds Limited, an alluvial diamond operation (South
Africa); and an option to earn a 100% interest in the Little River
gold exploration property in Newfoundland).
For more information visit: www.mountain-lake.com
About Richmont Mines Inc.
Richmont Mines produces gold from its operations in Canada and
has extensive experience in gold exploration, development and
mining. Since it began production in 1991, the Company has produced
more than one million ounces of gold from its holdings in the
provinces of Quebec, Ontario and Newfoundland. Richmont Mines'
strategy is to cost effectively develop its mining assets, exploit
mineralized reserves on properties owned and acquired, or develop
partnerships to expand its reserve base. Richmont routinely posts
news and other important information on its website at:
www.richmont-mines.com.
This news release was prepared by the companies' management
teams, which assume full responsibility for its content. The TSX
Venture Exchange does not accept responsibility for the adequacy or
the accuracy of this release.
Martin Rivard Gary Woods
President and CEO President and CEO
Richmont Mines Inc. Mountain Lake Resources Inc.
National Instrument 43-101
This news release has been reviewed by Mr Gary Woods, P.Geo. a
qualified person designated by National Instrument 43-101.
Disclosure Regarding Forward-Looking Statements
This news release contains forward-looking statements that
include risks and uncertainties. The factors that could cause
actual results to differ materially from those indicated in such
forward-looking statements include changes in the prevailing price
of gold, the Canadian-United States exchange rate, grade of ore
mined and unforeseen difficulties in mining operations that could
affect revenues and production costs. Other factors such as
uncertainties regarding government regulations could also affect
the results. Other risks may be detailed in Mountain Lake
Resources' and Richmont Mines' Annual Information Form, Annual
Report and periodic reports.
Cautionary Note to U.S. Investors Concerning Resource
Estimates
The resource estimate in this news release is prepared in
accordance with Regulation 43-101 adopted by the Canadian
Securities Administrators. The requirements of R 43-101 differ
significantly from the requirements of the United States Securities
and Exchange Commission (the "SEC"). In this news release, we use
the terms "measured", "indicated" and "inferred" resources.
Although these terms are recognized and required in Canada, the SEC
does not recognize them. The SEC permits U.S. mining companies, in
their filings with the SEC, to disclose only those mineral deposits
that constitute "reserves". Under United States standards,
mineralization may not be classified as a reserve unless the
determination has been made that the mineralization could be
economically and legally extracted at the time the determination is
made. United States investors should not assume that all or any
portion of a measured or indicated resource will ever be converted
into "reserves". Further, "inferred resources" have a great amount
of uncertainty as to their existence and whether they can be mined
economically or legally, and United States investors should not
assume that "inferred resources" exist or can be legally or
economically mined, or that they will ever be upgraded to a higher
category.
Distributed by Filing Services Canada and retransmitted by
Marketwire
For more information: Richmont Mines Inc. James Culligan
Investor Relations Kei Advisors LLC Phone: 716-843-3874 E-mail:
Email Contact Trading symbol: RIC Listings: TSX - Amex Web Site:
www.richmont-mines.com Mountain Lake Resources Inc. Greg Lytle
Corporate Communications Phone: 866-285-5817 E-mail: Email Contact
Trading symbol: MOA Listing: TSX Venture Exchange Web site:
www.mountain-lake.com Mountain Lake Resources Inc. Purdy's Wharf,
Tower 1 1700-1959 Upper Water St. Halifax, NS B0P 1T0 Canada
Richmont Mines Inc. 1 Place-Ville-Marie Suite 2130, Montreal QC H3B
2C6 Canada
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